Petards Group plc (AIM: PEG), the AIM quoted developer of advanced security, communication and surveillance systems, is pleased to report its audited final results for the year ended 31 December 2024.

Key Highlights:

• Operational
  • Completed £2.85 million acquisition of Affini Technology on 13 June 2024, a UK-based systems integrator specialising in critical communications and wireless technologies
    – £2.52 million in cash and £0.33 million in Petards consideration shares
    – Strengthened Group, by diversifying earnings and expanding blue chip customer base
    – Annual recurring revenues typically represent circa 50% of total annual revenues
  • Continued growth of Traffic ANPR related revenues supported by sales of the new QRO Harrier AI camera system, and strengthened our sales team to target overseas markets
  • Petards’ eyeTrain and Defence markets remained challenging with orders delayed
  • Group revenues from service and engineering support, spares, repairs and managed services exceed 50% of total revenue
  • Order book at 31 December 2024: £7.1 million (31 Dec 2023: £2.4 million)
    – over 80% of which is for delivery in 2025
    – 2025 will also benefit from a full year’s revenue from Affini (2024: 6½ months)
  • New products developed included the QRO Harrier Mini ANPR camera system for mobile and fixed roadside applications, launched in early 2025 for which initial orders have been received

• Financial
  • Total revenues £12.0 million (2023: £9.4 million)
  • Gross profit margin 45.3% (2023: 50.5%)
    – Margins excluding Affini, were similar year-on-year
    – Affini’s integrator model attracts good margins, but lower than Petards’ existing OEM solutions
  • Adjusted EBITDA¹ £410,000 (2023: £340,000)
  • Operating loss before exceptional items £774,000 (2023: £529,000 loss)
  • Incurred exceptional acquisition and reorganisation costs of £491,000 (2023: £656,000)
  • Loss after tax £1,127,000 (2023: £1,050,000 loss)
  • Basic and diluted loss per share 1.91p (2023: basic and diluted loss per share 1.86p)
  • Net cash inflow from operating activities pre-exceptionals £685,000 (2023: £660,000)
  • At 31 December 2024, after payment of Affini cash consideration and acquisition costs, net debt totalled £1,535,000 (31 Dec 2023: net funds £1,241,000)²

¹ Adjusted EBITDA comprises operating profit adjusted to remove the impact of depreciation, amortisation, exceptional items and acquisition costs. A reconciliation of adjusted EBITDA to operating profit is included on the face of the consolidated income statement. ² Total net funds/(debt) comprise cash and cash equivalents less interest bearing loans and borrowings.

Commenting on the current outlook, Raschid Abdullah, Chairman, said:

“2025 has started positively with trading in the first five months of the year in line with budget and we expect trading for the first half of the year to be well ahead of that reported in the first half of 2024.

The Group’s current pipeline of new business remains strong, although in Rail and Defence markets we are still experiencing later than expected placement of orders by customers. Those delays are not presently expected to impact the overall trading performance for 2025 as a whole.

With an opening order book of £7.1 million (31 December 2023: £2.4 million), together with the orders received in the first five months of 2025, revenue cover for 2025 has increased to around 75%.

In view of the Group’s significantly improved opening order book and a full year’s contribution from Affini, the Board is confident in the enlarged Group’s prospects and anticipates an improved trading performance for 2025.”

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Download RNS announcement