LONDON (ShareCast) - (ShareCast News) - Petards Group expanded its presence in the law enforcement market on Thursday, announcing the full acquisition of QRO Solutions for a maximum consideration of £1.26m.
The AIM-traded developer of security and surveillance systems said the consideration, which will be satisfied in cash, includes deferred consideration of £140,000 subject to QRO achieving revenues of £1.75m and profits before tax of at least £240,000 in the year to 30 November.

QRO was launched 15 years ago in Northamptonshire, and provides automatic number plate recognition (ANPR) security and speed enforcement products to police forces across the UK, as well as to integrators serving the police and security markets.

Petards said the business - and its 11 permanent staff, who will remain - will strengthen its offering and provide a strong service-based operation with recurring revenues.

It will also provide the group with an entry into fixed site ANPR and complement its existing ProVida range of in-car enforcement products, it explained.

"We are delighted to welcome QRO and its staff to the Petards Group and look forward to working together to grow the business both in the UK and overseas," said Petards chairman Raschid Abdullah.

"This acquisition marks a first step towards expanding the group into a broader earning base and the board is continuing to pursue other earnings enhancing acquisitions," he added.

In the year to 30 November last year, QRO generated revenues of £1.78m and profit before tax of £101,000. It held assets of £683,000 on the same day, and had cash balances of £876,000 on the date of acquisition.

"We are looking forward to the opportunity to build upon the past success of QRO which will now operate as an independent company within the Petards Group, while benefitting from the greater international reach and financial resources of the group," said QRO's joint managing director and co-founder Gary Austin.

At 1500 BST, shares in Petards Group were trading up 8.6% at 14.39p.

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