Pennant International Group, an AIM-listed manufacturer with operations in London, has secured a £600,000 short-term unsecured loan from its major shareholder, Brett Gordon. The company plans to draw down £400,000 immediately, with the remainder available pending future requirements. The loan carries a fixed annual interest rate of 10.0%, payable monthly, and is repayable in full within 180 days of drawdown, though prepayment is permitted without penalty before maturity.
The facility will reduce the company’s existing bank overdraft from £1.4 million to £1.0 million, reflecting adjustments to working capital needs. The transaction is structured to support ongoing cost reductions, with directors reporting that the restructuring program is expected to deliver annualized savings exceeding £500,000 beginning in fiscal 2027. Pennant remains aligned with its full-year 2026 market expectations, despite the short-term capital drawdown.
The loan is classified as a related-party transaction under Rule 13 of the AIM Rules for Companies. After consulting with its Nominated Adviser, the company’s directors have determined the terms fair and reasonable for shareholders. The facility is intended to bridge a period of delivery against its contracted order book, with milestone payments due in the fourth quarter of 2026 and early 2027, while the company navigates working capital fluctuations through the third quarter of 2026.
