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PipeHawk PLC on Thursday said its loss narrowed in an ‘extremely challenging year’ after a subsidiary entered into administration.
PipeHawk is an Aldershot, England-based firm offers engineering solutions. QM Systems Ltd, a subsidiary and turnkey provider of automation, test, and manufacturing systems entered into administration in July.
The company said its turnover was up 41% in the year to the end of June to £9.1 million from £6.5 million year-on-year. Treating QM Systems as an exceptional item reduces turnover to £2.9 million, a 55% fall.
Loss before taxation and exceptional items narrowed to £1.6 million from £3.3 million year on year, excluding the exceptional gain of £870,000 from the de-recognition of QM Systems.
PipeHawk said it believed QM was on track to report its best ever year for sales before coming under severe financial pressure due to a minimal intake of new demand and the loss of two anticipated orders.
The company said it is ‘cautiously projecting’ a return to operating profitability in the year ending June 2025, as it anticipates some subsidiaries will ‘increasingly be servicing a global marketplace and will therefore be less affected by the UK’s uncertain business environment’.
The company said it continues to be in a net liability position and is reliant on Executive Chairman Gordon Watt for financial support.
Watt said: ‘The group remains committed to creating sustainable earnings-based growth and focusing on the expansion of its business with forward-looking products and services...Despite wider current market conditions, all divisions of the group are currently performing well, and I remain optimistic in my outlook for the group.’
Shares in PipeHawk were down 3.5% to 1.11 pence in London on Thursday afternoon.
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