Oil and gaming demand gives lift to Quadnetics

The CCTV firm yesterday told shareholders at its annual meeting that trading has continued strongly after a solid improvement in 2011. Like-for-like revenues in the four months to March 31 are up 15 per cent, the group said, adding margins have continued to improve.

Chairman David Coghlan said: “The good progress in trading so far gives the board increased confidence that Quadnetics will deliver results for the full-year in line with market expectations.”

Mr Coghlan added network and industrial systems at the group’s Sheffield-based Synectics division remain the “primary sources of growth”.

“The group’s expanding suite of software-based intellectual property has enabled further significant project wins at attractive margins,” he said. “Sales of surveillance systems for the US gaming industry and for major oil and gas developments in Australia, the Middle East and Far East have shown particular strength.”

The company added its immediate prospects in the UK market have remained “resilient” despite ongoing weakness in defence.

Its strategy of concentrating on larger and more complex surveillance systems is paying off, it said, leading to big contract wins including long-term upgrade and maintenance work for systems at Magnox nuclear plants. Margins in UK transport have recovered to “more normal levels”, it added.

Quadnetics said its German transport acquisition Indanet is being integrated to plan.

All resolutions were passed at its AGM.