Pennant International “massive progress being made by the business” (LON:PEN)

Pennant International Group plc (LON:PEN) Chief Executive Officer Phil Walker caught up with DirectorsTalk to discuss the highlights from their trading update, how FY23 is shaping up and the impact the current macro environment in the defence sector will have on the group.

Q1: Phil, just looking at the update, it outlines an improved trading performance for Pennant International, what would you say are the highlights?

A1: It’s a great update for us. As a business, we set ourselves the objectives in 2022 to try and achieve a breakeven performance at £16 million in revenue. I’m afraid to say we failed, instead we have achieved profitability at £14m which is fantastic.

I think the key point to note is that the results demonstrate that the technology and software transformation that we’ve been implementing is now coming though in the performance. EBITA profitability has now been delivered in three consecutive half years which is a big step in the right direction and I’m pleased to say that momentum is definitely building.

I think the other point to note is that coupled with the improved performance, and probably more important is the group’s cash position, the trading update outlines a £3.1 million positive cash swing over the period to £0.4 million of net debt at year end. This was expected but nevertheless it illustrates the massive progress being made by the business.

Q2: How is FY23 shaping up for the group so far?

A2: I would sum it up as being cautiously optimistic. Our strategy around software continues to have a really positive impact with margins, and perhaps they’re improving more quickly than I envisaged. This change in the sales mix coupled with controlled cost base means that the momentum I spoke about a short time ago generated is really continuing through 2023.

This is enhanced by our order book. Our contracted order book announced is nearly 80% of our revenue for the year, this is very encouraging and provides great visibility for FY23.

I would note that probably the last 5 years, the company has managed to secure somewhere in the region of £2-£3 million per annum of ad hoc work in the year. So, with the contracted order book of £13 million plus £2-3 million of ad hoc work being typical, the market expectations looks achievable this year.

Q3: The defence sector, both in the UK and overseas, continues to receive significant press coverage. What impact do you think the current macro environment will have on Pennant International?

A3: It’s a great question. I think the company marks its 65th anniversary and we’ve been operating as a business in the defence sector for almost all of our history. That said, the macro environment clearly is changing and it’s conducive to the group’s capabilities. The increase in the need to manage data, maintain complex equipment, invest in new capabilities aligns neatly with our core capabilities and our strategy.

As a business, we’ve been experiencing significant activity in the UK, probably better than any time when I have been at Pennant, and having just returned from Australia, I can testify to similar activity levels in that market also. I’m off to North America at the end of this month and I know it’s the same there.

So, I’d surmise by saying the backdrop for the company is very positive and we feel well placed to take advantage.

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 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

Pennant International plc

GenS – The next generation of IPS solutions

The Pennant IPS Division has developed ground-breaking software to take product support to a whole new level. Pennant’s next generation of LSA technology GenS, when combined with the R4i Suite will transform Integrated Product Support requirements into a

Pennant International plc

Dramatic shift in gross margin

Pennant International’s FY22E update this morning highlights a c.£1.3m positive swing in profitability to a c.£0.5m EBITA number, reflecting in turn a number of good developments, including an encouraging revenue mix change and increased repeat earnings as well

Pennant International plc

Women Of Aviation Week 2023

How Women Of Aviation Week was founded Women were not on aviation’s radar in 2009 In late 2009, Mireille Goyer, an airline-rated pilot and aviation educator, conducted a search for planned events to celebrate the 100th anniversary of

Pennant International plc

Celebrating 65 years of Pennant

Pennant is proud to celebrate 65 years of providing our technology-based training solutions and Integrated Product Support (IPS) software and services to our valued customers. The Group’s CEO, Philip Walker ACA BA (Hons) said “We are very proud of our

Pennant International plc

Pennant International appoints Philip Cotton as Chair

Pennant International Group plc (LON:PEN), a leading global provider of training technology and integrated product support solutions, has announced the appointment of Philip Cotton (64), independent non-executive director (who has been acting as interim Chair since October 2022),

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

Real sense of momentum at training tech firm

A Cheltenham-headquartered provider of training technology and integrated product support has entered 2023 with a “real sense of momentum”, according to its chief executive. Pennant International Group was established more than 60 years ago and operates worldwide, with

Pennant International plc

Pennant International changes reflected in performance (VIDEO)

Pennant International Group plc (LON:PEN) CEO Phil Walker joins DirectorsTalk Interviews to discuss a trading update ahead of publication of the Company’s full-year results for the year ended 31 December 2022. Phil talks us through the update highlights, explains

Pennant International plc

Pennant American collaborates with MHI RJ Aviation Group

MHI RJ Aviation Group and Pennant America Inc, a Pennant International company have recently signed a collaboration agreement to offer complementary technical publications services. Both entities bring strong experience in their respective field of expertise. MHIRJ has 30+ years of

Pennant International plc

Pennant International achieves record gross margin of 42%

Pennant International Group plc (LON:PEN), a leading global provider of training technology and integrated product support solutions, has provided the following trading update ahead of publication of the Company’s full-year results for the year ended 31 December 2022

Pennant International plc


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

Oracle: Upgrade of 1450 Forms to level 12c

Testimonial: Chris Mair, General Manager at Pennant International Ltd Fareham The OmegaPS LSAR Software suite is an Internationally recognised industry strength Integrated Logistic Support (ILS) application, developed over 28 years and include additions of functionality and further compliance

Pennant International plc

Pennant International announces Deborah Wilkinson to join its Board

Pennant International Group, a company that specializes in providing training technology and integrated product support solutions, has announced the appointment of Deborah Wilkinson as a Non-Executive Director effective February 1, 2023. Ms. Wilkinson is a chartered accountant who

Pennant International plc

Generic Hand Skills Trainer (GenSkill)

The Generic Hand Skills Trainer (GenSkill) is a free standing physical prepresentation of a typical Flying Control Run. The Mark 2 builds and enhances on the training capability of the standard GenSkill training device by introducing a functioning

Pennant International plc

Technical training solutions

Pennant’s technical training division is a global, leading provider of technology-based training solutions to the Defence, Aerospace and safety critical industries. Over recent years, the Group’s offering has expanded into civil markets with the alignment and mapping of

No more posts to show