We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Quadnetics Grp | LSE:QDG | London | Ordinary Share | GB0007156838 | ORD 20P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 290.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
to GBP52.0 million (2008: GBP57.9 million). The major part of the decline in turnover came from a decrease in low margin pass-through revenue within its security management activities. Although the overall profit result for the division was around 10% below the Board's initial expectations for the year, it was a creditable performance in light of a tough economic and competitive background in the UK. The UK systems integration activities suffered from a substantial decline in anticipated business from both the UK banking sector and, the commercial high security market. Offsetting these declines, business remained stronger in the government public space and high security area and in the Middle East. The Group's on-vehicle CCTV activities produced a strong result, with further growth in revenue, profit and operating margin in the year. In particular, the new Synectics mobile video recorder is offering unique advantages to customers that should solidify Quadnetics' position as the UK market leader in this sector. The retail security managed services activities performed above expectations, and are now well positioned for expansion into larger facilities management contracts with their customers. Synectics The Group's security technology division, providing security network products and software, hazardous area systems and defence surveillance technology +-------------------------+-------------------------+-------------------------+ | Revenue | GBP21 million | | +-------------------------+-------------------------+-------------------------+ | Operating Profit | GBP1.3 million | | +-------------------------+-------------------------+-------------------------+ (before product development costs) Synectics' revenue for the year was GBP21.5 million (2008: GBP23.1 million), on which the overall operating profit was GBP1.3 million (2008: GBP1.7 million), prior to charging costs associated with developing and bringing to market the new digital product suite. The most significant impact was a decline of 37% in revenue in the North American gaming market, after several years of consistently high organic growth. This appears to be a function of the general economic downturn, with projects delayed rather than lost or cancelled. Regulatory requirements should mean that the projects do happen over time, once an air of greater normality has returned. The North American activities were still profitable, but substantially less so than in the previous year. The UK defence activities also suffered from reduced volumes during the year, and produced an unacceptable loss-making operating contribution. Reduction of the cost base in this area to align with the reduced activity levels has been addressed within the overall Group restructuring. On the positive side, the Synectics Networks business outside North America recorded modest revenue growth compared with the previous year, as well as a substantial increase in operating margins as the benefit of increased sales led to improved efficiencies. The net result was very healthy and ahead of our expectations. The Group's sales into the global oil & gas and marine markets grew appreciably and, more importantly, internal efficiency gains resulted in much improved operating margins. This was achieved through substantially better process management, as well as increased focus on cross-selling other products from within the Group. This is an example of the success of Synectics in leveraging its wider systems products into opportunities for growth in our established customer base, of which we expect to see much more as we go forward. Revenues from Synectics' new H.264 products ramped up significantly in the second half, particularly in the mobile surveillance market where important sales gains were made in the UK bus and rail sector. The products include a range of digital video recorders and encoders that our customers tell us provide performance and, in particular, picture quality that are well ahead of competing offerings in the market. This is an example of the Group's strategy to develop proprietary core elements which, when combined with the best available third party system components as needed, provide differentiated integrated surveillance systems adapted to the needs of our specialist customers. People Last year was particularly difficult for our employees, given the amount of change they were asked to implement at the same time as responding to the increased pressures of unusually challenging markets. I would again like to pass on the Board's sincere thanks for the continuing commitment, creativity and good humour of all those who help to make Quadnetics what it is. As part of the process of recognising this commitment from our people, and ensuring that future performance is appropriately rewarded, the Board has recently put in place a revised share-based long term incentive plan for senior managers, and we will be introducing shortly a new all-employee share ownership plan. During the year we have had a number of changes among the Company's executive Board members. In November John Shepherd was appointed Group Chief Executive. John brings with him an impressive track record of achieving growth in medium-to-large technology businesses in markets similar to those Quadnetics addresses, and the Group is already benefiting from his experience. Glenn Robinson, Technical Director, left the Group in March this year. Russ Singleton, founder of Synectics and Chief Executive of Quadnetics from 2002, has become Strategic Development Director, with the key responsibility for technology, products and business development across the Group. Russ has been the vital inspiration in the growth and evolution of Quadnetics, and I am delighted he has decided to re-focus his unique skills in this way. Strategy At the time of his appointment, the Board asked John Shepherd to lead a thorough review of Quadnetics' strategy and objectives. The key conclusions from his review have re-affirmed our strategy of focussing on a small number of specialist security and surveillance end markets with complex or highly critical needs. We continue to believe that the growth potential in building on Quadnetics' positions in mobile, extreme environment and high security surveillance applications is very substantial. The changes John has introduced are centred on consolidating and further integrating the Group's operations, as well as strengthening the senior management team. The new structure was formally put in place on 1 June 2009, and the operational changes are being implemented progressively across the current financial year. We expect the benefits to be measurable in terms of larger contract wins, more predictability in sales and increased overall operating margins. The newly recruited members of our senior management team, Paul Moonan and Graham Jones, come with records of having successfully led and grown larger businesses, and we look forward to the added impetus they will bring to achieving our objectives. Outlook The general economic background Quadnetics is addressing continues to be difficult, particularly in areas involving discretionary capital spending. Our gaming, financial services and defence customer sectors remain subject to lengthened sales cycles and therefore lower current revenues. Other areas, in particular oil & gas and mobile surveillance, continue to hold up well. Overall, the firm order book at year end was relatively low at GBP17.2 million (2008: GBP22.5 million); the sales pipeline, however, has risen to record levels since that date. Synectics new products are continuing to gain sales, and we expect a much improved contribution from that area in the financial year just started. The actions taken to reduce costs through consolidating similar activities in a reduced number of sites will also have a positive impact on margins from 2010 onwards. The actions initiated so far will, when fully implemented, result in annualised cost savings of approximately GBP1.8 million, as well as providing tighter operational control. Overheads have been increased in certain areas, notably senior operations management and sales resource in faster growing geographic regions. The re-organisation and transition towards a more integrated structure initiated by our new Chief Executive are continuing and should be completed early in the second half of 2009/10. Combined with the still uncertain timing of large orders in several business areas, this will inevitably affect results in the short term, as costs are being incurred now to position the Group for economic recovery and future growth. Results for the first half of this financial year are therefore likely to be relatively weak, with again a much stronger second half expected. More fundamentally, the Board is confident that the increased senior management resources and more integrated organisation now in place give the Group the scalability to deliver consistent growth as we build on the strong market positions established over the past few years. David Coghlan Chairman 9 September 2009 +----------------------------------------------+--------+--+-----------+--+-----------+ | Consolidated Income Statement | | | | | | | For the year ended 31 May 2009 | | | | | | +----------------------------------------------+--------+--+-----------+--+-----------+ | | Notes | | 2009 | | 2008 | +----------------------------------------------+--------+--+-----------+--+-----------+ | | | | GBP'000 | | GBP'000 | +----------------------------------------------+--------+--+-----------+--+-----------+
1 Year Quadnetics Chart |
1 Month Quadnetics Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions