PENNANT INTERNATIONAL GROUP PLC - 2026 Interim Results & Prospects

Pennant International Group’s 2026 Interim Results highlighted strong progress in its transformation towards a higher-margin, recurring software and services model. First-half revenue increased 30% year-on-year to £5.8m, while adjusted EBITDA improved significantly from a £1.1m loss to a £0.5m profit, supported by stronger gross margins, disciplined cost control and growth across the training systems segment.  Auxilium, Pennant’s integrated software platform, continued to gain momentum, with annual recurring revenue (ARR) reaching £2.9m post-period end and remaining on track to exceed the £3m FY26 target.  The company also secured a long-term Canadian Department of National Defence services agreement, while its Siemens partnership delivered its first two US defence sales, providing an important new route to market. Training systems revenue more than tripled to £1.9m, with a £9.6m deliverable order book providing strong visibility.  With more than 95% revenue coverage for FY26 expectations and over 80% coverage for FY27, management remains confident in the outlook, targeting continued revenue growth, improving margins, stronger cash generation and an increasing contribution from recurring and repeatable revenues.