Pipehawk (PIP)

 

LSE:PIP: Half Yearly Report

Pipehawk

23 Mar 2016 07:00:07

PipeHawk PLC

RNS Number : 9591S
PipeHawk PLC
23 March 2016
 

 

23 March 2015

 

PipeHawk plc

("PipeHawk" or the "Company")

 

Half-yearly results for the six months ended 31 December 2015

 

 

 

 

Chairman's Statement

 

In the six months ended 31 December 2015 the Company's turnover was £2,362,000 (2014: £2,583,000), resulting in a loss before taxation of £449,000 (2014: loss of £142,000) and a loss after taxation of £280,000 (2014: profit of £50,000).

 

At QM Systems, order intake for the period from June through to September 2015 was buoyant.  However, orders anticipated to arrive during the latter part of 2015 were either delayed into 2016 or did not materialize. This dip in activity in the last quarter of 2015 contributed to the loss for the six months period. The order intake for 2016 to date has been very good with orders received from both existing and new clients, including a substantial order with Dana Automotive for an axle assembly line. We used the last quarter of 2015 to continue to work on broadening our customer offerings. One of these is a leading edge measurement system for high volume inspection of mechanical components to a very high accuracy and, while the conception of the project was initially aligned to a client enquiry, we have made the strategic decision to expand the deliverable to include an inspection product that is now being marketed to a number of key clients. Operational activity is currently at a peak with a number of projects at manufacturing and commissioning phases. The current order book and expected orders suggest a very busy end to the financial year.

 

PipeHawk has continued to develop, both technically and commercially, the e-Safe, e-Spade Lite and e-Spott product families during the period.  Progress currently is focused on the development of a robust international business plan which is being partly funded by an initial €50,000 grant from H2020 (Phase 1) with a view to securing a much larger H2020 grant to assist with developing the marketing and sales strategy for the products globally (Phase 2). The initial €50,000 grant is released in two phases, the first of which has been received and the second of which is payable on the submission of the business plan which is due for completion early May 2016. The business plan then forms the basis for the application for the phase 2 funding. This is due for submission by end June 2106. We should know whether our application for phase 2 funding has been successful by early October 2016. While work to complete the submission of the business plan is ongoing we continue to actively market the e-Safe, e-Spade and e-Spott product families globally, through distribution partners, direct sales and marketing activity and attendance at a number of European exhibitions

 

Adien made a small profit in the period despite trading in some very competitive market conditions. A key framework agreement with a major MOD supplier is now beginning to accelerate which assists the outlook for 2016.  In addition, a couple of major water industry frameworks are starting to gather pace following a slow initial uptake.

 

SUMO, in which the Group holds a 28.4% stake, struggled in the competitive market place and made a small loss in the period.

 

Finally, our Finance Director, Bob Tallentire, has accepted a prestigious position with a leading firm of international corporate finance advisers and tendered his resignation from his executive role.  However, I am pleased to say that he has agreed to stay on as a non-executive director so his years of experience as MD of Adien and FD of the Group are not lost to us. I thank him for his steady hand on the financial tiller through some very tough times.

 

I am also delighted to announce the appointment of Mithi Padmanathan to the Board as Group Finance Director. Her wealth of experience will bring renewed drive and enthusiasm to the next phase of PipeHawk's growth.

 

 

Gordon Watt

Chairman

Enquiries:

 

PipeHawk Plc

Gordon Watt (Chairman)

 

 

Tel. No. 01252 338 959

Allenby Capital Limited (Nomad and Broker)

David Worlidge/James Thomas

 

Tel. No. 020 3328 5656

 



Statement of Comprehensive Income

For the six months ended 31 December 2015

 


6 months ended

31 December 2015

(unaudited)

£'000

6 months ended

31 December 2014

(unaudited)

£'000

Year ended 30 June 2015

(audited)

£'000





Revenue

2,362

2,583

4,628









Staff costs

(1,430)

(1,257)

(2,575)

General administrative expenses

(1,295)

(1,417)

(2,617)

 

Operating loss

(363)

 

(89)

 

(564)





Share of operating profit in joint venture

(6)

22

(39)

 

Loss on ordinary activities before interest and taxation

 

 

(369)

 

 

(67)

 

 

(603)

Finance costs

(80)

(75)

(150)





Loss before taxation

(449)

(142)

(753)





Taxation

169

192

250

(Loss)/Profit for the period attributable to equity holders of the Company

 

(280)

 

50

 

(503)

Other comprehensive income

-

-

-

Total comprehensive (loss)/profit for the period net of tax

(280)

50

(503)





(Loss)/Earnings per share (pence) -  basic

(0.85)

0.14

(1.52)

(Loss)/Earnings per share (pence) -  diluted

(0.85)

0.07

(1.52)

 



Consolidated Statement of Financial Position

As at 31 December 2015

 

 

 

 

Assets

As at

31 December 2015

(unaudited)

As at

31 December 2014

(unaudited)

 

As at

30 June 2015

(audited)


£'000

£'000

£'000





Non-current assets




Property, plant and equipment

256

289

235

Goodwill

1,061

1,061

1,061

Investment in joint venture

41

108

47


1,358

1,458

1,343





Current assets




Inventories

61

80

86

Current tax assets

292

257

127

Trade and other receivables

1,028

1,431

1,276

Cash

86

61

43


1,467

1,829

1,532





 

Total Assets

 

