RNS Number : 1850K
Petards Group PLC
16 December 2008
PETARDS GROUP PLC
INTERIM RESULTS ANNOUNCEMENT
Petards Group plc ('Petards'), the AIM quoted developer of advanced security and surveillance systems, announces interim results for the
six months to 30 June 2008, which mark the Group's move into profitability.
Financial Highlights
* Turnover �10.5m (2007: �10.3m)
* Operating profit increased to �422,000 (2007: �14,000 operating profit)
* Profit before tax of �305,000 (2007: �131,000 loss)
* Earnings per share of 0.05p (2007: 0.02p loss per share)
* Net debt �2.8m (30 June 2007: �4.4m)
Other highlights
* Renegotiated �2.1m term loan and committed �1.75m working capital facilities secured into 2010
* Emergency Services sales up almost 100% to �2.2m
* Several significant defence orders won during the period
Commenting on the current outlook, Tim Wightman, Chairman, said:
"The renegotiated bank funding provides sufficient resources for the Group to fund its operations for the foreseeable future.
Nevertheless, in line with several announcements during the current financial year, the Board is intent on maximising shareholder value, and
it has reviewed several options including potential offers for the business (in whole or in part). None of these have crystallised
satisfactorily, so the Board believes that the Group's objectives will be best advanced by the injection of new equity when practicable. It
continues to be in discussions with its advisers concerning an increase in the equity capital base which will increase the Group's ability
to take advantage of the growth opportunities that continue to present themselves.
"The Group began 2008 with an order book of �11.5m, 48% up on 2007 and has continued to win significant orders during 2008. The Group
has traded profitably during the current year to date and the directors are confident that its future is secure."
Contacts:
Petards Group plc www.petards.com
Andy Wonnacott, Finance Director Tel: 0191 420 3000
Collins Stewart Europe Limited
Mark Connelly, Stewart Wallace Tel: 020 7523 8350
Parkgreen Communications Limited Tel: 020 7933 8787
Paul McManus Mob: 07980 541 893
paul.mcmanus@parkgreenmedia.com
Chairman's Statement
I am pleased to report that Petards Group plc has traded profitably during the first six months of 2008 during which time it has secured
a number of significant orders and has satisfactorily renegotiated its term loan and working capital facilities.
Results
During the six months ended 30 June 2008 the Group achieved an operating profit of �422,000 (2007: �14,000) on revenues of �10.5m (2007:
�10.3m) and made a profit after interest and tax of �305,000 (2007: �131,000 loss).
Gross margins were lower at 30% (2007: 40%). The reduction in margins arose as the prior year included revenues from the UK software
products business that was disposed of in December 2007, which made margins of circa 45% but had a very high associated overhead. In
addition, sales of electronic countermeasures equipment, for which Petards is the UK licensee and which attract lower margins, were 60%
higher in 2008 than the previous year and accounted for a third of revenues in the six month period.
Administrative expenses have been reduced by one third to �2.8m (2007: �4.1m). The savings made are a result of the disposal of the UK
software products business announced in December 2007 and from an overhead reduction programme implemented earlier this year.
Net cash outflow from operating activities was �360,000 (2007: �88,000) reflecting the increased working capital requirement of revenues
in the period which were over 40% higher than those in the preceding six months ended 31 December 2007. Cash inflow after investing and
financing activities was �21,000 (2007: �204,000 outflow) and net debt at 30 June 2008 was �2.8m (30 June 2007: �4.4m).
Banking
In May 2008 the company renegotiated the repayment terms of its bank term loan and �1.9m of the �2.5m proceeds from the sale of its UK
software products business were applied to reduce that loan. The revised loan facility is for �2.1m and is repayable in equal quarterly
repayments which do not commence until July 2009 and extend through to the end of 2010. In addition, earlier this month the company also
agreed a committed �1.75m working capital overdraft facility with its bankers that extends through into 2010 providing the company with the
longer term facilities it requires.
