PipeHawk PLC (AIM:PIP) shares fell over 9% after it reported a fall in half-year turnover and profit.
The company, which develops and sells ground penetrating radar products for use by the construction industry, said turnover in the six months ended 31 December 2022 fell 28% to £2.2mln (December 2021: £3.3mln), resulting in a widened pre-tax loss of £1.8mln (2021: loss of £457,000).
Pipehawk cited the war in Ukraine, fuel cost spikes, interest rate rises and three UK prime ministers as contributing factors for delays that a number of the group businesses have faced in receiving contract awards from clients.
“It has been very challenging,” the company noted in a statement.
But there were brighter signs, PipeHawk added. Clients have again started to award contracts and work started to flow in the later part of 2022, the firm stated.
“This appears to be accelerating into the start of 2023 with several contracts being awarded, with the result that we have recruited significant additional staff in order to be able to cope with the current and anticipated workload,” PipeHawk commented.
With order books healthy, the outlook was described as “very positive” for the remainder of this year and beyond.
Nonethless, the reduced turnover and profit in 2022 knocked the shares which fell 9.3% to 12.25p in London mid-morning on Thursday.