Technology firm Petards has seen a further fall in revenues and slipped to a loss after what it said was a “challenging” time in its key markets.
The listed Gateshead firm, which develops and manufactures train and defence safety and surveillance systems, has released interim results for the first half of 2023 in which revenues fell by just over £1m to £4.4m. That led to an adjusted Ebitda loss of £59,000 and a post-tax loss of £301,000, both of which figures had been in profit last year.
The company said the rail and defence markets remained challenging, but it took heart from a significant increase in rail tendering activities. Recent product launches, including a new digital video surveillance system, were already receiving orders, it said.
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But Petards said that while it anticipated an improved financial performance in the second half of the year, it was unlikely to meet current market expectations for 2023.
Company chairman Raschid Abdullah said: “The first half of 2023 proved to be challenging, and while the board is confident of an improved performance in second half year, it now believes that it is likely that the outturn for the year will be below current market expectations. The group’s businesses have good management teams with strategic plans in place, to achieve growth in 2024 and 2025 with an ungeared balance sheet and the financial resources to support.
“These include plans for the launch of exciting new products over the coming months, many of which incorporate artificial intelligence and data solutions with increased functionality. The successful deployment of these new products and the improved prospects for acquisitions mean the board remains confident for the future.”
The Ƶ rail sector has been undergoing a relatively turbulent period in recent years, with some major franchises taken back into public ownership and the overarching plan to move to the publicly-owned Great British Railways being delayed. Petards said its order book stood at £4m - unchanged from six months earlier - and that it was encouraged by a “new realism” in “vendors’ value aspirations”.
And despite the challenges the company has been facing, it said it was continuing to seek and review acquisition opportunities.
