REG - PipeHawk PLC - Half-year Report
14/03/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250314:nRSN6366Aa&default-theme=true
RNS Number : 6366A PipeHawk PLC 14 March 2025
This announcement contains inside information as stipulated under the Market
Abuse Regulations (EU) no. 596/2014 (which forms part of domestic UK law
pursuant to the European Union (Withdrawal) Act 2018) ("MAR"). With the
publication of this announcement via a Regulatory Information Service, this
inside information is now considered to be in the public domain.
14
March 2025
PipeHawk plc
("PipeHawk", "Company" or the "Group")
Unaudited results for the six months ended 31 December 2024
Chairman's Statement
In my Chairman's Statement accompanying the unaudited interim results for the
six months ended 31 December 2023 ("H1 2023"), I congratulated the Governor of
the Bank of England on delivering a sterling job of dampening down demand such
that, with associated economic and political headwinds, very few new orders
were placed during the period concerned, with the notable exception of Adien
Ltd ("Aiden"). This continued negative sentiment coupled with two anticipated
material orders not being forthcoming ultimately contributed to QM Systems
Limited ("QM") being placed into administration just as the six-month period
on which I am now reporting started.
Nevertheless, PipeHawk's remaining key subsidiaries have performed well in the
circumstances enabling the Group to report a return to net profitability. The
Group's turnover in the six months ended 31 December 2024 was £2,089,000 (H1
2023: £4,572,000). This represented a decrease of approximately 54% over the
comparable period last year, which included QM, although represented an
increase of approximately 83% if QM's turnover of £3,431,000 for H1 2023 is
excluded. The Group's profit before taxation was £29,000 (H1 2023: loss
before tax of £633,000; £203,000 loss before tax if QM is excluded) and the
Group's profit after taxation was £59,000 (H1 2023: loss after tax of
£441,000).
As mentioned in November 2024 in the annual report and accounts for the
financial year ended 30 June 2024, the Group's remaining key subsidiaries
service the utilities, government and rail industries and, hence, are
significantly less reliant on the confidence of private sector businesses to
commit funds for major investment projects. 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.
Nevertheless, the prospective order book across all three operating
subsidiaries remains buoyant, and I am confident that the overall recovery
will continue.
Thomson Engineering Design Ltd ("TED")
TED continues to see steady activity for request for quotes ("RFQs") in the UK
for strategic equipment as contracts are slowly released from Network Rail.
This steady activity may be attributed to the change in the UK government and
its subsequent release of the UK autumn budget last year.
Some of these RFQs have translated into orders for TED's innovative designs
which we believe will push the rail industry into the 21(st) century both for
Network Rail and for other UK contractors which can only be taken as a
positive. We now hope to build on these UK orders going forward and as Network
Rail builds up the momentum necessary to upgrade the UK's ageing rail
infrastructure.
The strategic relationship between Unipart Rail Limited ("Unipart") and TED
continues to go from strength to strength. In September 2024, a suite of TED's
equipment was exhibited at the world's largest bi-annual rail show, InnoTrans
in Berlin, at which 80 positively qualified potential sales leads were
generated. We believe that our presence at this show continues to establish
TED's standing to the rest of the world.
The respective regional Unipart sales teams are now tasked with following up
those leads to bring them to fruition.
Plans are now established also to exhibit TED's innovative products at the IAF
Technology Show in Germany in May 2025, which is the largest exhibition for
track technology in Europe, occurring only once every three years.
We believe that the proactive continuation of Unipart's global marketing
initiatives will ensure that TED's products are embedded in future rail
infrastructure projects around the world.
The Unipart rail attachment business remains stable with a regular monthly
order intake, as sales relationships are firmly established around the world,
including most recently in Australia, Canada, America and France.
Adien
July to December 2024 proved to be a positive period for Adien, off the back
of strong activity from the sales team in the first six months of that year.
In this regard, Adien was at 95%+ capacity during this half-year period. Much
of this activity saw Adien mainly committed to the Scottish and Southern
Electricity ("SSE") projects together with a healthy number of ministry of
defence and telecommunication sites.
The current Adien order book is strong, with a few large projects seeing the
site teams booked until the end of April 2025. Following on from a refocus
regarding networking and marketing, Adien was able to secure a good selection
of new clients over this six-month period with purchase orders and commitments
for a number of large projects expected to start in the current calendar year.
Adien has managed to secure around 50% of the new operatives required for our
planned further site teams over this period, who are now in training.
With the new asset management plan (AMP) phases being issued in the new year
for the water industry, Adien's sales team is planning for this and are
already looking to several national suppliers for collaboration on a tranche
of projects which are expected to start in the summer of 2025.
