Pennant International (PEN) AI Stock Analysis

• Market Cap: £9.51M
• Dividend Yield: N/A
• Average Volume (3M): 89.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: -31.21%
• EPS Growth: -292.31%
• Country: UK
• Employees: 121
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.05
• Shares Outstanding: 47,557,533
• 10 Day Avg. Volume: 124,140
• 30 Day Avg. Volume: 89,027
• PEG Ratio: -0.03
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -269.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: 22.00p ▲(10.00% Upside)

The overall stock score is driven by weak financial performance and technical indicators, offset by positive corporate events. The company's ongoing financial challenges and negative valuation metrics weigh heavily on the score, while recent strategic moves provide some optimism for future stability.

Positive Factors

Business Model Strength

A diversified revenue model with product sales, licenses, and service contracts provides stability and resilience against market fluctuations.

Market Position

Strong partnerships with government and defense sectors ensure long-term contracts and recurring revenue, bolstering market position.

Innovation and Adaptation

Commitment to innovation and adapting to industry trends enhances competitive edge and opens new revenue opportunities.

Negative Factors

Profitability Challenges

Ongoing profitability issues hinder financial stability and growth potential, requiring strategic improvements for long-term success.

Negative Cash Flow

Negative cash flow impacts liquidity and limits the company's ability to invest in growth opportunities, posing a risk to sustainability.

Declining Revenue

A decline in revenue indicates potential market challenges and could affect the company's ability to maintain its competitive position.

Pennant International Business Overview & Revenue Model

Company Description

Pennant International Group plc provides integrated training and support solutions, products, and services in the United Kingdom, rest of Europe, the Middle East, North America, and Australia. It offers generic trainers, such as generic fastener installation, hand skill, stores loading, and flying controls trainers; basic helicopter maintenance trainers; hydraulic system principles trainers; integrated avionics maintenance trainers; crew escape and safety trainers; and engine starting system trainers, as well as wiring boards. The company also provides virtual reality (VR) solutions, including virtual loadmaster and parachute training systems; virtual reality shunter trainers; and synthetic environment cargo compartment and procedural trainers. In addition, it offers engineered solutions, as well as emulation and simulation solutions comprising basic principles switching simulators, virtual aircraft training systems, and avionics and electrical system emulators. Further, the company provides technical training services and support; and studio services, including 2D and 3D design, VR media development, film and media production, E-learning and CBT, illustration, authoring, copywriting, and translation. Additionally, it offers track access portal, railway survey, signal sighting, rail simulation, and driver training products and services; and integrated product support/integrated logistic support software and services. The company serves the defense, rail, aerospace, and naval sectors, as well as government departments. Pennant International Group plc was founded in 1958 and is headquartered in Cheltenham, the United Kingdom.

How the Company Makes Money

Pennant International generates revenue through multiple channels, including the sale of software licenses, ongoing software maintenance and support services, and consultancy services related to training and simulation. The company also derives income from long-term contracts with defense and aerospace organizations, which often include custom development projects that cater to specific client needs. Significant partnerships with government agencies and defense contractors further bolster their revenue streams, as these collaborations often involve multi-year contracts and project-based work that provide a steady income. Additionally, Pennant International may benefit from participation in industry-specific grants and funding initiatives aimed at advancing defense technologies.

Pennant International Financial Statement Overview

Summary

Pennant International's financial health is under pressure with challenges in achieving profitability and generating positive cash flow. While the balance sheet shows moderate leverage, declining shareholder equity and assets raise concerns. Improving cash flow management and reversing revenue and profit declines are critical for future stability.

Income Statement

Pennant International has experienced fluctuating revenue growth with a recent decline from $15.54M in 2023 to $13.78M in 2024. The company has struggled with profitability, evidenced by consistent net losses and negative EBIT and EBITDA margins. Although gross profit margins have improved slightly, overall profitability remains a concern.

Balance Sheet

The balance sheet shows a moderate level of stability with a debt-to-equity ratio of 0.47, which is relatively healthy. However, the continuous decline in stockholders' equity and total assets indicates potential financial stress. The equity ratio is around 52.3%, suggesting moderate financial leverage but declining shareholder equity over the years is concerning.

Cash Flow

Cash flow analysis reveals challenges in generating positive free cash flow, with negative figures in recent years, impacting liquidity. The operating cash flow to net income ratio is positive and indicates some ability to convert net income to cash, but overall cash flow performance is weak with significant fluctuations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.89M	13.78M	15.54M	13.69M	15.96M	15.06M
Gross Profit	4.55M	5.26M	7.73M	4.27M	2.99M	3.24M
EBITDA	-2.50M	-594.00K	1.50M	-966.00K	-2.07M	-1.16M
Net Income	-4.40M	-2.58M	-933.00K	-901.00K	-1.61M	-2.63M
Balance Sheet
Total Assets	12.79M	15.94M	18.71M	19.79M	21.63M	22.76M
Cash, Cash Equivalents and Short-Term Investments	674.00K	1.04M	1.10M	1.11M	901.00K	1.44M
Total Debt	3.31M	4.07M	3.90M	2.09M	5.18M	3.81M
Total Liabilities	6.53M	7.59M	8.89M	9.10M	10.48M	10.23M
Stockholders Equity	6.26M	8.34M	9.82M	10.70M	11.14M	12.53M
Cash Flow
Free Cash Flow	-823.00K	-42.00K	-463.00K	1.36M	-1.23M	1.74M
Operating Cash Flow	-800.00K	181.00K	1.29M	2.57M	-127.00K	3.15M
Investing Cash Flow	343.00K	-1.62M	-2.32M	359.00K	-1.63M	-2.19M
Financing Cash Flow	-27.00K	1.14M	-174.00K	-183.00K	-249.00K	-232.00K

Pennant International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PEN, the sentiment is Negative. The current price of 20 is below the 20-day moving average (MA) of 20.74, below the 50-day MA of 21.29, and below the 200-day MA of 25.87, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 34.84 is Neutral, neither overbought nor oversold. The STOCH value of 50.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PEN.

