Petards Group plc has acquired QRO Solutions
Petards, the AIM quoted developer of advanced security and surveillance systems is pleased to announce that it has acquired the entire issued share capital of QRO Solutions Limited ("QRO") for a maximum consideration of £1,255,000. The consideration, 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 (www.qrosolutions.co.uk) was established over 15 years ago as a private business based in Northamptonshire providing end-to-end Automatic Number Plate Recognition ("ANPR") security and speed enforcement solutions to UK police forces and to integrators serving the police and security markets. QRO's systems integration expertise enables it to offer fixed site, mobile, re-deployable and hand-held ANPR systems which can be integrated into its own back office management suite of software; Check-IT ANPR, Check-IT CSGS, Check-IT Handheld and Multimedia Vault.
QRO, which employs 11 permanent staff all of whom will remain with the business post acquisition, will strengthen the Group's offering and provides a strong service-based operation with recurring revenues on which to expand further into the Emergency Services sector. It will provide Petards 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.
In the year ended 30 November 2015 QRO generated revenues of £1,784,000 and profit before tax of £101,000. Over 25% of its revenues related to recurring maintenance and similar contracts. At 30 November 2015 QRO had net assets of £683,000. The QRO balance sheet at the date of acquisition includes cash balances of £876,000.
Commenting, 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."
Gary Austin, QRO's Joint Managing Director and Co-founder commented: "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."