TIDMPEN
RNS Number : 5743M
Pennant International Group PLC
22 September 2021
FOR IMMEDIATE RELEASE 22 September 2021
PENNANT INTERNATIONAL GROUP PLC
Interim Results for the six months ended 30 June 2021
Challenging First Half; improved outlook for second half, 'on
track' for year as a whole;
GBP1 million saving in admin costs being realised; next
generation product investment commenced
Pennant International Group plc (AIM:PEN) ("Pennant", the
"Group" or "Company"), a leading global provider of training
technology and integrated product support solutions , announces its
Interim Results for the six months ended 30 June 2021 (the "First
Half", the "Period", or "H1 2021").
Commenting on the results, Chairman John Ponsonby said:
"The Half Year results mask a particularly encouraging
performance from the Group's IPS division, while the decisive
actions taken last year to reduce costs resulted in significant
savings during the First Half, positioning the Group well for the
second half and into 2022."
"I would like to thank all Pennant employees, who have worked
tirelessly during the First Half, drawing on Pennant's long
heritage to deliver our impressive breadth of products and
capabilities. "
Key points: Financial
-- Group revenues for the Period of GBP7.4 million (H1 2020: GBP6.3 million);
-- gross margin of 21% (H1 2020: 18%);
-- EBITA loss of GBP1.0 million (H1 2020: loss before interest,
taxation and amortisation of GBP2.5 million);
-- loss before tax of GBP1.7 million (H1 2020: loss before tax of GBP3.2 million);
-- savings implemented during 2020 now being realised, with
administration costs for the Period of GBP3.2 million against
GBP4.3 million for the first six months of 2020 (NB: H1 2020
administration costs included GBP0.5 million of non-underlying
costs);
-- net cash generated from operations of GBP0.2 million (H1
2020: cash generated from operations of GBP4.5 million);
-- net debt at Period end of GBP1.9 million (H1 2020: net cash of GBP2 million);
-- trade and other receivables of GBP3.7 million (H1 2020: GBP3.7 million);
-- basic (loss) per share of (4.64)p per share (H1 2020: basic
(loss) per share of (8.88)p per share);
-- unrelieved tax losses of GBP4.5 million carried forward (H1 2020: GBP2.8 million).
Key points: Operational
-- Expansion of Integrated Product Support business, with new
customers in new sectors: commercial aviation and private space
exploration;
-- commencement of internally-funded development of Omega PS
successor product (redesigned to ensure legacy, current and future
LSA standards are quickly and easily supported, with a modern, easy
to use interface);
-- enhanced operational footprint in Australia and United States
to deliver software and consultancy programmes;
-- critical design review successfully passed on UK Helicopter
trainer programme, on time and on budget;
-- after significant Covid-19 related delays, successful
installation and commission of generic training devices in Qatar,
enabling revenue to be recognised;
-- completion of build and factory acceptance on products for
second Middle East customer, ready for delivery and installation in
the second half;
-- continuing challenges on the MTE Programme negatively
impacting the financial performance of the Technical Training
business;
-- the appointment of John Ponsonby as Chair.
Commenting on the Group's prospects, John Ponsonby added:
"Looking forward, there is much reason for optimism. Recent
industry engagements (such as at the DSEI trade show), and the
forging of new partnerships with OEMs and other complementary
companies, have firmly highlighted that our customer community is
highly positive about the Group's approach to technological
innovation. We are invested in continuous innovation for both the
TTD and IPS product ranges (as evidenced by the commencement of the
development of the OmegaPS successor product), and have a pipeline
of sales opportunities across the globe.
After a challenging First Half, we are pleased that the Company
remains on course to meet expectations for the year. The Board is
committed to delivering the Group Strategy and is keenly focussed
on improving Group performance in 2022.
Whilst the last two years have been extremely challenging to all
in the Group, the Board is confident that the Group's long-term
prospects are positive and I look forward to updating shareholders
further in due course."
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("MAR") prior to its release as part
of this announcement and is disclosed in accordance with the
Company's obligations under Article 17 of MAR.
