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Pennant International Group PLC on Friday said it expects to post a double-digit decline in revenue for the first half of 2025, as approval for a key contract is delayed until at least the end of the year. The Cheltenham, England-based provider of systems support, technical services and training, focused on the defence sector, expects to report revenue of £4.5 million for the six months that ended June 30, down 39% from £7.4 million a year earlier. Pennant anticipates a gross margin of 45%, against 48% a year before, and a widened adjusted pretax loss of £1.7 million from £400,000. As previously reported, Pennant expects full-year results to be second-half weighted, with its GenFly technology upgrade contract to contribute up to 15% of 2025 revenue, including around 25% of budgeted second-half revenue. GenFly contract negotiations with the UK Ministry of Defence are continuing, Pennant said, though the firm noted it is now likely the MoD will push the contract’s award date into the fourth quarter or later under newly-introduced approval processes. As a result, Pennant expects 2025 turnover will be ‘commensurately lower than market expectations’. ‘While it is disappointing that the GenFly contract will start later than expected, we will push to secure the award as soon as possible, while keeping focus on implementing our Auxilium strategy to achieve long-term growth in our software and services segments,’ said Chief Executive Officer Phil Walker. ‘Indeed, it was pleasing to see the early fruits of these efforts in the achievement of record-level [annual recurring revenue] during the first half and we look forward to materially growing this number in 2026 and later years.’ Contracted revenue for 2025 currently stands around £9 million, with ARR from Auxilium software products currently totalling £2.1 million. Pennant added it was ‘actively pursuing’ multiple sales opportunities to impact 2025 and beyond, whilst also onboarding its new Auxilium distribution partners to progress its software and services growth strategy. Pennant will release its interim results on September 16. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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