Trading Statement

30 January 2012

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 2011.

As expected, revenues for the second half year were higher than those for the first half and the Group achieved year-on-year revenue growth of over 5%. Profit before tax for the year to 31 December 2011 is expected to be higher than market expectations due to better margins, overhead savings and lower financing costs. Cash flows were also ahead with net debt reducing from £1.8m at 30 June 2011 to £1.5m at 31 December 2011.

The current year has started satisfactorily and the level of order prospects remains encouraging.

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