This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
25
January 2024
Petards Group
plc
("Petards" or the "Group")
Trading
update
Petards Group plc (AIM:
PEG), the AIM quoted developer
of advanced security and surveillance systems, provides a trading
update for the financial year ended 31 December 2023
("FY23").
The Group's trading performance
significantly improved in the second half of the year, although the
Board anticipates trading for the full year ended 31 December 2023
will be below expectations announced at the time of its interim
results on 26 September 2023.
The Group expects to report
(all figures are unaudited):
· Group
revenues of circa £9.4 million (FY22: £10.9
million), with the second half of FY23 contributing £5.0 million.
· Total
net funds¹ at 31 December 2023 of £1.2 million with no bank debt
(FY22: £1.7 million).
Revenues for FY23 are likely to be
around 3% lower than market expectations which will have an effect
on the FY23 reported results. FY23 gross profit margins are
expected to be slightly above the 47.3% reported in the interim
results announced on 26 September 2023.
Cash balances were slightly below
the Board's expectations, due to a customer payment of £0.3 million
expected pre-year end but not being received until 2 January
2024.
In the final quarter of FY23,
management continued to rebalance the Group's operating cost base.
One-off reorganisation costs incurred in that period, together with
other actions taken are expected to deliver annual savings in
excess of £0.4 million going forward.
The Group remains well financed with
a strong debt-free balance sheet, a substantial proportion of which
is held in cash, and an un-drawn £2.5 million overdraft facility.
The Board is confident that the Group is in a good position
to take advantage of the opportunities it has already identified in
the sectors in which it operates and expects to deliver improved
trading in the year ahead.
¹ Total net funds comprise cash and
cash equivalents less interest bearing loans and
borrowings.
Contacts:
Petards Group plc
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www.petards.com
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Raschid Abdullah,
Chairman
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Mb: 07768 905004
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WH
Ireland Limited, Nomad and Joint Broker
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https://www.whirelandplc.com/capital-markets
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Mike Coe, Sarah Mather
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Tel: 020 7220 1666
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Hybridan LLP, Joint Broker
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www.hybridan.com
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Claire Louise Noyce
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Tel: 020 3764 2341
claire.noyce@hybridan.com
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