FOR IMMEDIATE RELEASE                                                                                16 September 2025

PENNANT INTERNATIONAL GROUP PLC

("Pennant", the "Company" or the "Group")

Interim Results

Analyst Briefing & Investor Presentation

Pennant International Group plc (AIM: PEN), the systems support software and training solutions company, announces its Interim Results for the six months ended 30 June 2025 (the "First Half", the "Period", or "H1 2025").

Commenting on the results, Chairman, Ian Dighé, said:

"The Group has made solid progress in executing our strategy during the Period, investing in our proprietary Auxilium suite and implementing our 'go to market' plan to increase the segmental and geographic reach of our software distribution channels.

"While a difficult procurement environment is causing short-term challenges, we are confident that, by concentrating on higher margin software and related services segments, we can achieve increasing and sustainable recurring and repeatable revenues, and profitability growth. Indeed, with a growing focus in defence on 'operational readiness', 'data standardisation' and 'equipment availability', the Board is confident that Pennant is well-placed to provide the solutions to address these critical market needs."

Financial Highlights:

Operational Highlights:

Post Period end:

Commenting on the outlook, Chief Executive Officer, Phil Walker, said:

"I am pleased with the team's progress in delivering on our strategic plan including the successful integration of GenS and Analyzer the customer transition programme to Auxilium and, via our go to market strategy, the expansion of our market reach beyond our traditional channels. I'm particularly encouraged by our partnership with Siemens which will offer new market opportunities and is an important endorsement of our capabilities."

(1)  The loss before taxation is stated prior to £0.2 million of exceptional costs associated with the restructuring exercise initiated in H2 2024, £0.3m of acquired intangible amortisation charge, and a profit relating to the sale of freehold property of £0.1 million.

Analyst Briefing: 9.30am today, Tuesday 16 September 2025

An online briefing for Analysts will be hosted by Phil Walker, Chief Executive Officer, and Darren Wiggins, Chief Financial Officer, at 9.30am today, Tuesday 16 September 2025, to review the results and update on prospects. Analysts wishing to attend should contact Walbrook PR on [email protected] or 020 7933 8780.

Investor Presentation: 11.00am on Wednesday 17 September 2025

Management will hold an investor presentation to cover the Interim Results at 11.00am on Wednesday 17 September 2025.

The presentation will be hosted through the digital platform Investor Meet Company. Investors can sign up to Investor Meet Company and add to meet Pennant via the following link https://www.investormeetcompany.com/pennant-international-group-plc/register-investor. 

For those investors who have already registered and added to meet the Company, they will automatically be invited. 

Questions can be submitted pre-event to [email protected] or in real time during the presentation via the "Ask a Question" function.

Enquiries:

Notes to editors:

Pennant International Group plc (AIM: PEN) is a technology driven, leading global provider of system support software and services, technical services, and training solutions. It supports its global customer base in the design, development, operation, maintenance, and training of complex assets, to maximise operational and maintenance efficiency.

Its key markets include Aerospace, Defence and Rail, and adjacent safety-critical markets such as Shipping, Nuclear and Space.

 The Group addresses the market through three key business segments:

Pennant is strategically focused on sustainable recurring and repeatable revenues and profitability growth, shifting its model towards high margin software and services. Against a climate of rising defence budgets and the burgeoning technological complexity of military, aviation and rail platforms, the demand for these solutions is expected to grow substantially.

Headquartered in Cheltenham, UK, the Group operates worldwide, with offices in the UK, North America and Asia-Pacific, serving markets with high barriers to entry often in regulated industries.

Pennant International Group plc

Interim Report for the six months ended 30 June 2025

Chairman's Statement

Financial Results

The Group recorded revenues for the six-month period ended 30 June 2025 of £4.5 million (H1 2024: £7.4 million), generating an adjusted ⁽¹⁾ loss before tax of £1.8 million (H1 2024: £0.2 million loss). The gross profit margin for the Period was 44% (H1 2024: 48%). The basic loss per share for H1 2025 was 5.21p (H1 2024: 1.08p basic loss per share)

Administrative costs for the Period were £4.1 million (H1 2024: £3.8 million), including realized foreign exchange losses of £0.2m (H1 2024: gain £0.1 million).

