Security technology firm Petards has revealed it cut 40 per cent of staff working in one of its teams as part of cost-cutting measures during the pandemic.
The manufacturer of CCTV and security systems used on trains, said the workforce of its EyeTrain operations was reduced by 40 per cent during the year ending December 31, 2020. EyeTrain is the company's tech product that is designed to "reduce costs, increase capacity and improve customer experience on trains".
Petards chairman Raschid Abdullah said that the redundancies were made as the company accelerated its cost alignment programme in the face of Covid-19.
In Petards' accounts, Mr Abdullah said: "Covid-19, lockdown, outworking and furlough led to considerable uncertainty in the workplace and in this Petards was no different. Necessary cuts in the number of employees have been made and sadly, people have left the business under the reorganisation.
"Against this background what can be said is that the performance of the businesses throughout 2020 and into 2021 is a reflection of the professionalism and the support provided by personnel at all levels, including those who knew they would be leaving as a consequence.
"The board would like to thank all personnel for their efforts and wishes those that have left, every success with their careers, and to those who remain it looks forward to their continued support and contribution in developing and building Petards into a successful growth company."
The firm's restructuring costs totalled £425,000 during the year.
When the pandemic hit Petards suffered financially when a number of customers closed operational units and rescheduled delivery dates.
Most Read
It resulted in the company's turnover dropping from £15.7 million in 2019 to £13m in 2020.
The firm also made an operational loss of £1.15m, an improvement on the £1.29m loss made in 2019. However, the company said its adjusted EBITDA had improved from a loss of £281,000 to a profit of £320,000.
Mr Abdullah added: "The group entered 2021 in good shape with a reduced cost base and a strong, cash positive balance sheet. This was recently supplemented by the replacement of its existing £0.75m revolving credit facility with an undrawn £2.5m CBILS three-year overdraft facility, that provides ample capacity to finance any increased working capital requirements arising from a recovery in customer new business activity.
"The first four months of 2021 have started well with all businesses broadly in line or slightly ahead of management expectations in terms of profitability, and revenues are anticipated to be weighted towards the first half of the year.
"On December 31, 2020, the group's order book stood at over £12m, of which £10m is forecast to be delivered this year giving the board confidence that 2021 will prove to be a better year for the group."