Gloucestershire-based tech training firm Pennant International has completed the sale of its last two warehouses in Staverton for £1.125m.
The AIM-listed company said on Thursday (July 3) it would continue to occupy the units on a leaseback basis after agreeing a five-year term, with a three-year 'tenant only' break clause. The annual rent is £95,000 (exclusive of VAT, utilities and related outgoings), the company said.
The net proceeds of the sales will be used to help reduce the group's overdraft borrowings, although Pennant admitted the transaction had "realised a small loss against book value".
Pennant launched its property disposal programme in September last year and has raised £3.2m as a result.
Elsewhere, the company said it was seeing increased interest in its products and services, and that the outcome of the Government's defence spending review "augurs well" for the remainder of the financial year and in the medium term.
It added that negotiations with the Ministry of Defence on the GenFly technology upgrade contract, which is expected to contribute to around 15% of 2025 revenue, were "progressing well" and it would likely confirm the contract award in the third quarter.
"As expected, 2025 revenue is anticipated to be significantly second-half-weighted, particularly noting the likely award date for the GenFly contract and delayed project work through Q2 within the company's Track Access (rail) business," the company said in a statement to the stock market.
"The directors remain confident that the group will meet market expectations for the full year, with the second half revenue weighting achievable through the continued delivery of existing contracts, execution of Pennant's 'go to market' strategy for the Auxilium suite, and successful conversion of the GenFly contract."
A further trading update will be provided in August ahead of Pennant's interim results.
