Petards

Preliminary Results Announcement

16 December 2008

Petards Group plc ('Petards'), the AIM quoted developer of advanced security and surveillance systems, announces preliminary audited results for the year ended 31 December 2007.|

Highlights

  • Net debt significantly reduced to £2.2m (2006: £4.2m)
  • Sale of UK software products business for £2.5m cash decreasing operational risk of the Group
  • Delays in orders impacted 2007 profitability but most larger orders now received for delivery in 2008
  • Strong order intake in Q4 2007 ending the year with an order book of £11.5m (2006: £7.8m)

Financial Results

  • Revenue £17.7m (2006: £23.2m)
  • Operating loss £117,000 (2006: £28,000 operating profit)
  • Gross profit margins improved to 37% (2006: 36%)
  • Administrative expenses reduced to £7.7m (2006: £7.9m before reorganisation costs)
  • Loss before tax £487,000 (2006: £424,000 loss)

Post year end update

  • 2007 Report & Accounts to be posted to shareholders on 19 December and will shortly be available on the Company's website
  • Annual General Meeting to be held on 22 January 2009
  • Interim results for the six months ended 30 June 2008 announced today
  • Renegotiated £2.1m term loan and committed £1.75m working capital facilities secured into 2010

Commenting on 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 2008 to date and the directors are confident that its future is secure."

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