TRANSPORT and defence security and communications firm Petards says its full-year profits will be better than the market expected.

The Gateshead business, which supplies CCTV for trains and communications systems for the defence sector, said better margins, overhead savings and lower financing costs would lift the figure above expectations for 2011.

Petards also reported that second half revenues were better than the first six months of the year and its has achieved a 5% year on year revenue growth.

The AIM-listed company, which was updating the market on the 12 months to December 31, said cash flows were also ahead with net debt reducing from £1.8m at June 30 to £1.5m by December 31.