Gloucestershire aviation specialist delivers much improved performance
A Gloucestershire business which specialises in training technology for aviation industry says it has delivered a much improved performance.
Pennant, which is listed on the AIM market, has announced its final results for the year.
Group revenues were down by £2.3m at £13.7m and the company had earnings of £500,000.
As a result Pennant made a loss of £1.4m compared to a loss of £2.5m the previous year.
Chair Phil Cotton said: “I am pleased to report that the Group has delivered a much-improved performance in the year ended 31 December 2022, with profitability in-line with market expectations despite reduced revenues, achieving an EBITA profit of £0.5m for the year (2021: EBITA loss of £0.8m) and an EBITDA profit of £1.0m (2021: EBITDA loss of £0.1m).
“The improved performance was primarily the result of the progress made towards our technology and software transformation, coupled with the completion of the legacy engineered solution contract.
“The group’s ongoing focus on increasing revenues from software and technical services is reflected in these results, and generated revenues totalling £10.2m in 2022 (2021: £9.1m).”
This year the firm secured a contract from Boeing Defence UK Limited for the upgrade of UK Apache training equipment, worth £8.8, over three years, with the initial engineering milestone event successfully passed.
It also saw delivery and full device acceptance achieved on the £3.5m UK Helicopter programme.
A surplus freehold site was sold in August for £2.1m with proceeds used to paydown borrowings.
Phil Cotton added: “Over the last financial year, the business has become more resilient as we continue to deliver on the critical objective of increasing visibility and recurrence of earnings, especially those derived from software and technical services.
“The global economic and geo-political environment and supportive strategic backdrop for Pennant’s capabilities means that the board believes that the group’s underlying strengths – our long-term customer relationships with governments and major OEMs, our specialist services together with our quality-assured reputation – provide solid foundations for continued recovery and long-term success.”
