Pennant International Group Plc · LSE:PEN

Pennant International — FY2022 Earnings Presentation

20 slides from Pennant International's earnings presentation, April 2023

Slide 1: Company Briefing
Company Briefing April 23 Copyright 2022 © Pennant International Group Plc. All other trademarks are the property of their respective owners. PENNANT INTERNATIONAL GROUP PLC COMPANY PRESENTATION
Slide 2: Important Notice
This presentation is issued on behalf of Pennant International Group plc (the “Company”) solely for the purposes of providing existing and prospective investors in the Company with information primarily concerning the Company’s Important Notice financial performance for the year ended 31 December 20
Slide 3: About Pennant
About Pennant Pennant International Group was established over 60 years ago. The company has evolved over the past six decades to become a market-leading, technology-led business with a truly global customer base. Our capabilities encompass the conversion of full-size aircraft into training tools, i
Slide 4: Summary Overview of year
Summary Overview of year • Results inline, improved performance, momentum building - third consecutive trading period reporting a positive EBITA • Transformation of business mix - increasing software and technical services focus - £10.2m (2021: £9.1m) • Record gross margin – 42% • Group net debt mat
Slide 5: Post period end acquisition
Post period end acquisition About Track Access Productions (“TAP”) • Established in 2001 - provides driver training, route mapping and route familiarisation services to the UK rail industry • Clients comprise train operating companies (11 out of 30), freight operating companies (4 out of 7), enginee
Slide 6: Benefits of the TAP acquisition
Post period end acquisition Benefits of the TAP acquisition • TAP’s business aligns closely with Pennant’s existing Track Access business unit and the Acquisition will consolidate the Group’s presence in this market • The Acquisition also aligns with the Company’s strategy, in particular it: • remov
Slide 8: Headlines
Financial highlights for the period Headlines Group revenues of Gross profit margin of 42% EBITDA profit of £1.0 million Three-year contracted £13.7million (2021: (2021: 27%) (2021: EBITDA loss of orderbook of £25million £16.0 million) £0.1 million) (2021: £22 million) 56% of revenues are Basic loss
Slide 9: Segmental
Analysis of revenues for the period Segmental 2022 2021 Revenue by region £000s £000s • Revenues increasingly diversified across regions UK & Europe 5,557 8,161 North America 4,985 4,451 • 75% of revenues generated from software & services Australasia 3,144 3,353 Total 13,686 15,965 Revenue by works
Slide 10: Consolidated Income Statement
Statement Consolidated Income £m 31 Dec 2020 31 Dec 2021 31 Dec 2022 (Audited) (Audited) (Audited) Revenue 15.06 15.97 13.69 Gross profit 4.38 4.36 5.79 Administrative expenses (7.92) (6.71) (6.90) EBITA / PBITA (1.64) (0.78) 0.53 Amortisation (1.37) (1.37) (1.52) Operating (Loss) (3.01) (2.15) (0.9
Slide 11: Consolidated Balance Sheet
Sheet Consolidated Balance £m 31 Dec 2020 31 Dec 2021 31 Dec 2022 (Audited) (Audited) (Audited) Non-current assets 14.8 15.0 13.2 Current assets 7.9 6.6 6.6 Current liabilities (7.8) (9.0) (8.1) Non-current liabilities (2.5) (1.4) (1.0) Shareholders funds 12.5 11.1 10.7 • H2 disposal of property for
Slide 12: Consolidated Cash Flow
Consolidated Cash Flow £m 31 Dec 2021 31 Dec 2022 (Audited) (Audited) Net cash from operations (0.13) 2.94 Investing activities (1.62) 0.36 Financing activities (0.25) (0.24) Net increase / (decrease) in cash and cash equivalents (2.00) 3.06 Cash and cash equivalents brought forward (1.45) (3.54) Im
Slide 13: Net cash generated from operations
operations Net cash generated from Cash generated from operations (£m) 31 Dec 2021 31 Dec 2022 (Audited) (Audited) (Loss) for the year (1.61) (0.94) Depreciation 0.70 0.56 Amortisation 1.37 1.52 Share based payments 0.03 0.03 Other – finance, tax, profit on disposal (0.78) (0.16) Operating cash flow
Slide 15: Macro environment
Supportive strategic backdrop for our products and services Macro environment • Few competitors that can provide our end to end solutions and services • New and emerging areas, such as Space where IPS adoption has only just started • Global uncertainty (Europe / Indo Pacific) is resulting in increas
Slide 17: Period end order book
Period end order book Three year contracted order book - aggregate £25m Scheduled for delivery Contract (£m) H1 2023 H2 2023 2024 2025 Engineered - General Dynamics – armoured vehicle trainer - - - - Engineered - UK OEM – helicopter maintenance trainer 2.0 3.2 3.2 - Software & services – NA commerci
Slide 18: Pipeline
Selected Group Opportunities – active pipeline > £70m: Pipeline Single Source / Formally notified • Services (Aus) – long term programme supporting ILS partner with Technical Publications (5 years) • Software licences – circa £1m of R4i and GenS software licences, North America & Europe 2023/2024 •
Slide 19: Outlook
Outlook What are we looking to achieve? • Sustainable (recurring revenue) growth and profitability • Focus on software and services – order lead time, revenue recognition and margin impact • End to end solution - ‘Full spectrum’ of Pennant products and services offered and delivered in all key regio

Pennant International Group — FY2022 Earnings Presentation on 6ix

Pennant International — FY2022 Earnings Presentation

Slide 1: Company Briefing

Slide 2: Important Notice

Slide 3: About Pennant

Slide 4: Summary Overview of year

Slide 5: Post period end acquisition

Slide 6: Benefits of the TAP acquisition

Slide 7: Financials

Slide 8: Headlines

Slide 9: Segmental

Slide 10: Consolidated Income Statement

Slide 11: Consolidated Balance Sheet

Slide 12: Consolidated Cash Flow

Slide 13: Net cash generated from operations

Slide 14: Outlook

Slide 15: Macro environment

Slide 16: Global customers

Slide 17: Period end order book

Slide 18: Pipeline

Slide 19: Outlook

Slide 20: Philip Walker, CEO