RNS Number : 6890O
Petards Group PLC
11 February 2021
Petards Group plc
("Petards", the "Group" or the "Company")
Petards Group plc (AIM: PEG) the AIM listed Petards, the AIM
quoted software developer of advanced security and surveillance
systems, announces a trading update for the year ended 31 December
As reported in September 2020, trading was proving extremely
challenging which continued to be the case for the remainder of the
year. This was particularly pertinent in respect of our eyeTrain
operations for which customer scheduling was subject to change and
deferral at very short notice, exacerbating the impact on revenue
and delays in placement of new customer orders. On a brighter note,
one of those delayed orders, for GBP1.3m was placed in October and
will be delivered in the first quarter of 2021.
The planned reorganisation of eyeTrain activities I referred to
in 2019, was a major priority in 2020, re-aligning the cost base
following the substantial completion of the large software
engineering developments that have been a feature of recent years.
To put this into perspective, this enabled the Group to reduce its
eyeTrain workforce by 40% during the course of the year while
incurring substantial exceptional costs which will be recognised in
the results for 2020. These actions will preserve future cash and
improve operational efficiency thereby providing a better focus for
We have recently created a virtual Petards Technology Centre to
capitalise upon the wider Group's technical and development
expertise. Our strategic objective is to enhance eyeTrain's
technically advanced on-train sensing systems. This is envisaged to
be achieved through use of "best of breed" third party
applications, particularly those related to data capture,
transmission and analytics.
While the Group's defence activities have had a moderately
profitable year, they too were affected by customer agreed supplier
delivery schedule changes with GBP0.5m of revenue being delayed
into 2021 impacting profitability for 2020.
QRO had a record year, trading profitably and growing revenues
by 35% having acquired the NASBox product line in April 2020. The
year culminated in it securing its largest ever order (GBP0.8m) in
December 2020 for a UK police force, the majority of which will be
delivered in the first half of 2021.
RTS our real time safety critical rail infrastructure software
business has performed well since its acquisition and maintained a
similar level of profitably in 2020 compared with the prior year.
Its future revenues are underpinned having in May 2020 secured the
4-year renewal of a significant software support contract that now
runs until April 2024. The digitalisation of rail infrastructure
processes provides growth opportunities for RTS, and we are
planning additional investment in software to capitalise on these
and add value to the business.
The Group expects to report, subject to audit, revenue of
approximately GBP13m for the year (2019: GBP15.7m) and a slightly
improved result compared with the prior year at the adjusted EBITDA
level (2019: GBP0.3m loss). After amortisation, depreciation,
reorganisation and financing charges, the Group expects, subject to
audit, to report a loss before tax similar to that of 2019.
Closing year end cash balances were GBP2.2m (2019: GBP0.8m) and
the Company has an unused and unutilised GBP0.75m revolving credit
facility with its bank whose term runs until June 2022. Debt at the
year-end was GBP1.0m (2019: GBP1.4m), including right-of-use asset
liabilities of GBP0.4m (2019: GBP0.5m), resulting in net cash at 31
December 2020 of GBP1.2m (2019: GBP0.5 net debt). During the second
quarter of 2020 the Group utilised the UK Government's VAT
deferment scheme under which GBP0.36m of VAT payments have been
deferred to 2021. The Group continued making its bank loan
repayments as they fell due with GBP0.25m being repaid in the
The year-end order book stood at over GBP12m of which GBP10m is
currently scheduled for delivery in 2021 with a weighting to the
first half of the year.
In March 2020, the Group implemented a pandemic action plan
taking all practical precautions, ensuring safe working conditions
were in place for its employees, customers and suppliers.
Consequently, all our sites have remained open for business since
that time. The action plan also focussed on cash generation
resulting in a much stronger cash position at year end.
Over the past five years we have acquired two relatively small
businesses which have both proven very successful. As well as
continuing to build upon these and the Group's other activities,
the current economic conditions are presenting good quality
acquisition opportunities, particularly in the privately owned
sector. While any such acquisition would have a material impact on
the size of the Group and its earnings capabilities, it would also
add scale to the Group.
Against a background of the difficulties encountered by
ourselves and our customers due to the impact and disruption caused
by Covid-19, the Board consider the results for the year represent
a credible performance. However, we believe that the benefits
arising from the restructured eyeTrain business and the
establishment of the Petards Technology Centre, places the Group in
much stronger position for 2021 and beyond.
While it is presently too early in the year to re-instate market
guidance, the Board is cautiously hopeful of improved results in
This announcement includes inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Petards Group plc www.petards.com
Raschid Abdullah, Chairman Mb: 07768 905 004
WH Ireland Limited, Nomad and www.whirelandplc.com
Mike Coe / Chris Savidge Tel: 0117 945 3470
Hybridan LLP, Joint Broker www.hybridan.com
Claire Louise Noyce Tel: 020 3764 2341
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact firstname.lastname@example.org or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
(END) Dow Jones Newswires
February 11, 2021 02:00 ET (07:00 GMT)
Gráfica de Acción Histórica
De Ago 2021 a Sep 2021
Gráfica de Acción Histórica
De Sep 2020 a Sep 2021