SECURITY and surveillance technology firm Petards today announced a share issue to raise up to £1.125m.

The share placement, which comes just days after the company revealed takeover talks with its biggest shareholder had broken down, will offer up to 4,500,000 shares to raise capital and boost Petards’ product development.

The Gateshead company said after winning an £8m contract to supply Petards eyeTrain on-board digital CCTV systems it was in a position to plan ahead with more confidence.

But in a trading update also issued this morning, Petards said that although it has secured some of the orders it was expecting in the last few weeks, “they will not now contribute as much to 2012 revenues as we had hoped”.

The statement added: “In addition other contracts we have been expecting to receive in the third quarter now seem likely to be delayed into 2013.

“As a result the board presently expects revenues in the second half year to be slightly ahead of those for the first half year and the operating performance to be similar to that achieved in 2011.”

Takeover talks with Water Hall Group, which owns just shy of 30% of the business, were abandoned earlier this month.