Pennant international “Outlook is clearly excellent” WH Ireland Nick Spoliar

Pennant international Group Plc (LON:PEN) is the topic of conversation when we caught up with WH Ireland Director of Institutional Research Nick Spoliar.

Nick we see you published a new note on Pennant International, what were the key points investors should note?

We view the IR23 defence review as positive for Pennant in its broad themes. The defence establishment, given the financial constraints, effectively will need to do more with less. Pennant’s software / training equipment, designed to enhance maintenance and the life-cycle of expensive hardware, supports doing exactly that. Other IR23 (and IR21) themes are: constant preparedness (also a positive for Pennant) and agility (in our opinion, clearly plays to software which is a growing proportion of Pennant’s revenues).

How have your forecasts for Pennant changed?

We have added a forecast for FY24E for the first time. The forecast is progressive in profit terms (FY24E PBT forecast +17% YoY), not in overall revenue terms. The reason is that the mix change into software with higher margin software business forming a higher proportion of the whole enables Pennant to generate more profits from fewer revenues. 

How do you see the outlook for the company?

The overall outlook is clearly excellent given Pennant’s status as a provider of essential equipment to (among others) a range of defence-orientated OEMs at a time when defence is a more important UK government and global concern than it has been for 40 years.  At the same time, Pennant’s shift towards software (underpinned by a secular shift in its clients’ needs and aspirations) is helpful, while also generating a greater degree of repeat earnings (c.50% currently). This is a major strategic driver for the company, which is seeing more granular contracts in its bid pipeline, at higher margins, and fewer large, lumpy and less profitable equipment contracts.  We expect a positive update from the company about all these themes when they report FY22E in a month’s time, following on from the recent positive trading update.

Pennant International Group plc is a leading global provider of technology-based maintainer training and integrated product support solutions. With innovation being a core strategy for growth, the business can offer a diverse range of products and services, resulting in fully integrated turn-key solutions.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Share on twitter
Share on linkedin
Pennant International plc

More articles like this

Pennant International plc

Pennant International partnering with Air and Space Institute

Pennant announced it is partnering with the Air and Space Institute (ASI) to support the delivery and expansion of ASI’s world-class training programmes to aspiring professionals in the aviation and space sectors. Through this partnership, Pennant will provide

Pennant International plc

Pennant Rail’s acquisition of Track Access Productions

Track Access Productions Limited (TAP) is an established and respected name in the railway industry for all things Route Learning. The small business, based in Leighton Buzzard, provides services including driver briefing, mapping and route learning via a

Pennant International plc

Data Transfer Utility (DTU)

The OmegaPS™ Data Transfer Utility (DTU) is provided as a means of bulk loading data into the OmegaPS LOAD Tables for subsequent validation and insertion to the live OmegaPS database. The OMEGAPS DTU allows users to construct LSAR

Pennant International plc

Pennant Studio Services

Pennant’s Studio Services is a collective of highly skilled artists, developers, technical authors, translators, and varied industry experts. The department covers 2D & 3D Design, VR Media Development, Film and Media Production, E-Learning and CBT, Illustration, Authoring, Copywriting

Pennant International plc

OmegaPS – From Acquisition to Support

OmegaPS™ is based on International Standards and Specifications that are typically invoked during the acquisition phase of complex assets.  Integrated Logistics Support as a discipline evolved around the idea of ensuring complex assets are designed with supportability as

Pennant International plc

Gloucestershire firm swoops for rail training specialist

Training and software firm Pennant International has acquired a rail specialist firm for almost £1m. The Cheltenham firm has acquired Track Access Productions also known as TAP. Based in Bedfordshire, TAP was established in 2001 and provides driver

Pennant International plc

Pennant buys UK rail services business, Track Access

Cheltenham-based training tech provider Pennant International Group has acquired UK rail services business Track Access Productions. Pennant said the acquisition consideration, which is being funded from Pennant’s existing cash, comprises an enterprise value of £585,000, plus around £389,000 in respect of

Pennant International plc

Pennant International full year results out 26 April 2023

Pennant International Group plc (LON:PEN), a leading global provider of training technology and integrated product support solutions, will announce full year results for the year ended 31 December 2022 on Wednesday, 26 April 2023.

Pennant International plc

Pennant powers up its rail business

Pennant International Group, a leading global presence in training tech and integrated product support solutions, has bought Track Access Productions Ltd.  Against a backdrop of robust orders and profit, the move promises a projected 2023 revenue boost of

Pennant International plc

Business Rules Development

It has been proven that working with a detailed Business Rules EXchange (BREX) module enhances communication when delivering data for a project.  The projects expectations are clearly defined when there is a well written BREX and Business Rules (BR). The Pennant

Pennant International plc

Pennant Rail

Pennant has over 60 years’ experience working with rail industry primes and their supply chain, adding value through experience, capability and versatility, offering limitless potential for information transfer. The addition of Track Access Services to the group has

No more posts to show