AIM-listed training technology company Pennant International Group has seen its revenues rise to £7.1m.
The Gloucestershire business, which specialises in training technology for the aviation industry saw in its interim results revenues in the first half of the year pass the £7m mark, when compared to £6.9m the previous year.
Pennant said 46% of revenues where generated from software licensing and associated activities, which was only at 5% in the first half of 2022.
Earnings before interest, taxation and amortisation (EBITA) increased from £100,000 to £500,000. The Cheltenham company had a loss before tax of £400,000 compared to £800,000 last year.
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Chairman Philip Cotton said: "I am pleased to report that the Group has maintained positive earnings before interest, taxation and amortisation for a fourth consecutive period, with profitability in-line with market expectations for the year as a whole.
"Our plan to re-engineer the business to build on software, services and other higher-margin work - focusing on our unique breadth of products and services across multiple Integrated Product Support disciplines - is producing results."
Bosses noted progress on the circa £9m Boeing Defence United Kingdom (BDº£½ÇÊÓƵ) Apache upgrade programme, which "is running on time and on budget", with final deliveries scheduled for completion in September 2024. Acquisition of Track Access Productions Limited in April 2023, broadened Pennant's existing rail offering and customer base, and adding circa £300,000 of subscription-based recurring revenues.
Order intake secured during the first half of the year of £6.5m, which resulted in a period-end three-year contracted order book of £25m.
Mr Cotton added: "Given the burgeoning technological complexity of military, aviation and rail platforms, the demand for innovative Integrated Product Support solutions is only likely to grow, particularly with increasing defence budgets across the Western world.
"Our strategy has been formulated with precisely these factors in mind and with our developing S-Series solutions, we are well-placed to capitalise."
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