The contract is for the significant redesign and upgrade of several Apache training devices in support of the UK Apache Mk 2 programme.
The contract value is £8.8 million and, being an ‘engineered-to-order’ programme, the associated revenue will be recognised over the next three years. Pennant has agreed a milestone payment plan over the course of the contract with the customer such that additional working capital facilities should not be required.
BDUK is a new customer for Pennant.
Pennant has also finalised and signed contracts for the supply of software and services to a new customer in the North American commercial aerospace market. The contract is worth around $1.8 million.
This contract win demonstrates significant progress in the Group’s strategy to increase the proportion of its revenues from civilian customers, which was further boosted this January when the Group secured circa £200,000 in new orders from rail industry customers in the UK.
Pennant has also received an order worth up to £250,000 from UK Defence for the supply of the Group’s sophisticated, proprietary rotary-wing aircraft systems training software and related maintenance services.
Taking into account orders received since the year-end, the Group’s three-year order book now stands at £32 million (of which circa £13 million is scheduled for delivery in 2022, and £12 million in 2023).
Phil Walker, Pennant CEO, said: “We are delighted with these recent contract wins, and the good progress made on the MTE Programme. They provide an excellent start to the current financial year and are helping to build firm foundations for the future growth of the Group.”