Cheltenham's Pennant International upbeat on prospects as it posts H1 results

Cheltenham-headquartered Pennant International, which provides systems support and training solutions to the aerospace and defence sectors, said it was on track to meet market expectations for the year.

Releasing its interim results for the six months to end June, the firm said that while it addresses the short-term challenges of restructuring and re-positioning, it remained "firm" in its strategic direction and the growth opportunity it was targeting.

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Chairman Ian Dighé told investors: "I am pleased to report that the group has maintained positive earnings before interest, taxation and amortisation for the first half."

"We remain firm in our strategic direction, and with the impending launch of our Auxilium software suite, we believe we are well-placed to deliver growth.

"The necessary restructuring of the group's training systems business will allow us to focus on longer-term opportunities for our software, systems and services offerings in the defence space and beyond."

Pennant recorded revenues in the six months of £7.4 million (H1 2023: £7.1 million), which generated adjusted EBITA of £0.6 million (H1 2023: £0.6 million). The gross profit margin was 48% (H1 2023: 47%) .

The adjusted pre-tax loss came in at £0.4 million which compared with a pre-tax loss of £0.3 million in the first half of 2023.

"The group has contracted revenue for the full year in the region of £13 million, and has a high level of confidence of generating revenue of not less that £0.5m in the fourth quarter, and on that basis the board considers that the group is currently on track to meet market expectations for the year as a whole," it added.