Pennant International returns to FY operating profit

Software and services firm Pennant International said on Wednesday that it had delivered record gross margins as it returned to an operating profit in 2023.

Pennant International said group revenues rose from £13.7m to £15.5m for the year, with gross margins improving from 42% in 2022 to £15.5m twelve months later.

The AIM-listed group also recorded underlying earnings of £400,000, a marked improvement on its £1.0m underlying loss a year earlier.

Net debt, on the other hand, increased from £400,000 to £1.9m. However, post-year-end receipts resulted in a net cash balance of £300,000 during the week commencing 15 January.

Pennant also revealed that Ian Dighé had been appointed to the board as chairman designate, with Phil Cotton set to step down from the role at its annual general meeting in May. Following the AGM, Cotton will continue to serve on the board as an independent non-executive director.

As of 1050 GMT, Pennant shares were down 5.80% at 32.50p.

Reporting by Iain Gilbert at Sharecast.com