Trading review
The decision of the Board to sell its UK software products business has resulted in the Group being able to focus its resources more
tightly upon its remaining target markets of Transport, Defence, and Emergency Services.
Within the Transport sector we have continued to strengthen our core UK business having secured orders for our eyeTrain� on-board
digital CCTV systems during the period from Bombardier Transportation, Porterbrook and Arriva Trains Wales. In Europe we were awarded a
further order for passenger information displays by Alstom and in Portugal we have recently won a contract for the supply of eyeTrain� to a
metro application. We are seeking to grow our European presence and were encouraged by the strong interest expressed in our product offering
when we exhibited at the recent InnoTrans exhibition in Berlin.
As I reported last year, we added forward facing cameras to our range and we are pleased by the customer response to the high quality
images that these cameras produce and the operational benefits they can bring to our customers businesses. The potential for growth in sales
is significant and we believe that over time most of the UK fleet will be fitted with forward facing cameras.
Our defence business performed well during the period and a number of important contracts were secured from our largest customers, the
UK MoD and BAE Land Systems. These included two orders worth in the region of �2m to provide a range of electronic equipment in support of
the Army's CRARRV battlefield support vehicle fleet and to supply Vehicle Integrated Control for installation on Challenger 2 chassis based
vehicles under the MoD's Sustain Programme. These orders continue Petards' tradition of providing ruggedised, reliable electrical and
electronic control systems across the range of UK armoured vehicles.
Over recent years the Group has become a major supplier of countermeasures dispensing equipment to the MoD and while we expect orders to
reduce somewhat from the exceptional levels placed in the latter part of 2007, we have continued to receive contracts for the supply and
support of this equipment in the first half year. The largest of these was for over �1m for the supply of airborne chaff and flare
dispensing equipment that forms part of an Integrated Defensive Aids Suite to be installed onto UK rotary wing aircraft and is designed to
protect the aircraft from a range of ground launched missiles.
In March we won an extension for the MoD's DCSA Radio Catalogue Supply contract under which we provide the three Armed Services with a
facility whereby their radio and ancillary equipment may be procured from an on-line catalogue of approved equipment.
Petards is a leading supplier to the Emergency Services in the UK and Europe of in-car video, speed detection systems and specialist
cameras. While sales volumes from these products in 2007 were disappointing, they have recovered strongly in 2008. Revenues are up almost
100% on the same period last year. They included the benefit of a contract worth almost �1m to supply ProVida* Automatic number Plate
Recognition (ANPR) systems to an overseas customer. Orders for our new MiniHawk and Kestrel camera ranges have been encouraging with the
Metropolitan Police having placed orders to replace its existing in-car cameras with Kestrels. We still see strong opportunities for these
products in the UK and particularly overseas and in support of this we launched our camera range to customers in mainland Europe during the
period at the bi-annual Intertraffic exhibition in Amsterdam.
Dividends
The Board is not recommending the payment of a dividend.
Outlook
The renegotiated bank funding provides sufficient resources for the Group to fund its operations for the foreseeable future.
Nevertheless, in line with several announcements during the current financial year, the Board is intent on maximising shareholder value, and
it has reviewed several options including potential offers for the business (in whole or in part). None of these have crystallised
satisfactorily, so the Board believes that the Group's objectives will be best advanced by the injection of new equity when practicable. It
continues to be in discussions with its advisers concerning an increase in the equity capital base which will increase the Group's ability
to take advantage of the growth opportunities that continue to present themselves.
The Group began 2008 with a strong order book and has continued to win significant orders during 2008. The order book at the half year
was �9.9m, 83% up on June 2007. The Group has traded profitably during the current year to date and the directors are confident that its
future is secure.