Utsi Electronics Ltd ("Utsi")
As global events continue to affect order schedules across multiple markets,
it has been a slower than expected first six months for UTSI but one which
carries with it the prospect of a much brighter future.
With major customers now more familiar with the cyclical nature of 'the new
normal', their returning confidence is being reflected in a more buoyant,
regular and substantive order outlook which, on current signs, promises to
deliver a busy and more positive year end.
Negotiating the peaks and troughs of component availability and their
corresponding cost fluctuations, in order to effect delivery of these
increasing orders will however place greater strains on the Group's cashflow
in the short term, as we are forced to move away from using a 'just in time'
model.
With our continued R&D investment into new product lines and re-design of
those existing products which may now provide greater returns from having more
time/cost effective build processes, the future for UTSI is looking bright.
Financial position
As announced on 28 November 2024, my letter of financial support was renewed
on 20 November 2024 to provide the Group with financial support until 31
December 2025.
In addition to the loan I have provided to the Company in previous years, my
fellow directors and I have deferred a certain proportion of our fees and
interest payments due on loans until the Company is in a suitably strong
position to make these payments in full. During the six months ended 31
December 2024, these deferred fees and interest payments amounted to
approximately £134,000 in total, all of which have been accrued in the
Company's interim results, and at 31 December 2024 amounted in total to
£2,169,000.
Gordon Watt
Chairman
Enquiries:
PipeHawk Plc Tel no. 01252 338 959
Gordon Watt (Chairman)
Allenby Capital (Nomad and Broker) Tel no. 020 3328 5656
David Hart / Vivek Bhardwaj
Consolidated Statement of Comprehensive Income
For the six months ended 31 December 2024
6 months ended 31 December 2024 6 months ended 31 December 2023 Year ended
(unaudited) (unaudited) 30 June
£'000 £'000 2024 (audited)
£'000
Revenue 2,089 4,572 9,138
Staff costs (831) (2,404) (4,954)
Impairment of goodwill - - (163)
General administrative expenses (1,021) (2,566) (5,236)
Profit / (Loss) on ordinary activities before interest, taxation and 237 (398) (1,215)
exceptional items
Finance costs (207) (235) (424)
Profit / (Loss) before taxation 30 (633) (1,639)
and exceptional items
Taxation credit / (charge) 29 192 (52)
Profit / (Loss) for the period attributable to equity holders of the Company
59 (441) (1,691)
Exceptional gains on de-recognition (QM Systems) - - 870
Other comprehensive income - - -
Total comprehensive income / (expense) for the period net of tax
59 (441) (821)
Profit / (Loss) per share (pence) - basic 0.16 (1.21) (2.26)
Profit / (Loss) per share (pence) - diluted 0.03 (1.21) (2.26)
Consolidated Statement of Financial Position
As at 31 December 2024
As at As at As at
31 December 2024 31 December 2023 30 June
(unaudited) (unaudited) 2024 (audited)
£'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 432 722 447
Right of use 252 2,143 189
Goodwill - 679 -
684 3,544 636
Current assets
Inventories 91 213 113
Current tax assets 96 1,012 80
Trade and other receivables 843 2,983 1,007
Cash 49 63 95
1,079 4,271 1,295
Total assets 1,763 7,815 1,931
Equity and liabilities
Equity
Share capital 363 363 363
Share premium 5,316 5,316 5,316
Other reserves (11,893) (11,572) (11,952)
(6,214) (5,893) (6,273)
Non-current liabilities
Borrowings 3,690 5,561 3,780
Trade and other payables - - 121
3,690 5,561 3,901
Current liabilities
Bank overdrafts and loans 3,120 3,151 2,929
Trade and other payables 1,167 4,996 1,374
4,287 8,147 4,303
Total equity and liabilities 1,763 7,815 1,931
Consolidated Statement of Cash Flow
For the six months ended 31 December 2024
6 months ended 31 December 2024 6 months ended Year ended
(unaudited) 31 December 2023 30 June
£'000 (unaudited) 2024 (audited)
£'000 £'000
Cash inflow from operating activities
Profit / (Loss) from operations 237 (398) (1,215)
Adjustment for:
Impairment of goodwill - - 163
Impairment of right of use assets - - 347
Depreciation 83 315 619
320 (83) (86)
Decrease in inventories 22 40 65
Decrease/(Increase) in receivables 164 (216) 271
Increase/(Decrease) in liabilities (255) (240) (1,002)
Cash generated from/(used in) operations 251 (499) (752)
Interest paid (73) (116) (173)
Corporation tax received 13 7 695
Net cash generated from/(utilised in) operating activities
