Pennant International secures £600,000 shareholder loan

London - Pennant International Group (AIM:PEN) has secured a £600,000 shareholder loan from major stakeholder Brett Gordon. The loan enables the company to decrease its overdraft facility from £1.4 million to £1.0 million. This move ensures working capital flexibility throughout the rest of the fiscal year.

The systems support software and training solutions provider had previously raised its overdraft limit to accommodate working capital changes during Q3 2026. The loan is intended to cover a delivery phase for contracted orders. Milestone payments are anticipated in Q4 2026 and early 2027.

The loan carries a fixed interest rate of 10.0% annually, payable monthly, with the principal to be repaid within 180 days of the loan's drawdown. Pennant maintains the flexibility to prepay the facility without penalty at any point prior to maturity. The company intends to utilize £400,000 of the loan immediately.

This financial support is part of Pennant's ongoing cost reduction and restructuring initiative, which is projected to yield annualized savings exceeding £500,000 commencing from fiscal year 2027. The firm remains on course to meet its full-year 2026 market projections. The loan transaction is considered a related party deal under AIM Rules for Companies. The directors, following consultation with the company’s Nominated Adviser, deem the loan terms fair and equitable for shareholders.