Pennant International Group Plc · LSE:PEN
Pennant International — FY2021 Earnings Presentation
23 slides from Pennant International's earnings presentation, May 2022
Slide 1: 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 2: Company Briefing May 22
Company Briefing May 22 Copyright 2022 © Pennant International Group Plc. All other trademarks are the property of their respective owners. PENNANT INTERNATIONAL GROUP PLC COMPANY PRESENTATION
Slide 3: Summary Overview of year
Summary Overview of year • Improved trading performance, second half recovery, return to EBITA profit in H2 • Revenue increased in both divisions • Annualised cost savings realised, £0.9m reduction in staff costs, further restructuring costs incurred (£0.1m) • Challenges on MTE programme continued,
Slide 4: Business update: Headlines - 31st December 2021
Headlines - 31st December 2021 Business update Other highlights: • Net debt at year-end of £3.5 million (2020: net debt of £1.4 million); • No final dividend recommended (2019: £NIL); • Three-year order book at year-end stood Group revenues for the Gross profit margin of 27% Loss before tax of £2.5
Slide 5: Consolidated Income Statement
Statement Consolidated Income £m 31 Dec 2019 31 Dec 2020 31 Dec 2021 (Audited) (Audited) (Audited) Revenue 20.43 15.06 15.97 Gross profit 7.35 4.38 4.36 Administrative expenses (7.23) (6.02) (5.14) EBITA / PBITA 0.12 (1.64) (0.78) Amortisation (1.64) (1.37) (1.37) Operating (Loss) (1.52) (3.01) (2.1
Slide 6: Underlying Performance Excluding MTE programme impact
Underlying Performance Excluding MTE programme impact £m Excl MTE MTE 2021 Revenue 14.2 1.8 16.0 Cost of sales (8.4) (3.2) (11.6) Gross Margin 5.8 (1.4) 4.4 Gross Margin (%) 41% (78%) 27% Admin costs (net of Other Income - £0.2m)* (6.5) - (6.5) Operating Margin (0.7) (1.4) (2.2) EBITA 0.6 (1.4) (0.8
Slide 7: Consolidated Balance Sheet
Sheet Consolidated Balance £m 31 Dec 2019 31 Dec 2020 31 Dec 2021 (Audited) (Audited) (Audited) Non-current assets 11.6 14.8 15.0 Current assets 11.3 7.9 6.6 Current liabilities (6.9) (7.8) (9.0) Non-current liabilities (1.2) (2.5) (1.4) Shareholders funds 14.9 12.5 11.1 • Property portfolio revalue
Slide 8: Consolidated Cash Flow
Consolidated Cash Flow £m 31 Dec 2020 31 Dec 2021 (Audited) (Audited) Net cash from operations 3.15 (0.13) Investing activities (2.19) (1.62) Financing activities (0.24) (0.25) Net increase / (decrease) in cash and cash equivalents 0.72 (2.00) Cash and cash equivalents brought forward (2.24) (1.45)
Slide 9: Net cash generated from operations
operations Net cash generated from Cash generated from operations (£m) 31 Dec 2020 31 Dec 2021 (Audited) (Audited) (Loss) for the year (2.63) (1.61) Depreciation 0.72 0.70 Amortisation 1.36 1.37 Share based payments 0.08 0.03 Other – finance, tax, profit on disposal (0.69) (0.78) Operating cash flow
Slide 10: Strategic Framework
Strategic Framework Strategic Directives: • Innovation - continuously review & enhance the Group’s product range • Customer Focus - to grow and improve our service offering • Diversification (Grow Civil) - accelerate the Group’s presence in civilian training and regulated engineering markets • Corpo
Slide 11: Contracted order book
Contracted order book Three year contracted order book - aggregate £32m Scheduled for delivery Contract (£m) 2022 2022 2023 2024 H1 H2 Engineered - General Dynamics – armoured vehicle trainer 0.7 - - - Engineered - UK OEM – helicopter maintenance trainer 0.5 0.5 - - Technical Services - BAE Australi
Slide 12: Pipeline
Pipeline Selected Group Opportunities – active pipeline > £60m: Single Source / Formally notified • Services (Aus) – long term programme supporting ILS partner with Technical Publications (5-10 years) • Courseware development (Aus) – OEM, long term project to develop training material to support pro
Slide 13: Outlook
Outlook What are we looking to achieve? • Return to EBITA profit in 2022 • Effective, efficient global delivery, organised into three key regions (UK & EU, NA and Aus) • ‘Full spectrum’ of Pennant products and services offered and delivered in all three key regions • Complementary / Strategic acquis
Slide 14: Our Vision
Our Vision: To be the leading provider of world-class integrated training technologies and product support for the defence, aerospace, rail and other safety critical industries. Copyright 2022 © Pennant International Group Plc. All other trademarks are the property of their respective owners.
Slide 15: 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 16: Ownership and Management
Ownership and Management Share Capital Significant Shareholders Total shares in issue 36,709,311 Stakeholder Percentage holding AIM securities held in treasury NIL Mr Christopher Powell 17.10% Percentage of AIM securities not 42.59% Premier Miton Group 14.35% held in public hands 11.14% BGF Investme
Slide 17: Our Facilities
Our Facilities 60,000 SQ.FT IN UK FACILITIES 200+ EMPLOYEES STAFF AND FACILITIES ACROSS THE UK, USA, CANADA & AUSTRALIA HEAD OFFICE Pennant Court Staverton Technology Park, Cheltenham, UK Copyright 2022 © Pennant International Group Plc. All other trademarks are the property of their respective owne
Slide 18: Pennant End-to-end Eco System Model
Pennant End-to-end Eco System Model Translating & Developing Training Requirement / LSAR Software / Logistics Product Data / Hardware and Software solutions Supportability S1000D Software, Services & Consulting / Technical Authoring & Illustrating / VR & AR / 3D & 2D Design & Development Engineering
Slide 19: ILS & S1000D
Analyzer ILS & S1000D • Fast, accurate and user-friendly optimisation tool • Identifies preferred product sustainment strategies through options analysis • Supports operational readiness at an affordable life cycle cost GenS • Manages Logistics Support Analysis data • Maintain detailed configuration
Slide 20: Technical Training Solutions
Solutions Technical Training Generic Trainers • Modern off the shelf training aids • Reduced safety issues • Operation and maintenance savings Engineered Solutions • Bespoke solutions • Platform specific or custom-built • Simulators, part-task trainers & procedural trainers • Defence & civil custome
Slide 21: Technical Training Solutions
Solutions Technical Training Virtual Reality Trainers • Award winning suite of solutions • Multiple users at one time • Real-time faults and emergency solutions • Ability to record responses Track Access Systems • Products & services include Track Access Portal, Railway Survey, Signal Sighting, Driv
Slide 22: Our Customers
Our Customers Copyright 2022 © Pennant International Group Plc. All other trademarks are the property of their respective owners.
Slide 23: Philip Walker CEO
Philip Walker CEO 07525812896 Philip.walker@pennantplc.com Copyright 2022 © Pennant International Group Plc. All other trademarks are the property of their respective owners.
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