Interim results announcement

20 September 2018

Petards Group plc (AIM: PEG), the AIM quoted developer of advanced security and surveillance systems, is pleased to report its interim results for the six months ended 30 June 2018.

Key Highlights:
  • Operational
    • Order book at 30/06/2018 £20 million (31/12/2017- £18 million)
    • Current order coverage for H2/2018 in excess of £9.5 million and almost £8 million scheduled for 2019
    • Orders for eyeTrain of over £6.5 million received since 30/06/2018, adding to coverage for 2019 and beyond
    • Strong revenue performance arising from Defence related products
    • Acquisition of RTS Solutions (“RTS”) successfully completed in May 2018
    • QRO secured two significant framework agreements generating new orders of over £1 million
    • Continued investment in eyeTrain software solutions
  • Financial
    • Revenue increased 21% to £9.7 million (2017 - £8.0 million); 20% excluding RTS
    • Gross margins 34.6% (2017 - 38.6%) reflecting higher levels of Defence product revenues
    • Adjusted EBITDA up 17% to £1,085,000 (2017 - £925,000)
    • Adjusted pre-tax profit up 17% to £602,000 (2017 - £515,000)
    • Pre-tax profit up 2% to £514,000 (2017 - £503,000)
    • Cash generated from operating activities £966,000 (2017 - £218,000 outflow)
    • Cash balances of £2.3 million at 30/06/2018 (31/12/2017 - £1.3 million)
    • Net cash £1.0 million (post RTS acquisition) (31/12/2017 - £1.3 million)
    • Diluted EPS 0.88p (2017 - 0.98p)

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

“The Group continues to benefit from a good balance sheet and a strong forward order book of £20 million which has been further enhanced with the recently announced award of three contracts totalling over £6.5 million from Bombardier and Siemens.”

“The Board is also pleased with the performance of its more recent acquisitions, QRO and RTS, and continues to review other acquisition opportunities.”

“With the June 2018 order book containing revenues of approaching £10 million for the second half of 2018 and almost £8 million for 2019, the Board remains confident in the future prospects for the Group.”

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