Petards flags improved full-year trading performance

5th Feb 2026 13:00

(Sharecast News) - Petards Group said on Thursday that it delivered an improved trading performance in 2025, with revenue and profitability rising year-on-year and the group ending the year with a stronger order book.

The AIM-traded developer of advanced security, communications and surveillance systems said the improvement seen in the first half was sustained through the rest of the year, with group revenue up 24% to around £14.9m, compared with £12.0m in 2024.

Adjusted EBITDA was expected to be in line with market expectations at about £1m, up from £0.4m a year earlier, while total net debt fell to £1.3m as at 31 December from £1.5m at the end of 2024.

Petards said the stronger performance reflected an upturn in trading at its rail and defence divisions, both of which recorded higher revenue and profitability, alongside a profitable first full-year contribution from Affini.

At QRO, the group secured a number of framework contract wins, although delays in order placement weighed on second-half revenues, resulting in a decline versus the prior year.

The company said revenue momentum at QRO was expected to recover, supported by those framework agreements, demand for the newly launched Harrier Mini and the conversion of overseas opportunities.

Cash generation improved significantly, with £1.4m generated from operating activities during the year, compared with £0.2m in 2024.

After investing and financing cash flows, that contributed to the reduction in net debt by the year end.

Order intake at Petards Rail and particularly Petards Defence reached levels not seen for several years.

The group said contract awards in the final two months of the year from the UK Ministry of Defence, Rheinmetall BAE Systems Land and BAE Systems totalled £3.5m, lifting the year-end order book to £9.2m, up from £7.1m a year earlier, with around 85% scheduled for delivery in 2026.

"Petards performed well in 2025 generating cash and increasing revenues, with improvements in gross profit margin and profitability, while increasing its order book to £9.2m at the year end," said chairman Raschid Abdullah.

"The group enters 2026 in a stronger position than it has in the past few years.

"While trading continues to be challenging with extended tendering processes, given the strength of the opening order book and its cover for 2026 revenues, the group is well placed to deliver a continued improvement in its trading performance in the coming year."

At 0906 GMT, shares in Petards Group were down 4.39% at 9.8p.

Reporting by Josh White for Sharecast.com.