AIM-listed training technology company Pennant International Group has recorded a "much improved performance" in its final results for the year.
The Gloucestershire business, which specialises in training technology for aviation industry announced its final results for the year, reporting that group revenues were down by £2.3m at £13.7m and the firm had earnings of £500,000.
Pennant therefore recorded a loss of £1.4m compared to a loss of £2.5m from the previous year.
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Chair Phil Cotton 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 £0.5m for the year (2021: EBITA loss of £0.8m) and an EBITDA profit of £1.0m (2021: EBITDA loss of £0.1m).
“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 £10.2m in 2022 (2021: £9.1m).”
During the year Pennant secured a contract with Boeing Defence UK Limited for the upgrade of UK Apache training equipment, worth £8.8m over three years, with the initial engineering milestone event successfully passed. In addition to seeing delivery and dull device acceptance achieved on the £3.5m UK Helicopter programme and selling a surplus freehold site in August for £2.1m with proceeds used to paydown borrowings.
Mr Cotton added: "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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