Pennant International Group Plc · LSE:PEN
Pennant International — FY2020 Earnings Presentation
38 slides from Pennant International's earnings presentation, 2021
Slide 1: Important Notice
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 financial performance for the year ended 31 December 20
Slide 2: Company Briefing
Company Briefing Pennant International Group Plc Cheltenham | Manchester | Fareham | Hertfordshire | Ottawa | Brisbane | Melbourne | Wagga Wagga
Slide 3: Summary
Summary Challenging trading conditions; signs of improving trading momentum in H2; Successful acquisition and integration of R4i software suite; expanded geographical footprint; Operational restructuring; improved efficiencies; over £1m net annualised cost savings to be realised; Net debt (£1.4m); r
Slide 4: Strategic framework
Strategic framework STRATEGIC OBJECTIVES Continuously review and enhance To grow and improve our Accelerate the Group’s presence Expand the Group’s the Group’s product range service offering in civilian training and regulated business in innovative ways engineering markets OUR STRATEGY IN ACTION Com
Slide 5: Headline numbers
GROSS MARGIN 29% 5 ‘© Copyright Pennant international Group pic. All rights rosorvod.
Slide 6: Summary – 31st December 2020
Summary – 31st December 2020 Group revenues for the period of £15.1 million (2019: £20.4 million); Gross profit margin of 29% (2019: 36%); Loss before tax of £3.1 million (2019: loss before tax of £1.6 million); Underlying EBITA loss of £1.0 million (2019: underlying EBITA profit of £1.6 million); L
Slide 7: Consolidated Income Statement
Consolidated Income Statement £m 31 Dec 2018 31 Dec 2019 31 Dec 2020 (Audited) (Audited) (Audited) Revenue 21.07 20.43 15.06 Gross profit 8.26 7.35 4.38 Administrative expenses (5.10) (9.19) (7.92) EBITA / PBITA 3.33 0.12 (1.64) Amortisation (0.15) (1.64) (1.37) Operating profit / (loss) 3.18 (1.52)
Slide 8: H1 v H2 Performance
H1 v H2 Performance £m H1 H2 2020 Revenue 6.0 9.1 15.1 Gross profit 1.1 3.3 4.4 Operating margin (3.2) 0.2 (3.0) Non-underlying costs 0.4 0.2 0.6 Underlying EBITA (2.0) 1.0 (1.0) Signs of improved trading momentum in H2 Non-underlying costs relate to the operational restructuring expense incurred an
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet £m 31 Dec 2018 31 Dec 2019 31 Dec 2020 (Audited) (Audited) (Audited) Non-current assets 9.7 11.6 14.8 Current assets 8.9 11.3 7.9 Current liabilities (4.5) (6.9) (7.8) Non-current liabilities (0.1) (1.2) (2.5) Shareholders funds 14.0 14.9 12.5 Non-current assets reflect th
Slide 10: Consolidated Cash Flow
Consolidated Cash Flow £m 31 Dec 2019 31 Dec 2020 (Audited) (Audited) Net cash from operations (2.21) 3.15 Investing activities (3.01) (2.19) Financing activities 1.18 0.23 Net increase / (decrease) in cash and cash equivalents (4.04) 0.72 Cash and cash equivalents brought forward 1.85 (2.24) Impact
Slide 11: Net cash generated from operations
Net cash generated from operations Cash generated from operations (£m) 31 Dec 2019 (Audited) 31 Dec 2020 (Audited) (Loss) for the year (1.49) (2.62) Depreciation 0.81 0.72 Amortisation 1.64 1.36 Share based payments 0.09 0.08 Other – finance, tax, profit on disposal 0.47 (0.70) Operating cash flow b
Slide 12: Outlook & Order Book
Outlook & Order Book ‘© Copyright Pennant international Group pic. All rights rosorvod.
