PipeHawk (PIP) , a UK-based provider of technology for highways and the automotive, rail, and aerospace industries, announced that its subsidiary QM Systems has been awarded a £0.75m contract by a leading building materials business.
The deal will see QM deliver an assembly line for the manufacture of flooring tile for the undisclosed customer. The project is expected to generate revenues of c. £750k and take approx. 10 months to deliver.
Gordon Watt, Chairman of PipeHawk, commenting: "This is incredibly exciting news for QM and cements an already established partnership built over the last few years between the Customer and QM Systems."
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A significant win for PipeHawk, adding £750k to its pipeline and sending PIP shares 7% higher in early Friday trade. The project will flex QM's core skills in component handling for the building services industry to provide a bespoke assembly. The news adds to a string of recent positive headlines from PIP, including contract wins with Stannah for an automated welding system worth £0.7m, and JVM Castings for an automated assembly system worth £0.8m.
In its recently issued half-year report to December 31, 2023, PipeHawk reported revenues of £4.6m, up over 100% from last year's £2.2m. Loss after tax narrowed significantly to £441k from £1.44m a year ago. The improved performance was a result of significant pipeline momentum that saw PIP enter the half with a record orderbook that converted to recognised turnover during the period.
There is material upside for investors as the company's TED and QM subsidiaries continue to receive high volumes of orders after a recent lull. To handle rising demand, QM is moving to a 5x larger premises, and TED is moving to a 3x larger facility.
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