Year End Trading Update

RNS Number : 8188T

Quadnetics Group PLC

13 December 2011

 



For Immediate Release

13 December 2011

Quadnetics Group plc

("Quadnetics" or "the Group")

Year End Trading Update

Quadnetics Group plc, a leader in advanced surveillance technology and security networks, provides the following update on trading following the end of its financial year on 30 November 2011.

Trading was strong in the final months of the financial year and early indications are that results for the year as a whole will be at the higher end of the board's expectations.

Sales growth has been strongest in the Synectics Network Systems and Synectics Industrial Systems divisions, which provide specialist surveillance systems worldwide to the critical security and oil & gas markets respectively, continuing the trend seen in the first half of the year. Comparable year-on-year revenue in Synectics Networks is estimated to have increased by around 20%, and in Synectics Industrial Systems by around 30%. In both divisions, the growth in revenues has also had a significant beneficial impact on margins.

Revenues in the Integration and Managed Services division, and in the transport sector of the Synectics Mobile Systems division, were broadly flat compared with the previous year. The defence activities within Synectics Mobile Systems improved their performance in the second half, but still suffered from the combination of limited UK defence orders and disruption to expected contracts in the Middle East from local political unrest.

Indanet AG, a leading supplier of high-end surveillance systems for integrated transport hubs, was acquired in July 2011. Since acquisition Indanet has performed somewhat ahead of the board's expectations, and is now anticipated to have made a positive contribution to Group results in the period to 30 November 2011. This has arisen from a combination of improved trading and slower increases than originally planned in marketing and development expenditure. The integration of Indanet is going well, and we continue to be excited by the prospects for this business within Quadnetics.

The Group's consolidated firm order book at year end was approximately £34.7 million, including £3.3 million at Indanet. The comparable consolidated order book as at 30 November 2010, which did not include Indanet, was £27.3 million.

Quadnetics will issue preliminary results for the year to 30 November 2011 on or around 29 February 2012.

For further information, please contact:

Quadnetics Group plc	Tel: [phone]
John Shepherd, Chief Executive
Email: [e-mail]
Arbuthnot Securities	Tel: [phone]
Tom Griffiths

 

Buchanan Communications Limited	Tel: [phone]
Tim Anderson / Isabel Podda

 

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