Editor's Pick: Markets: The week that was (16-20/11/09)
(PIP.L) PipeHawk PLC Buy/Sell
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Summary
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| Date/Time | Headline | Source |
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| 19-11-09 | HUG |
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Further re Director's Loan
On 8 October 2009 the Company announced the terms of a subscription to raise £120,000 at 8p per share ("Subscription Price") and the details of a loan for £100,000 provided by Gordon Watt, Chairman of the Company. The loan was unsecured and interest free. As set out in that announcement, Mr Watt confirmed that he intended to convert the loan into ordinary shares in the Company ("Ordinary Shares") at the Subscription Price or the middle-market closing price of the Company's Ordinary Shares on the day prior to conversion, if greater, following the announcement of the Company's results for the financial year ended 30 June 2009. The Company's results for the financial year ended 30 June 2009 were announced on 16 November 2009 and the closing middle-market price on 17 November 2009 was 6.5p. Mr Watt has, therefore, converted his loan of £100,000 into 1,250,000 Ordinary Shares at the Subscription Price. Application will be made to the London Stock Exchange for admission to trading on the AIM market of 1,250,000 Ordinary Shares. It is expected that Admission will become effective and dealings in such shares will commence on 25 November 2009. Following admission of the new Ordinary Shares to trading on AIM the Company will have 29,687,181 Ordinary Shares in issue. Following the issue of the new Ordinary Shares, Mr Watt will hold 4,896,500 Ordinary Shares, equivalent to 16.49 per cent. of the issued voting share capital of the Company.
FURTHER ENQUIRIES
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| Merchant John East Securities Limited | 020 7628 2200 |
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---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement. More |
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| 16-11-09 | HUG |
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This news article is displayed preformatted as it may contain results tables
Final Results
16 November 2009
Pipehawk plc
("Pipehawk" or the "Company")
Final results for the year ended 30 June 2009
Chairman's Statement
This year has been another challenging year. The UK recession has
affected our operating subsidiaries in different ways; Adien and
Sumo have experienced a slow down in activity whilst QM Systems has
seen an increase in orders as companies seek to automate processes
previously performed manually. I am grateful to the commitment that
both the management and the Group's employees have shown in a period
of change.
I can report the turnover for the year ended 30 June 2009 was
£3,241,000 (2008: £2,411,000) which is an increase of 34 per cent. on
the previous year. The Company achieved a loss after taxation for the
year of £398,000 (2008: loss £328,000). This result reflects the
cost of restructuring QM Systems following the loss of its largest
customer, GE Aviation. Sales at QM Systems have increased to
£1,349,000 from £574,000 in 2008 but operating losses have remained
broadly consistent with the previous year as the Board took the
decision to incur costs in the period under review in order to
reposition this business to take advantage of a changing market.
The Company's GPR services provided by Adien and SUMO have been
affected in the latter half of the year as a direct result of the
slow down in the construction market. Accordingly, both entities
have reduced employee headcount and, in anticipation of conditions
improving in the construction market, remain well positioned as
leaders in the GPR based surveying field.
Nick Field, who was appointed managing director of QM Systems on 1
September 2008 has had an excellent first year in terms of
re-aligning this business to be able to deal with the requirements of
blue-chip customers. We have announced several large orders during
the year and QM Systems's order book remains strong with orders in
excess of £500,000 in hand as I write this report.
PipeHawk, which forms the technology division, has developed several
new products through to the prototype stage and beyond. These
developments have been well received at trade shows and have been
sold into a number of new markets, including Oman. The Group
continues to contribute to Government sponsored initiatives (VISTA
and Mapping the Underworld programmes), which are programmes focussed
on issues surrounding the mapping and cataloguing of buried utility
services as well as the European GPR trade association.
The trading performances of the Company's four major business areas
are summarised below.
Adien
Adien, PipeHawk's high definition underground mapping and planning
service, had an excellent first half to the year under review but has
since seen market conditions tighten and has adjusted the cost base
of its operations accordingly. Turnover in the period was up 18 per
cent. compared with 2008 but margins have reduced as the industry has
suffered from excess capacity. A lack of funding has affected a
large number of infrastructure projects such as those earmarked under
the Government's Building Schools for the Future programme and
several other initiatives.
In response to the changing market place Adien have introduced a
range of training programmes for their clients. These courses draw
upon Adien's experience and are strengthening their relationship with
their client base.
Adien's Scottish office, situated in Livingston, has had a good first
year with Adien becoming a preferred supplier to many of the Scottish
arms of UK consulting or construction companies. Activity in this
office is expected to increase in 2010 as certain infrastructure
projects that were deferred in 2009 come on line..
Despite the slowdown in 2009 Adien remains confident that it will, by
offering a high level of customer service, be able to maintain its
key client relationships such that it will be well placed to service
their needs in the future.
