REG - PipeHawk PLC - Major contract win with Ventive Limited

PipehawkAnnouncement

01/12/2021 11:35

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RNS Number : 2294U  PipeHawk PLC  01 December 2021

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.

 

 

1 December 2021

 

PipeHawk plc

("PipeHawk", "Company" or the "Group")

 

Major contract win with Ventive Limited

 

 

PipeHawk is very pleased to announce that QM Systems, one of the Group's
principal subsidiaries,  has entered into a partnership with Ventive Limited
("Ventive") to manufacture a ground breaking 'green energy' solution to
providing domestic heating and hot water. The product builds on air source
heat pump and heat recovery technology together with utilising a Thermal
Battery to provide an efficient solution that can be considered a direct
replacement for a conventional gas or oil fired heating system. The first
phase of the project, which comprises a contract worth approximately £800,000
to QM Systems, will involve QM Systems and Ventive working together to produce
a state of the art system for manufacturing the heating product.

 

Ventive and QM Systems have formed a relationship under which QM Systems will
provide New Product Introduction (NPI) services to Ventive to ensure the
product is designed to be robust, easy to manufacture and easy to service and
support in the field. Ventive and QM Systems will work together to source
components to be utilised in the product. This first phase is due for
completion by mid 2022 and then under a non-binding heads of terms agreement
QM Systems has been selected for the second phase as Ventive's partner of
choice to manufacture the products for the UK market. The culmination of this
work will provide a first of its kind in new technology and will be built in
the UK.

 

The second phase of the project would see the rapid expansion of QM Systems's
contract manufacturing business model where QM Systems extends its already
expansive service offering to provide facilities and resources to manufacture
the product on behalf of Ventive. It would also require the recruitment of a
number of new staff to manage and run the production facility, bringing
further employment to the area. Production is due to start in mid-2022 and
could be expanded into other localities within the UK.

 

Gordon Watt, Chairman of PipeHawk, commented - "We are incredibly proud and
excited to have been selected by Ventive as their partner to manufacture this
new, innovative 'Green Energy' domestic heating solution. This is a first for
UK Manufacturing and will put Ventive at the forefront of domestic heating and
hot water solutions on the world stage. I expect this new contract will result
in QM Systems expanding its contract manufacturing with a partner in an
industry that is expected to expand rapidly. It is anticipated that demand for
this product will increase quickly as the world strives to reduce its burden
on fossil fuels utilised in heating. The UK market alone is estimated at 1.4
million domestic gas or oil boilers per annum and legislation from Government
dictates that all solutions which burn oil, natural gas or LPG will be phased
out over the coming years. The Heat Pump Association estimates that the UK
market for Heat Pumps is projected to grow from 37,000 units per annum today
to 600,000 by 2028 per annum.  This product provides a ready made solution
for both retrofit into existing properties and new build. It is particularly
pleasing that Ventive has seen the potential in QM Systems to offer a full NPI
solution to provide a state of the art production system and then to operate
and manage that facility at QM Systems's facilities here in Worcestershire,
with the possibility of growing to a number of locations across the UK and
Europe"

 

 

Enquiries:

 

 PipeHawk Plc                        Tel. No. 01252 338 959
 Gordon Watt (Chairman)
 Allenby Capital (Nomad and Broker)  Tel. No. 020 3328 5656

David Worlidge/Vivek Bhardwaj

 

Notes to Editors

 

For further information on the Company and its subsidiaries, please
visit:  www.pipehawk.com (http://www.pipehawk.com/)

 

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