Cheltenham’s Pennant announces improved performance in year-end results

Cheltenham-based training technology provider Pennant International Group has announced improved performance in its year-end financial results for 2022, with an increase in gross profit margin and reduction in losses.

Pennant announced loss before tax of £1.4 million in 2022, compared to a loss before tax of £2.5 million in 2021. This is despite revenues reducing to £13.7 million from £16 million, with changes in the group’s business mix raising its gross profit margin to 42 per cent, from 27 per cent in 2021.

Operational highlights for the year include an £8.8 million contract from Boeing Defence UK Limited, and the delivery and full device acceptance on the £3.5 million UK Helicopter programme.

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Phil Cotton, Chair, said: "I am pleased to report that the Group has delivered a much-improved performance in the year ended 31 December 2022, with profitability in-line with market expectations despite reduced revenues, achieving an EBITA profit of £0.5 million for the year (2021: EBITA loss of £0.8 million) and an EBITDA profit of £1.0 million (2021: EBITDA loss of £0.1 million).

“The improved performance was primarily the result of the progress made towards our technology and software transformation, coupled with the completion of the legacy engineered solution contract. The Group's ongoing focus on increasing revenues from software and technical services is reflected in these results, and generated revenues totalling £10.2 million in 2022 (2021: £9.1 million)."

"Over the last financial year, the business has become more resilient as we continue to deliver on the critical objective of increasing visibility and recurrence of earnings, especially those derived from software and technical services.

“The global economic and geo-political environment and supportive strategic backdrop for Pennant's capabilities means that the Board believes that the Group's underlying strengths - our long-term customer relationships with governments and major OEMs, our specialist services together with our quality-assured reputation -  provide solid foundations for continued recovery and long-term success."

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