PipeHawk PLC (AIM:PIP) shares tanked 78% after the engineer said it was taking steps to place its QM Systems business into administration potentially "or a similar corporate insolvency process".
In a brief stock market statement, it said the precipitant was the failure of the QM to secure two 'material orders' it was expected to land.
Investors were told that the board believes that actions taken won't affect PipeHawk's other companies, and is confident that the rest of the group will continue to operate normally.
In morning trading the stock was off 6.61p at 1.89p.