Tim Wightman
16 December 2008
Consolidated Income Statement
for the six months ended 30 June 2008
Unaudited Unaudited
Audited
6 months 6 months ended
Year
ended 30 June
ended
Note 30 June 2007 31
December 2007
2008
�000 �000
�000
Revenue 10,460 10,294
17,680
Cost of sales (7,281) (6,143)
(11,104)
Gross profit 3,179 4,151
6,576
Other operating income - net gain on disposal of business - -
971
Other operating income - other - 8
8
Other operating income - 8
979
Administrative expenses (2,757) (4,145)
(7,672)
Operating profit /(loss) 422 14
(117)
Financial income 3 17
18
Financial expenses (120) (162)
(388)
Profit/(loss) before income 305 (131)
(487)
tax
Income tax 2 - -
12
Profit/(loss) for the period attributable to equity holders of the
company 305 (131)
(475)
Earnings/(loss) per share
Basic and diluted 3 0.05p (0.02p)
(0.07p)
The above results are derived from continuing operations.
Consolidated Statement of Changes in Equity
for the six month period ended 30 June 2008
Unaudited Unaudited Audited
6 months ended 6 months ended Year
30 June 30 June 2007 ended
2008 31 December 2007
�000 �000 �000
Profit/(loss) for period 305 (131) (475)
Currency translation on (5) 2 3
foreign currency net
investments
Total recognised income and 3 (129) (472)
expense
Equity settled share based 24 24 56
payments
Net increase/(decrease) in 324 (105) (416)
total equity
Total deficit at start of (2,285) (1,869) (1,869)
period
Total deficit at end of period (1,961) (1,974) (2,285)
Consolidated Balance Sheet
at 30 June 2008
Unaudited Unaudited Audited
30 June 30 June 31 December 2007
2008 2007
ASSETS �000 �000 �000
Non-current assets
Property, plant and equipment 356 755 446
Goodwill 401 1,011 401
Development costs 131 59 60
Deferred tax assets 245 233 245
Total non-current assets 1,133 2,058 1,152
Current assets
Inventories 1,646 2,466 1,415
Other financial assets - - 75
Trade and other receivables 3,907 3,691 3,237
Cash and cash equivalents - 34 156 267
available for use
Cash - not available for use - - 2,400
Total current assets 5,587 6,313 7,394
Total assets 6,720 8,371 8,546
LIABILITIES
Non-current liabilities
Interest-bearing loans and (2,222) (3,532) -
borrowings
Provisions - (49) -
Total non-current liabilities (2,222) (3,581) -
Current liabilities
Bank overdraft (593) (532) (847)
Other interest-bearing loans - (520) (4,073)
and borrowings
Trade and other payables (5,862) (5,711) (5,896)
Provisions - - (11)
Other financial liabilities (4) (1) (4)
Total current liabilities (6,459) (6,764) (10,831)
Total liabilities (8,681) (10,345) (10,831)
Net liabilities (1,961) (1,974) (2,285)
Equity attributable to equity
holders of the parent
Share capital 6,367 6,367 6,367
Share premium 23,255 23,255 23,255
Retained earnings deficit (31,583) (31,596) (31,907)
(including currency translation)
Total equity (1,961) (1,974) (2,285)
Consolidated Cash Flow Statement
for the six month period ended 30 June 2008
Unaudited Unaudited Audited
6 months ended 6 months Year
30 June ended ended
Note 2008 30 June 31 December 2007
2007
�000 �000 �000
Cash flows from operating
activities
Profit/(loss) for the period 305 (131) (475)
Adjustments for:
Depreciation 109 163 325
Amortisation of intangible 71 23 47
assets
Financial income (3) (17) (18)
Financial expense 120 162 388
Loss on sale of property, 7 1 -
plant and equipment
Gain on sale of business and - - (971)
assets
Equity settled share-based 24 24 56
payment expenses
Income tax expense - - (12)
633 225 (660)
Change in trade and other (595) 810 571
receivables
Change in inventories (231) (121) 678
Change in trade and other (30) (781) (367)
payables
Change in provisions (11) (47) (110)
Cash (outflow)/inflow from (234) 86 112
operations
Interest received 3 17 18
Interest paid (129) (191) (343)
Net cash outflow from (360) (88) (213)
operating activities
Cash flows from investing
activities
Capitalised internal (142) (11) (37)
development expenditure
Cash previously not available 4
