Transport surveillance and communication technology specialist Petards has reported improved trading in the second half of 2024 but says it will miss full-year expectations.
The maker of video surveillance technology, which has its rail and defence products factory on Tyneside, said last year's acquisition of Derby-based Affini Technology Group had helped spur an improved performance. But while revenues and adjusted Ebitda were up on the first half of the year, bosses said full-year 2024 results are expected to fall short of expectations.
In an unaudited trading update, Petards said group revenues for the full year are expected to be about £12.1m, compared with £9.4m in 2023, with the second half having contributed about £7.7m. Adjusted Ebitda is expected to be about £400,000, compared with £300,000 the previous year.
While the introduction of Affini's business to the group drove much of the second half improvement, the business was hit by a customer delaying a significant order, leading to lower than expected revenues in December. Higher margin engineering services work was also delayed into 2025, leading to a different mix of revenues than had been anticipated.
The group's rail and defence operations - which are based out of Gateshead - also showed Ebitda improvement in the second half, though were said to face challenges. In September, Petards said it felt rail customers were starting to approve projects that had been in abeyance for some time.
Group cash performance was ahead of expectations with total net debt at the end of December slightly lower than forecast. The firm said it had entered 2025 with a better order book of £7.1m, of which more than 80% is due for delivery this year.
The update follows reported first half 2024 results in which Petards maintained steady revenues but saw operating losses widen from £489,000 to £878,000, as a result of the £2.85m acquisition of Affini. For 2023, Petards reported full year operating losses of £529,000 on revenue of £9.4m.
Raschid Abdullah, chairman, said: "With a significantly improved opening order book, a strong pipeline of new business and a full year's contribution from Affini, the board has confidence in the newly enlarged Group's prospects and anticipates an improving trading performance in the current year."
