Pennant International acquires rail services business, Track Access Productions

Pennant International Group plc (LON:PEN), a leading global provider of training technology and integrated product support solutions, has announced that it has acquired the entire issued share capital of Track Access Productions Limited.

About TAP

·    Based in Bedfordshire, TAP was established in 2001 and provides driver training, route mapping and route familiarisation services to the UK rail industry. Clients comprise train operating companies, freight operating companies, engineering prime contractors and infrastructure providers.

·    Revenues are generated through a subscription-based web portal and through project-specific route mapping services.

·       For the financial year ended 31 March 2023 (“FY23“), TAP’s management accounts indicate:

o revenues of circa £600,000 (FY22: £481,000) of which 50% is recurring, relating to portal subscriptions; and

o  profit before tax (“PBT“) of circa £200,000 (FY22: PBT of £180,821).

·     The vendors, Ian and Jill Heys, the founders and owner/managers of TAP, will work a short transitional period to ensure a smooth handover. The rest of TAP’s employees and consultants are expected to remain with the business.

Summary of the key terms of the Acquisition

·      The consideration payable in respect of the Acquisition comprises an enterprise value of £585,000, plus an amount of circa £389,000 in respect of TAP’s ‘free cash’ after allowing for normalised working capital and repayment of debt (“Cash Free, Debt Free Adjustment“).

·      The initial consideration payable is circa £798,500 (being 70% of the enterprise value, i.e. £409,500, plus the Cash Free, Debt Free Adjustment).

·       A completion payment of £638,610 has been settled, based on verified estimates of the Cash Free, Debt Free Adjustment, with a balancing payment of circa £160,000 within the next two months following the production of completion accounts (to allow for any correction of estimates).

·    The balance of the overall consideration, comprising a deferred payment of £175,500 (being the remaining 30% of the enterprise value) is due 12 months after completion.

·     The acquisition agreement contains customary warranties and indemnities in respect of title, tax and various commercial matters as well as buyer protections in the form of restrictions on the future activities of the vendors and rights of setoff.

·       The Acquisition is being funded entirely from the Group’s existing cash resources.

Benefits of the Acquisition

·       TAP’s business aligns closely with Pennant’s existing Track Access business unit and the Acquisition will consolidate the Group’s presence in this market. The combined unit is expected to generate revenues for 2023 in the region of £850,000 and will be able to provide an enhanced offering to a broader customer base.

·       The Acquisition also aligns with the Company’s strategy, in particular it enhances the Group’s recurring revenues, further diversifying into civilian markets, whilst bolstering the Group’s ‘third pillar’ of rail products and services, complementing the Group’s traditional core of IPS software and training technology.

Phil Walker, Group CEO, commented: “I am delighted to confirm the acquisition and to welcome the TAP team into the Pennant Group. TAP is an excellent business with a long-standing, trusted reputation in the UK rail market and we look forward to working together to integrate TAP into Pennant’s growing rail offering.”

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 is exhibiting at DEFSEC

DEFSEC (Defence Security and Aerospace Exhibition Atlantic) is presented by the Atlantic Canada Aerospace & Defence Association, is a major networking opportunity for the Aerospace, Defence and Security industries – the second largest of its kind in Canada. Pennant

Pennant International plc

Why do some people ask for an S1000D IETM and others for S1000D IETP?

To define an IETM and IETP: An Interactive Electronic Technical Manual (IETM) is a technical manual (e.g. maintenance, user, training, operations, etc) prepared or “authored” in digital form on a suitable medium, by means of an automated authoring system, designed

Pennant International plc

Aquila Learning and Pennant announce partnership

Cheltenham-based IPS software and services company Pennant International Group and Oxford-based Aquila Learning Ltd have signed a strategic partnership to collaborate on a number of projects. These include the integration of the ALaRMS – Aquila Learning (and Requirements

Pennant International plc

Pennant International & Aquila Learning announce partnership

Pennant International Group plc and Aquila Learning Ltd have signed a strategic partnership to collaborate on a number of projects, including the integration of the ALaRMS – Aquila Learning (and Requirements /Resource/Record) Management System into the market leading

Pennant International plc

Pennant International attending DSEI, at ExCeL, London

Pennant International Group plc (LON:PEN), the IPS software and services company, has announced that it will be attending the international defence and security exhibition, DSEI, at ExCeL, London, between 12 and 15 September 2023.  Pennant will be pleased

Pennant International plc

Defense – ASD S1000D and MIL-STD’S

Defense Departments and their Operating Equipment Manufacturers (OME) rely on accurate data in the design, build and management of their mission critical assets. Whether you’re producing defense-compliant ASD S1000D technical documentation, MIS-STD technical manuals or developing maintenance schedules,

Pennant International plc

Virtual Parachute Training System (VPTS)

The award winning* Virtual Parachute Training System (VPTS) is an immersive training system capable of supporting initial canopy control training and malfunction recognition through to mission planning and rehearsal. Key features: Mission planning and rehearsal Pre-set scenarios Pre-Jump parachutists brief from

Pennant International plc

Pennant Technical Services and Support

Pennant takes a “Through Life Support” approach to Technical Services and Support for both Pennant and third-party training systems in the regulated sectors. Pennant can plan, implement and manage every stage of your support life cycle. Their dedicated

Pennant International plc

UK Industrial Participation – Pennant International

Boeing would not be able to deliver its leading-edge platforms and services without the support of a dedicated and diverse local supply chain. Boeing has spent over £12.3bn with UK supply chain since 2015. We also have the

Pennant International plc

Aviation specialist wins series of new contracts

A Gloucestershire software firm ha said it has won a series of major contracts. Pennant International, which provides software and training to the aerospace and  aviation industry, said trading is in line with management expectations in an update.

Pennant International plc

Gloucestershire tech firm Pennant announces positive trading momentum

Cheltenham-based training technology provider Pennant International Group has reported “positive trading momentum” in its financial results for the first half of the year. The firm, which specialises in training technology for the aviation industry, reported revenues for the first half

Pennant International plc

Positive trading update from Pennant

Staverton-based Pennant International Group plc has provided a ‘positive’ trading update for the past six months. The IPS software and services company has given a preliminary unaudited assessment of the group’s trading to June 30. Revenues are set

No more posts to show