for use following 2,400 - -
business disposal in 2007
Acquisition of property, plant (26) (84) (129)
and equipment
Net cash inflow/(outflow) from 2,232 (95) (166)
investing activities
Cash flows from financing
activities
Repayment of borrowings (1,843) - -
Payment of finance lease (8) (21) (33)
liabilities
Net cash outflow from (1,851) (21) (33)
financing activities
Net increase/(decrease) in 21 (204) (412)
cash and cash equivalents
Cash and cash equivalents at (580) (172) (172)
start of period
Effect of exchange rate - - 4
fluctuations on cash held
Cash and cash equivalents at (559) (376) (580)
end of period
Cash and cash equivalent
comprise:
Cash and cash equivalents 34 156 267
Bank overdraft (593) (532) (847)
(559) (376) (580)
Notes
(forming part of the financial statements)
1. Basis of preparation
This interim statement, which is neither audited nor reviewed, has been prepared on the basis of the accounting policies set out in the
Group's 2007 annual report. It does not comply with IAS 34 'Interim Financial Reporting' as is permissible under the rules of the AIM Market
("AIM").
The balance sheet at 31 December 2007 and the results for the year then ended do not constitute full financial statements within the
meaning of s240 of the Companies Act 1985. The annual report is being filed with the Registrar of Companies; the auditors' opinion on the
financial statements was unqualified and did not contain a statement under s237(2) or s237(3) of the Companies Act 1985.
2. Taxation
No provision for taxation has been made in the profit and loss account for the six months to 30 June 2008 based on the estimated tax
provision required for the year ending 31 December 2008. No provision was required in the six months to 30 June 2007.
3. Earnings/(loss) per share
Basic earnings per share is calculated by dividing the profit/(loss) for the period attributable to the shareholders by the weighted
average number of shares in issue. The calculation of diluted earnings per share assumes conversion of all potentially dilutive ordinary
shares, all of which arise from share options.
The calculation of earnings per share is based on the profit/(loss) for the period and on the weighted average number of ordinary shares
outstanding in the period.
Unaudited Unaudited Audited
6 months 6 months ended Year
ended 30 June ended
30 June 2007 31 December 2007
2008
Earnings
Profit/(loss) for the period 305 (131) (475)
(�000)
Number of shares
Weighted average number of 636,706 636,706 636,706
ordinary shares ('000)
Diluted earnings per share is identical to the basic earnings per share. In 2008 none of the share options are dilutive as the exercise
prices are higher than the average market price of the shares. In 2007 any dilution would have reduced the loss per share and therefore the
options are treated as non-dilutive.
4. Cash
Following the disposal of the UK software products business on 21 December 2007 an amount of �2,400,000 was held in a separate bank
account not available to use by the Group.
This amount was excluded from cash and cash equivalents as disclosed in the cash flow statement for the year ended 31 December 2007 on
the basis that it was not available for use at 31 December 2007. In the period ended 30 June 2008 �1,875,000 of these proceeds were used to
reduce the bank loan.The �2,400,000 has been recognised as a cash inflow in the 2008 cash flow statement when it was released from escrow.
5. Interim results
These results were approved by the Board of Directors on 15 December 2008.
Copies of this interim statement will be sent to shareholders and will be available on the Company's website (www.petards.com) and from
the Company's registered office at 390 Princesway, Team Valley, Gateshead, Tyne and Wear, NE11 0TU.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FKPKPOBDDABD
Petards (LSE:PEG)
過去 株価チャート
から 6 2024 まで 7 2024
Petards (LSE:PEG)
過去 株価チャート
から 7 2023 まで 7 2024