Enquiries:
Pennant International Group www.pennantplc.co.uk
plc
Philip Walker, CEO
David Clements, Commercial &
Risk Director +44 (0) 1452 714 914
WH Ireland Limited (Nomad and www.whirelandcb.com
Broker)
Mike Coe
Sarah Mather +44 (0) 20 7220 1666
Walbrook PR (Financial PR) paul.vann@walbrookpr.com
Paul Vann +44 (0)20 7933 8780
Tom Cooper Mob: +44 (0)7768 807631
Pennant International Group plc
Interim Report for the six months ended 30 June 2021
Chairman's Statement
On behalf of the Board of Directors, I can report that the Group
recorded a pre-tax loss for the six months ended 30 June 2021 of
GBP1.7 million (H1 2020: pre-tax loss of GBP3.2 million ).
I would like to thank all Pennant employees, who have worked
tirelessly during the First Half, drawing on Pennant's long
heritage to deliver our impressive breadth of products and
capabilities.
Results and dividend
Revenues for the Period were higher than the equivalent period
in 2020 at GBP7.4 million (H1 2020: GBP6.3 million).
This increase was largely attributable to generic products
achieving acceptance events and progress on engineered-to-order
programmes in the Technical Training division, combined with strong
performance in the Integrated Product Support division.
The gross profit margin for the Period was 21% (H1 2020: 18%)
due to the sales mix and the significant proportion of revenues
attributable to the MTE Programme (which is trading at a low
margin). It is anticipated that gross margin for the year as a
whole will be in the region of 30%.
Administrative costs for the Period reduced to GBP3.2 million
(H1 2020: GBP4.3 million), following management's comprehensive
costs review carried out during 2020 which achieved annualised
savings of circa GBP1 million. It should be noted H1 2020
administration costs included GBP0.5 million of non-underlying
costs (GBP0.4 million restructuring expenses and GBP90k aborted
transaction costs).
The Group ended the Period with net debt of GBP1.9 million (H1
2020: GBP2.0 million net cash), reflecting the scheduled cash
outflows from materials purchasing and production activities during
the Period.
Total assets at Period end were GBP20.6 million (H1 2020:
GBP21.3 million).
The basic loss per share for the Half Year was (4.64)p compared
to a loss of (8.88)p for the same period last year.
A minimal effective tax rate is expected for the full year due
to unrelieved tax losses of GBP4.5 million carried forward at the
Half Year (H1 2020: GBP2.8 million) and with R&D tax credit
claims in progress.
The Group's three-year order book reduced during the Period
ending at GBP26 million (H1 2020: GBP36 million) which is scheduled
for delivery as follows: GBP7.2 million in H2 2021, GBP8.7 million
in 2022, GBP7.8 million in 2023 and the balance in H1 2024. Order
intake during the Period was at relatively low levels, not least
due to reduced customer procurement activity induced by the
Covid-19 pandemic and, in the UK, the completion of the Integrated
Review of Security, Defence, Development and Foreign Policy.
Further detail is provided in the 'Technical Training division'
segment of the review below.
The Directors have concluded that it is in the best interests of
the Company and its shareholders to retain cash at this time for
expected working capital requirements, particularly given the
ongoing pandemic. The Board will therefore not be declaring an
interim dividend but will continue to review the Group's dividend
policy based on performance, cash generation and working capital
and investment requirements .
Divisional Performance & Operational Commentary
Integrated Product Support (IPS) division
Overview
The Group's IPS business develops and supplies Pennant's two
proprietary software product suites, OmegaPS and R4i. OmegaPS is a
sophisticated logistics data tool; R4i provides its users with a
dynamic, S1000D-compliant technical documentation solution.
In addition, the IPS business provides long-term recurring
consultancy, support and maintenance services on both software
suites to its many customers which include the Canadian and
Australian defence departments and their respective supply
bases.
New Customers, New Sectors
The Period saw significant market demand for the specialist
capabilities of the R4i suite, with the S1000D technical
documentation standard being utilised on an increasing number of
military and civilian engineering projects. The IPS business is
growing beyond its traditional defence base, with new customers
acquired in new sectors during the Period including commercial
aviation and space exploration.
The Group anticipates that demand for these capabilities will
remain strong and grow, reinforcing the Board's decision last year
to acquire Absolute Data Group, the company which developed R4i.
With the development of an OmegaPS successor product, 'GenS' (see
below), the Group will be able to provide a cutting-edge,
end-to-end solution for customers' data and documentation
needs.
