Quadnetics improves following restructuring

MIDLANDS security group Quadnetics has announced an improved performance following the completion of a successful strategic review.

The Studley firm, which specialises in advanced video surveillance technology and security networks, said in its interim results statement for the 12 months to May 2010 that it had seen a significant improvement in the second half, in line with guidance issued in February.

Underlying pre-tax profit increased by 27% during the period to £2.3m, compared with £1.8m in 2009. Pre-tax profit grew by 135% to £1.1m, compared with £0.5m a year previously.

Underlying earnings per share rose 39% to 11.4p from 8.2p in 2009. Basic EPS was up 229% to 5.6p.

Looking ahead, the firm said its order book was strong, up 61% on 2009 at £27.7m. It has 10 major project wins to its names, bringing in £13m.

It remains well placed for growth with strong cash balances of £4.8m and its operational restructuring has been completed ahead of schedule.

John Shepherd, chief executive, said: “We said in February that we expected to deliver a much stronger second half and that is what we achieved.

“Market conditions are somewhat mixed overall. However, our strategic focus on the protection of critical infrastructure in attractive niche markets, has enabled our performance to improve.”

He said the expected cutback in UK government spending was creating new opportunities for the group.

“We are able to offer innovative, technologically advanced and highly cost effective consolidated surveillance system solutions to multiple local authorities. We have introduced a number of new hardware and software products over the last six months which are gaining market acceptance, and we expect to maintain this increased pace of innovation.

“The order book position has improved and the restructuring programme is delivering benefits – we are positive about the outlook for the next six months and beyond,” he added.