Trading ‘below expectations’ at Quadnetics
TRADING at West Midlands-based security firm Quadnetics was “somewhat below expectations”, the company said today.
In a post-year trading update, the Warwickshire company reports that, after a strong performance in the six months to the end of May this year, trading dropped.
This was due in large part to the last minute slippage of deliveries by one of Synectics’ key component suppliers for several large orders in the US casino market, it said.
Quadnetics, which is headquartered in Studley, manufactures advanced surveillance technology and security networks and recently announced it has changed its year end from May 31 to November 30, meaning its latest financial year covers the 18-month period ending 30 November 2010.
The trading update said: “This has meant that customer deliveries due for November will not now take place until a few weeks after the company’s year end, resulting in margin moving into the next reporting period.
“In addition, a large anticipated Synectics order for November delivery to a UK local authority customer was delayed until next year, and the group’s new UK banking customer adjusted its schedule for November rollout of branch upgrades.
“While these delivery delays in the final month of the period will affect reported results, the overall improvement in most of Quadnetics’ business areas has continued.
“On a like-for-like basis, expected results for the 12 months to November 30, 2010, are very significantly ahead of those for the same period in the previous year, and the group remains on track towards its objective of doubling operating margins over the next few years, as set out in its last interim statement.
“The continuing momentum of business improvement in the year just finished is reflected in a substantial increase in the group’s firm order book, which is estimated to be approximately £28m as at November 30, 2010, up from £22m at the end of November 2009.”
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