The IPS division continues to build its capability to provide
complementary services, particularly in niche capabilities such as
S1000D consultancy, where international demand for specialist
skills is strong. In support of this expansion, an enhanced
operational footprint has been established in the United States to
deliver these exciting software and consultancy programmes.
Product Investment
Development of GenS, the successor product to OmegaPS, commenced
during the Period with the first software release successfully
taking place post Period end.
GenS will represent the next generation of Logistics Support
Analysis/Logistics Product Data technology, with a modern, easy to
use interface and functionality deployable 'on premise' or as a
software as a service. GenS, when combined with the R4i S1000D
Technical Publishing suite; will transform customers Integrated
Product Support capabilities into a truly integrated digital
capability and reduce program delivery costs.
Financial Performance
The IPS division's financial performance during the Period was
as follows:
H1 2021 H1 2020
GBPm GBPm
Revenue
Products/Licences 0.4 0.3
Maintenance 0.6 0.5
Services 1.6 1.7
Total 2.6 2.5
Divisional contribution* 0.4 0.2
Allocation of Group costs (0.4) (0.3)
Profit/(Loss) for the Period** 0.0 (0.1)
* Divisional contribution to Group operating performance prior
to allocation of Group costs
** Divisional contribution to Group operating loss after
allocation of Group costs
Looking Forward
The division's pipeline is strong and the Group expects the
acquisition of new customers to continue during the second half and
beyond, with multiple opportunities in the United States, Canada
and Australia within the division's GBP14 million sales
pipeline.
Indeed, post Period end, orders worth GBP1.5 million have been
received for the division's software products and complementary
services, with the majority of these revenues realisable over the
next 12 months. The division remains 'on track' for revenues of
GBP5.8 million for the full year.
Furthermore, to complement the division's traditional strength
in North America and Australasia, the Group will be increasing its
focus on the European market to coincide with the launch of GenS
(the first release of which took place post Period end, with the
fully completed product scheduled for launch in late 2022).
Technical Training Division (TTD)
Overview
The Group's TTD is focused on the design and build of generic
and platform-specific training technologies and the provision of
related technical and support services for the defence, aerospace,
rail and other safety critical industries.
Half Year Performance
At present, TTD continues to be the main driver of revenues
within the Group. A review of key programmes is provided below.
General Dynamics Contract
The contract for electro-mechanical trainers for the Ajax
armoured fighting vehicle (the "MTE Programme") was awarded to the
Group by General Dynamics in 2015.
The division's H1 performance was significantly impacted by
factors relating to the MTE Programme, including:
-- the engineering complexity of emulating a vehicle which
itself remains under ongoing review and development;
-- deficiencies in the provision of OEM data and dependencies;
-- challenges within Pennant's own supply chain, including
delays and increases in the prices of parts and materials due to
global shortages; and
-- workplace restrictions and residual impacts relating to Covid-19.
Pennant is working closely with General Dynamics to resolve any
remaining challenges and ensure a successful delivery. It is now
anticipated that the MTE Programme will be completed during the
first quarter of 2022.
UK Helicopter contract
Delivery of the UK Helicopter trainer programme progressed well
during the Period, with Pennant passing the Critical Design Review
(an important engineering and cash milestone event) on time and on
budget.
Generic Product Sales
After significant Covid-19 related delays during 2020, various
generic training devices were successfully installed and
commissioned in Qatar during the Period, enabling associated
revenue to be recognised.
The build and factory acceptance of an additional product suite
for a second Middle East customer was also completed during the
Period, ready for delivery and installation in the second half.
Financial performance for the Period as follows:
H1 2021 H1 2020
GBPm GBPm
Revenue
Engineered 2.7 1.2
Generic 0.3 0.8
Technical Services & Support 1.8 1.8
Total 4.8 3.8
Divisional contribution* (1.1) (2.5)
Allocation of Group costs (0.6) (0.6)
Loss for the Period** (1.7) (3.1)
* Divisional contribution to Group operating performance prior
to allocation of Group costs
** Divisional contribution to Group operating loss after
allocation of Group costs
Evolution of TTD
The Board fully recognises the inherent challenges presented by
TTD's business model: 'lumpiness' of revenues and technical risk in
delivery, and has a detailed plan to address these (which aligns
with changes in the training market generally).
