Final results for year ended 31st December 2019
18 June 2020
Petards Group plc (AIM: PEG), the AIM quoted developer of advanced security and surveillance systems, is pleased to report its final results for the year ended 31 December 2019.
- Order book at 31 December 2019 £15 million (31 Dec 2018: £19 million)
- 2019 year end order book coverage for 2020 in excess of £10 million
- Continued to receive significant orders for eyeTrain systems
- Good traction being gained from focus on eyeTrain through-life support activities with revenues up 9% and post year-end award of first software support contract
- 2019 affected by customer re-scheduling eyeTrain system deliveries into 2020, and much lower than forecast profitability on two other rail projects
- Growth in Traffic Technology customer base and product offering
- Both QRO and RTS moved to new premises to support growth
- Action taken to reduce the cost base has continued into 2020 in line with the eyeTrain development strategy
- Total revenues £15.7 million (2018: £20.0 million)
- Gross margins 30.8% (2018 restated: 31.7%)
- Adjusted EBITDA* £281,000 loss (2018 restated: £1,501,000 profit)
- Operating loss £1,287,000 (2018 restated: £600,000 profit)
- Loss after tax £193,000 (2018 restated: £693,000 profit)
- Total net debt (debt less cash £525,000** (31 Dec 2018: £969,000 net funds)
- Basic and diluted EPS 0.34p loss (2018: basic 1.22p profit; diluted 1.18p profit)
- Group's Bankers renewed £0.75 million revolving credit facility to June 2022
- £1 million post year-end cash receipts in respect of pre-2019 investment in R&D
* Adjusted EBITDA comprises operating profit adjusted to remove the impact of depreciation, amortisation, exceptional items, acquisition costs and share based payments. A reconciliation of Adjusted EBITDA to operating profit is included on the face of the consolidated income statement.
** Includes £426,000 debt relating to lease liabilities on adoption of IFRS 16 at 1 January 2019. Net funds of £969,000 at 31 December 2018 excluded these liabilities.
Commenting on the current outlook, Raschid Abdullah, Chairman, said:
"While progress is being made throughout the Group and new business is being secured, the provision of forward guidance in the current circumstances remains extremely challenging. Following the initial effects of the Covid-19 lock-down on their businesses, customers have been adapting their operations and revising delivery schedules accordingly, which has obviously had an impact on the Group's recent trading. With the Department for Transport, the MOD and train operating companies focussing their efforts on dealing with Covid-19, the timing of contract awards previously anticipated for 2020 revenues are unlikely to become clearer until the pandemic within the UK has abated. The Board continues to keep this under close review and will provide further updates when appropriate."
"The UK Government has stated its commitment to further investment in the railways, law enforcement and security, areas in which the Group enjoys long-standing customer relationships. This together with the Group's order book at 31 May 2020 of over £13 million, provide the Board with confidence for the Group's future prospects."