Net debt at Period end, excluding lease liabilities, stood at £2.1 million (H1 2024: £1.6 million), with cash and cash equivalents of £0.7 million at 30 June 2025. In July 2025, the Company announced that it had concluded the property disposal programme launched in September 2024 which realised, in aggregate, £3.1 million in gross sale proceeds, £1.1 million of which was released following the end of the Period.

Total assets at Period end stood at £12.8 million (H1 2024: £17.9 million) including a further £0.6m of capitalised investment in the Auxilium suite of software products.

The Group carries forward unrelieved tax losses of £7.0 million (H1 2024: £6.8 million) and continues to benefit from R&D tax credit claims in the UK and Australia.

The Company has today separately announced an underwritten proposed direct subscription for new ordinary shares by existing shareholders to raise £1.25 million (before expenses) at an issue price of 21.5 pence per new ordinary share (the "Subscription"). The results of the Subscription are expected to be announced by the Company by 22 September 2025. With a reduction in the Company's overdraft limit from £2 million to £1 million on 1 November 2025, the net proceeds from the Subscription will enable the Group to both reduce its overdraft as planned and also provide additional working capital resources with which to support the Company, enabling continued investment in the Company's Auxilium software product development.

The Directors have concluded that it is in the best interests of the Company and its shareholders to retain cash at this time and therefore will not be declaring an interim dividend.

Performance Review

An analysis of the Group's revenue by operating segment is as follows:

Revenues contributed by Software and Services represented an increased 87% of total Group revenue for the Period (2024: 66%), albeit £1.0m behind H1 2024 in absolute terms.

·      Revenue from software contracts was flat on prior year as we continued to experience the effect of delayed purchasing decisions which were awaiting the Q2 launch of the integrated Auxilium suite. Focus on the process of converting customers from legacy applications to the new Auxilium equivalent has progressed with 50% of customers now transitioned. This customer transition programme was a contributing factor in the Group exceeding £2 million of Annual Recurring Revenues ("ARR"), the annualised revenue generated from software subscriptions and maintenance contracts, for the first time in Pennant's history.

·      In the Technical Services segment, revenues were in line with Board expectations with a reduction in revenues in H1 2025 compared to H1 2024 as a result of the completion of the technical publication conversion project for the Australia Defence Force ("ADF") which contributed £0.5 million in revenue in H1 2024, and the cyclical impacts in our UK Rail market where project awards from Network Rail, which did not contribute in H1 2025, are expected to arise in the second half of the current year or later.

·      In the Training Systems segment, prior year comparatives were driven by the final year of delivery under a 3-year contract with Boeing Defence UK for updates to AH Mk1 Apache ("Apache") training equipment, generating £2.4 million of Engineered training solutions revenues in H1 2024. Following the restructuring exercise announced and executed in 2024 the Training Systems business is now focused on delivering modifications, retrofits and overhauls to its installed base and has an active pipeline of such opportunities which are expected to convert into a strong H2 order intake.

The revenue generated by each region and business line during the Period is shown in the tables below:

The year over year trend in the EMEA region is largely explained by the completion of the Apache program in 2024 within the Training System segment and in the APAC regions is explained by the completion of the ADF contract within the Technical Services segment.

The North American business continues to benefit from the successful re-tender of technical service contracts with the Canadian Department of National Defence.

Property Disposals and Net Debt

As part of the restructuring exercise announced in 2024, certain UK-based facilities within the Training System segment were marketed for sale at a total fair value of £2.9m after estimated selling costs. At the time of releasing these interim financial statements, £3.0 million of net sales proceeds had been contracted, of which £2.0m was realised as cash in H1. £1.1 million of net sales proceeds have since been received in cash in H2 2025.

