Interim Results Presentation 2025

Sep 23, 2025 at 3:00 PM UTC · MarketScreener

Watch Pennant International explain itPENNANT INTERNATIONAL GROUP PLC (PEN) — 2026 Interim Results & Prospects · Replay · Sep 1

SEPT 2025

INVESTOR BRIEFING

INTERIM RESULTS TO 30thJUNE 2025

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 significant financial and operational management experience
Previously worked for Melrose plc and latterly Meggit Aerospace in the UK and Singapore
Joined the company in November 2024

- CONFIDENTIAL

EXECUTIVE SUMMARY

GenFly MOD contract slippage impacting FY25 performance
Solid progress executing strategy:
- Completed integration of GenS and Analyzer applications, released Q2
- 50% of installed base transitioned to Auxilium
- Implementation of 'go to market' plan, expanding partnership
  base and global reach
- Auxilium sales with new customers in new territories and adjacent markets
- Completed property disposal programme
Growth in Auxilium software ARR to £2.3m
Strong bid activity across the business - contract values

exceeding £10m in advanced negotiation

CONFIDENTIAL 4
Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners.

WHY IT MATTERS?
- Improved mission capability/readiness
•
•
Enabling data driven decisions
Reduce total cost of ownership
- Ensuring data integrity and compliance
To maximize operational efficiency
WHAT WE DO?
Provides systems support software, technical services & training solutions to highly regulated industries and major OEMS

PENNANT OVERVIEW

GLOBAL BUSINESS

UK (HQ), Canada,

USA, Australia

100+

Employees

REVENUE

80% Defence, 10% Rail,

10% Aerospace

GEOGRAPHIES

(% REV)

35% EMEA, 30% APAC, 35% NA

CONFIDENTIAL
5 Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners.
HOW WE OPERATE
"We ensure mission critical systems are where they are needed, when they are needed and
that they work."
TECHNICAL SERVICES
Our services support all our software and
training solutions, including:
- consultancy
- support & maintenance
- training
- bespoke development
TRAINING SOLUTIONS
Our training solutions provide:
- hardware, software and virtual solutions.
- critical skills training for maintainers and operators of aircraft, ships and land systems.

We address the market through three key segments:

AUXILIUM SOFTWARE

Our software tools are designed to help clients:

manage and use complex data.
ensure equipment availability at optimal cost.
comply with industry standards.

CONFIDENTIAL

PENNANT IS REPOSITIONING

Strategic shift towards highly scalable software and technical services
model
Better quality of earnings, gross margin 50%+
Short working capital cycle

Technical Services

Software

Recurring, Repeatable & Predictable Revenue

Training Solutions

Pennant's heritage
Significant installed base
Repositioning to support aftermarket -modifications, retrofits and overhauls (MRO)
Long working capital cycle

Project Based Revenue

- CONFIDENTIAL

WHAT WE HAVE DONE

Investment of over £7m in Auxilium software
Acquired market leading publications software
Developing reseller, agent and partner relationships to drive global expansion
Regional operating model

Technical Services

Software

Recurring, Repeatable & Predictable Revenue

Training Solutions

Restructured cost base
Rationalised footprint
Repositioning to agile business
Outsourced production
Key talent and skills retained

Project Based Revenue

- CONFIDENTIAL 8

FINANCIALS

HIGHLIGHTS

Adjusted(1)results Statutory results
	H1 2025	H1 2024	H1 2025	H1 2024
	£m	£m	£m	£m
Revenue	4.5	7.4	4.5	7.4
EBITDA	(1.1)	0.6	(1.2)	0.6
Loss before tax	(1.8)	(0.2)	(2.2)	(0.4)
Net Assets			6.3	10.5
Net Debt (excluding lease liabilities)			(2.1)	(1.6)

Year over year trends in line with budget expectation following completion of contracts at end of 2024 / beginning of 2025 - albeit amplified
by Training contract award delays
Annual recurring revenue from software sales are increasing - Auxilium sales with several new customers in new territories and adjacent markets
Capitalised investment into Auxilium software of £0.6m - successfully completing GenS and Analyzer integration for Q2 release
Completed property disposal programme, realising £3.1 million (£1.1 million post Period end), a net gain versus fair value

Post Period-end, the Group has proposed actions to strengthen the balance sheet and ensure that ongoing operations are appropriately

funded via £1.25 million equity raise

The loss before taxation is stated prior to £0.2 million of exceptional costs associated with the restructuring exercise initiated in H2 2024, £0.3m of acquired intangible amortisation charge, and a profit relating to the sale of freehold property of £0.1 million. The Pennant Board considers the adjusted results to be an important measure to exclude non-trading or non-recurring items and therefore better monitor and compare performance between reporting periods

CONFIDENTIAL 10

Income Statement
£m		H1 2025	H1 2024
Revenue		4.5	7.4
Cost of sales		(2.5)	(3.9)
Gross Profit		2.0	3.5
	Exceptional costs	(0.2)	(0.2)
	Profit on sale of Land & Buildings	0.1	0.2
	Acquired Intangible Amortisation	(0.3)	(0.3)
	Other administrative expenses	(3.7)	(3.5)
Administrative expenses		(4.1)	(3.8)
Other income		0.1	0.1
Operating Loss		(2.0)	(0.2)
Net Finance costs		(0.2)	(0.2)
Loss before taxation		(2.2)	(0.4)
Tax credit / (charge)		-	-
Loss for the year		(2.2)	(1.0)

