Petards has reported stable revenues but anticipates challenges in meeting full-year expectations due to ongoing market conditions.
- The company’s operating losses have widened significantly following the strategic acquisition of Affini Technology.
- Revenue for the first half of the year was £4.415 million, showing marginal growth from the previous year.
- Several key contracts and a boost in orders were secured post the reporting period.
- The company remains optimistic yet cautious about its performance in the second half of the year.
Petards, a Tyneside technology firm known for its security and surveillance solutions, revealed half-year revenues of £4.415 million. This figure represents a modest increase from £4.403 million in the corresponding period last year. Despite the stability in revenue, the company has issued a warning regarding potential shortfalls compared to the full-year market expectations.
The company’s operating losses widened to £878,000 from £489,000. The increase in losses is primarily attributed to its acquisition of Affini Technology, which cost £2.85 million. This strategic purchase was completed in June and has influenced the financial results considerably.
Petards’ adjusted EBITDA for the period stood at £33,000. The first six months saw delays in anticipated orders, impacting trading results. Although these delays affected immediate performance, the company has since received orders set to be delivered in 2025, contributing to a positive outlook.
Significant momentum was gained with strong sales of the newly launched Harrier AI camera by the company’s subsidiary, QRO. The company’s order book saw a substantial increase, reaching £7.1 million by June 30, up from £2.4 million at the end of the previous year.
Following the reporting period, Petards secured several contracts, enhancing its position in the rail and communications sectors. The cumulative value of these new orders exceeded £2.5 million across its subsidiaries.
Raschid Abdullah, the chairman, expressed satisfaction over Affini’s start within the group and noted that the recent orders provided some reassurance. He acknowledged, however, that while the latter half of the year showed promising potential, the overall annual results might not meet the current market expectations.
Petards remains cautiously optimistic despite facing challenging market conditions and increased operating losses due to strategic acquisitions.
