Cheltenham-based Pennant International Group PLC has updated its latest trading position - and against a favourable political backdrop as the firm looks ahead, revenue and profits for the software safety specialists are up.

Based at Staverton Connection, the intrusion prevention software and services specialist, whose key clients are within the aerospace, defence and rail sectors, also works in safety-critical markets, such as shipping, nuclear and space.

As of June 30 and subject to review, first half-year results for 2024 showed that:

● Revenues achieved £7.4m (against the same period last year of £7.1m)

● Gross margin increased by 48% (H1 2023: 47%)

● Net profits reached £0.9m (H1 2023: EBITDA was £0.8 million)

● Net debt came down to £1.6m, having been £1.9m in the same period of 2023.

A spokesman said: "Investment continues in the Group's proprietary integrated software suite, which has now been branded 'Auxilium', with circa £0.7m invested during the First Half. Unveiling of the suite to industry will take place during Q4 2024, with release of the full suite expected by year-end."

They added: "The Group is continuing to progress several material sales prospects with a view to converting these into orders in the second half of the year. The timing and quantum of these potential awards remains subject to contract and, in certain cases, the completion of processes at defence department and prime contractor level."

The board also indicated that it was pleased to hear, with the change of government, the announcement of a UK Strategic Defence Review and it welcomed a commitment to increase UK defence spending to 2.5% of GDP.

Philip Walker, Pennant's CEO, added: "I am pleased to report ongoing progress in the business, and in particular, the investment in and development of our Auxilium software suite, which we expect to launch in the second half of this financial year."

Pennant added that its market focus is through three key business lines:

● Systems support: software tools designed to help clients manage and use complex data, ensure equipment availability at optimal cost and comply with industry standards.

● Training: providing hardware, software and virtual solutions, critical skills training for maintainers and operators of aircraft, ships and land systems.

● Technical services: support all Pennant's software and training solutions including consultancy, support and maintenance, training and bespoke development.

The company added: "Against a climate of rising defence budgets and the burgeoning technological complexity of military, aviation and rail platforms, the demand for these solutions is expected to grow substantially.

● As well as its Cheltenham HQ, Pennant operates worldwide, with offices in Europe, North America and Indo-Pacific, serving markets with high barriers to entry, often in regulated industries.