Petards order book strong, chairman tells investors

Investors in security and surveillance system software developer Petards were gathering in Guildford, Surrey on Wednesday morning for the company’s annual general meeting, with chairman Raschid Abdullah confirming a previously-flagged significant order.

The AIM-traded firm had been successful in securing a £4.3m order from Stadler Bussnang for the provision of Petards eyeTrain CCTV and Automatic Selective Door Opening Systems, Abdullah said.

Stadler was described by Petards as a “quality” Swiss-based global train builder and a new customer, which represented an “excellent opportunity” for Petards to develop internationally.

“Investment in UK rolling stock is at record levels giving rise to significant opportunities for Petards,” Abdullah said.

“I am pleased to report we are presently in active negotiations with existing customers over new contracts.”

He added that, whilst Petards’ defence business had been slow on order intake during the first quarter, indications were that there was further MOD, NATO and third party business in the pipeline.

“The renewal last December of the three year MOD Systems Adaptive Counter Measures Dispensing Systems contract is anticipated to bring additional business throughout its duration.

“The QRO acquisition, completed April 2016, together with its management team has integrated well into the group,” Abdullah also explained.

“[The] Petards Provida range of products in the Emergency Services division and QRO are both seeing increased enquiries from many police forces throughout the UK at the start of their financial year.”

Petards entered 2017 with an order book of £20m, the chairman confirmed, and as at 31 March, it stood at £21m, of which £13m was scheduled for delivery by the end of the year.

“The strength of the order book gives the board confidence of a good outcome for the year and I look forward to reporting further progress in the interim results in September.”