Market's view on Petards
Published on April 2024
- Petards Rail has appointed Calvin Fahey as procurement manager. Fahey is Level 3 Chartered Institute of Procurement and Supply certified and brings nearly a decade of experience. He will lead the procurement team and processes to ensure cost-effective acquisition of materials and services.
- Petards Rail has launched PTeye, a solution incorporating AI-ready technology developed to prevent trap and drag incidents before train dispatch. The company also hired Jack Teichman as a rail engineer to strengthen the team.
- PJL, a loss-making subsidiary, is the principal company in the group. QRO’s business is ANPR and has been very successful, continuing to grow. RTS, acquired for £1.8 million, is performing moderately and not considered special.
- PJL’s loss is mainly attributed to turmoil in the rail industry resulting in an order famine. With the start of CR7, the new five-year financial control period for the rail industry, a recovery in rail division orders is anticipated, which should eliminate losses in PJL.
- RTS Solutions, a minor subsidiary acquired in 2018, serves the rail infrastructure industry and has kept its head above water despite not performing outstandingly since acquisition.
- Discussion includes expectations for PJL’s contracts to recover with the new CP7, optimism for the rail and defence sectors within PJL, and potential impacts of the political turmoil and reorganisation in the rail industry.
- Observations note continuous buying of shares, indicating confidence in future contracts with train builders like Alstom, with expectations that new train wagons will be equipped with CCTV.
- Concerns are raised about the defence sector part of PEG being a drag on past performance, with discussions about its potential to pick up work from conflicts or the possibility of selling the subsidiary.
- An increase in buying activity followed overnight news of a government order saving the UK’s largest train factory, indicating market reactions to developments affecting PEG customers.