Petards Group plc (AIM: PEG), the AIM quoted developer of advanced security and surveillance systems, is pleased to report its interim results for the six months ended 30 June 2023 (the “Period”).

Key Highlights:

• Financial
  o Revenue £4.4 million (H1 2022: £5.5 million)
  o Gross profit margin 47.3% (H1 2022: 49.3%)
  o Adjusted EBITDA loss of £59,000 (H1 2022: £606,000 profit)¹
  o Post-tax loss £301,000 (H1 2022: £101,000 profit)
  o Cash generated from operating activities £250,000 (H1 2022: £1,120,000)
  o Net funds at 30 June 2023 £1.7 million (31 December 2022: net funds £1.7 million)²
  o Diluted EPS loss of 0.53p (H1 2022: earnings of 0.17p)
• Operational
  o Continued cash generative operating performance
  o Rail and defence markets remained challenging but Rail tendering activities were significantly higher in the Period than in recent years
  o Recent new product launches with first orders already received which include:
  – QRO’s new mobile digital video surveillance product on QBOX platform
  – OWL IP ANPR system; and
  – RTS’s Mobile digital solution
  o Further QRO and Petards Rail products scheduled to launch in the coming months and 2024
  o Order book at 30 June 2023 of £4 million (31 December 2022: £4 million)
  o The board is encouraged by the fact that vendors’ value aspirations are now showing a new realism and it continues to seek and review acquisition opportunities.

1. Earnings before financial income and expenses, tax, depreciation, amortisation and share based payment charges
2. Total net funds comprise cash and cash equivalents less interest-bearing loans and borrowings (including lease liabilities)

Commenting on the current outlook, Raschid Abdullah, Chairman, said:

“The first half of 2023 proved to be challenging, and while the board is confident of an improved performance in second half year, it now believes that it is likely that the outturn for the year will be below current market expectations.

The Group’s businesses have good management teams with strategic plans in place, to achieve growth in 2024 and 2025 with an ungeared balance sheet and the financial resources to support. These include plans for the launch of exciting new products over the coming months, many of which incorporate artificial intelligence and data solutions with increased functionality. The successful deployment of these new products and the improved prospects for acquisitions mean the board remains confident for the future.”

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This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.