Gordon Watt has lent Pipehawk £535,000 since June on top of the £1.1m put into the company in the previous financial year.
Confirmation of the chairman’s funding came as Pipehawk announced an after-tax loss of £844,000 for the year to June compared to a loss of £398,000 last time. Turnover was down to £2.6m from £3.2m.
Watt said the company suffered from the withdrawal of funding from large infrastructure projects and delays in the AMP5 water programme.
He said: “In March 2010, the Company’s bankers gave the Company notice that it intended to withdraw all the facilities that it had made available to the Company.
“The Directors sought to obtain replacement facilities from other banks but were unsuccessful.
“I am confident regarding the long term future of the PipeHawk group and therefore I agreed to advance further funds to the Company on similar terms to the loans I had previously advanced to the Company on the understanding that negotiations would commence on converting £1 million of loans into convertible unsecured loan stock.
“PipeHawk is committed to technologies and products that unite the goals of customer value and sustainable development. After a difficult year my outlookfor the group remains optimistic.”