Gateshead's Petards Acquires Affini Technology Group in Major Takeover

17 Jun, 2024

Gateshead's Petards Acquires Affini Technology Group in Major Takeover

Video surveillance specialists Petards has announced a deal to buy Midlands firm Affini Technology Group after issuing results that saw a loss in 2023.

The Gateshead firm, which creates products for the rail, defence, and traffic markets, reported revenues falling from £10.9m to £9.4m. A previous profit of £524,000 turned into a loss after tax of just over £1m. The company noted “strong” revenues from service and engineering support and significant orders for new products launched in December, despite its order book dropping from £4.1m to £2.4m.

Petards is making “significant progress” on its acquisition strategy, outlining a deal to take over Affini Technology Group. The Derby firm provides communication technology to the transport, blue light, energy, defence, and construction sectors. The £2.8m deal is subject to the release of bank security by June 27. Petards will fund the acquisition with £1.7m from cash resources and £800,000 from overdraft facilities.

The acquisition of Affini, a profitable and cash-generative business, is expected to help Petards build its presence in target markets and add new services to its portfolio. Affini, founded in 1974, reported unaudited 2023 revenues of £5.6m and an operating profit of just over £400,000. Petards' chairman Raschid Abdullah and Affini CEO Ian Carr both expressed optimism about the strategic fit and future growth opportunities.