PIPEHAWK PLC I am pleased to report that the Company's turnover in the six months ended 31 December 2016 was £2,999,000 (2015: £2,362,000), resulting in a loss before taxation of £180,000 (2015: loss of £449,000) and a profit after taxation of £43,000 (2015: loss after taxation £280,000).
At QM Systems, order intake for the first part of the period was buoyant with orders taken of approximately £1.3 million in the first three months. Order intake slowed during the latter part of the period, however the outstanding quotes remain considerable with a number of significant contracts awaiting award over the coming weeks. During September 2016, QM Systems expanded its sales resource and this is beginning to open new doors to markets and opportunities that it was previously not targeting. This has resulted in our potential order book being higher than ever before and whilst the past few months have been quieter than normal on the sales side, we are expecting order intake to increase significantly throughout the remainder of this financial year and into the next. The operational side of the business has remained busy as we work to complete ongoing projects. We have seen significant improvement in margin realisation across all new projects which appears to demonstrate that the changes we have made to our business during the previous financial year are having a positive effect. All areas of the business remain very busy and this looks set to continue as the economy and business in general continue to focus on achieving greater productivity, which is the backbone of QM Systems' service offering.
PipeHawk has continued to build on its UK, EU and international sales strategy for e-Safe product range and supply through a number of key partners is expected to increase through 2017. The rejection of our H2020 phase 2 grant re-application was a disappointment. However, following consultation with our advisers, we shall be re-submitting what we hope will be regarded as an improved application, building on the feedback we received from the assessors. In the meantime, we are working to improve the profitability of our product range and by the end of the financial year we expect to achieve cost reductions with a number of key components. With increased exposure through trade press and product placement at a greater number of industry events and trade shows than in previous years, both in the UK and overseas, we are well placed to achieve our goal of doubling unit sales over the forthcoming year.
For Adien, the six months to 31 December has been a challenging time in an extremely competitive market. In recent months, our focus on specialist and larger contracts has seen a significant number of contracts being awarded to us within the airport, transport and water sectors. In Scotland, we have also secured significant contracts within the rail, power and infrastructure sectors. As a result, we are currently experiencing good levels of efficiency, turnover and profitability and expect this to continue for the remainder of the financial year.
SUMO, in which the Group holds a 28.4% stake, struggled in the competitive market place.
On 1 February 2017, Mirrasand Partnership agreed to roll over the outstanding £150,000 due for repayment on that date with a revised payment date of 31 May 2017.
Related party mattersIn the period under review, I was not called upon to provide working capital support to the Company.
My letter of support was renewed on 14 November 2016 for a further year. Loans provided by me, other than those covered by the CULS agreement, are unsecured and accrue interest at an annual rate of Bank of England base rate plus 2.15 per cent.
In addition to the loans 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 until the Company is in a suitably strong position to make the full payments. At 31 December 2016, these deferred fees and interest payments amounted to approximately £1,675,000 in total, all of which have been accrued in the Company's accounts.
Gordon Watt Chairman Enquiries:PipeHawk Plc Gordon Watt (Chairman) | Tel. No. 01252 338 959 |
Allenby Capital (Nomad and Broker) David Worlidge/James Thomas | Tel. No. 020 3328 5656 |
Six months ended 31 December 2016 (unaudited) £'000 | Six months ended 31 December 2015 (unaudited) £'000 | Year ended 30 June 2016 (audited) £'000 | |
Revenue | 2,999 | 2,362 | 4,813 |
Staff costs | (1,455) | (1,430) | (2,866) |
General administrative expenses | (1,635) | (1,295) | (2,805) |
Operating loss | (91) | (363) | (858) |
Share of operating profit in joint venture | - | (6) | 6 |
Loss on ordinary activities before interest and taxation | (91) | (369) | (852) |
Finance costs | (89) | (80) | (165) |
Loss before taxation | (180) | (449) | (1,017) |
Taxation | 223 | 169 | 264 |
Profit/(Loss) for the period attributable to equity holders of the Company | 43 | (280) | (753) |
Other comprehensive income | - | - | - |
Total comprehensive income/(loss) for the period net of tax | 43 | (280) | (753) |
Earnings/(Loss) per share (pence) - basic and diluted | 0.13 | (0.85) | (2.28) |
Assets | As at 31 December 2016 (unaudited) | As at 31 December 2015 (unaudited) | As at 30 June 2016 (audited) |
£'000 | £'000 | £'000 | |
Non-current assets | |||
Property, plant and equipment | 190 | 256 | 227 |
Goodwill | 1,061 | 1,061 | 1,061 |
Investment in joint venture | 53 | 41 | 53 |
1,304 | 1,358 | 1,341 | |
Current assets | |||
Inventories | 93 | 61 | 105 |
Current tax assets | 225 | 292 | 181 |
Trade and other receivables | 1,770 | 1,028 | 1,224 |
Cash | 26 | 86 | 24 |
2,114 | 1,467 | 1,534 | |
Total Assets | 3,418 | 2,825 | 2,875 |
Equity and liabilities | |||
Equity | |||
Share capital | 330 | 330 | 330 |
Share premium | 5,151 | 5,151 | 5,151 |
Other reserves | (9,193) | (8,763) | (9,236) |
(3,712) | (3,282) | (3,755) | |
Non-current liabilities | |||
Borrowings | 2,308 | 2,301 | 2,301 |
Trade and other payable | - | 1,834 | - |
2,308 | 4,135 | 2,301 | |
Current liabilities | |||
Trade and other payables | 4,461 | 1,704 | 3,895 |
Bank overdrafts and loans | 361 | 268 | 434 |
4,822 | 1,972 | 4,329 | |
Total equity and liabilities | 3,418 | 2,825 | 2,875 |
Pipehawk plc published this content on 20 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 March 2017 09:57:04 UTC.
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