PipeHawk PLC’s share price (AIM: PIP) was up 7% today after the provider of engineering solutions and services, delivered an update at its Annual General Meeting on 19 December 2024, reporting positive progress in the current financial year ending 30 June 2025.
Key Highlights
Group Financial Performance
- Revenue Growth: Unaudited revenues for the six months ending 31 December 2024 (excluding QM Systems) are significantly ahead of the comparable period last year (£1.1m in H1 2023).
- Breakeven Forecast: Management expects the Group to achieve a net breakeven consolidated result for H1 2024.
- Improved Margins: Enhanced staff utilisation and increased demand have bolstered profitability, compensating for challenges such as QM Systems’ administration.
Divisional Updates
- Thomson Engineering Design Limited: Revenues and profits significantly ahead of the prior year, driven by a robust pipeline with Unipart Rail Limited.
- Adien Limited: Revenues comfortably higher than last year with a committed order book filled through spring 2025.
- Utsi Electronics Limited: Marginal revenue growth year-on-year, though impacted by global political instability.
Employee Incentives
- The Board plans to grant new options over ordinary shares in PipeHawk to incentivize employees and align business performance with share price growth.
Outlook
- Cautious Optimism: Despite challenging global trading conditions for SMEs, the Board anticipates gradual improvements in performance over the coming months.
- Market Positioning: The Group is well-positioned to leverage current market conditions, enhancing resilience against macroeconomic uncertainties.
Management Commentary
Gordon Watt, Executive Chairman, stated:
“While the road to recovery remains slow given difficult trading conditions, the Group’s businesses have made positive strides, showing improved efficiency and demand. We remain optimistic about gradual improvements and are committed to incentivizing our workforce to drive long-term value.”
Contact Information
- Chairman: Gordon Watt – 01252 338 959
- Nomad & Broker: Allenby Capital Limited – 020 3328 5656
- Further Information: Visit PipeHawk PLC.
Conclusion
PipeHawk PLC is cautiously optimistic for a turnaround in the current financial year, with robust divisional performance and strategic initiatives expected to drive future growth.
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