Pipehawk dented as revenue slides and loss expands
PipeHawk’s shares dived almost 15% on Monday after annual profits and revenues dipped as orders came through later in the year than expected.
The company, which makes detection systems to check for utility pipes or landmines below ground, said that for the year ended 30 June loss before tax expanded by 160% to £0.5m as revenues dropped by 16% to £4.8m.
Cash and cash equivalents stood at £19,000 at 30 June, down from £72,000 at the same point a year before.
Chairman Gordon Watt said: “As I mentioned in my interim statement we had a most peculiar start to the year, the level of enquiries and indications that we would be awarded orders had never been higher, however the orders, whilst not going away, simply were not received until late in the financial year with consequent underutilisation of staff - and hence profitability.”
Watt added that the company is now “extremely busy” after orders “flowed in” during the third quarter.
Even so, the AIM-listed company has racked up deferred fees and interest amounting to approximately £1.6m and remains reliant on the continued financial support of Watt.
“PipeHawk is committed to technologies and products that unite the goals of customer value and sustainable development. All divisions of the group are currently performing well and I remain optimistic in my outlook for the group,” said Watt
PipeHawk’s shares were down 14.81% at 4.60p at 0849 GMT.