Member Article

Acquisition trail beckons as Petards snaps up Northamptonshire security firm for £1.26m

Gateshead-based Petards Group, a developer of advanced security and surveillance systems, has acquired QRO Solutions Limited for £1.26m as the firm looks to broaden its earning base.

Northamptonshire-based QRO provides Automatic Number Plate Recognition (ANPR) security and speed enforcement solutions to UK police forces and to integrators serving the police and security markets.

The deal, which will be satisfied in cash from Petards existing cash reserves, includes deferred consideration of £140,000 the payment of which is subject to QRO achieving revenues of at least £1,750,000 and profits before tax of at least £240,000 in the year ending 30 November 2016.

QRO, which employs 11 permanent staff all of whom will remain with the business post acquisition, will strengthen Petards’ offering with an entry into fixed site ANPR and complement the Group’s existing ProVida range of mobile in-car enforcement products, giving greater critical mass to the overall business and a wider customer base in the UK and overseas markets.

Raschid Abdullah, Petards Chairman said: “We are delighted to welcome QRO and its staff to the Petards Group and look forward to working together to grow the business both in the UK and overseas.

“This acquisition marks a first step towards expanding the Group into a broader earning base and the Board is continuing to pursue other earnings enhancing acquisitions.”

In the year ended 30 November 2015 QRO generated revenues of £1.78m and profit before tax of £101k. Over 25% of its revenues related to recurring maintenance and similar contracts. At 30 November 2015 QRO had net assets of £683k. The QRO balance sheet at the date of acquisition includes cash balances of £876k.

Gary Austin, QRO’s Joint Managing Director and Co-founder, added: “We are looking forward to the opportunity to build upon the past success of QRO which will now operate as an independent company within the Petards Group while benefitting from the greater international reach and financial resources of the Group.”

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