Interim Results

PipeHawk PLC
28 March 2001


28 March 2001

For immediate release


PIPEHAWK PLC

INTERIM REPORT

Six months ended 31 December 2000

Chairman's Statement


The Company's shares were admitted to trading on the Alternative Investment
Market on 5 December 2000 and the Company successfully raised £2.83 million
before the expenses of the offer.


The order intake for PipeHawk machines in the first half was in line with
forecast.  Lotus, the EC part funded mine detection programme, did not
contribute to the first half due to a timing difference in respect of the
initial payment due under the contract.  This arose due to the Company having
to complete its AIM related fund raising so as to satisfy the EC financial
requirements coupled with the need post AIM to recast arrangements with
certain of the partners involved with the programme.


Allowing for these factors the result for the first half is much as
anticipated as inevitably the first half trading did suffer the impact of the
major diversion of management time required in order to achieve admission to
AIM.


Since 31 December 2000 the Company has received higher than anticipated orders
for PipeHawk machines from the UK and overseas customers.  Particularly
noteworthy has been the previously announced contract to supply machines to
India for work on a major cable network.


The Company's drive further to improve the current PipeHawk model and to widen
both its product range and market coverage is continuing to schedule.  A
rental programme has recently been introduced and this is expected to increase
UK sales in the fourth quarter of the current year.


Discussions are in hand with selected companies regarding the international
distribution of the planned PipeHawk range.  The US represents a particularly
large but demanding market and we need a local partner satisfactorily to
address the opportunity that this market represents.


Progress is being made to the establishment of a PipeHawk franchised service,
which is planned to be introduced during the latter part of 2001.


These measures are key to the future development of the Company but they will
not make any positive contribution to the current year.


The Company has received approaches from certain international organisations
regarding its possible involvement with other projects in the mine detection
field.  These are currently being evaluated along with another significant
consultancy project.


The Company is already benefiting from its change of status and enhanced
profile.  This perceived improvement to the Company's reputation is enabling
an accelerated strengthening of the managerial, technical and sales resources.
Although this will increase costs in the near term the present level of
sales prospects are ahead of the expectations we had at the time of joining
AIM.  Our optimism for the future requires that the critical building blocks
are put in place now to ensure the Company's future success.


INDEPENDENT REVIEW REPORT TO PIPEHAWK PLC

Introduction

We have been instructed by the company to review the financial information
which comprises the profit and loss account, consolidated cashflow statement,
consolidated balance sheet and the related notes.  We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.


Directors' responsibilities


The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors.


Review work performed


We conducted our review in accordance with guidance contained in Bulletin 
1999/4 issued by the Auditing Practices Board for use in the United Kingdom.  A
review consists principally of making enquiries of group management and
applying analytical procedures to the financial information and underlying
financial data and, based thereon, assessing whether the accounting policies
and presentation have been consistently applied, unless otherwise disclosed.
A review excludes audit procedures such as tests of controls and verification
of assets, liabilities and transactions.  It is substantially less in scope
than an audit performed in accordance with United Kingdom Auditing Standards
and therefore provides a lower level of assurance than an audit.  Accordingly
we do not express an audit opinion on the financial information.


Review conclusion


On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 December 2000.


RSM Robson Rhodes
Chartered Accountants

London, England

28 March 2001



SUMMARISED PROFIT AND LOSS ACCOUNT
for the six months ended 31 December


PRIVATE                                            2000                1999
                                              Unaudited           Unaudited
                                        Note          £                   £

Turnover           - continuing               195,184             151,407
                   - discontinued             -                   100,833

                                              195,184             252,240

Total operating loss  - continuing           (481,274)            (259,907)
                      - discontinued          -                    54,248

                                             (481,274)            (205,659)

Interest payable less interest               (40,620)             (13,730)
receivable

Loss on ordinary activities before           (521,894)            (219,389)
taxation
Tax on profit on ordinary activities     2    -                    -

Loss on ordinary activities after            (521,894)            (219,389)
taxation
Dividends                                3    -                    -

Retained loss for the period                 (521,894)            (219,389)


