Petards Share Discussion Threads

[chesty1] 16/10/2020 17:00

Market says no not yet!

[senttothegallows] 15/10/2020 10:13

All of the numbers support a doubling of the share price all day long IMHO

[rivaldo] 15/10/2020 09:57

Hybridan have issued a new note after yesterday's contract win - they conclude as follows:

"it is pleasing to see Petards at the centre of an upgrade and refurbishment programme. Indeed the retrofit market for surveillance and other eyeTrain functionality such as Automatic Selective Door Operation(ASDO) is an area where we see greater opportunity for the Rail Technology division in the short to medium term. eyeTrain has been Petard’s main growth driver over recent years and it remains at the front of the queue for major rail fit outs in the UK.

Meanwhile some of the more recently acquired businesses and assets serving Rail Network Infrastructure (RTS) and Traffic Technology (QRO and NASbox) are starting to deliver some very strong growth figures as shown at the recent interims.

We believe that Petards is well placed to drive profitability as it rationalises its cost base and focuses on higher margin business. Assuming H1 adjusted £337,000EBITDA can be repeated in the current period, Petards is trading at an EV/EBITDA multiple of just 4.3x. We believe that profits and the rating should respond well to any recovery in top line growth at Group level."

[senttothegallows] 14/10/2020 14:16

chesty read a bit further

Cash generated from operating activities GBP1,802,000 (H1 2019: GBP584,000 cash used)for a business to generate this level of cash flow with a 4m market cap I find this quite interesting

[chesty1] 14/10/2020 13:04

Just had a read of the recent results not a chance of this getting back to 25p not without bigger news imho...


o Revenue GBP7.1 million (H1 2019: GBP8.9 million)

o Gross margin 34.4% (H1 2019: 35.9%)

o Adjusted EBITDA GBP337,000 (H1 2019: GBP625,000)(1)

o Adjusted post-tax loss GBP164,000 (H1 2019 profit: GBP65,000)(2)

o Post-tax loss GBP469,000 (H1 2019: profit GBP65,000)



Tiny contracts aren't what this one needs

[rivaldo] 14/10/2020 10:19

Agreed. The share price rose from 10p to 27p on a previous run.

The m/cap is just £4.46m, with £1m+ in the bank. The order book is strong. It wouldn't take much in the way of decent news flow to see the m/cap double to £10m.

[senttothegallows] 14/10/2020 09:08

Chesty I don't have any history so cannot respond regards the last 10 years, the cash generation in the interims is fascinating for a company with such a low market cap if this continues they are cheap imho

[chesty1] 14/10/2020 09:05

Sent I have been following this share for 10+ years and nothing has ever changed

But good luck!

[senttothegallows] 14/10/2020 08:44

I have been following this for a few months, the market cap is very low given the cash position and current order book, a couple more orders of this kind of scale share price reaction is likely to be very positive IMHO

[chesty1] 14/10/2020 08:27

Rivaldo they keep on getting churn n burn contracts but nothing of any real substance!

Hasn’t changed from the bad old days of screen imho

[rivaldo] 14/10/2020 07:10

Very nice £1.3m contract win (and actually "in excess of" £1.3m) for a now £3.7m m/cap company which has £1m net cash:



A good start to 2021 too, alongside the already pretty strong £12m order book.

[rivaldo] 24/9/2020 08:29

Today's H1 results actually look pretty decent imo considering the pandemic:



Remembering that the m/cap here is now just £4.2m, PEG made £337k EBITDA in H1, generated £1.8m operating cash and have £1m net cash in hand.

The order book is still £12m, which isn't too bad from £15m at December, though the transition from rail franchising isn't going to help in the near-term.

Fortunately RTS, QRO and Defence are all doing well.

Not sure much will happen for a while here - unless there's another big rail contract win - but I doubt there's much if any downside from here, and I'd have thought the value of the various divisions is overall much higher than £4.2m if they were to be sold off..

[doug74] 07/8/2020 10:09

I agree that's the rear view mirror. Trouble is its full of prior year adjustments to audited financial statements and trouble implementing IFRS15 Revenue from Contracts with Customers. They have been frontloading revenues while delaying cost recognition. Either on purpose or down to very poor financial control. They even had to change their auditors. So while its the rear view mirror the absence of any changes in the senior management team, especially in relation to senior financial management, would not indicate things are going to change any time soon.

[sirrux] 07/8/2020 09:21

This is what the defence forces want.



I can see an all seeing 360 degree eye camera being a useful component. This would work in conjunction with radar systems with data flowing back to base for real-time analysis and tactical decisions.

[sirrux] 07/8/2020 08:52

That's the rear view mirror Doug, they need to put the pedal to metal and leave that behind. To be honest, I am not sure if they will be able. They have good ideas but for some reason they are not quite hitting it with the technology side. For example, the EyeCraft thingy looks useful but where is all the clever stuff on the software side to analyse stuff, you still need a human to look at the output (I think). This affects the premiums they can command for their products. They are moving too slow in a fast moving sector with great potential but they may be able to unlock that with the right deals.

[doug74] 06/8/2020 16:57

Have any of you guys actually looked at Petard’s reported accounts? For example, 2019 compared to 2017 revenue is unchanged, cost of sales is up 14%, gross profit down 20%, admin expenses up 29% and pre tax profit down 220% from 1205k to a loss of 1462k. What does that say?

[sirrux] 06/8/2020 09:29

Actually they don't appear to be targeting the drone market. If I were them, that's what I would do - also offer to Amazon etc - before they just go ahead and copy for their own drones. Useful for the army - to reveal enemy positions. Even if they are shot down, job done by the all seeing eye. This type of initiative should have no problem getting funding support as the benefits would be off the scale.

[sirrux] 05/8/2020 16:21

For a world first the military grade eyecraft thingy didn't get the media too excited outside of investor forums. Drones that can see and pick out targets for the military, deliveries, search and rescue are almost a reality. It just remains to be seen who the players will be. Even a few small orders, ahead of the competition, could affect the share price.

[chesty1] 04/8/2020 16:11

Same old PEG cannot hold onto any rise!

[gspanner] 04/8/2020 11:45

Lots of stale bulls to offload first it seems...

[topnotch] 03/8/2020 15:48

If it gets on the leader board then we'll probably get a whole bunch of LSE 'experts' making wild speculations of the target price - such as £1 by Sept.

Be prepared...

[colin12345678] 03/8/2020 15:28

could be a good day tomorrow surely some news to come out on this