REG - PipeHawk PLC - Trading update in relation to QM Systems Limited

PipehawkAnnouncement

05/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240705:nRSE2954Va&default-theme=true

RNS Number : 2954V  PipeHawk PLC  05 July 2024

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.

 

5 July 2024

PipeHawk plc

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

 

Trading update in relation to QM Systems Limited

 

PipeHawk provides the following trading update in relation to QM Systems
Limited ("QM"), a subsidiary of PipeHawk.

 

As announced by the Group on 27 March 2024, QM has experienced a number of
challenges, which have included, inter alia, a reduction in the number of
orders as well as the value of orders received. Notwithstanding this
challenging environment, the board of directors of the Group (the "Board" or
the "Directors") anticipated that QM would receive two material orders that
were anticipated to underpin QM's financial performance and position. Contrary
to the Board's expectations, it has now been made apparent to the Board that
the two anticipated material orders will not be forthcoming.

 

As a result, QM's financial position is now under severe financial pressure.
Accordingly, the Board is now taking steps to potentially, inter alia, place
the Group's subsidiary, QM, into administration or a similar corporate
insolvency process.

 

While the above developments in relation to QM are disappointing, the Board is
of the view that any steps taken to protect the interests of QM's creditors
through, inter alia, placing QM into administration, will not impact
PipeHawk's broader group of companies and the Board believes that the
remainder of the Group will be able to continue to trade as a going concern.
Trading within the Group's other key subsidiaries, being Thomson Engineering
Design Ltd, Adien Ltd  and Utsi Electronics Ltd, currently remains in line
with management's expectations.

 

Further information on QM Systems Limited

 

QM is a turnkey provider of automation, test and manufacturing systems to all
industries, also known as a machine builder and also offers contract
manufacturing services. For the financial year ended 30(th) June 2023, QM
generated approximately £4.2 million in revenues (representing approximately
65% of the Group's revenue for that year) and reported a loss after tax of
approximately £970k. As at 30 June 2023, QM had total assets of approximately
£4.7 million.

 

-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/)

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  UPDRAMATMTIMMJI