Tyneside tech firm Petards has posted steady half-year revenues but warned that full year results may fall short of forecasts.
The Team Valley business is involved in developing, supplying, and maintaining advanced security and surveillance technologies for various sectors, including rail, traffic, defence, and communications.
In the interim results for the six months ended June 30, the firm posted revenues of £4.415 million, slightly up on the £4.403 million posted in the same period last year. Operating losses widened from £489,000 to £878,000, primarily due to the £2.85 million acquisition of Affini Technology in June.
Adjusted EBITDA stood at £33,000. Company leaders mentioned that trading in the first six months was affected by delays in orders which were expected to be received and delivered during this period. Since the period ended, several orders have now been received.
During the period, Petards saw strong sales of QRO’s newly launched Harrier AI camera. This product’s success contributed to an increase in the order book, which stood at £7.1 million at June 30, up from £2.4 million at the end of the previous year.
Abdullah further noted the challenging market conditions in the rail sector in recent years. However, he expressed optimism that customers are starting to approve projects that were previously on hold.
The chairman also stated, ‘Recent orders give the Board encouragement that, subject to other expected orders being received in sufficient time, the second half of the year should deliver a much-improved performance, albeit the result for the year may fall short of current market expectations.’
With the ongoing market dynamics, the company’s ability to navigate delays and secure new orders could be key to overcoming immediate financial concerns.
In conclusion, Petards has faced a challenging first half of the year with widened operating losses but has shown resilience through strategic acquisitions and securing significant contracts.
While full-year results may fall short of expectations, the strong order book and future deliveries position the company for a potentially improved performance moving forward.
