Petards sees profit jump despite tough conditions

Petards Group, the AIM-listed supplier of security, surveillance and engineering solutions, saw pre-tax profit more than quadruple in 2011, helped by a rise in revenue and a fall in admin costs.

Pre-tax profit came in at £215,000 in the year to December 31st 2011, up from £53,000 the previous year on sales that rose 6.5% from £11.4m to £12.1m. Administrative expenses for the year amounted to £4.1m, a reduction of just over 3.0% on 2010 (£4.2m).

However, earnings per share fell from 5.7p to 4.9p due to a lower deferred tax credit of £97,000, compared with £311,000 the year before.

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Chairman Tim Wightman, said: "For the past two years the poor state of government finances, particularly those in the UK and the Eurozone, has significantly reduced the spending levels within a significant proportion of our customer base. As we are all aware, the economic uncertainties have increased again recently and the strengthening of sterling against the euro will not be helpful if it proves to be a continuing trend.

"However, because of worldwide commitment to the modernisation and development of rail travel we continue to be confident that we are operating in markets which have the potential for good returns. The opportunities in our home markets in the medium term should give a good base from which to deliver growth from the penetration of export markets."

The added that it expects 2012 revenues to include the benefit of several orders anticipated to be received in the third quarter. As in previous years, revenues for 2012 are expected to be weighted towards the second half of the year.

Net debt at December 31st 2011 was £1.5m (2010: £2.0m).

The share price rose 12.24% to 27.50p.

NR