The AIM-listed company, which manufactures training simulators to defence, rail, naval and aerospace sectors, reported a pre-tax profit of £1.9mln for the year ended 31 December 2016, compared to a loss before tax of £2.4mln the previous year.
However, the group suspended its dividend in order to retain cash for working capital and investments.
Revenue rose to £17.3mln from £9.9mln a year earlier, driven by its training division.
Within the training business, revenue rose to £12.1mln from £2.9mln, as the company won contracts in the Middle East and in India and scored a deal with Lockheed Martin Corporation.
The software division’s revenue climbed to £4.3mln while the support and development arm’s revenues dipped to £1.8mln from £2.0mln.
Pennant said the first half was affected by contract delays but these were resolved in the second half.
The group ended the year with net cash of £3.52mln, compared to £1.12mln at the end of 2015.
In February, Chris Snook stepped down as chief executive and has been replaced by Philip Walker.
Chairman Simon Moore said Walker has “moved quickly to build a leadership team around him and will be making more key appointments over the coming months".
On the outlook, the Walker said a year-end order book of £38mln underpins the forward visibility of revenues well into 2019. He said the company has had an “encouraging” start to 2017 and expects a “healthy” first half and further progress for the year.
“The board is confident that it can continue to increase revenues through organic growth but it will also consider complementary strategic acquisitions, which can both increase the depth and range of the group's offering and enhance underlying revenues,” he said.
Shares rose 5.85% to 86.80p in early trading.