Petards Regulatory News (PEG)

20 Dec 2007 15:10

Petards Group PLC20 December 2007 Petards Group plc ("Petards" or "the Company") Strategic review and trading update Petards, the AIM listed developer of advanced surveillance systems, announces anupdate on its strategic review and trading. Strategic Review In the Interim Statement at the end of September the board indicated that it wasappraising opportunities to partner or combine with other businesses to createsynergies and critical mass and was also considering the financing requirementsto enable it to reach its full potential while remaining independent. InNovember the board announced that it had appointed ICON Corporate FinanceLimited to act as corporate finance advisors to the Company and provideassistance in the further development and implementation of the board'sstrategy. The board has now concluded its review and decided that the potential of theCompany will best be realised by focusing its resources on a more limited rangeof technologies and markets. Accordingly it is currently in exclusivediscussions with a third party that the board hopes will shortly lead to thedisposal of its UK Government and Commercial software business which includesthe software products UVMSTM, Advantage and COBYT. The cash proceeds from thedisposal will be used to reduce the group's bank indebtedness and to invest inthe remaining parts of the business. The board continues to evaluate other means of maximising shareholder value andwill continue to update shareholders as appropriate. Trading Update Since the beginning of October the Company has received orders exceeding £7m,including the contract from First Great Western for Petards eyeTrainTM on-boarddigital CCTV surveillance systems incorporating Petards Automatic PassengerCounting (APC) system worth over £1m and two contracts from the Ministry ofDefence for the supply of electronic warfare defence systems worth over £2m thathave been previously announced. The Company has recently received an order froma casino operator in the USA for the installation of its UVMS video managementsystems worth $1.1m and further orders for APC systems and the supply ofelectronic warfare defence systems totalling £1.5m. The level of these orders represents a booked:billed ratio of over 1.7 in thelast quarter but, in view of the timing of their receipt, most will not bedelivered until 2008. Sales for the full year to 31st December 2007 are expectedto be slightly lower than market expectations, which, with unchanged margins,will result in a higher operating loss than previously expected, although thiswould be more than compensated for by the expected profit to be reported on thesale of the UK Government and Commercial software business. The Company has consulted its bankers throughout the strategic review and isconfident of their continued support for the business and the strategy that theboard is following. After a difficult six months the Company will emerge stronger in the New Yearwith a more substantial order book than twelve months ago. The board hopes toreport to shareholders on further progress shortly. For further information: Petards Group plc Collins Stewart Europe Limited Parkgreen Communications LtdAndy Wonnacott, Finance Director Mark Connelly Paul McManusTel: 01932 788 288 Tel: 020 7523 8350 Tel: 020 7479 7933www.petards.com Mob: 07980 541 893 paul.mcmanus@parkgreenmedia.com This information is provided by RNS The company news service from the London Stock Exchange