2,825

 

3,287

2,875





Equity and liabilities








Equity




Share capital

330

330

330

Share premium

5,151

5,151

5,151

Other reserves

(8,763)

(7,930)

(8,483)


(3,282)

(2,449)

(3,002)





Non-current liabilities




Borrowings

2,301

2,327

2,242

Trade and other payable

1,834

1,477

1,848


4,135

3,804

4,090

Current liabilities




Trade and other payables

1,704

1,883

1,569

Bank overdrafts and loans

268

49

218


1,972

1,932

1,787

Total equity and liabilities





2,825

3,287

2,875

 



Consolidated Statement of Cash Flow

For the six months ended 31 December 2015

 


6 months ended

31 December 2015

(unaudited)

£'000

6 months ended

31 December 2014

(unaudited)

£'000

 

Year ended 30 June 2015

(audited)

£'000





Cash inflow from operating activities




Loss from operations

(363)

(89)

(564)





Adjustments for:




Depreciation

53

60

138


(310)

(29)

(426)





Decrease in inventories

25

30

24

Decrease/(Increase) in receivables

251

(346)

(198)

Increase in liabilities

104

532

454





Cash generated/(used) in operations

70

187

(146)





Interest paid

(63)

(75)

(12)

Corporation tax received

-

-

195





Net cash generated from operating activities

7

112

37





Cash flows from investing activities








Purchase of plant and equipment

(73)

(109)

(133)





Net cash (used in)/generated from investing activities

(66)

3

 

(133)





Cash flows from financing activities








New loans and finance leases

133

47

221

Repayment of bank and other loans

-

(88)

(160)

Repayment of finance leases

(24)

(21)

(42)

Net cash generated from financing activities

109

(62)

19





Decrease in cash and cash equivalents

43

(59)

(77)





Cash and cash equivalents at beginning of period

43

120

120





Cash and cash equivalents at end of period

86

61

43

 



Consolidated Statement of changes in equity

For the six months ended 31 December 2015

 


 

Share capital

Share premium account

 

Retained earnings

 

 

Total


£'000

£'000

£'000

£'000






6 months ended 31 December 2014










As at 1 July 2014

330

5,151

(7,980)

(2,499)

Profit for the period

-

-

50

50






As at 31 December 2014

330

5,151

(7,930)

(2,499)






12 months ended 30 June 2015










As at 1 July 2014

330

5,151

(7,980)

(2,499)

Loss for the period

-

-

(503)

(503)






As at 30 June 2015

330

5,151

(8,483)

(3,002)






6 months ended 31 December 2015










As at 1 July 2015

330

5,151

(8,483)

(3,002)

Loss for the period

-

-

(280)

(280)






As at 31 December 2015

330

5,151

(8,763)

(3,282)






 



Notes to the Interim Results

 

1. Basis of preparation

 

The Interim Results for the six months ended 31 December 2015 are unaudited and do not constitute statutory accounts in accordance with section 240 of the Companies Act 2006.

 

Full accounts for the year ended 30 June 2015, on which the auditors gave an unqualified report and contained no statement under Section 237 (2) or (3) of the Companies Act 2006, have been delivered to the Registrar of Companies.

 

The interim financial information has been prepared on a basis which is consistent with the accounting policies adopted by the Group for the last financial statements and in compliance with basic principles of IFRS.

 

2. Segmental information

 

The Group operates in one geographical location being the UK. Accordingly, the primary segmental disclosure is based on activity.


Utility detection and mapping services

Development, assembly and sale of GPR equipment

 

Test system solutions

 

 

 

Total


£'000

£'000

£'000

£'000

6 months ended 31 December 2015





Total segmental revenue

707

72

1,583

2,362

Segmental result

5

(154)

(214)

(363)

Finance costs

(4)

(70)

(6)

(80)

Share of operating loss in joint venture




(6)

Loss before taxation




(449)






Segment assets

369

1,472

984

2,825

Segment liabilities

324

4,264

1,519

6,107

Depreciation and amortisation

36

-

17

53











6 months ended 31 December 2014





Total segmental revenue

617

125

1,841

2,583

Segmental result

(75)

(123)

109

(89)

Finance costs

(4)

(71)

-

(75)

Share of operating profit in joint venture




22

Loss before taxation




(142)






Segment assets

1,037

427

1,823

3,287

Segment liabilities

792

3,791

1,153

5,736

Depreciation and amortisation

40

20

-

60











12 months ended 30 June 2015





Total segmental revenue

1,295

210

3,123

4,628

Segmental result

(91)

(232)

(241)

(564)

Finance costs

(8)

(138)

(4)

(150)

Share of operating loss in joint venture




(39)

Loss before taxation




(753)






Segment assets

1,059

242

1,574

2,875

Segment liabilities

833

3,822

1,222

5,877

Depreciation and amortisation

80

-

58

138






 



3. (Loss)/Earnings per share

 

This has been calculated on the loss for the period of £280,000 (2014: profit £50,000) and the number of shares used was 33,020,515 (2015: 33,020,515), being the weighted average number of share in issue during the period.

 

4. Dividends

 

No dividend is proposed for the six months ended 31 December 2015.

 

5. Copies of Interim Results

 

The Interim Results will be posted on the Company's web site www.pipehawk.com and copies are available from the Company's registered office at 4, Manor Park Industrial Estate, Wyndham Street, Aldershot, GU12 4NZ.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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