Contract wins
Pennant International Group PLC announced two new contract wins within its Training Systems segment. The first contract, worth £3.6 million, is with BAE Systems Australia for five new training systems, enhancing maintenance training over two and a half years. This order includes a milestone payment plan, negating the need for additional working capital. The second contract, with a new European aircraft equipment OEM customer, is for an interactive 3D graphical training package. The initial phase is valued at approximately £0.15 million but could grow to £0.8 million with additional phases, with the initial phase expected to be completed within six months. Negotiations are ongoing for other previously announced opportunities.
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Pennant International Group plc (AIM:PEN), the systems support software and training solutions company, is pleased to announce two new contract wins within its Training Systems segment.
In its Interim Results announcement of 16 September 2025, the Group confirmed that it was in the advanced stages of negotiations in relation to potential new contracts worth in excess of £10 million. The Group is pleased to confirm that two of these opportunities have now been converted.
An order has been secured for £3.6 million from BAE Systems Australia as an uplift to the Group's long-term agreement with BAE in region. Pennant will supply a set of five new training systems, comprising a variant of the Group's existing Integrated Avionics Maintenance Trainer (IAMT) device, which will enhance maintenance training and enable the retirement of older training aids currently supported under the contract.
The expected duration of the programme is two and a half years, and the order provides a milestone payment plan (with stage-based cash payments) such that the performance of the contract is not anticipated to require additional working capital. Revenue is expected to be recognised over the 2.5-year period in line with performance of the contract.
Additionally, the Group has been awarded a contract by a new customer - a European aircraft equipment OEM - for the first phase of an interactive 3D graphical training package. The initial phase of the contract is worth approximately £0.15 million and is expected to grow to up to £0.8 million if and when additional phases are selected. The initial phase is expected to be completed within six months.
Negotiations relating to the other opportunities previously announced (including the GenFly upgrade) are continuing, and the Group will provide further updates in due course.
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