A Gloucestershire company has secured a multi-million pound contract to support the upgrade of training devices for the British Army’s fleet of Apache helicopters.
Pennant International Group, based in Staverton near Cheltenham, is a global supplier of training technology to the aerospace and defence sectors.
The Aim-listed group has announced it has been formally awarded the £8.8m contract by Boeing Defence UK, as part of the UK Apache Mk II programme.
Pennant said that being an “engineered-to-order” programme, the associated revenue would be recognised over the next three years on a “cost-to-complete” basis.
The firm said the payment plan agreed with Boeing over the course of the contract should mean no additional working capital facilities would be required.
The deal comes as Pennant said it had finalised and signed contracts to supply software to another new customer, in the North American commercial aerospace market.
Pennant said this contract was worth around US$1.8m (£1.3m), comprising software licences to be supplied this financial year, consultancy services and a multi-year maintenance package.
The group is looking to increase the proportion of its revenues from civilian customers, which was further boosted in January when it secured around £200,000 in new orders from UK rail industry customers.
Pennant has also received an order worth up to £250,000 from UK Defence for the supply of its rotary-wing aircraft systems training software and related maintenance service.
The series of deals has seen the value of Pennant’s three-year order book grow to £32m, of which circa £13m is scheduled for delivery this year and £12m in 2023.
Pennant chief executive Phil Walker said the contract wins provided “an excellent start” to the current financial year and were helping to build “firm foundations” for the firm’s future growth.
As well as its head office near Gloucestershire airport, Pennant has UK bases in Fareham, Hertfordshire and Manchester, and in Australia, Canada and the US.
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