With the increasing focus amongst training providers on the
utilisation of smart technologies, the Period saw TTD continue its
drive to develop, sell and maintain innovative software-based
training solutions including Virtual Reality, Augmented Reality and
sophisticated vehicle platform emulations. Use of such solutions
not only brings cost benefits and safety improvements for the
training organisation but is also popular with students.
The action plan is to evolve the Group's TTD offering so that it
generates a greater proportion of its revenues from software and
services. As an example, during the Period, Pennant won a contract
to develop a prototype software simulation for a major
infrastructure organisation which has the potential to generate
significant follow-on sales.
Pennant will still compete to win hardware-based programmes
where attractive opportunities exist. For example, based on market
intelligence, the Group is optimistic for the medium term regarding
future sales of its proprietary generic training aids (such as
GenFly and IAMT) in support of aviation training colleges (along
similar lines to the Qatar programme and the 2016 Middle East
contracts).
As this repositioning continues, management envisages that TTD
revenues may decrease (as reliance on costly 'engineered to order'
programmes reduces) but that quality of earnings (margin and
recurrence) will substantially improve.
Opportunities may arise, as TTD evolves, to re-assess the
physical and other resources currently allocated to the division
which may enable further costs savings and/or the re-allocation of
capital within the wider business.
Looking Forward
The efforts described above to reposition the TTD business can
be seen in the division's current sales pipeline which, at Period
end, stood at approximately GBP25 million (excluding the 'Major
Programme'), of which circa 80% comprised opportunities for
software, services and/or repeat build generic products.
In the core UK market, customer procurement activity has slowed
due to Covid-19 and the completion of the Integrated Review of
Security, Defence, Development and Foreign Policy. With the review
now completed and published, and Covid-19 fall out abating, the
Group expects to receive further news during the second half from
its prospective customer and/or UK Defence regarding the 'Major
Programme' which will, it is hoped, definitively confirm whether a
contract is to be awarded, the scope of supply and ultimate
value.
More generally, the Group expects TTD to be a beneficiary of two
market factors: the UK government's renewed focus on buying
British, particularly from Small and Medium-sized Enterprises (as
articulated this year in the 'Defence and Security Industrial
Strategy); and the global trend mentioned above towards innovative,
technology-focused and enhanced training.
Outlook
I am very proud to have been appointed the Company's Chairman
during the Period, and I have been extremely grateful to all
Pennant employees who have worked tirelessly to achieve Half Year
results that represent a sound basis for delivering a much more
positive second half performance.
The Half Year results mask particularly encouraging performance
from the IPS division, and the decisive actions taken last year to
reduce costs are having a positive impact which is positioning the
Group well for the second half and into 2022.
Looking forward, there is much reason for optimism. Recent
industry engagements (such as at the DSEI trade show), and the
forging of new partnerships with OEMs and other complementary
companies, have firmly highlighted that our customer community is
highly positive about the Group's approach to technological
innovation. We are invested in continuous innovation for both the
TTD and IPS product ranges (as evidenced by the commencement of the
development of the OmegaPS successor product), and have a pipeline
of sales opportunities across the globe.
After a challenging First Half, we are pleased that the Company
remains on course to meet expectations for the year. The Board is
committed to delivering the Group Strategy and is keenly focussed
on improving Group performance in 2022.
None of this will be possible without the continued support of
our employees and once again, on behalf of the Board, I wish to
applaud the commitment of staff across the Group, who continue to
draw on Pennant's long heritage to deliver our impressive breadth
of products and capabilities.
Whilst the last two years have been extremely challenging to all
in the Group, the Board is confident that the Group's long-term
prospects are positive and I look forward to updating shareholders
further in due course.
