Quadnetics reports mixed market conditions

The group's Sheffield-based Synectics security technology business has delivered systems to protect high security assets around the world, including a project in Durban, South Africa, linked to the World Cup.

Quadnetics's consolidated underlying profit - profit before tax, exceptional reorganisation costs and share-based payments charges - for the 12 months to May 31 2010 was 2.3m, up 27 per cent from 1.8m for the comparable period last year.

This increased profit was earned on revenue that reduced from 70.7m to 62.7m.

After charging exceptional reorganisation costs of 1.1m and share-based payments of 146,000, the group reported a profit before tax of 1.1m, compared to 500,000 in the same period last year.

The exceptional reorganisation costs mainly related to restructuring of the integration and managed services division's operations in the UK and Middle East, and are expected to be the final costs charged for this process.

John Shepherd, the company's 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.

"The expected cutback in UK government spending is 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."