12th Jul 2024 11:57
(Alliance News) - PipeHawk PLC on Friday said RSM UK Restructuring Advisory LLP will act as administrators for one of its failing subsidiaries.
The Aldershot, England-based firm offers engineering solutions and owns QM Systems Ltd, a turnkey provider of automation, test, and manufacturing systems.
In March, the company said QM was experiencing a number of challenges including a reduction in the number of orders and fair value.
For the year that ended June 30 2023, QM reported post-tax loss of approximately GBP970,000 with revenue at GBP4.2 million.
Revenue from the QM business accounted for 65% of the groups entire revenue that year.
The financial pressures facing the business subsequently worsened after two key orders that were to underpin QM's financial position failed to materialise.
In light of this, management announced on July 5 that steps would be taken to place QM into administration, although the company stressed this would not impact the wider group.
On Friday, PipeHawk confirmed the appointment of RSM as administrators and said further announcements will be issued when appropriate.
PipeHawk shares were up 9.1% to 2.40 pence each in London on late Friday morning.
By Elijah Dale, Alliance News reporter
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