J M M Ponsonby
Chairman
PENNANT INTERNATIONAL GROUP plc
CONSOLIDATED INCOME STATEMENT for the six months ended 30 June
2021
Notes
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2021 2020 2020
Unaudited Unaudited Audited
------------------------- --------------- --------------- -------------
GBP000s GBP000s GBP000s
------------------------- --------------- --------------- -------------
Revenue 7,427 6,258 15,056
------------------------- --------------- --------------- -------------
Cost of sales (5,837) (5,152) (10,676)
------------------------- --------------- --------------- -------------
Gross profit 1,590 1,106 4,380
------------------------- --------------- --------------- -------------
Administration expenses (3,222) (4,269) (7,919)
------------------------- --------------- --------------- -------------
Other income - - 525
------------------------- --------------- --------------- -------------
Operating (loss) (1,632) (3,163) (3,014)
------------------------- --------------- --------------- -------------
Finance costs (64) (71) (125)
------------------------- --------------- --------------- -------------
Finance income - - 0
------------------------- --------------- --------------- -------------
(Loss) before taxation (1,696) (3,234) (3,139)
------------------------- --------------- --------------- -------------
Taxation 2 - - 513
------------------------- --------------- --------------- -------------
(Loss) for the period (1,696) (3,234) (2,626)
------------------------- --------------- --------------- -------------
Earnings per share 3
------------------------- --------------- --------------- -------------
Basic (4.64p) (8.91p) (7.22p)
------------------------- --------------- --------------- -------------
Diluted (4.64p) (8.91p) (7.22p)
------------------------- --------------- --------------- -------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2021
Six months Six months Year ended
ended 30 ended 30 31 December
June 2021 June 2020 2020
Unaudited Unaudited Audited
----------- ----------- -------------
GBP000s GBP000s GBP000s
----------- ----------- -------------
(Loss) attributable to equity
holders of the parent (1,696) (3,234) (2,626)
Other comprehensive income
Exchange differences on
translation of foreign operations (90) (57) 41
----------------------------------- ----------- -------------
Deferred tax credit - property,
plant and equipment and
intangibles - - (18)
----------------------------------- ----------- ----------- -------------
(Loss) attributable to equity
holders of the parent (1,786) (3,291) (2,603)
----------- ----------- -------------
PENNANT INTERNATIONAL GROUP plc
CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30 June
2021
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2021 2020 2020
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
--------------- --------------- -------------
Non-current assets
--------------- --------------- -------------
Goodwill 2,428 2,134 2,428
--------------- --------------- -------------
Other intangible assets 5,178 5,352 5,570
--------------- --------------- -------------
Property plant and equipment 5,719 6,094 5,904
--------------- --------------- -------------
Right Of Use Asset 736 872 830
--------------- --------------- -------------
Deferred tax asset 91 - 91
--------------- --------------- -------------
Total non-current assets 14,152 14,452 14,823
--------------- --------------- -------------
Current assets
--------------- --------------- -------------
Inventories / work-in-progress 1,930 1,027* 1,081
--------------- --------------- -------------
Trade and other receivables 3,661 3,695* 4,884
--------------- --------------- -------------
Cash and cash equivalents 749 2,033 533
--------------- --------------- -------------
Current tax asset 99 82 1,439
--------------- --------------- -------------
Total current assets 6,439 6,837 7,937
--------------- --------------- -------------
Total assets 20,591 21,289 22,760
--------------- --------------- -------------
Current liabilities
--------------- --------------- -------------
Trade and other payables 4,379 3,992* 4,120
--------------- --------------- -------------
Current tax liabilities 83 96* 200
--------------- --------------- -------------
Obligations under finance
and operating leases 193 287 193
--------------- --------------- -------------
Bank overdraft 2,676 - 2,892
--------------- --------------- -------------
Earn out on acquisition 355 1,198 367
--------------- --------------- -------------
Provisions - 513 -
--------------- --------------- -------------
Total current liabilities 7,686 6,086 7,772
--------------- --------------- -------------
Net current (liabilities)
/ assets (1,247) 751 165
--------------- --------------- -------------
Non-current liabilities
--------------- --------------- -------------
Obligations under finance
and operating leases 600 668 720
--------------- --------------- -------------
Deferred tax liabilities 192 1,021 192
--------------- --------------- -------------
Earn out on acquisition 1,141 1,699 1,421
--------------- --------------- -------------
Warranty provisions 122 - 122
--------------- --------------- -------------
Total non-current liabilities 2,055 3,388 2,455
--------------- --------------- -------------
Total liabilities 9,741 9,474 10,227
--------------- --------------- -------------
Net assets 10,850 11,815 12,533
--------------- --------------- -------------
Equity
--------------- --------------- -------------
Share capital 1,832 1,822 1,822
--------------- --------------- -------------
Share premium 5,348 5,295 5,295
--------------- --------------- -------------
Capital redemption reserve 200 200 200
--------------- --------------- -------------
Retained earnings 2,595 3,511 4,243
--------------- --------------- -------------
Translation reserve 200 192 290
--------------- --------------- -------------
Revaluation reserve 675 795 683
--------------- --------------- -------------
Total equity 10,850 11,815 12,533
--------------- --------------- -------------
* These balances have been reclassified within the Statement of
Financial Position at 30 June 2020 to align with the audited
Financial Statements at 31 December 2020. These reclassifications
do not impact the Income Statement or any of the reserves.