Slide 13: Three year “period end” order book - aggregate £31m
Three year “period end” order book - aggregate £31m Scheduled for delivery Contract (£m) 2021 2021 2022 2023 H1 H2 BAE Systems Australia 5 Year Rolling Term / 20 Year Framework – secured until 2025 0.8 0.8 1.6 1.6 HMRC – rolling annual supply arrangement, commenced 2009 0.3 0.3 0.6 0.6 General Dynam
Slide 14: Selected Group Opportunities – active pipeline >£50m
Selected Group Opportunities – active pipeline >£50m TECHNICAL TRAINING SOLUTIONS INTEGRATED PRODUCT SUPPORT Single Source / Formally notified Single Source Major programme – circa £15m - £20m, Canadian DND – extension of LSA / OmegaPS meaningful progress achieved services contract, circa £3.5m per
Slide 15: Business Priorities
Business Priorities Implement and accelerate the Strategic plan, including: Complete development and launch Omega GenS software solution Progress corporate development activity – UK rail software and services Establish US training partner / distributor Appoint new Chair Convert pipeline; increase co
Slide 16: About Pennant
About Pennant 16
Slide 17: Ownership and Management
Ownership and Management 5p Ordinary Shares Significant Shareholders Total shares in issue 36,640,357 Stakeholder Percentage holding AIM securities held in treasury NIL C C Powell Concert Party 17.13% Percentage of AIM securities not 52.56% Premier Miton Group 14.37% held in public hands BGF Investm
Slide 18: Group Legal Structure
Group Legal Structure PENNANT INTERNATIONAL GROUP PLC (AIM Listed) UK THE AVIATION PENNANT PENNANT PENNANT PENNANT SIP SKILLS FOUNDATION INTERNATIONAL AUSTRALASIA PTY PENNANT INC. CANADA LIMITED TRUSTEE LIMITED UK LIMITED LIMITED US CANADA UK (NOT FOR PROFIT) UK AUSTRALIA PENNANT SOFTWARE ABSOLUTE D
Slide 19: Our Facilities
Our Facilities Head Office Manchester, UK Fareham, UK Hertfordshire, UK Cheltenham, UK Ottawa Canada Pennant Australia Pennant Australia Pennant Australia Brisbane Wagga, Wagga Melbourne
Slide 20: Operations
Operations 20
Slide 21: Core Capabilities
Core Capabilities Translating and developing complex training requirements into a deliverable product Providing subject matter expertise in specialist and technical areas Operator and maintainer training within an engineering or related environment Hardware and Software capabilities Through Life Sup
Slide 22: Operational Delivery
Operational Delivery TECHNICAL TRAINING TECHNICAL TRAINING SOLUTIONS TECHNICAL SERVICES & SUPPORT INTEGRATED PRODUCT SUPPORT * GENERIC PRODUCTS « BESPOKE [ENGINEERED] SOLUTIONS MAPPING & CONSULTANCY * MANAGES LOGISTICS SUPPORT * SUPPORTS S1000D & SCORM SUPPORT & MAINTENANCE ANALYSIS [LSA] DATA INSTR
Slide 23: Technical Training
Technical Training 23
Slide 24: Generic Trainers
Generic Trainers Modern, off the shelf training aids Operation and maintenance savings Reduced safety issues Includes hand skill devices, VR procedure trainers and desktop emulators
Slide 25: Engineered Solutions
Engineered Solutions Bespoke engineering solutions Platform specific or custom-built Can be simulators, part-task trainers and procedural trainers Defence and Civil customer base
Slide 26: Computer Based Training (CBT)
Computer Based Training (CBT) Web and server-based e-learning Collaboration with government departments and global industry Provides consultancy and develops new strategies Access to anytime, anywhere training modules
Slide 27: Virtual Reality Trainers
Virtual Reality Trainers Award winning suite of solutions to provide effective training Training in a safe environment Multiple users at one time Multiple scenarios to improve learning Real-time faults and emergency solutions Ability to record responses and review activity
Slide 28: Track Access Systems (TAS)
Track Access Systems (TAS) Operating in the UK since 2002 Products & Services include: - Track Access Portal - Railway Survey - Signal Sighting - Railway Simulation - Driver training Complementary to Pennants existing rail capabilities which include Technical publications, Rail Sims, OmegaPS Rail et
Slide 29: Technical Publications
Technical Publications Compiling technical documentation and procedural data can be complex and time-consuming, yet it is crucial to the understanding and delivery of a product, having a major impact on the image, reliability and value of an organisation. User guides We have worked in partnership wi
Slide 30: Integrated Product Support (IPS)
Integrated Product Support (IPS) Pennant own the rights to two of the market leading LSAR & S1000D software products: Omega PS and R4i, both being sold world-wide and used in major defence contracts and by defence authorities in Canada and Australia.
Slide 31: IPS - OmegaPS LSAR
IPS - OmegaPS LSAR Database Tool which: Manages Logistics Support Analysis (LSA) data in accordance with relevant standards: - GEIA 0007, - Mil Std 1388-2B, - Def Stan 0060 - Def Aust 5692; and - Compatible with S3000L Standards Maintain detailed configuration of complex assets Identifies how to fix
Slide 32: Major Contracts
Major Contracts Consultancy agreement with Canadian Department of Defence to maximise the use of Omega PS in the DND - 5 year contract to December 2023 Consultancy agreement with Babcock in support of their property for the Royal Canadian Navy - 3 year contract to September 2021 Support contract wit
Slide 33: OmegaPS - Current Users
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Slide 34: R4i Product Suite
R4i Product Suite Specializes in creating, managing and leveraging technical data and maintenance information for clients across a variety of industries. Helps customers to create, manage and leverage information vital to the build, operation and maintenance of their complex assets.
Slide 35: R4i – Product Suite
R4i – Product Suite The R4i Suite includes: R4i Common Source Database (CSDB) Server R4i Binder R4i Viewer R4i ReViewer R4i MobieTP R4i Content Distribution Management System (CDMS) R4i Writer R4i IPD Manager R4i LTS
Slide 36: R4i Air
R4i Air The R4i AIR S1000D hosted solution provides authoring teams with a turnkey, ready to write S1000D product suite without the upfront costs. Features of R4i Air: Fast and robust Operating in the Amazon Cloud instead of installed on the customers servers Has the same S1000D capability that cust
Slide 37: R4i - Current Users
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Slide 38: Thank you for your attention
Thank you for your attention Cheltenham | Manchester | Fareham | Hertfordshire | Ottawa | Brisbane | Melbourne | Wagga Wagga
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