PETARDS GROUP PLC-Final Results

PETARDS GROUP PLC-Final Results

Final results for the year ended 31 December 2022

Petards Group plc (AIM: PEG), the AIM quoted developer of advanced security and surveillance systems, is pleased to report its audited final results for the year ended 31 December 2022.

Key Highlights:

·      Financial

Total revenues £10,872,000 (2021: £13,574,000)

Gross profit margin increased to 51.0% (2021: 44.9%)

Adjusted EBITDA* £1,161,000 (2021: £1,534,000)

Operating profit £225,000 (2021: £570,000)

Profit after tax £524,000 (2021: £865,000)

Continued strong cash generation from operating activities £583,000 (2021: £745,000)

Total net funds (cash less debt) £1,677,000 (31 Dec 2021: £1,510,000)

Basic EPS 0.93p and diluted EPS 0.91p (2021: basic 1.51p and diluted 1.47p)

·      Operational

Order book at 31 December 2022: £4 million (31 Dec 2021: £7 million)

Excellent performance from QRO's ANPR solutions with revenues up 17%

Recurring revenues from licencing, maintenance, support, spares, engineering support and similar activities up 11% to around £5 million

Gross profit margin benefitted from operational efficiencies and higher recurring revenues

New product launches included QRO's QBOX, new eyeBOS and various on-going on-train trials of utilising analytics software

*Adjusted EBITDA comprises operating profit adjusted to remove the impact of depreciation, amortisation, exceptional items, acquisition costs and share based payments. A reconciliation of Adjusted EBITDA to operating profit is included on the face of the consolidated income statement. 

Commenting on the current outlook, Raschid Abdullah, Chairman, said:

"The Group performed well in 2022 generating profits and cash from operations in challenging conditions, particularly in the Rail market.  The current financial year has started satisfactorily with the Group continuing to trade cash generatively.

The focus of the Group's business in 2022 was on shorter delivery, lower value but higher margin contracts, due to market conditions in the UK rail market which affected order book levels.  A significant proportion of the Group's revenues were derived from such contracts and from our high and growing base of service related revenues, much of which is contracted on a month-to-month basis.  These service revenues are expected to continue their increasing trend as the installed base grows. 

At 31 December 2022 the order book stood at just over £4 million (31 December 2021: £7 million), most of which is scheduled for delivery in 2023.  We are now seeing encouraging signs for new projects, particularly in the new build and retrofit rail rolling stock market, for some of which we are currently in active negotiations.

Management is continuing to drive the Group's development forward, and the Board's objectives for 2023 are for improved results, strong cash generation and to further strengthen the Group's portfolio of businesses." 

 This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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