PENNANT INTERNATIONAL GROUP plc
CONSOLIDATED STATEMENT OF CASH FLOWS for the six months ended 30
June 2021
Year ended
Six months ended Six months ended 31 December
30 June 2021 30 June 2020 2020
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
----------------- ----------------- -------------
Net cash generated
from operating activities 230 4,498 3,145
Investing activities
----------------- ----------------- -------------
Interest received - - 0
----------------- ----------------- -------------
Payment for acquisition
of subsidiary, net
of cash acquired (536) 47 (791)
----------------- ----------------- -------------
Purchase of intangible
assets (260) (313) (1,283)
----------------- ----------------- -------------
Purchase of property
plant and equipment (48) (51) (118)
----------------- ----------------- -------------
Net cash used in investing
activities (844) (317) (2,192)
----------------- ----------------- -------------
Financing activities
----------------- ----------------- -------------
Proceeds from sale
of ordinary shares 64 46 45
----------------- ----------------- -------------
Net (repayment of)
obligations under
operating lease (121) (88) (277)
----------------- ----------------- -------------
Net cash used in financing
activities (57) (42) (232)
----------------- ----------------- -------------
Net (decrease) / increase
in cash and cash equivalents (671) 4,139 721
----------------- ----------------- -------------
Cash and cash equivalents
at beginning of period (1,453) (2,242) (2,242)
----------------- ----------------- -------------
Effect of foreign
exchange rates 197 136 68
----------------- ----------------- -------------
Cash and cash equivalents
at end of period (1,927) 2,033 1,453
----------------- ----------------- -------------
PENNANT INTERNATIONAL GROUP plc
STATEMENT OF CHANGES IN EQUITY for the six months ended 30 June
2021
Share Share Capital Retained Translation Revaluation Total equity
capital premium redemption earnings reserve reserve
reserve
------------- ------------
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
------------- ------------- ------------ ------------ ------------ ------------ -------------
At 31 December
2019 1,806 5,100 200 6,759 249 730 14,844
------------- ------------- ------------ ------------ ------------ ------------ -------------
Total
comprehensive
income - - - (2,626) - - (2,626)
------------- ------------- ------------ ------------ ------------ ------------ -------------
Other
comprehensive
income - - - - 41 (18) 23
------------- ------------- ------------ ------------ ------------ ------------ -------------
Total
comprehensive
income 1,806 5,100 200 4,133 290 712 12,241
------------- ------------- ------------ ------------ ------------ ------------ -------------
Issue of New
Ordinary
Shares 16 195 - - - - 211
------------- ------------- ------------ ------------ ------------ ------------ -------------
Recognition of
share based
payment - - - 81 - - 81
------------- ------------- ------------ ------------ ------------ ------------ -------------
Transfer from
revaluation
reserve - - - 29 - (29) -
------------- ------------- ------------ ------------ ------------ ------------ -------------
At 31 December
2020 1,822 5,295 200 4,243 290 683 12,533
------------- ------------- ------------ ------------ ------------ ------------ -------------
Total
comprehensive
income - - - (1,696) - - (1,696)
------------- ------------- ------------ ------------ ------------ ------------ -------------
Other
comprehensive
income - - - - (90) - (90)
------------- ------------- ------------ ------------ ------------ ------------ -------------
Total
comprehensive
income 1,822 5,295 200 2,547 200 683 10,747
------------- ------------- ------------ ------------ ------------ ------------ -------------
Issue of New
Ordinary
Shares 10 53 - - - - 63
------------- ------------- ------------ ------------ ------------ ------------ -------------
Recognition of
share based
payment - - - 40 - - 40
------------- ------------- ------------ ------------ ------------ ------------ -------------
Transfer from
revaluation
reserve - - - 8 - (8) -
------------- ------------- ------------ ------------ ------------ ------------ -------------
At 30 June
2021 1,832 5,348 200 2,595 200 675 10,850
------------- ------------- ------------ ------------ ------------ ------------ -------------
PENNANT INTERNATIONAL GROUP plc
NOTES TO THE FINANCIAL INFORMATION for the six months ended 30
June 2021
1. Basis of preparation
This condensed set of financial statements has been prepared
using accounting policies expected to be adopted for the year
ending 31 December 2021.