Pennant International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARC	70 Outperform	£11.17M	11.83	11.10%	0.05%	6.76%	-11.53%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CKT	57 Neutral	£22.68M	-7.32	-29.25%	―	10.00%	34.02%
BIRD	49 Neutral	£10.99M	-3.93	-32.98%	―	-9.19%	4.69%
PEN	47 Neutral	£9.51M	-1.96	-52.41%	―	-31.21%	-292.31%
ZOO	47 Neutral	£10.82M	-2.06	-32.23%	―	-7.72%	54.13%
CRDL	45 Neutral	£13.83M	-33.55	-14.44%	―	7.86%	70.77%

Pennant International Corporate Events

Pennant International’s Director Transfers Shares

On December 1, 2025, Pennant International Group PLC announced that David Clements, the Commercial & Risk Director, transferred 40,000 ordinary shares into an ISA held in his name. This transaction involved selling and repurchasing shares, resulting in Mr. Clements holding approximately 0.51% of the company’s issued share capital. This move reflects internal financial adjustments and may indicate strategic financial planning by company executives.

Pennant International Secures £5.75 Million GenFly Contract

Pennant International Group plc has secured a contract with the UK Ministry of Defence for the GenFly upgrade, valued at up to £5.75 million. This contract aligns with Pennant’s strategy to enhance its Training Systems business while continuing to develop its Auxilium suite. With this award and previous wins, the company has secured orders totaling £9.5 million, indicating strong progress in its negotiations for additional opportunities.

Pennant International Announces Major Shareholding Notification

Pennant International Group PLC announced a significant shareholding notification, revealing that Christopher Powell and his concert party associates hold 13.20% of the company’s issued ordinary share capital. This development could influence the company’s shareholder dynamics and potentially impact its strategic decisions moving forward.

Pennant International Secures Shareholder Loan for Financial Flexibility

Pennant International Group has secured a short-term unsecured shareholder loan agreement with major shareholder Brett Gordon for up to £320,000. This move provides the company with enhanced financial flexibility as it reduces its corporate overdraft and continues to convert its sales pipeline, highlighted by a recent £3.6 million order from BAE Australia. The loan agreement, which is a related party transaction, is deemed fair and reasonable by the company’s directors, ensuring continued operational stability and stakeholder confidence.

Pennant International Secures Key Contracts in Training Systems Segment

Pennant International Group plc has secured two significant contracts within its Training Systems segment, enhancing its market position. The first contract, valued at £3.6 million, is with BAE Systems Australia for new training systems, while the second is a £0.15 million contract with a European aircraft equipment OEM for a 3D graphical training package. These contracts are expected to bolster Pennant’s revenue and operational efficiency, with the BAE Systems contract providing a milestone payment plan to avoid additional working capital requirements.

Pennant International Announces Total Voting Rights and Strategic Focus

Pennant International Group PLC announced that it has 47,557,533 Ordinary Shares in issue, all with equal voting rights, as part of its compliance with the FCA’s Disclosure Guidance and Transparency Rules. This announcement is crucial for shareholders to determine their interests in the company’s share capital, reflecting Pennant’s strategic focus on sustainable revenue growth amid increasing demand for its high-margin software and services in regulated industries.

Pennant International Closes Subscription to Bolster Financial Position

Pennant International has successfully closed its Subscription, issuing 4,323,400 new ordinary shares at 21.5p per share, raising £929,531. The proceeds will be used to reduce the company’s overdraft and support investment in its Auxilium software. The Subscription involved related party transactions with Brett Gordon and Rockwood Strategic plc, deemed fair by the directors. This move strengthens Pennant’s financial position, aligning with its strategic focus on recurring revenues and growth in high-margin software and services amidst increasing demand in defense and technological sectors.

Pennant International Announces £1.25 Million Subscription to Bolster Financial Position

Pennant International Group plc announced a proposed underwritten subscription to raise £1.25 million through the issuance of new ordinary shares. The proceeds will be used to reduce the company’s overdraft and support capital expenditure on its Auxilium software suite, providing additional working capital. This financial move is strategically significant as it aligns with Pennant’s focus on sustainable growth and profitability in high-margin software and services, amidst increasing demand in defence and technological markets.

Pennant International Reports Interim Results and Strategic Progress Amidst Challenges

Pennant International Group plc reported its interim results for the first half of 2025, highlighting a challenging procurement environment but expressing confidence in its strategic focus on high-margin software and services. The company recorded revenues of £4.5 million, a decrease from £7.4 million in the same period last year, and an adjusted loss before tax of £1.8 million. Despite these challenges, Pennant made significant progress in its Auxilium suite strategy and expanded its market reach through new partnerships, including a global OEM agreement with Siemens Digital Industries Software. The company also completed a property disposal program, realizing £3.1 million, and announced a proposed direct subscription to raise £1.25 million for additional working capital.