Trading Update, Notice of Results & Investor Pres

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 2026 ("H1 2026").

Unaudited Financial Highlights

The Group expects to report performance for H1 2026 as follows:

• Revenues of c.£5.9 million, an increase of 31% over H1 2025 (H1 2025: £4.5 million);
• Annual Recurring Revenue(2) ("ARR") of £2.6 million from Auxilium software products;
• Gross margin of 53% (H1 2025: 45%);
• Adjusted(3) EBITDA of £0.5 million (H1 2025: Adjusted EBITDA loss of £1.0 million);
• Adjusted(3) loss before tax of £0.3 million (H1 2025: Adjusted loss before tax of £1.7 million);
• Continued investment in the Auxilium suite of £0.7 million (H1 2025: £0.7 million); and
• Net debt at 30 June 2026 of £0.9 million (H1 2025: £1.0 million) is stated after one off payments, including the repayment of shareholder loan (£0.3m) and redundancy costs (£0.3m).

Segmental Revenue Analysis

H1 2026 Operational Highlights

• Auxilium phase 3 software successfully released in June: delivery of an improved fully integrated Product Support environment across the three applications - GenS, Analyzer and R4i;
• Global partnership with Siemens: First sale of Auxilium - GenS via the Group's global partnership with Siemens to a North American defence end user achieved during the period;
• IPS services contract with the Canadian Department for National Defence awarded: for the use and optimisation of Pennant's Auxilium suite of software to support multiple maritime programs;
• New S1000D technical publication conversion services capability launched: ConvertWise launched in partnership with OnePoint Consulting (a UK based technology partner) including the first sale to a North American based military customer;
• New Training Systems long term contract awarded: with an initial order valued at £1.0m for the supply of a virtual training simulator developed specifically for a UK manufacturer of air defence applications.

Outlook

The Company is on track to achieve full year 2026 market expectations(1). With increased levels of activity on contracted Engineered Training programmes (including in respect of the virtual training simulator contract described above), growth in contracted revenue from Canadian DND services, and new Auxilium software and services opportunities fuelled by the H1 software release and launch of ConvertWise, the second half of the year is expected to be stronger than the first half.

Phil Walker, CEO, commented:

"The first half of 2026 demonstrates the progress Pennant is making both strategically and financially as we execute our strategy. Revenue, margin and profitability have all improved significantly, while the successful launch of Auxilium Phase 3 and a number of strategic contract wins have strengthened our position in key markets. With growing recurring revenues, increasing demand for our solutions and a solid pipeline of opportunities, we enter the second half of the current year with confidence and remain on track to meet full-year market expectations."

Notice of Results

Pennant expects to announce its unaudited Interim Results for the six months to 30 June 2026 on Tuesday 1 September 2026.

Investor Presentation: 11.00am on Tuesday 1 September 2026

Management will hold an investor presentation to cover the Interim Results at 11.00am on Tuesday 1 September 2026.

Note 1: Market expectations are taken from analyst coverage consensus:

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

Note 3: the loss before taxation is stated prior to circa £0.4 million of exceptional costs.