Vegas high rollers boost Midlands firm
GAMBLERS in Las Vegas have given a welcome boost to a Midlands security firm.
Studley-based Quadnetics Group, which supplies security equipment to many of the city’s famous casinos, said there had been a marked upturn in business with many of the projects delayed during the recession being reinstated.
In particular, it said it had received confirmation of a $1.5m analogue-to-digital upgrade of systems at the Stratosphere Casino, while a second casino within the same group had also committed to work through a letter of intent.
A stronger performance from its Middle Eastern operation and improvements within the UK rail and defence sectors has also benefitted the firm.
The company has recently restructured its financial year so instead of ending in May, it now ends in November. The shift has meant the current financial year encompassing an 18-month period.
In a trading update, the group said that trading in the second six months of this extended financial year had been much stronger than in the first six months.
Underlying profits for the 12 months to May 2010 are expected to be in line with market expectations.
A major factor influencing the outcome will be the £900,000 costs incurred for the reorganisation.
It said consolidated net cash balances as at May 31, were approximately £4.8m.
The improved performance during the past six months was reflected in increased sales momentum, especially towards the end of the period.
Notable contract wins in the six months included: a £1.7m full security system for the new Pembroke gas-fired power station in Milford Haven; the combined technology supply and systems integration for three city centre security systems; a major upgrade to the East Coast Mainline security system; a £3.7m three-year contract with Stagecoach for its on-bus security systems; the Stratosphere Casino upgrade, left; follow-on orders for on-board CCTV on the Docklands Light Railway; and seven major orders from the oil & gas industry for explosion rated CCTV, many incorporating Synectics command and control software.
In its statement, the board said it was pleased with the progress the company was making following the completion of the restructure.
It said: “Apart from the lower fixed cost base, an important objective of the restructuring was to increase dramatically the focus on cross-selling the
group’s technology, systems integration and service capabilities across its three major specialist customer sectors: high security infrastructure protection, mobile surveillance and oil & gas.
“The tangible benefits of these efforts are now evident, and we are confident they will provide the catalyst for
a trend of increasing margins and quality of earnings over the coming years.”
Quadnetics will issue a second interim report, covering results for the 12 months to May 31, on or around July 28.