These accounting policies are drawn up in accordance with
International Financial Reporting Standards (IFRSs) in conformity
with the requirements of the Companies Act 2006.
The comparative figures for the year ended 31 December 2020 set
out in this Interim Report are not statutory accounts. A copy of
the statutory accounts for that year has been delivered to the
Registrar of Companies. The auditors reported on those accounts;
their report was unqualified, did not draw attention to any matters
by way of emphasis and did not contain a statement under s498 (2)
or s498(3) of the Companies Act 2006.
AIM-quoted companies are not required to comply with IAS34
'Interim Financial Reporting' and the Company has taken advantage
of this exemption.
2. Taxation
The taxation charge for the Period is based on the estimated
rate of tax that is likely to be effective for the full year to 31
December 2021.
3. Earnings per share
Basic earnings per share are calculated by dividing the profit
for the Period attributable to the shareholders by the weighted
average number of shares in issue. The calculation of diluted
earnings per share does not take into account the potentially
diluting effect of share options as this impact would be
antidilutive to the losses attributable to equity shareholders.
Six months ended Six months ended Year ended 31
30 June 2021 30 June 2020 December 2020
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
--------------------------------- ----------------- ---------------
Earnings
--------------------------------- ----------------- ---------------
Net (loss) attributable
to equity shareholders (1,696) (3,234) (2,626)
--------------------------------- ----------------- ---------------
Number of shares Number Number Number
--------------------------------- ----------------- ---------------
Weighted average
number of ordinary
shares 36,543,371 36,316,163 36,381,274
--------------------------------- ----------------- ---------------
Diluting effect of
share options 1,819,043 2,305,710 2,147,376
--------------------------------- ----------------- ---------------
Weighted average
number of ordinary
shares for the purpose
of dilutive earnings
per share 38,362,414 38,621,873 38,528,650
--------------------------------- ----------------- ---------------
4. Cash generated from operations
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2021 2020 2020
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
--------------- --------------- -------------
(Loss) for the
period (1,696) (3,234) (2,626)
--------------- --------------- -------------
Finance income - - 0
--------------- --------------- -------------
Finance costs 64 71 125
--------------- --------------- -------------
Income tax expense - - (513)
--------------- --------------- -------------
Withholding tax (114)
--------------- --------------- -------------
Depreciation
of property,
plant and equipment 234 275 522
--------------- --------------- -------------
Depreciation
of right of use
assets 93 99 198
--------------- --------------- -------------
Amortisation
of other intangible
assets 652 626 1,139
--------------- --------------- -------------
Impairment of
assets - - 222
--------------- --------------- -------------
R&D tax credit - - (198)
--------------- --------------- -------------
Share-based payment 40 50 81
--------------- --------------- -------------
Operating cash
flows before
movement in working
capital (613) (2,113) (1,164)
--------------- --------------- -------------
Decrease in receivables 1,223 5,275 5,073
--------------- --------------- -------------
(Increase) in
inventories (849) (53) (510)
--------------- --------------- -------------
Increase / (decrease)
in payables 358 159 (790)
--------------- --------------- -------------
Increase in provisions - 513 -
--------------- --------------- -------------
Cash generated
from operations 119 3,781 2,609
--------------- --------------- -------------
Tax credit 175 788 574
--------------- --------------- -------------
Interest paid (64) (71) (38)
--------------- --------------- -------------
Net cash generated
from operations 230 4,498 3,145
--------------- --------------- -------------
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END
IR PPUMUBUPGUAP
(END) Dow Jones Newswires
September 22, 2021 02:00 ET (06:00 GMT)
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