Shares in Pennant International Group PLC (AIM:PEN) fell 11% on Friday after the company warned that contract delays would weigh on this year’s revenues.
The group reported a drop in first-half revenue to £4.5 million, down from £7.4 million a year earlier, with 88% of turnover generated from software and services. Gross margin slipped to 45% and the adjusted loss before tax widened to £1.7 million.
The company’s outlook was hit by a delay in the anticipated GenFly technology upgrade contract.
This is now expected to be awarded in the fourth quarter or later, following new approval processes within the Ministry of Defence.
As a result, Pennant said turnover for 2025 will fall short of market expectations, with GenFly revenues shifting into 2026 and beyond.
Annual recurring revenues from Auxilium software products rose to £2.1 million, and the group said it remains focused on its growth strategy in software and services. Net debt stood at £2 million at 30 June.
The shares fell 3.12p to 24.88p.