REG - PipeHawk PLC - AGM Statement & Trading Update

PipehawkAnnouncement

19/12/2024 07:00

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RNS Number : 6498Q  PipeHawk PLC  19 December 2024

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                                Tel. No. 01252 338 959

 Gordon Watt (Chairman)

 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 (http://www.pipehawk.com/)

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