HDD Hardide Plc

(Rewrites, adds detail.)

By Simon Zekaria

LONDON--Hardide PLC (HDD.LN) warned on Monday that demand from the beleaguered oil and gas exploration and production markets is "very subdued", but said it is confident about its prospects.

"The board continues to monitor the oil and gas markets closely and is keeping the company's cost base under tight control," it said in a trading statement ahead of its half-year results, without disclosing financial information.

Still, the engineering surface coating technology company said it remains positive on its overall trajectory.

It said technical approval on its coating by Airbus Group SE (AIR.FR), the recently-announced long-term supply contract for components for x-ray baggage scanners and other potentially high-value applications currently in test, give the board confidence about the company's medium and long term prospects.

Hardide added that its newly-opened facility in Virginia, U.S. is producing good quality coatings for verification and testing. Full-scale production is due to start early in the second quarter and additional employees have been hired, the company said.

Hardide said it continues to make good progress in broadening out its customer base and thereby cut reliance on a major customer and market sector. The group's customers include those operating in oil and gas exploration and production, valve and pump manufacturing, nuclear, advanced engineering and aerospace industries.

At 1153 GMT, shares were unchanged at 1 pence, valuing the company at 13 million pounds ($18.3 million).

Write to Simon Zekaria at simon.zekaria@wsj.com

(END) Dow Jones Newswires

February 22, 2016 07:28 ET (12:28 GMT)

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