Pennant International Group Plc · LSE:PEN
Pennant International — FY2024 Earnings Presentation
25 slides from Pennant International's earnings presentation, April 2025
Slide 1: Investor Briefing: Full Year Results to 31 December 2024
APRIL 2025 INVESTOR BRIEFING FULL YEAR RESULTS TO 31 DECEMBER 2024 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners. Copyright 2024
Slide 2: Disclaimer
DISCLAIMER This presentation is issued on behalf of Pennant Company or its advisers and is subject to material or into the USA, Canada, Australia, New Zealand, South This presentation may contain forward-looking statements International Group plc (the “Company”) solely for the amendment, updating an
Slide 3: Presentation Team
PRESENTATION TEAM Philip Walker – Chief Executive Officer • Originated and implemented strategy to transition Pennant from a project based, capital intensive operation to a high margin software and technical services business Darren Wiggins – Chief Financial Officer • Chartered accountant with signi
Slide 4: FY24 Overview
FY24 OVERVIEW • 2024 results in line with market expectations • Launched Auxilium software • Repositioned for growth - decisive action taken, pivot towards highly scalable Software and Technical Services model • Training Systems business streamlined • Introduced regional operating model • Developing
Slide 5: Pennant
PENNANT Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners.
Slide 6: Pennant Overview
PENNANT OVERVIEW Provides systems Enabling our customers to make Ensuring data To maximize support software, To defence data driven integrity and operational technical services & agencies and decisions for compliance 0 with efficiency at training solutions major OEMS mission critical global standard
Slide 7: How We Operate
HOW WE OPERATE We address the market through three key segments: Recurring, Repeatable & Predictable Revenue Project Based Revenues SYSTEMS SUPPORT SOFTWARE TECHNICAL SERVICES TRAINING SYSTEMS Our software tools are designed to help Provision of expert services to support Our training solutions prov
Slide 8: Systems Support Software
SYSTEMS SUPPORT SOFTWARE Configuration Logistic Support Analysis (LSA) improves the availability and reliability of systems, by ensuring that maintenance and support are well-planned to optimise cost Integration Analysis Common data repository Model-based supportability Single source of truth that a
Slide 9: Our Solutions in Action
OUR SOLUTIONS IN ACTION “We ensure mission critical systems are where they are needed, when they are needed and that they work.” 9 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners.
Slide 10: Financials
FINANCIALS Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners.
Slide 11: Highlights
HIGHLIGHTS Adjusted(1) results Statutory results 2024 2023 2024 2023 £m £m £m £m Revenue 13.8 15.5 13.8 15.5 EBITA 1.2 1.8 (1.0) 1.4 (Loss)/profit before tax (0.3) 0.6 (3.0) (0.4) Net Assets 8.3 9.8 Net Debt (2.3) (1.9) • Trading results in line with market expectations • Adjusted EBITA of £1.2m, do
Slide 12: Statutory Income Statement
STATUTORY INCOME STATEMENT Income Statement £m 2024 2023 Revenue 13.8 15.5 Cost of sales (6.9) (7.8) Gross Profit 6.9 7.7 Exceptional costs (2.3) (0.3) Profit on sale of Land & Buildings 0.2 - Other administrative expenses (7.6) (7.5) Administrative expenses (9.7) (7.8) Other income 0.2 0.2 Operatin
Slide 13: Reconciliation Between Statutory & Adjusted Results
RECONCILIATION BETWEEN STATUTORY & ADJUSTED RESULTS Reconciliation statutory to adjusted EBITA £m 2024 Statutory EBITA (operating loss less amortisation charges) (1.0) Restructuring expense 2.1 Aborted transaction costs 0.2 Share based payments 0.1 Profit on sale of land & buildings (0.2) Adjusted E
Slide 14: Training Systems – Restructuring Rationale
TRAINING SYSTEMS – RESTRUCTURING RATIONALE Previously Future Impacts Bespoke OEM Projects Service installed units • Site rationalization • Headcount reduction In house (UK) production Outsource globally • Selective bidding • Working capital reduction • Improved cost efficiency All skills on payroll
Slide 15: Adjusted EBITA Margin Bridge
ADJUSTED EBITA MARGIN BRIDGE • Downturn in Training Systems demand leading to unrecovered overheads • Restructuring exercise undertaken in Q4 has removed £2m of costs from the business which will protect profit margins in 2025 • Boeing Apache contract was high gross margin • Bullish on future margin
Slide 16: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION £m 2024 2023 Current assets 7.6 5.4 Non-current assets 8.3 13.3 Total assets 15.9 18.7 Current liabilities 7.0 8.0 Non-current liabilities 0.6 0.9 Total liabilities 7.6 8.9 Net Assets 8.3 9.8 • UK freehold land & buildings (£3.0m) reclassified to current assets in acc
Slide 17: Cash Generation in the Year
CASH GENERATION IN THE YEAR Operating Cash Flow £m 2024 • Positive cash generation from operations highlights management’s focus on working capital discipline Operating cash before changes in working capital 0.4 Changes in working capital (0.2) • Cash cost of restructuring exercise £0.5m Tax receive
Slide 18: Segmental Revenue Performance
SEGMENTAL REVENUE PERFORMANCE Revenue £m 2024 2023 Movement Software licenses & products 0.4 1.1 (0.7) Software maintenance 1.9 1.6 0.3 Technical services 7.3 6.9 0.4 Software & Services 9.6 9.6 - Engineered solutions 3.6 5.2 (1.6) Generic products 0.6 0.7 (0.1) Training Systems 4.2 5.9 (1.7) Total
Slide 19: Finance Costs and Tax
FINANCE COSTS AND TAX Finance costs £'000 Interest expense for bank overdraft (195) • HSBC overdraft facility carries interest at Lease interest (77) 2.50% (2023: 2.50%) plus the bank’s base rate Interest payable on deferred consideration (36) • Cash costs of finance are consistent with prior Moveme
Slide 20: Human Resources
HUMAN RESOURCES Average Aggregate Cost Unit Cost p.a. Headcount p.a. 2023 Actual 140 £9.3 million £66k per head 2025 Estimate 110 £7.5 million £68k per head 21% reduction £1.8m p.a. Retention of highly saving skilled team members - CONFIDENTIAL 20 Copyright 2025 © Pennant International Group Plc. Al
Slide 21: Looking Forward
LOOKING FORWARD Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners.
Slide 22: Strategic Priorities
STRATEGIC PRIORITIES Recurring, Repeatable & Predictable Revenue Project Based Revenue Systems Support Software Technical Services Training Systems Organic • Winning higher margin after • Expanding reseller, agent and partnership relationships to globally market contracts expand market channel beyon
Slide 23: Software Growth Targets
SOFTWARE GROWTH TARGETS 23% CAGR 2024-2027 • Auxilium software – Q1 licence sales on track Cumulative Net New Users • New pricing model • Continued investment in Auxilium, customer experience and business winning • Go to market – developing indirect channel model in new markets and new territories •
Slide 24: Outlook FY25
OUTLOOK FY25 • As per market expectations, expecting a return to a positive (modest) PBT following completion of restructuring exercise • Strong conversion of operating profit to operating cash • Implementing go to market strategies to service new territories and markets • Auxilium Q1 license sales
Slide 25: Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of
Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners.
Pennant International Group — FY2024 Earnings Presentation on 6ix