News blog

Pennant International Group

• BY: Andrew Hore |
• POSTED: 19/03/2013 |

Pennant International Group reported slightly better than expected 2012 results even before it gets the benefit of its largest ever contract and the confidence of the management is shown by a 40% dividend increase.

The contract for the development and support of training equipment is worth £16m over five years.

In 2012, Pennant increased its revenues by two-fifths to £14.5m and more than doubled its profit to £1.6m. Training systems made the biggest jump in revenues thanks to large contribution from the AgustaWestland contract. Net cash was £2.2m at the end of 2012. The dividend has been increased from l.5p a share to 2p a share.

House broker WH Ireland has increased its 2013 revenues forecast by 26% to £18.8m and its profit forecast by 18% to £2m. A 20% increase in dividend to 2.4p a share is also forecast.

At 66.5p a share, down 4p, Pennant is valued at £17.5m. The shares are trading on 11 times prospective 2013 earnings. The prospective yield is 3.7%.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMarch2013_42.pdf