Pennant International

Technological training solutions provider Pennant has clinched a contract to develop a Virtual Reality Parachute Trainer for the Defence Equipment & Support (DE&S) arm of the Ministry of Defence (MoD).

Cheltenham-based Pennant, a supplier to government departments as well as the defence, rail and aerospace sectors, has been briefed by the Flight Simulation and Synthetic Trainers Project Team to design and then support (over four years) eight training devices for the Parachute Training School (PTS) at RAF Brize Norton. These advanced training systems will simulate a parachute descent and allow PTS students to practise ‘parachuting and malfunction skills in a safe but realistic virtual environment’.

No deal value was disclosed, but the contract is the latest upbeat piece of news from Pennant, which returned to profit during the half-year to June, thanks to cost cutting and a return to form in 'data services'. A small company punching above its weight with heavyweight clients including BAE Systems and Network Rail, Pennant has returned to the dividend list following a move into profit in 2009 (annual results are out next month), during which cash balances burgeoned from an interim £268,000 to a year-end £1.284m. Shareholders will shortly receive a 1p cash dividend, representing a 0.66p dividend for 2009 together with a 0.34p special payout.  

Not entirely immune from government spending cuts, but with a reassuringly high proportion of support and maintenance revenues under its belt, Pennant should deliver a move from losses to profits of £350,000 for 2009, producing 1p of earnings. For 2010, a £500,000 profit looks achievable, as revenues build from £9.7m to £10.5m.

Modestly priced, the shares, which have traded between 52-week highs and lows of 10.5p and 6.25p this past 52-weeks, are well worth a speculation.