Petards reported steady half-year revenues but cautioned about a potential shortfall in full-year results.
- The Tyneside tech firm specialises in security and surveillance technologies.
- Operating losses widened following the acquisition of Affini Technology.
- Strong sales were noted for new products like QRO’s Harrier AI camera.
- Recent orders are encouraging but may not meet market expectations.
Tyneside-based technology firm, Petards, has announced its interim financial results for the six months ending June 30, reporting a steady revenue of £4.415 million, marginally higher than the £4.403 million from the previous year. Despite this steady performance, the company has issued a warning that its full-year results might not align with market expectations.
Petards, known for its expertise in developing and maintaining advanced security and surveillance technologies, highlighted challenges following its strategic acquisition of Affini Technology. This £2.85 million purchase has led to increased operating losses, which expanded from £489,000 to £878,000. Adjusted EBITDA stood at £33,000, reflecting the broader financial impact of the acquisition.
The company’s order book showed positive momentum, increasing significantly to £7.1 million by June 30, compared to £2.4 million at the end of the previous year. This improvement was partly driven by strong sales of QRO’s Harrier AI camera, a newly launched product that has gained substantial traction in the market.
Moreover, Petards secured several noteworthy contracts post-June in its rail business sectors, as well as through QRO and Affini. These contracts amounted to over £2.5 million, signalling encouragement from the company’s leadership. Raschid Abdullah, the chairman, expressed optimism, stating, “The successful acquisition of Affini and the improvement in the Group’s order book post-June 2024 is encouraging.”
However, Abdullah also noted the challenges posed by the difficult market conditions, especially within the rail industry, and the cautious optimism regarding project approvals which have experienced delays. While the acquisition of Affini is expected to be earnings accretive, there remains uncertainty over whether anticipated orders will materialise in time to meet expectations for the year’s second half.
Although Petards has strengthened its order book and secured key acquisitions, its overall yearly performance might not meet previously set targets.
