Pennant International Group PLC on Wednesday said its loss narrowed last year, despite a reduced revenue, as its margin improved.

The Cheltenham, England-headquartered company, which provides training technologies and product support for the defence, aerospace and other industries, said its pretax loss for 2022 had narrowed to £1.4 million from £2.5 million in 2021.

Pennant said revenue decreased by 14% to £13.7 million in 2022 from £16.0 million in 2021.

Pennant’s administrative expenses increased by 2.9% to £6.9 million from £6.7 million in 2021, and other administration expenses increased by 6.6% to £7.3 million from £6.8 million. However, cost of sales decreased by 32% to £7.9 million in 2022 from £11.6 million the previous year.

It said its gross margin picked up to 42% in 2022 from 27% in 2021.

Pennant decided against a dividend, like in 2021.

Pennant said it is ‘confident about prospects for 2023 and beyond’, and noted its contracted three-year order book is now valued at £25 million at the end of 2022, up from £22 million at the end of 2021.

Chair Phil Cotton commented: ‘The improved performance was primarily the result of the progress made towards our technology and software transformation, coupled with the completion of the legacy engineered solution contract.’

‘The global economic and geo-political environment and supportive strategic backdrop for Pennant’s capabilities means that the board believes that the group’s underlying strengths - our long-term customer relationships with governments and major OEMs, our specialist services together with our quality-assured reputation - provide solid foundations for continued recovery and long-term success,’ he added.

Shares in Pennant were down 1.4% at 38.45 pence in London on Wednesday.

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