Gateshead Tech Firm Petards Reports Strong Revenue Growth Amid Contract Surge
Gateshead security technology firm Petards has celebrated a significant rise in revenues and earnings in its full-year results, attributing the success to a solid increase in contracts. The listed company, based in Team Valley, develops advanced security, communication, and surveillance systems for traffic, communications, rail, and defence sectors, employing over 110 people at its Princesway headquarters.
Financial Performance Highlights
Turnover for 2025 surged by 24% to £14.9 million, while adjusted Ebitda more than doubled from £400,000 to £1 million. Net cash inflows from operating activities also saw substantial growth, rising to £1.4 million from £200,000. The company narrowed its operating loss from £774,000 to £435,000, indicating improved financial health.
More than half of the revenues were generated from service, engineering support, spares, repairs, and managed services. Although subsidiary QRO, which delivers complete end-to-end Automatic Number Plate Recognition (ANPR) systems, experienced reduced revenues due to delays in customer order placement, stronger performances at other operations offset this impact. QRO is expected to regain momentum in the current financial year.
Drivers of Growth
Improved trading was driven by Petards Rail and a profitable full-year contribution from Affini, a Derby-based wireless specialist acquired last year. Chairman Raschid Abdullah highlighted that order intake in the second half of the year for both Petards Rail and Petards Defence reached levels not seen for several years, despite difficult market conditions.
Notable contract awards in the last two months of the year included deals from the MOD, Rheinmetall BAE Systems Land, and BAE Systems, totalling £3.5 million. The largest of these was a £2.2 million order from RBSL for electronic design and obsolescence management services in support of the Challenger 3 Upgrade Programme, with main deliverables scheduled for the current year.
Future Outlook and Challenges
The closing order book stood at £9.2 million, representing Petards' largest year-end order book in years, with £7.7 million scheduled for delivery during 2026. Mr Abdullah expressed cautious optimism, noting that while the company is not more exposed than similar-sized firms to current events in the Middle East, potential impacts on supply chains and customer plans remain a concern if the situation persists.
Nevertheless, the strong opening order book and revenue coverage for 2026 provide a solid foundation for progress. The Board is confident that the group is well-positioned to deliver continued improvement in trading performance in the coming year, with first-quarter earnings in line with expectations.
Mr Abdullah thanked all employees for their hard work, support, and commitment, emphasising that their collective effort, teamwork, and innovation have positioned the group well for the future.