Loss per share - basic and diluted       4   (5.1p)               (3.4p)



Dividends per share                           nil                 nil


SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 31 December


                                                           2000            1999
                                                      Unaudited       Unaudited
                                                              £               £

Net cash outflow from 
operating activities                      5          (508,731)       (106,078)
Returns on investment and servicing of finance        (40,621)        (13,731)
Taxation paid                                         -               -
Capital expenditure and financial investment          (63,225)        (37,385)
Acquisitions and disposals                            -               -
Equity dividends paid                                 -               -

Increase/(decrease) in cash before financing          (612,577)       (157,194)

Financing                                             2,579,401       (30,951)

Increase/(decrease) in cash                           1,966,824       (188,145)



SUMMARISED CONSOLIDATED BALANCE SHEET
as at 31 December


PRIVATE                                                    2000            1999
                                                      Unaudited       Unaudited
                                                              £               £

Fixed assets
Intangible assets                                   186,876           250,350
Tangible assets                                     119,798           125,463

                                                    306,674           375,813
Current assets
Stocks                                              173,738           120,849
Debtors due within one year                         332,331           188,707
Cash at bank and in hand                            2,016,727         1,418

                                                    2,522,796         310,974
Creditors: Amounts falling due within one year     (548,814)         (461,678)

Net current assets                                  1,973,982        (150,704)

Total assets less current liabilities               2,280,656         225,109

Creditors: Amounts falling due after more than one (570,280)         (221,838)
year


Net assets                                          1,710,376         3,271


Capital and reserves

Share capital                                       144,652           64,446
Share premium                                       3,311,191         600,186
Profit and loss reserve                            (1,745,467)       (661,361)

                                                    1,710,376         3,271



NOTES

1.     BASIS OF ACCOUNTING

PipeHawk plc was incorporated on 16 May 2000, and no trading activity was
undertaken between that date and 23 October 2000.  On 23 October 2000,
PipeHawk plc acquired 100% of the share capital of Emrad Limited, by way of a
share for share exchange.


The consolidated financial statements have been prepared using merger
accounting.  Under merger accounting the results and cash flows are combined
from the beginning of the financial period and all comparatives are restated
on the combined basis.  These interim financial statements consolidate the
financial statements of PipeHawk plc and Emrad Limited as though they had been
in existence with its present constitution.



2.     TAX

No corporation tax was payable in either period as a result of losses arising.


3.     DIVIDENDS

No interim dividend will be paid.



4.     LOSS PER SHARE


                                                 6 mths to            6 mths to
                                               31 December          31 December
                                                      2000                 1999
                                                         £                    £

These have been calculated on losses of:         (521,894)            (219,389)

The weighted average number of shares used     10,330,186            6,444,600
was:

Basic and diluted                                   (5.1p)              (3.4p)



The weighted average number of shares for the six months to 31 December 1999
has been re-stated to account for the redesignation of 10p ordinary shares to
1p ordinary shares.



5.     RECONCILIATION OF OPERATING PROFIT TO NET CASH OUTFLOW FROM
       OPERATING ACTIVITIES
                                                6 mths to             6 mths to
                                              31 December           31 December
                                                     2000                  1999
                                                        £                     £

Operating loss                               (481,274)             (205,659)
Depreciation                                  49,620                36,420
(Increase)/decrease in stock                 (47,476)               18,390
(Increase)/decrease in debtors               (110,835)              44,044
Increase/(decrease) in creditors              81,234                727

Net cash outflow from operating              (508,731)             (106,078)
activities






6.     INTERIM REPORT

This interim report was approved by the Board on 27 March 2001.
It has been prepared using accounting policies that are consistent with those
adopted in the statutory accounts for the 18 months ended 30 June 2000 and the
Placing and Admission document issued on 22 November 2000.

The figures for the 6 months to 31 December 1999 were derived from
the statutory accounts for the 18 months ended 30 June 2000.  The statutory
accounts for the 18 months ended 30 June 2000 have been delivered to the
Registrar of Companies and received an audit report which was unqualified and
did not contain statements under s237(2) or (3) of the Companies Act 1985.


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