Quadnetics reports strong trading

The company said there were “early indications” that results for the year as a whole will be at the higher end of the board’s expectations.

Quadnetics has published an update on trading following the end of its financial year on November 30 2011.

Sales growth has been strongest in the company’s Sheffield-based Synectics network systems and Synectics industrial systems divisions, which provide surveillance systems to the security and oil and gas markets, continuing the trend seen in the first half of the year.

Comparable year-on-year revenue in Synectics networks is estimated to have increased by around 20 per cent, and in Synectics industrial systems by around 30 per cent.

In both divisions, the growth in revenues has also had a “significant beneficial impact” on margins. Revenues in the integration and managed services division, and in the transport sector of the Synectics mobile systems division, were broadly flat compared with the previous year.

In a statement, Quadnetics added: “The defence activities within Synectics mobile systems improved their performance in the second half, but still suffered from the combination of limited UK defence orders and disruption to expected contracts in the Middle East from local political unrest. Indanet, a leading supplier of high-end surveillance systems for integrated transport hubs, was acquired in July 2011. Since acquisition Indanet has performed somewhat ahead of the board’s expectations, and is now anticipated to have made a positive contribution to group results in the period to November 30 2011.

“This has arisen from a combination of improved trading and slower increases than originally planned in marketing and development expenditure. The integration of Indanet is going well, and we continue to be excited by the prospects for this business within Quadnetics.”

The group’s consolidated firm order book at year end was around £34.7m, including £3.3m at Indanet. The comparable consolidated order book as at November 30 2010, which did not include Indanet, was £27.3m.

Quadnetics said it will issue its preliminary results on or around February 29 2012.