The Group continues to receive support from HSBC through the provision of a Group overdraft facility. However, following delayed contract awards in the Training Systems segment, and a reduction in the overdraft limit to £1 million from the current temporary limit of £2 million on 1 November 2025, the Group has today announced that it has raised £1.25 million (before expenses) via the Subscription. The net proceeds of the Subscription will enable the planned reduction in the overdraft limit and provide the Group with additional working capital resources to support the Group, including the continued investment in developing Pennant's Auxilium software product suite.

Auxilium Development and Go to Market Update

The Board is pleased with the progress in executing our Auxilium strategy. During the Period we successfully completed the integration of GenS and Analyzer, and this was released to market in Q2. We expect development expenditure to run at £1.2 million - £1.4 million per annum for the foreseeable future as we remain committed to ensuring that our market leading Integrated Product Support ("IPS") software products continue to offer exceptional value to existing and prospective licensees. Recent updates have included the introduction of advanced scenario modelling in support of operational and mission readiness.

Pennant has made progress with its 'go to market' strategy, focusing on partnering for success - enabling Pennant's products to reach new territories, industries, and customers. Post Period end the Company has announced that it has

·      Signed a global OEM partner agreement with Siemens Digital Industries Software, licensing it to Siemens to distribute GenS as part of its market leading Teamcenter Service Lifecycle Management software solution

·      Appointed Win-Tek and Eva Aviation as sales representatives for Auxilium in South Korea and Japan respectively - new territories for Pennant; and

·      Appointed of Velentra Solutions acting as sales representative in India - a market with significant potential

We continue to progress potential appointments and will continue to update the market as appropriate.

During the Period we sold Auxilium products into several new customers, including in new territories and adjacent markets, all of which contributed to an annual recurring revenues ("ARR") of £2.3 million (2024: £1.9 million), a new high for the Group. This growth has been achieved organically, and we continue to view the opportunities presented by the new go-to-market strategy, discussed above, optimistically.

As the global defence industry increases its awareness of the need for strong IPS process and systems, Pennant is well positioned to support as we have done with the Canadian and Australian defence forces for many years.

Outlook

Further to the trading update provided on 8 August 2025, the GenFly contract negotiations with the UK Ministry of Defence are continuing and there have been positive developments towards securing the contract award before the end of the current year.

In addition to GenFly, within the Training Systems segment, the Group is in advanced stages of negotiations for multi-year sole source training equipment contracts that are expected to contribute revenues to 2026. Including GenFly, and in aggregate, the contract value of these advanced bids exceeds £10 million. We expect to be in a position to give further details during Q4 2025.

As at the date of this announcement, the Group has contracted revenue for the full year of approximately £9 million, and the Board has a high level of confidence of generating full year revenues  of not less than £10 million.

The Board therefore considers that the Group is currently trading in line with current market expectations.

With our market leading Auxilium suite, delivered by a team of experts supported by our new channel partners, and a commitment to excellent customer service, we believe we are extremely well-placed to capitalise on the longer-term opportunities for our software, systems, and services offerings in the defence space and beyond. While we proactively address the short-term challenges of converting a strong pipeline and the continued re-positioning of the Group, we remain firm in our strategic direction and the growth opportunity we are targeting.

⁽¹⁾ See note 4 for further information with regard to this alternative profit measure

PENNANT INTERNATIONAL GROUP plc

CONSOLIDATED INCOME STATEMENT for the six months ended 30 June 2025

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30 June 2025

PENNANT INTERNATIONAL GROUP plc

CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30 June 2025

On 1st October 2024 owned Land & Buildings in Cheltenham, UK were advertised for sale and subsequently reclassified as current assets held for sale in accordance with IFRS 5. The carrying amount of assets classified as held for sale on 30 June 2025 was £1.1 million. The progress of this sale process is discussed in the Property Disposals and Net Debt section above

PENNANT INTERNATIONAL GROUP plc

CONSOLIDATED STATEMENT OF CASH FLOWS for the six months ended 30 June 2025

Cash and cash equivalents consists of Cash at bank of £674k net of short-term borrowings (bank overdraft) of £2,734k.

PENNANT INTERNATIONAL GROUP plc

STATEMENT OF CHANGES IN EQUITY for the six months ended 30 June 2025