Staverton headquartered Pennant International Group plc has been formally awarded an £8.8 million contract by Boeing Defence United Kingdom Limited (BDUK).

Specialising in training technology and integrated product support solutions, the contract is said to be for the significant redesign and upgrade of several Apache helicopter training devices in support of the UK Apache Mk 2 programme.

Pennant revealed the contract value to be £8.8 million and, being an 'engineered-to-order' programme, the associated revenue will be recognised over the next three years on a 'cost-to-complete' basis.

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 also finalised and signed contracts for the supply of software and services to a new customer in the North American commercial aerospace market. This contract is worth circa $1.8 million, comprising software licences to be supplied this financial year, consultancy services and a multi-year maintenance package.

This contract win is said to demonstrate 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 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).

Pennant CEO Phil Walker said: "We are delighted with these recent contract wins. They provide an excellent start to the current financial year and are helping to build firm foundations for the future growth of the group."