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 30th 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
Gordon Watt (Chairman)
|
Tel. No. 01252 338 959
|
|
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
