PipeHawk subsidiary wins £1m contract

PipeHawk announced on Monday that one of its main subsidiaries, QM Systems, has been awarded a contract by RCR Flooring Products to deliver a manufacturing system for a floor jointing system.

The AIM-traded firm said the contract would make use of “the latest automation technology” to provide a turnkey solution for the manufacture of a floor joint system.

It described RCR as an international group that supplies integrated floor services, ranging from design to construction.

The contract would generate around £1m of revenue for QM, with approximately one third of that to be paid immediately, and the remainder over the duration of the contract.

It expected that work would start immediately, with delivery expected within the next 12 months.

“This contract further expands QM's offering in the fields of building construction, in particular groundwork solutions,” said PipeHawk chairman Gordon Watt.

“We believe this contract presents a great opportunity for QM to further develop its project-based business within the building services sector.”

At 0800 BST, shares in PipeHawk were up 15.38% at 15p.

Reporting by Josh White at Sharecast.com.