Petards (LSE:PEG) has reported continued improvement in its financial performance during 2026, with stronger margins, lower debt and a growing order book supporting expectations for a full-year result ahead of current market forecasts.
The company said margins have improved compared with both the first half and the full year of 2025, despite revenue being slightly lower. Petards expects to report growth in EBITDA for the first half when it publishes its interim results on 11 September.
The group’s balance sheet has also strengthened, with total net debt reduced to £1.16 million. Meanwhile, its order book has increased to £9.6 million, providing greater visibility over future activity.
Chairman Raschid Abdullah said the Group has generated cash, grown gross profit margins and profitability, and strengthened its order pipeline in the first half of the year.
The progress has increased the board’s confidence in trading for the remainder of 2026. Petards now expects the business to continue performing well during the second half and anticipates delivering a full-year result ahead of current market expectations.
The improving margins, cash generation and order pipeline provide positive indicators for the company’s operational trajectory. However, Petards’ broader investment outlook remains constrained by continuing losses and negative returns, despite signs of improving profitability and cash flow during 2025.
Technical indicators are moderately supportive but remain mixed, with an elevated relative strength index suggesting the shares may be overbought in the near term. Traditional valuation measures also provide limited support because of the company’s negative price-to-earnings ratio and absence of a dividend.
More about Petards
Petards Group plc is an AIM-quoted technology company specialising in advanced security, communications and surveillance systems.
The group develops technology designed to improve safety and operational efficiency, serving customers that require sophisticated monitoring, data collection and information management capabilities.
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