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LONDON (Alliance News) - Shares in PipeHawk PLC were trading up 31% Tuesday afternoon as it posted a big increase in revenue, but a wider pretax loss due to the write-off of development costs in its technology division.
PipeHawk, with its collection of subsidiaries, produces ground-probing equipment such as landmine detectors. Its shares were trading at 5.90 pence Tuesday, up 1.40p per share, making them the top riser on AIM.
For the year ended June 30, the company posted revenue of GBP5.2 million, up 58% from GBP3.3 million in the previous year.
The company posted a pretax loss of GBP2.0 million, widened from GBP70,000 in the previous year, as the company wrote off GBP2.5 million in development costs for the development of ground probing radar equipment and software, a lightning strike protection solution, and bespoke loop testers for the aerospace sector. PipeHawk cited "a significant decreased demand" for these products for its decision to take a charge against their development costs.
PipeHawk said it wants to focus efforts towards its more successful QM Systems and Adien subsidiaries. QM Systems saw sales grow 105% to GBP3.3 million as project sizes increased. Sales at Adien grew by 7% after it won large projects in the utilities and transport sector.
In PipeHawk's SUMO subsidiary, the acquisitions of Stratascan Limited and GSB Prospection Limited boosted performance, helped by the publicity surrounding the two companies' involvement in the discovery of the burial site of Richard III.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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