Petards Group sees sell-off after losses

1 mins. to read
Petards Group sees sell-off after losses

AIM-listed surveillance systems supplier Petards Group (LON:PEG) saw its share price drop by 10.73% to 7.36p (as of 15:05 BST) after publishing results for the year ended 31st December. Revenues for the period dropped 21.5% and the group’s order book was also down on the comparable figure. The firm fell to a post-tax loss for the period as it was affected by a rescheduled major contract and lower profitability on two rail projects.

Chairman Raschid Abdullah commented: “While progress is being made throughout the Group and new business is being secured, the provision of forward guidance in the current circumstances remains extremely challenging. Following the initial effects of the Covid-19 lock-down on their businesses, customers have been adapting their operations and revising delivery schedules accordingly, which has obviously had an impact on the Group’s recent trading. With the Department for Transport, the MOD and train operating companies focussing their efforts on dealing with Covid-19, the timing of contract awards previously anticipated for 2020 revenues are unlikely to become clearer until the pandemic within the UK has abated. The Board continues to keep this under close review and will provide further updates when appropriate.”

“The UK Government has stated its commitment to further investment in the railways, law enforcement and security, areas in which the Group enjoys long-standing customer relationships. This together with the Group’s order book at 31 May 2020 of over £13 million, provide the Board with confidence for the Group’s future prospects“.

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