19
December 2024
PipeHawk
plc
("PipeHawk", "Company" or the "Group")
AGM Statement & Trading
Update
Gordon Watt, Executive Chairman of
PipeHawk (AIM: PIP), will make the following statement on current
trading at PipeHawk's annual general meeting ("AGM") being held
today.
"PipeHawk has made a positive start
to the current financial year ending 30 June 2025 (the "Current
Financial Year"), underpinning management's cautious projection of
a return to operating profitability in the Current Financial Year
as outlined in the Company's announcement on 28 November
2024.
To date, Thomson Engineering Design
Limited's unaudited revenues and profits are considerably ahead of
the comparable period last year, with a strong indicative pipeline
of future orders from Unipart Rail Limited. Similarly, Adien
Limited's unaudited revenues are also comfortably higher than the
comparable period last year, and its committed order book is full
through to spring next year. Finally, Utsi Electronics Limited's
unaudited revenues are marginally better than the comparable period
last year. However, that business continues to be adversely
affected by the continuing political instability around the
world.
We expect unaudited revenues for the
six months ending 31 December 2024 (excluding QM Systems Ltd
("QM")) to be significantly ahead of the comparable period last
year (H1 2023 revenues excluding QM: £1.1 million). While QM's
entry into administration is a contributing factor, the higher
margins achievable from the demand that PipeHawk's broader group of
companies is encountering as a result of better efficiency in
utilisation of staff is anticipated to positively compensate.
Accordingly, management expects this to result in the Group
reporting a net breakeven consolidated result for the six months
ending 31 December 2024.
The Board believes it is important
to ensure that employees in the Group's businesses are
incentivised to enhance business performance leading to improvement
in the share price of Pipehawk. With that in mind, the Board
is preparing to grant new options over ordinary shares in
Pipehawk.
As previously announced on 28
November 2024, trading conditions in the UK and globally are
very difficult for SMEs. This means that, while management remains
optimistic that the performance of our businesses will continue to
improve gradually over the coming months, this is taking longer
than originally anticipated. However, the Board believes that the
Group has positioned itself to take advantage of current market
conditions and that it should therefore be less susceptible to the
need for a resurgence of business confidence."
-Ends-
Enquiries:
|
PipeHawk plc
Gordon Watt (Chairman)
|
Tel. No. 01252 338 959
|
|
Allenby Capital Limited (Nomad and Broker)
|
Tel. No. 020 3328 5656
|
David Hart / Vivek
Bhardwaj
For further information on the
Company and its subsidiaries, please visit:
www.pipehawk.com