Petards Group PLC Trading Statement (6685B)
12 January 2018 - 6:00PM
UK Regulatory
TIDMPEG
RNS Number : 6685B
Petards Group PLC
12 January 2018
12 January 2018
PETARDS GROUP PLC
("Petards" or the "Group")
Trading Update
Petards, the AIM quoted developer of advanced security and
surveillance systems, is pleased to provide an update on trading
following the end of its financial year on 31 December 2017.
The Group's profit before tax for the year ended 31 December
2017 is expected to be above market expectations due to the
positive net effect of exceptional items arising in the year. The
Group expects to report 2017 revenues to be up year on year to
GBP15.6 million. However, some delays in programmes to develop
additional software functionality for eyeTrain systems has resulted
in approximately GBP1 million of revenues being deferred into 2018.
These relate to scheduled deliveries of both software and equipment
and accordingly profit before tax from trading operations will be
lower than previously expected.
Set against this, the 2017 results include two exceptional
items. First, the Group has received and accepted an offer to
settle a historic matter, unrelated to the current trading
activities of the Group, which arose over ten years ago. Under the
settlement the Group will receive a total of GBP702,000 in cash
comprising an amount of GBP362,000 plus compensatory interest of
GBP340,000. The Board considers this to be a very satisfactory
outcome. The terms of the settlement preclude the Group from
providing further details.
The second exceptional item is also unrelated to the current
trading activities of the Group. The Board has decided that any
future activities that the Group may undertake in the US will not
be conducted through its present US subsidiary which has been
dormant for several years. In accordance with International
Accounting Standards, the GBP211,000 deficit on the Group's
currency translation reserve will be reclassified from equity to
income and shown as an expense. The reclassification has no impact
on the Group's net assets or cash.
Raschid Abdullah, Chairman of Petards Group plc said:
"It was pleasing that in December we completed both the full
conversion of the Group's GBP1,480,000 outstanding loan notes into
Petards ordinary shares and have subsequently received the
settlement of GBP702,000. As a result, the Group's balance sheet
has been substantially strengthened with the removal of the loan
note liability that was due for redemption in September 2018 and
its cash resources have been increased this week following receipt
of the GBP702,000.
While it is disappointing that delays in the development
programmes for new eyeTrain products has deferred some revenues
into 2018, the Group continues to trade profitably and enters 2018
with an order book of GBP18 million. Over GBP12 million of this is
scheduled for delivery in the coming year and the Board remains
confident of the Group's future prospects."
This announcement includes inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Contacts:
Petards Group plc www.petards.com
Raschid Abdullah, Chairman Mb: 07768 905 004
WH Ireland Limited, Nomad and www.whirelandcb.com
Joint Broker
Mike Coe / Ed Allsopp Tel: 0117 945 3470
Hybridan LLP, Joint Broker www.hybridan.com
Claire Louise Noyce Tel: 020 3764 2341
claire.noyce@hybridan.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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