Technology Division
The Technology Division has continued the development of its third
generation of GPR technology known as e-Spade. This was the first
product to incorporate digital, modular technology. The Board
believes that the new technology provides PipeHawk with a new and
highly innovative technology platform that will allow a series of
other products to be rapidly introduced. The second product, the
e-Spect, was launched at the 'No-Dig' exhibition in Coventry on 23
September 2008. This is a GPR-based wall and floor scanner which
detects features such as voids and reinforced steel in concrete.
In 2009 PipeHawk has launched the e-Spott which uses GPR technology
to test the quality of reinstated layered surfaces, commonly roads
and footpaths. It has been well received at trade shows and is now
also offered as a service option by Adien.
QM Systems
The opportunities presented by the current economic conditions are
focused around clients who are seeking to reduce costs in their
businesses through the reduction or removal of labour resources and
through increased process automation. In response to this, QM
Systems has restructured and re-skilled the business to expand its
products and services to include complex mechanical developments and
to become a turnkey provider of complete assembly, test and
automation solutions. This strategic development of QM System's
business has allowed it to move its activities into the automotive
and rail sectors to complement its strong presence in aerospace.
The Directors believe QM Systems is now positioned to capitalise on
its newly acquired skills whilst continuing to grow business in its
core areas of software and electronics development. It's order book
now stands at its highest level for two years and the order intake
over the last six months has brought in high calibre business
opportunities. QM System's is hopeful of developing long term
relationships with these companies.
The Directors believe QM Systems now has a far more diverse range of
clients and skills than it has had for several years which bodes well
for the future.
SUMO
SUMO has continued to grow its turnover during 2009. Turnover was
£4,382,000 (2008: £3,030,000) and its operating loss was £71,000
(2008: £177,000 profit). Sumo is accounted for in the group
financial statements as a joint venture.
The majority of the increase in turnover in the period under review
is attributable to Team Surveys Limited which was acquired in March
2008 and contributed a full year's results in the year ended 30 June
2009.
SUMO's acquisition programme, which is focused on surveying companies
which are capable of generating additional revenue from services
which complement SUMO's core business of utility mapping, has been
put on hold, temporarily, during the current economic climate.
Related party transactions
In the period under review, as in previous years, I have undertaken
to provide working capital to the Company. During the year ended 30
June 2009 I advanced loans to the Company of £500,000, in aggregate.
In addition, since 30 June 2009 I have advanced further loans of
£190,000 to the Company and on 8 October 2009 it was announced that I
had agreed to convert £100,000 of these loans into new ordinary
shares following the announcement of these results. A further
announcement, regarding an application to be made by the Company for
the shares arising on conversion of the loans to be admitted to
trading on AIM, will be made in due course. The loans have been made
in accordance with a letter of support dated 11 November 2007. The
letter of support was renewed on 12 November 2009 for a further year.
The loans are unsecured and accrue interest at an annual rate of base
rate plus 2.15 per cent.
The directors, other than myself, consider, having consulted with the
Company's nominated adviser, that the terms of the loans are fair and
reasonable insofar as the Company's shareholders are concerned.
In addition to the loans I have provided to the Company during the
period and in previous years, my fellow directors and I have deferred
a certain proportion of our fees until the Company is in a suitably
strong position to make the full payments. These deferred fees
amount to approximately £106,000 in the year ended 30 June 2009 and
approximately £383,000 in total, all of which have been accrued in
the Company's accounts.
Strategy & Outlook
As indicated above it has been a very difficult year. The Board
considers that the Company's working capital position is sufficient
for its immediate requirements as the Company's directors continue to
provide support in the form of unsecured loans on normal commercial
terms and through the deferral of fees.
