Tyneside tech firm Petards reports stable half-year revenues but foresees potential shortfalls in full-year expectations.
- The company’s operating losses have increased, exacerbated by the strategic acquisition of Affini Technology.
- Delays in order deliveries have impacted trading in the first half of the year.
- Significant post-period contract wins have bolstered Petards’ order book to £7.1m.
- Company leadership remains optimistic, though cautious about meeting market expectations.
Tyneside’s Petards, a prominent technology firm specializing in security and surveillance for rail, traffic, defense, and communications sectors, has announced steady revenues for the first half of the year. With a reported figure of £4.415 million, this represents a slight uptick compared to the £4.403 million in the same period last year. However, expectations for the full year may not be met due to external market conditions and internal challenges.
The company’s operating losses have widened significantly, jumping from £489,000 to £878,000. This increase is primarily attributed to the strategic acquisition of Affini Technology completed in June, which cost Petards £2.85 million. While adjusted EBITDA recorded a marginal positive at £33,000, trading has been affected by delays in expected order deliveries.
Despite these setbacks, Petards has experienced robust demand for its QRO Harrier AI camera, a new addition to its product lineup. The firm’s order book, a key indicator of future business, has grown to £7.1 million by the end of June, compared to £2.4 million at the close of the previous year. This surge is partly due to several significant post-period contract wins across its rail, QRO, and Affini sectors.
Chairman Raschid Abdullah has emphasized the positive impact of the Affini acquisition and expressed optimism about future earnings. He acknowledges the challenges faced by the rail industry but notes a shift towards project approvals that had been stalled, potentially signaling a market recovery. “The successful acquisition of Affini and the improvement in the Group’s order book post-June 2024 is encouraging,” Abdullah stated.
Abdullah further highlighted the potential for enhanced performance in the second half of the year, contingent upon the timely receipt of expected orders. While expressing confidence in an improved outlook, he cautioned that the year’s results might not fully align with market forecasts.
Continued vigilance and strategic management will be crucial for Petards to navigate the financial year successfully.
