Petards Group (LON: PEG), the AIM-listed maker of security, rail and defence electronics systems, swung to a small operating profit in the six months to 30 June 2026. Shares in the Guildford-based group ticked higher, and the company reported a stronger order book.
PEG shares traded at 9.89p in early trade, up 1.4% from yesterday’s close of 9.75p, on thin volume of 4,802 shares. The stock remains below its 50-day moving average of 10.08p and its 200-day average of 10.35p, inside a 52-week range of 7.00p to 12.50p.
Petards published its interim results earlier today. Revenue dipped slightly to £7.7m from £7.9m a year earlier, but the group returned to an operating profit of £14,000, against an operating loss of £185,000 in the same period last year. The order book, the value of confirmed customer orders yet to be delivered, grew to £9.6m from £9.2m at the end of 2025, boosted by additional Rail orders announced in August and continuing work on the £2.2m Challenger 3 tank upgrade order from RBSL, the defence prime contractor.
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Gross margin improved to 52.2% from 48.7% in the Rail and Defence divisions, and adjusted EBITDA, underlying earnings before interest, tax, depreciation and amortisation, rose 53% to £781,000 from £509,000. Cash generated from operations rose to £894,000 from £860,000, while net debt, excluding lease liabilities, fell to £1.155m from £1.339m at the end of 2025. No interim dividend was declared.
Petards is a thinly traded AIM microcap with a market capitalisation of about £6m, so the modest share move suggests the results were largely in line with already-improving expectations rather than a surprise to the market.
Chairman Raschid Abdullah said the improving trend “has continued into 2026, particularly in Rail and Defence where order intake has seen improvements over that of recent years,” adding that the board expects “another significant improvement in its results over those achieved in 2025,” with further net debt reduction expected in the second half.
