Shareholder Loan

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

PENNANT INTERNATIONAL GROUP PLC

(“Pennant”, the “Company” or the “Group”)

Shareholder Loan

Pennant International Group plc (AIM: PEN), the systems support software and training solutions company, announces that it has entered into a short-term unsecured shareholder loan agreement with Brett Gordon, an existing major shareholder, for a loan of up to £600,000 (the "Loan Agreement").
 

As highlighted in the Company’s recent interim results announcement, Pennant secured a temporary increase to its bank overdraft facility to £1.4m to support working capital fluctuations through Q3 2026. This new Loan Agreement enables the Company to reduce its bank overdraft to £1.0 million and to provide continued flexibility as it manages forecast working capital peaks through the remainder of the financial year. This facility bridges a period of delivery against our contracted order book which is expected to result in contracted milestone payments during Q4 2026 and early 2027.

The Loan Agreement further supports the continued execution of the Group’s ongoing cost reduction and restructuring programme, which is currently forecast to deliver sustainable, annualised cost savings in excess of £500,000 starting from FY2027.

The interest rate under the Loan Agreement is fixed at 10.0% per annum, payable monthly, with the principal being repayable in full through one bullet repayment 180 days after drawdown. The Company maintains the option to prepay the facility, in whole or in part, at any time prior to maturity without penalty.

The Company anticipates that it will draw down £400,000 of the loan with immediate effect.

The Group remains on track to meet full year 2026 market expectations.

Related Party Transaction

The entry into the Loan Agreement constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies.

The Directors of the Company consider, having consulted with the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

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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 divisions:

• Auxilium software: a key generator of recurring revenues through the provision of a suite of software tools designed to help clients: manage and use complex data; ensure equipment availability at optimal cost; and comply with industry standards.  Its Integrated Product Support (IPS) and Integrated Logistics Support (ILS) software and services equip customers with powerful market-leading toolsets to manage, model and utilise complex equipment data.

• Technical Services: drives repeatable revenues through expert support for users of Pennant and third-party solutions including consultancy, support and maintenance, training and bespoke development.

• Training Systems: project-based revenue relating to the design and build of hardware, software and virtual training solutions for maintainers and operators of aircraft, ships and land systems.

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.