LONDON (ShareCast) - (Sharecast News) - Security and surveillance technology specialist Petards Group reported total revenues of £10.87m in its final results on Tuesday, down from £13.57m in 2021.
The AIM-traded company's gross profit margin, however, increased to 51.0% in 2022, from 44.9% in the prior year.

Its adjusted EBITDA fell to £1.16m from £1.53m, while its operating profit decreased to £0.23m from £0.57m.

Profit after tax also narrowed, to £0.52m from £0.87m.

The board said that despite the decline in revenue, the firm still managed to generate strong cash from operating activities at £0.58m, down from £0.75m.

Total net funds increased to £1.68m at year-end, from £1.51m at the end of 2021.

Basic and diluted earnings per share were reported at 0.93p and 0.91p, respectively, down from 1.51p and 1.47p a year earlier.

On the operational front, Petards reported an order book of £4m at the end of the year, down from £7m at the end of 2021.

However, the company reported solid performance from QRO's ANPR solutions, with revenues there ahead 17%.

Recurring revenues from licensing, maintenance, support, spares, engineering support, and similar activities increased 11% to around £5m.

The gross profit margin also benefited from operational efficiencies and higher recurring revenues.

Petards noted that it also launched new products, including QRO's QBOX, new eyeBOS, and various on-oing on-train trials of the use of analytics software.

"The group performed well in 2022 generating profits and cash from operations in challenging conditions, particularly in the rail market," said chairman Raschid Abdullah.

"The current financial year has started satisfactorily with the group continuing to trade cash generatively.

"The focus of the group's business in 2022 was on shorter delivery, lower value but higher margin contracts, due to market conditions in the UK rail market which affected order book levels."

Abdullah said a "significant proportion" of the group's revenues were derived from such contracts, and from its "high and growing" base of service-related revenues, much of which was contracted on a month-to-month basis.

"These service revenues are expected to continue their increasing trend as the installed base grows.

"At 31 December, the order book stood at just over £4m - most of which is scheduled for delivery in 2023."

Petards was now seeing encouraging signs for new projects, Raschid Abdullah said, particularly in the new-build and retrofit rail rolling stock market, for some of which it was currently in active negotiations.

"Management is continuing to drive the group's development forward, and the board's objectives for 2023 are for improved results, strong cash generation and to further strengthen the group's portfolio of businesses."

At 0823 BST, shares in Petards Group were down 0.37% at 8p.

Reporting by Josh White for Sharecast.com.

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