Trading Update & Notice of Results

Pennant International Group plc (AIM:PEN), the systems support software and training solutions company, provides the following trading update for the six months ended 30 June 2025 ("H1 2025").

Unaudited financial summary

The Group currently expects to report performance for H1 2025 as follows:

• Revenues of £4.5 million (H1 2024: £7.4 million) of which 88% is from software and services;
• Gross margin of 45% (H1 2024: 48%);
• Adjusted loss before tax (see note 1) of £1.7 million (H1 2024: loss of £0.4 million);
• Continued investment in the Auxilium suite of £0.7 million (H1 2024: £0.7 million);
• Net debt at 30 June 2025 of £2.0 million (H1 2024: £1.6 million) operating within our Group overdraft facility.

Outlook

The Company stated in its announcement of 3 July 2025 (the "July Update") that it expected the 2025 financial year to be second-half-weighted. It was noted that the GenFly technology upgrade contract was budgeted to contribute up to 15% of full-year revenue (translating to circa 25% of budgeted H2 2025 revenues). This was based on an August contract award, an intended timeline confirmed to Pennant in writing by the Ministry of Defence ("MOD").

The GenFly contract negotiations with the MOD are continuing, and the Group is striving to make rapid progress to contract award on acceptable terms, but it has now become apparent that newly-introduced approval processes within the MOD are likely to push the August award date into Q4 2025 or later.

Accordingly, with GenFly revenues now anticipated to move into 2026 and later years, the Board expects that 2025 turnover will be commensurately lower than market expectations.

Contracted revenues for 2025 currently stand at circa £9 million. Revenues from Auxilium software products and maintenance continue to grow, with annual recurring revenues ("ARR") from this category currently standing at £2.1 million (see note 2). The Group is actively pursuing multiple sales opportunities to impact 2025 and beyond, while onboarding our new Auxilium distribution partners (announced on 14 July 2025) to progress the Group's growth strategy for software and services. A further update on order intake will be provided with the Interim Results, or sooner as appropriate.

Phil Walker, CEO, commented: "While it is disappointing that the GenFly contract will start later than expected, we will push to secure the award as soon as possible, while keeping focus on implementing our Auxilium strategy to achieve long-term growth in our software and services segments. Indeed, it was pleasing to see the early fruits of these efforts in the achievement of record-level ARR during the first half and we look forward to materially growing this number in 2026 and later years."

Notice of Results

Pennant expects to announce Interim Results for the six months to 30 June 2025 on Tuesday 16 September 2025.

Investor Presentation: 11.00am on Wednesday 17 September 2025

Management will hold an investor presentation to cover the Interim Results at 11.00am on Wednesday 17 September 2025.

Note 1: the loss before taxation is stated prior to circa £0.2 million of exceptional professional and other costs associated with the restructuring exercise initiated in H2 2024, £0.2m of acquired intangible amortisation charge, and a profit relating to the sale of freehold property of circa £0.1 million.

Note 2: Annual Recurring Revenue (ARR) is the annualised revenue generated from software subscriptions and maintenance contracts.