STATUTORY INCOME STATEMENT

CONFIDENTIAL 11

SEGMENTAL REVENUE PERFORMANCE

Revenue
£m	H1 2025	H1 2024	Movement
Systems Support Software	1.2	1.2	-
Technical services	2.7	3.7	(1.0)
Software & Services	3.9	4.9	(1.0)
Engineered solutions	0.4	2.4	(2.0)
Generic products	0.2	0.1	0.1
Training Systems	0.6	2.5	(1.9)
Total Revenue	4.5	7.4	(2.9)

CONFIDENTIAL 12

SOFTWARE - ANNUAL RECURRING REVENUE ("ARR")

2.5

1.5

0.5

2021

2022

2023

2024

2025

Annual recurring revenue (ARR) is the annualised revenue generated from software subscriptions and maintenance contracts

Annual recurring revenues ("ARR") of £2.3 million (2024: £1.9 million), a new high for the Group

- CONFIDENTIAL 13

STATEMENT OF FINANCIAL POSITION

£m	H1 2025	H1 2024
Current assets	4.6	5.1
Non-current assets	8.2	12.8
Total assets	12.8	17.9
Current liabilities	6.0	6.7
Non-current liabilities	0.5	0.7
Total liabilities	6.5	7.4
Net Assets	6.3	10.5

As part of the restructuring exercise announced in 2024, certain UK-based facilities within the Training System segment were marketed for sale at a total fair value of £2.9m after estimated selling costs
£3.1 million of gross sales proceeds had been contracted, of which £2.0m was realised as cash in H1

£1.1 million of gross sales proceeds have since been received in cash in H2 2025

CONFIDENTIAL

CASH GENERATION IN THE PERIOD

Operating Cash Flow
£m	H1 2025
Operating cash before changes in working capital	(1.3)
Changes in working capital	0.5
Tax received	0.2
Interest paid	(0.2)
Net cash used in operating activities	(0.8)

Continued management focus on working capital discipline
Further investment in the development of our integrated Auxilium software £0.6m (2024: £0.7m)
Operating within the HSBC overdraft facility limit of £2.5m as at Period end

Post balance sheet events will strengthen the balance sheet

Reconciliation of net debt
£m	H1 2025
Opening net debt (1 January 2025)	(2.3)
Net cash used in operating activities	(0.8)
Net cash generated from investing activities	1.0
Net cash used in financing activities	-
FX	0.1
Closing net debt	(2.1)

Completion of the sale of UK properties, £3m cash proceeds net of costs (profit on disposal of £0.1m)
Proposed fund raise from existing shareholders, £1.25m before fees

CONFIDENTIAL 15

AUXILIUM

WHAT IS INTEGRATED PRODUCT SUPPORT (IPS)?

Total Ownership cost - circa 20%

Systems Development - Asset Acquisition

Engineering for sustainment
Design for supportability

Total Ownership cost -

circa 80%

Systems Support - Operation and maintenance

Technical documentation
Supply chain / materials management
Tools and support equipment including calibration C measurement
Personnel - resources, health C safety, qualifications C training

Mission Capability / Operational Readiness

A strategy to ensure that systems are supported efficiently and effectively throughout its lifecycle.

OUR SOLUTIONS IN ACTION

"Asset availability starts with data configuration"

- CONFIDENTIAL

INDUSTRY STATISTICS:

Maintenance Downtime Reduction: 20-30%
Lifecycle Cost Savings: 10-25%
System Availability Improvement: 15-40%
Technical Documentation Time Saved: 30-50%
Training Time Reduction: 20-35%
Spare Parts Optimization: 15-25%
Integration Reusability: Up to 98% across PLM, IETMs, LSAR

Save Time. Reduce Cost. Data Driven Decisions.

- CONFIDENTIAL

WHY AUXILIUM?

Intelligent Data-Driven Decisions, make informed decisions to optimize your support strategies.

IMPROVED MISSION

CAPABILITY

Maximizing operational efficiency, reduce unexpected breakdowns and extend the lifespan of your assets.

ENHANCED READINESS

& RELIABILITY

Reduced Costs, minimize downtime, reduce spare parts inventory costs and optimize resource allocation.

REDUCE TOTAL

OWNERSHIP COST

Alignment to international standards and specifications, comply with industry regulations and standards.

QUALITY & COMPLIANCE

- CONFIDENTIAL 20

LOOKING FORWARD

STRATEGIC PRIORITIES

Winning higher margin after market contracts - servicing installed base
Diversify and expand customer
base
Evolve subcontracting model

Training Systems

Project Based Revenue

Recurring, Repeatable s Predictable Revenue

Systems Support Software Technical Services

Organic

Expanding reseller, agent and partnership relationships to globally expand market channel within and beyond existing jurisdictions
Enhancing support software functionality, including upgrades to support portal and customer tools
Opportunities
Adding coverage of the global standards
Up and downstream software products capable of integration
Accessing opportunities in adjacent territories and / or markets with embedded customers

- CONFIDENTIAL
1. Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners.
  SOFTWARE GROWTH TARGETS
  23% CAGR 2024-2027
  
  Cumulative Net New Users
  2025 2026 2027
  Direct
  Indirect
  
  Relies on Partnerships
  
  - CONFIDENTIAL
2. Copyright 2025 © Pennant International Group Plc. All other trademarks are the property of their respective owners.
OUTLOOK
Full year 2025 - contracted revenue of £9 million = high confidence of >£10 million
Accelerated growth in Auxilium software ARR via
advancement of 'go to market' strategy
Pipeline conversion - several Training Systems contracts at advanced bid stage; total contract value >
£10m, gives confidence for beyond 2025
- Includes GenFly Refresh (UK) - negotiations progressing to an estimated Q4 contract award
2026 market guidance returning to a positive adjusted PBT and cashflow (including £1.3m investment in Auxilium).

- CONFIDENTIAL 2245

Penn nt

Maximizing operational efficiency

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