Gordon Watt
Chairman
13 November 2009
FURTHER ENQUIRIES
+-------------------------------------------------------+
| PipeHawk Plc | 01420 590 990 |
| Gordon Watt (Chairman) | |
| | |
|---------------------------------------+---------------|
| Merchant John East Securities Limited | 020 7628 2200 |
| David Worlidge | |
| Simon Clements | |
| | |
+-------------------------------------------------------+
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2009
Year ended Year ended
30 June 2009 30 June 2008
Note £'000 £'000
Revenue 3,241 2,411
Staff costs (1,841) (1,436)
Operating costs (1,900) (1,391)
Operating loss (500) (416)
Share of operating (loss)/profit in
joint venture 4 (17) 66
Loss on ordinary activities before
interest and taxation (517) (350)
Finance costs (87) (88)
Loss before taxation (604) (438)
Taxation 2 206 111
Loss for the year attributable to
equity holders of the Company (398) (327)
Loss per share (pence) - basic 3 (1.48) (1.21)
Loss per share (pence) - diluted 3 (0.92) (0.95)
CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2009
Assets Note 30 June 2009 30 June 2008
£'000 £'000
Non-current assets
Property, plant and equipment 143 231
Goodwill 1,061 1,061
Intangible assets 1,426 1,025
Investment in joint venture 4 135 152
2,765 2,469
Current assets
Inventories 299 268
Current tax assets 156 106
Trade and other receivables 674 742
1,129 1,116
Total Assets 3,894 3,585
Equity and liabilities
Equity
Share capital 269 269
Share premium 4,842 4,842
Other reserves (4,951) (4,553)
160 558
Non current liabilities
Borrowings 517 705
517 705
Current liabilities
Trade and other payables 2,744 1,959
Bank overdrafts 473 363
3,217 2,322
Total equity and liabilities 3,894 3,585
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2009
Note Year ended Year ended
30 June 30 June 2008
2009 £'000
£'000
Cash flows from operating activities
Lossfrom operations (500) (416)
Adjustments for:
Depreciation 104 134
Amortisation of intangibles 34 -
Profit on sale of fixed assets (23) -
(385) (282)
(Increase)/Decrease in inventories (31) 11
Decrease/(Increase) in receivables 18 (107)
Increase in liabilities 332 265
Cash used in operations 5 (66) (113)
Interest paid (87) (88)
Corporation tax received 206 111
Net cash generated from/(used in)
operating activities 53 (90)
Cash flows from investing activities
Development costs paid (435) (587)
Purchase of plant and equipment (58) (78)
Sale of plant and equipment 65 -
Net cash used in investing activities (428) (665)
Cash flows from financing activities
New loans and finance leases 521 540
Repayment of bank loan (209) (40)
Repayment of finance leases (47) (75)
Net cash generated from financing
activities 265 425
Net decrease in cash and cash
equivalents (110) (330)
Cash and cash equivalents at beginning
of period (363) (33)
Cash and cash equivalents at end of
period (473) (363)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30
JUNE 2009
Share Share Retained Other Share options Total
capital premium earnings reserves reserve
account
£'000 £'000 £'000 £'000 £'000 £'000
As at 1 269 4,842 (4,553) - - 558
July 2008
Loss for - - (398) - - (398)
the period
As at 30 269 4,842 (4,951) - - 160
June 2009
As at 1 July 269 4,842 (4,226) - - 885
2007
Loss for the - - (327) - - (327)
period
As at 30 June 269 4,842 (4,553) - - 558
2008
NOTES TO THE PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2009
1. BASIS OF PREPARATION
These financial statements have been prepared in accordance with
International Financial Reporting Standards, International Accounting
Standards and Interpretations (collectively IFRS) issued by the
International Accounting Standards Board (IASB) as adopted by
European Union ("adopted IFRSs"), and are in accordance with IFRS as
issued by the IASB.
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 30 June 2008 and
2009, but is derived from those accounts. Statutory accounts for 2008
have been delivered to the Registrar of Companies and those for 2009
will be delivered following the Company's Annual General Meeting. The
Auditors have reported on those accounts; their reports were
unqualified and did not contain statements under the Companies Act
1985, sections 237(2) or (3).
2. TAXATION
2009 2008
£'000 £'000
United Kingdom Corporation Tax
Current taxation (178) (110)
Adjustments in respect of prior years (28) (1)
(206) (111)
Deferred taxation - -
Tax on loss on ordinary activities (206) (111)
Current tax reconciliation 2009 2008
£'000 £'000
Loss on ordinary activities before taxation (604) (438)
Theoretical tax at UK corporation tax rate 28%
(2008: 29.5%) (169) (129)
Effects of:
- rate change - 2
- timing differences - trade intangibles - (164)
- R&D tax credit adjustments 10 (7)
- other expenditure that is not tax deductible 3 (20)
- adjustments in respect of prior years (28) (1)
- accelerated capital allowances (115) 62
- losses carried forward 58 132
- short term timing differences 35 14
Actual current taxation charge (206) (111)
The Group has tax losses amounting to approximately £1,069,000 (2008:
£1,349,000), available for carry forward to set off against future
trading profits.
3. LOSS PER SHARE
Group
This has been calculated on a loss of £398,000 (2008: loss £327,000)
and the number of shares used was 26,937,181 (2008: 26,937,181 being
the weighted average number of share in issue during the year. For
the fully diluted calculations the number of shares used for the
calculation was 43,001,176 (2008: 32,563,878).
A reconciliation between shares used for calculating basic earnings
per share and diluted earnings per share follows;
2009 2008
No. No.
