Update in relation to Adien Ltd
PipeHawk plc is considering placing its subsidiary Adien Ltd into administration due to severe financial pressure, exacerbated by a debt of over £100,000 from a customer and delays in the proposed disposal of Utsi, which is under assessment by the National Security and Investment Act 2021. Adien, which generated approximately £1.5 million in revenue and £15k profit before tax for the year ended 30 June 2025, with total assets of £612k, experienced operational difficulties due to adverse weather and a challenging market. Despite these issues with Adien, PipeHawk's board believes the remainder of the Group, including other key subsidiaries, will continue to trade as a going concern, although performance is slightly behind expectations.
Select text to share a quote on X · sign in to keep highlights & notes in your PIP notes
PipeHawk (AIM: PIP) provides the following update in relation to Adien Ltd ("Adien"), a subsidiary of PipeHawk.
As announced by the Group on 25 November 2025, Adien's project pipeline had become somewhat difficult to navigate as a number of sectors that were expecting reasonable growth indicated that there would be little to no spend in 2025 and 2026. Nevertheless, Adien saw upside within the Telecoms, Water and Power industries. However, heavy snow and rain impacted the ability to get on site to undertake work in December and January, thus affecting profitability and cashflow. This has been exacerbated by the non-payment of a debt of over £100,000 due from a customer.
Notwithstanding this challenging environment, the Group had expected funds from the sale of Utsi (the "Proposed Disposal") to be available at the end of February to provide, inter alia, financial support to Adien. However, the Proposed Disposal is the subject of an assessment under the National Security and Investment Act 2021, the timing of which is a minimum of 30 days and may be longer.
As a result, Adien's financial position is now under severe financial pressure. Accordingly, the Board is now taking steps to potentially place Adien into administration or a similar corporate insolvency process.
While the above developments in relation to Adien are disappointing, the Board is of the view that any steps taken to protect the interests of Adien's creditors through, inter alia, placing Adien into administration, will not have a significant impact on PipeHawk's broader group of companies and the Board believes that the remainder of the Group will be able to continue to trade as a going concern, notwithstanding trading within the Group's other key subsidiaries, being Thomson Engineering Design Ltd and Utsi Electronics Ltd, being currently slightly behind management's expectations.
Adien is a turnkey provider of utility detection and mapping services across the UK. For the financial year ended 30 June 2025, Adien generated approximately £1.5 million in revenues (representing approximately 41% of the Group's revenue for that year) and reported a profit before tax of approximately £15k. As at 30 June 2025, Adien had total assets of approximately £612k.
A further announcement will be made in due course.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.