PipeHawk (LON:PIP) saw its annual profit and revenue fall after a flurry of orders came in later than expected during the year, sending its shares plunging.
The company, which develops and sells ground penetrating radar products for use by the construction industry, on Monday said its operating loss widened to £408,000 in the year to the end of June from £16,000 a year earlier on revenues 15.8% lower at £4.8mln in the year to the end of June.
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“We had a most peculiar start to the year, the level of enquiries and indications that we would be awarded orders had never been higher, however the orders, whilst not going away, simply were not received until late in the financial year with consequent underutilisation of staff - and hence profitability,” chairman Gordon Watt said in a statement, adding that since the third quarter the orders had begun to flow and that the company was now extremely busy.
PipeHawk said that despite these setbacks it acquired Thomson Engineering Design Limited during the year and, after a very slow start which exacerbated its losses, it is now profitable and contributing to the group.
Watt said that the loss sustained during the year means that the group continues to be in a net liability position and reliant on his continuing financial support.
“In addition to the loans I have provided to the company in previous years, I have deferred a certain proportion of fees and the interest due until the company is in a suitably strong position to make the full payments,” Watt said.
He added that further fees and interest, amounting to £71,000 were deferred in the year ended 30 June 2018. At 30 June 2018, these deferred fees and interest amounted to approximately £1.6mln in total, all of which have been recognised as a liability in the company's accounts.
The company said that all divisions of the group were now performing well and that the outlook remains optimistic.
Shares in Pipehawk were 14.8% down at 4.6p in early trade.