Quantum Systems: Farmer went to war
Quantum Systems originally specialised in drones for agricultural use, but since the Russian invasion of Ukraine it has made a rapid pivot into military applications.
Enabling a farmer to check on his crops from the comfort of his sofa is one thing, but it’s not nearly as sexy as building an aerial intelligence system that will warn troops on the ground when a squad of thick-necked spetsnaz operators are about to kick the door down and give them time to arrange an appropriate welcome.
The military loves a good acronym, and ISR (intelligence, surveillance and reconnaissance) is absolutely mission critical in modern warfare.
Quantum’s Vector drone has been sold to the US, Australia, New Zealand and Spain, among others, and the Germans have supplied more than 600 drones to Ukraine, where these have proven their effectiveness in battlefield conditions. The Germans have also bought the Vector for their own special forces as part of the FALKE programme, which enthusiasts will know stands for ferngeführtes Aufklärungssystem, luftgestützt, kurze Entfernung.
Quantum’s sales are expected to double this year to more than €200m, and it has closed a €180m funding round at a valuation of €3bn, three times its previous valuation.
It is one of a host of companies benefiting from the German government’s huge splurge on its military, with plans in place for about €650bn to be spent on defence by 2030.
Quantum likes to stress that it is not just a drone manufacturer; it is an aerial data intelligence company and is investing heavily in software, including AI that will maximise the potential of its hardware.
Pets at Home: In the dog box
Tails are most definitely not wagging at the UK’s largest pet retailer as a succession of profit warnings and an abrupt adios to the CEO point to a business in need of a major intervention.
Pets at Home thrived in the pandemic when lockdowns meant large numbers of the population were seeking the comfort of a furry friend or, for those who prefer the company’s reptile aisle, a scaly solace. For a few months tiny dogs really were worth their weight in gold, dognapping became a viable career path, and all these new companions needed to be kitted out.
Now, however, the pandemic pets are in their prime, and it will be a while before they start to need old-age supplements.
Pets at Home’s food offering has seen increased competition from subscription services, and in the past six months profits at its retail business were down by 84% to £3.5m. Its veterinary services business had a better time, with profits up 8.3% to £45m, and the challenge now is to maintain the positive momentum in the vet business while taking what its interim executive chair Ian Burke described as “urgent and necessary” action on the retail side.
He has announced a cost-cutting programme that will see about 250 back-office roles getting the axe as it looks to reduce overheads by £20m.
Former CEO Lyssa McGowan, who was shown the door in September, was viewed by many as a surprise choice for the role given that she had no retail or veterinary experience, and her successor is likely to focus on the basics of retailing.
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