Career
Penney joined the British Army and was commissioned as a second lieutenant into the Royal Engineers in 1914 at the start of World War I during which he fought in France and Belgium. After the war he transferred to the Royal Corps of Signals and then served in British India and China. He served in World World War II as Signal Officer-in-Chief in the Middle East from 1941, later becoming General Sir Harold Alexander"s Chief Signal Officer, and as General Officer Commanding 1st Infantry Division from late 1943 (taking part in the Anzio landings of the Italian Campaign) The division came under command of United States. VI Corps, commanded by Major General John P. Lucas, whom Penney was skeptical about and he formed a very low opinion of.
He was wounded by shellfire during the fighting at Anzio, and the division was temporarily commanded by Major-General Gerald Templer, GOC of the 56th (London) Infantry Division, which had recently arrived in the beachhead.
From 1944, he was Director of Military Intelligence at Headquarters Supreme Allied Command South East Asia until the end of the war. After the Second World War ended in 1945, he became Assistant Controller Supplies (Munitions) at the Ministry of Supply until his retirement in 1949.
In retirement he worked at the Foreign Office. From 1953 he was the first Director of the London Communications Security Agency (an agency established to study and advise on British cypher security and which later evolved to become CESG).
He stood down as Director of the London Communications Security Agency in 1957.