Quadnetics looks to full year trading ahead of expectations
MIDLANDS-based security and surveillance group Quadnetics has said strong trading in the final months of the financial year has led to early indications that full year results will be ahead of board expectations.
The Studley group said sales growth had been strongest in its Synectics Network Systems and Synectics Industrial Systems divisions, which provide specialist surveillance systems worldwide to the critical security and oil & gas markets respectively. This continues a trend seen in the first half.
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 its 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, a leading supplier of high-end surveillance systems for integrated transport hubs, was acquired in July 2011. Since acquisition Indanet has performed ahead of expectations, and is now anticipated to have made a positive contribution to group results.
This has arisen from a combination of improved trading and slower increases than originally planned in marketing and development expenditure. The integration of Indanet was said to be going well, and the group is optimistic about its prospects.
The group’s firm order book at year end was approximately £34.7m, including £3.3m at Indanet. The comparable consolidated order book as at November 30, 2010, which did not include Indanet, was £27.3m.
Quadnetics will issue its full year preliminary results on February 29, 2012.