Weighted average number of ordinary shares in issue
(thousands) 26,937 26,937
Adjustments for
- Share options (thousands) 1,823 1,297
- Warrants (thousands) 14,241 6,121
Weighted average number of ordinary shares for diluted
earnings per share (thousands) 43,001 34,355
4. INVESTMENT IN JOINT VENTURE
Group Investment in shares
£'000
Cost:
At 1 July 2008 & 30 June 2009 198
Share of profit/losses
At 1 July 2008 (46)
Share of losses for the year (17)
At 30 June 2009 (63)
Net investment
At 30 June 2009 135
At 30 June 2008 152
The investment in joint venture relates to a 30.3% shareholding in
the ordinary share capital of SUMO Limited. SUMO Limited is engaged
in the development of a GPR franchise operation and has a year end of
31 December. For the purpose of preparing this consolidation,
financial information has been prepared for the year ended 30 June
2009. SUMO Limited's principal place of business is Havant,
Hampshire.
Summarised financial information in respect of the Group's joint
venture is set out below:
Year Year
ended ended
30/06/09 30/06/08
£'000 £'000
Total assets 2,350 1,946
Total liabilities 1,906 1,443
Net assets 444 503
Group's share of net assets of joint venture 135 152
Year Year
ended ended
30/6/09 30/6/08
Total revenue 4,382 2,814
Total profit for the period (56) 220
Group's share of profits of joint venture (17) 66
5. RECONCILLIATION OF OPERATING LOSS TO NET CASH OUTFLOW
FROM OPERATING ACTIVITIES
2009 2008
£'000 £'000
Operating (loss) (500) (416)
Amortisation of intangible assets 34 -
Depreciation of tangible fixed assets 104 134
Profit on sale of fixed assets (23)
Working capital movements
Inventories (31) 11
Receivables 18 (107)
Payables 332 265
Net cash outflow from operating activities (66) (113)
6. CONTINGENCIES
At the year end, the group has an outstanding legal action against GE
Aviation with regard to intellectual property rights.
7. DIVIDEND
The directors do not recommend the payment of a dividend for the year
(2008: £nil).
8. COPIES OF THE REPORT & ACCOUNTS
Copies of the Report and Accounts will be posted to shareholders
shortly, and will be available from the Company's registered office,
Systems House, Mill Lane, Alton, Hampshire GU34 2QG and from the
Company's website www.pipehawk.com.
---END OF MESSAGE---
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
More |
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| 30-10-09 | HUG |
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Total voting rights
The Company announces that, pursuant to the requirements of the Disclosure and Transparency Rules, the total number of voting rights in respect of each class of share in issue and admitted to trading on AIM at the date of this announcement is as follows:
each Enquiries: PipeHawk Plc Gordon Watt (Chairman) 01420 590 990
Merchant John East Securities Limited
Simon Clements
---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement. More |
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| 15-10-09 | PRN |
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15 October 2009
The Company announces that its nominated adviser and broker, John East & Partners Limited has changed its name to Merchant John East Securities Limited with immediate effect, as part of a group reorganisation which is scheduled to complete on 1 November 2009. Enquiries:
Gordon Watt (Chairman)
David Worlidge Simon Clements More |
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| Tue 08:53 |
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HP, I have tried to find some positives from the results, but it is very difficult, and as you say, the results and tone of the report are very disappointing.
The outstanding legal action against GE Aviation is still ongoing - it is mentioned as a one line comment at the end of the results. A glimmer of hope may be found in the performance in the second half. At the half year stage revenues were £1.3m and the loss before tax was £500k. Therefore in the second half, the loss was a mere £104k. QM Systems order book is the highest for 2 years, and further announcements of significant contract gains may improve the share price, but I am not holding my breath. It looks like this one will remain in the bottom draw! More | View thread (2) | Respond | Login to Vote up | Login to Vote down |
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If I had anything significant left I would sell up. A brave company with a loyal directors and work force struggling against the odds. I guess that it will be at least a couple of years before they move into profit. A very poor investment on my part.
I didn't see any mention of the legal action (compensation?) from G E Aviation. I think that a PIP-recovery will only come towards the end of the general economic recovery cycle. It would be nice to hear from some optimists! More | View thread (2) | Respond | Login to Vote up | Login to Vote down |
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| 08-10-09 | ||||
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Or is this another heroic effort to save a company which cannot generate profits by loyal supporters? If so; good on them!
More | View thread (2) | Respond | Login to Vote up | Login to Vote down |
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| 08-10-09 | ||||
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The Company has raised a total of £220k for working capital purposes - see RNS today. £100k of this was at 8.00p per share, which is above the mid-market price.
The Chairman has loaned the other £100k interest free, which will be converted to shares after the release of the accounts in November. I see this as a positive developments, as clearly, investors would not pay a premium if they did not believe there were positive signs from the Company. I look forward to the results in November. More | View thread (2) | Respond | Login to Vote up | Login to Vote down |
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