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Petards Group insecure with fundamentals downturn and profit warning
Petards Group shareholders shared a similarly bleak overview, with diluted EPS contracting from 0.88p to 0.35p.
Petards Group comments
Raschid Abdullah, Chairman, said,
“The Group continues to benefit from a good order book which at 30 June 2019 included revenues of almost £7 million for the second half of 2019. This has been supplemented by orders received since June, the majority of which will benefit 2020.”
“There is also a strong pipeline of new contracts under negotiation which it is anticipated will add to the Group’s order book in due course. The Group continues to secure the majority of opportunities available to it, although more recently the timing of expected orders has been later than originally envisaged. Some of the Department for Transport (DfT) franchising decisions during 2019 have affected the timing of some orders.”
“The Board remains confident in the Group’s future prospects and expects to return a satisfactory, albeit lower than previously anticipated, performance for 2019 weighted towards the second half of the year.”
Investor notes
After dipping over 20%, the Company’s shares recovered slightly, now down 10.26% or 2.00p to 17.50p per share 19/09/19 13:36 BST. The Group’s p/e ratio is 9.70, their dividend yield is unavailable. Elsewhere in the tech sector, there were updates from; SCISYS Group PLC (LON: SSY), Pebble Beach Systems Group PLC(LON: PEB), ULS Technology PLC (LON: ULS), Midwich Group PLC (LON: MIDW), ProPhotonix Ltd (LON: PPIX), Frontier Developments PLC (LON: FDEV) and Gamma Communications PLC (LON: GAMA).SCISYS posts ‘creditable’ first half as CGI takeover nears
There was some good financial progress to report on SCISYS’s behalf, with revenues rising 2% year-on-year to £29.4 million and their order book increasing from £92.2 million to £102.5 million on-year.
However, there was some downward movement in the Company’s fundamentals, with adjusted operating profit contracting from £2.5 million to under half that sum, at £1.2 million, for H1 2019. The overview for SCISYS shareholders was similarly tepid, with adjusted basic EPS narrowing from 6.1p to 2.2p on-year and the Group’s dividend yield decreasing from 1.60% to 0.95% during the course of the first half.
Operationally, the Company reported impressive progress. Their Enterprise Solutions and Defence division delivered ‘record’ first half results, Space division in Germany secured further Galileo ground segment orders of €9.7 million and their Media Solutions division registered a newsroom software deal with ‘a major European broadcaster’.
SCISYS Group comments
Mike Love, Chairman, said,
“We are pleased with our continued solid operational performance and my thanks goes out to the divisions and staff for achieving these results. Understandably, the takeover offer from CGI that was announced on 14 June significantly occupied SCISYS senior management and resulted in some exceptional expenditure. Notwithstanding this, we have delivered a creditable set of results for the period.”
“Our shareholders voted to approve the CGI takeover on 7 August which we expect to complete in the second half of 2019; we are currently working with CGI to obtain the necessary regulatory approvals for the bid to proceed to the final Court approval stage.”
“The business continues to perform in line with board expectations though, as already highlighted and in common with previous years, we expect our 2019 results to be more weighted towards the second half of the financial year.”

