Financial results:

• Revenues up 6.5% to £12.1m (2010: £11.4m)
• Operating profits increased to £335,000 (2010: £85,000)
• Profit before tax £215,000 (2010: £53,000)
• Profit after tax £312,000 (2010: £364,000)
• Gross margin 37% (2010: 38%)
• Net debt at 31 December 2011 reduced to £1.5m (Dec 2010: £2.0m)
• Basic and diluted EPS of 4.9p (2010 as restated: 5.7p)

Other highlights

• £3m orders for electronic countermeasures systems from MOD for Puma and Chinook Mk6 aircraft
• Completion of deliveries of eyeTrain CCTV systems to Bombardier Transportation for Stansted Express trains
• Successfully managed the consequences of a major fire at key supplier during 2011

 
Tim Wightman, Chairman of Petards, commented:

"For the past two years the poor state of government finances, particularly those in the UK and the Eurozone, has significantly reduced the spending levels within a significant proportion of our customer base. As we are all aware the economic uncertainties have increased again recently and the strengthening of sterling against the Euro will not be helpful if it proves to be a continuing trend. While the Group has remained profitable, the rate at which we have been able to strengthen our balance sheet over the past two years has slowed reducing the level of investment capital available to grow the business as quickly as we would like.

However, because of worldwide commitment to the modernisation and development of rail travel we continue to be confident that we are operating in markets which have the potential for good returns. The opportunities in our home markets in the medium term should give a good base from which to deliver growth from the penetration of export markets.

The Board expects 2012 revenues to include the benefit of several orders anticipated to be received in the third quarter. As in previous years, revenues for 2012 are expected to be weighted towards the second half of the year."

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