191 (608) (230)
Cash flows from investing activities
Purchase of fixed assets (16) (25) (50)
Net cash utilised in investing activities (16) (25) (50)
Cash flows from financing activities
(Repayments)/Proceeds from borrowings (53) 170 30
Repayments of bank and other loans (150) (199) (544)
Proceeds of bank and other loans 46 863 1,313
Repayment of leases (64) (286) (572)
Net cash (utilised in)/generated from financing activities (221) 548 227
Increase/(Decrease) in cash and cash equivalents (46) (85) (53)
Cash and cash equivalents at beginning of period
95 148 148
Cash and cash equivalents at end of period 49 63 95
Consolidated Statement of Changes in Equity
For the six months ended 31 December 2024
Share premium account
Share capital Retained earnings
Total
£'000 £'000 £'000 £'000
6 months ended 31 December 2023
As at 1 July 2023 363 5,316 (11,131) (5,452)
Loss for the period - - (441) (441)
Total comprehensive income - - (441) (441)
Issue of shares - - -
As at 31 December 2023 363 5,316 (11,572) (5,893)
12 months ended 30 June 2024
As at 1 July 2023 363 5,316 (11,131) (5,452)
Loss for the period - - (821) (821)
Total comprehensive income - - (821) (821)
Issue of shares - - - -
As at 30 June 2024 363 5,316 (11,952) (6,273)
6 months ended 31 December 2024
As at 1 July 2024 363 5,316 (11,952) (6,273)
Profit for the period - - 59 59
Total comprehensive income - - 59 59
Issue of shares - - -
As at 31 December 2024 363 5,316 (11,893) (6,214)
Notes to the Interim Results
1. Basis of preparation
The Interim Results for the six months ended 31 December 2024 are unaudited
and do not constitute statutory accounts in accordance with section 240 of the
Companies Act 2006.
Full accounts for the year ended 30 June 2024, on which the auditors gave a
qualified report and contained no statement under Section 498 (2) or (3) of
the Companies Act 2006, have been delivered to the Registrar of Companies."
The interim financial information has been prepared on a basis which is
consistent with the accounting policies adopted by the Company for the last
financial statements and in compliance with basic principles of IFRS.
2. Segmental information
The Company operates in one geographical location being the UK. Accordingly,
the primary segmental disclosure is based on activity.
Utility detection and mapping services Development, assembly and sale of GPR equipment
Automation and test system solutions
Total
£'000 £'000 £'000 £'000
6 months ended 31 December 2024
Total segmental revenue 855 144 1,090 2,089
Segment result 64 (49) 222 237
Finance costs (18) (175) (14) (207)
Profit / (loss) before taxation 46 (224) 208 30
Segment assets 687 323 753 1,763
Segment liabilities 585 6,477 941 8,003
Non-current asset additions 2 - 14 16
Depreciation and amortisation 21 8 54 83
6 months ended 31 December 2023
Total segmental revenue 715 52 3,805 4,572
Segment result (5) 180 (573) (398)
Finance costs (19) (143) (73) (235)
Profit / (loss) before taxation (24) 37 (646) (633)
Segment assets 561 1,154 6,100 7,815
Segment liabilities 633 6,143 7,114 13,890
Non-current asset additions 46 - 70 116
Depreciation and amortisation 35 9 271 315
12 months ended 30 June 2024
Total segmental revenue 1,448 330 7,360 9,138
Segmental result 85 154 (1,454) (1,215)
Finance costs (35) (335) (54) (424)
Profit / (loss) before taxation 50 (181) (1,508) (1,639)
Segment assets 497 322 1,112 1,931
Segment liabilities 579 6,319 1,220 8,118
Non-current asset additions 48 - 47 95
Depreciation and amortisation 60 18 541 619
3. Profit / loss per share
This has been calculated on the profit for the period of £59,000 (H1 2023:
loss £441,000) and the number of shares used was 36,312,823 (H1 2023:
36,312,823), being the weighted average number of shares in issue during the
period.
4. Dividends
No dividend is proposed for the six months ended 31 December 2024.
5. Copies of Interim Results
The Interim Results will be posted on the Company's website www.pipehawk.com
(http://www.pipehawk.com) and copies will be available from the Company's
registered office at 2a & 3 Crabtree Rd, Forest Vale Industrial Estate,
Cinderford, GL14 2YQ.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR GPUWAWUPAGMWRecent news on Pipehawk
See all newsREG - PipeHawk PLC - Half-year Report
AnnouncementREG - PipeHawk PLC - Grant of options
AnnouncementREG - PipeHawk PLC - Result of Annual General Meeting
AnnouncementREG - PipeHawk PLC - AGM Statement & Trading Update
AnnouncementREG - PipeHawk PLC - Final results for the year ended 30 June 2024
Announcement