PipeHawk shares drop as revenue more than halves after QM shut down
PipeHawk PLC shares fell on Friday as it said its revenue more than halved in the first-half of its financial year, but it returned to profitability.
The Cinderford, England-based engineering solution provider said revenue fell 54% to £2.1 million in the six months to the end of December from £4.6 million in the first half of the previous year.
Shares in PipeHawk were down 11% to 1.61 pence in London on Friday morning.
PipeHawk swung to a pretax profit of £30,000 from a loss of £633,000.
Staff costs fell 65% to £831,000 from £2.4 million while general administrative expenses were down 60% to £1.0 million from £2.6 million.
Chair Gordon Watt noted that ‘continued negative sentiment’ and two anticipated orders not being placed led to subsidiary QM Systems Ltd being placed into administration as the six-month period started.
Watt said the firm’s remaining subsidiaries, working with the utilities, government and rail industries are ‘significantly less reliant on the confidence of private sector businesses to commit funds for major investment projects’.
Watt said: ‘Though, somewhat ironically, while Network Rail has a reported budget of £44 billion to spend on UK rail infrastructure in the five years from April 2024, Network Rail seems very reticent to place orders with its Tier 1 suppliers. As a result, the start to the current calendar year has been slower than that I would have wished.’
PipeHawk said its prospective order book across its three operating subsidiaries ‘remains buoyant’ and Watt is confident the overall recovery will continue.
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