Software firm invests £1.3m as business looks to expand
Software firm Pennant say that trading over the last 12 months has been in line with expectations.
The Gloucestershire firm’s programme of investment in its proprietary software suite has continued during the first half of the year, following a £1.3m investment in 2023.
The investment programme has now moved into the next phase, which will see all three of Pennant’s core applications – GenS, Analyzer and R4i – being integrated into one, holistic solution which will provide its customers in defence and other sectors with a market-leading toolset to manage, model and utilise vast amounts of complex equipment data.
The planned investment for 2024 is expected to be similar in quantum to 2023. This integrated suite is targeted for launch by year-end, and marketing and early engagement with key customers has been ongoing since 2022.
Although trading has been in line with the board’s expectations the group has incurred exceptional, non-recurring costs of around £300,000 in relation to aborted corporate activity.
The group’s key markets are starting to see a significant increase in activity, and in response to customer tenders and requests for proposals.
The group has quoted on over £32m of new business opportunities during the last six months.
However, the expected level of order conversion has not occurred in the year to date, which is primarily attributable to extended customer procurement timeframes, not the loss of opportunities.
While challenging in the short term, it is not unusual for the acquisition of training and support solutions to be finalised after the commencement of the main vehicle/platform purchase.
The group is continuing to actively progress several material sales prospects with the expectation that these are now likely to crystallise into new orders in the second half of the year.
The timing of these potential awards remains subject to contract and, in certain cases, the completion of processes at defence department and prime contractor level.
In the meantime, the group is actively managing its allocation of resources and since the start of the year and has given notice to exit two premises which are not expected to be needed to deliver the pipeline opportunities.
Philip Cotton has decided to step down as chair allowing Ian Dighé to take over with immediate effect. Philip Cotton will retire as a director and leave the Board at the AGM.
Ian Dighé said: “The board would like to thank Phil Cotton for his five years of service and we wish him all the best for the future. The process to find a new independent non-executive director with skills that complement the existing board is commencing.”
