PSG Solutions celebrates surge in revenue

Shares in PSG Solutions rocketed on Friday morning after the group revealed that sales more than tripled in the year to March 31st following the major expansion of its specialist electronics business.

PSG provides property information services and packaging solutions but also manufactures Technical Surveillance Countermeasure (TSCM) products which are part of its specialist electronics division.

Turnover totalled £37.3m, up from £10.7m the year before, helped by specialist electronics which saw revenue surge from £4.1m to £31.3m. In May and August 2011, the Ministry of Defence (MOD) awarded the firm ia £50m contract to manufacture and supply C-IED (Counter Improvised Explosive Device) equipment to the UK Armed Forces.

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Group pre-tax profit increased from £1.1m to £7.9m. Excluding exceptional items, pre-tax profit rose from £1.1m to £12.1m.

At the firm's next annual general meeting, it will propose to change its name from PSG Solutions to Security Research Group. "This reflects the fact that the vast majority of the Group's profit is now produced by its specialist electronics subsidiaries.

The group said it remains optimistic about its future prospect but says they are "subject to the changing economic circumstances and policy requirements of current and potential customers."

"It is anticipated that a further share tender offer will be made to all shareholders during the current financial year," the firm said.

Shares were 15.21% higher at 125p by 08:17.

BC