Pennant gets lift off on helicopters contract

Pennant, the computer simulation training and logistics company, shot up on Monday on the back of an increase in the size of its AgustaWestland helicopters contract.

Pennant's biggest business is providing training systems for engineers, mainly in the defence sector, with the Training division generating 52% of group revenues in 2011, up from 45% in 2010. Data Service now accounts for 17% of revenues (2010: 20%) while Software Services is now at 31%, down from 35% in the prior year.

Revenues during 2011 grew by 8.2% to £10.35m (2010: £9.57m). Operating profit increased by 30% to £707,000 or 6.8% of revenue (2010: £542,000 and 5.7% of revenue).

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Cash generated from operations was £2.2m (2010: £0.96m). Pennant's bank borrowings were repaid in full over 2011 leaving the group with net funds of £2.33 million at the year end (2010: £1.16m).

The final dividend will be 1p per share, the same as the prior year.

Italian-owned (but UK-based) AgustaWestland is the world's leading military helicopter manufacturer. It pays Pennant for the development of maintenance training equipment for its Lynx Wildcat model; that contract has expanded and is now worth £12m.

Christopher Powell, Pennant's Chairman, said the firm's order books was "strong" and that tendering levels were high.

The market liked what it saw in the full year results, at 08:59 the stock had jumped 9.68%. Since the beginning of 2012 Pennant shares have risen 25.7%

BS