Hardide PLC Year End Trading Update (6922C)
13 Ottobre 2022 - 8:00AM
UK Regulatory
TIDMHDD
RNS Number : 6922C
Hardide PLC
13 October 2022
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information, as stipulated under the UK Market Abuse Regulation.
With the publication of this announcement, this information is now
considered to be in the public domain.
13 October 2022
Hardide plc
("Hardide", "the Group" or "the Company")
Year End Trading Update
Hardide plc (AIM: HDD), the developer and provider of advanced
surface coating technology, is pleased to provide an update on
trading for the financial year ended 30 September 2022 (subject to
audit and year-end adjustments) ("FY22").
Revenues for the year to 30 September 2022 are expected to be in
line with the Board's expectations of approximately GBP5.0m, up
almost 40% on the previous year. As reported in the Trading Update
issued on 14 July 2022, the volatility in the Company's key markets
has influenced revenue for FY22. This was driven by lengthened raw
material lead times for customers and delays in certain project
orders originally scheduled for the final quarter of FY22. None of
these delayed orders have been lost and will now be recognised in
the new financial year starting 1 October 2022. The Group is not
experiencing any negative effect because of current exchange
rates.
The Board is grateful for the support of new and existing
investors in the Group's recent fundraising. The Group had
approximately GBP0.7m of cash at 30 September 2022 and continues to
maintain strict cost and investment discipline as well as
continuing to explore options for raising new working capital
support. Approximately half of the delayed cash receipt from a
significant customer was received prior to year-end, with the
balance expected soon. The Group is also pleased to be in final
contract negotiations relating to a sale and leaseback arrangement
for its property in Martinsville, USA which will, when completed,
make a substantial contribution to the Group's financial
position.
Despite well-documented headwinds, we start the current
financial year with a strong order book and, with revenues from
certain contracts arriving in this financial year 2023, the Board
maintains a positive outlook for the business beyond the near term
as supply chains stabilise and markets continue their recovery. The
Company sees clear potential for the current financial year to show
considerable improvement on recent years and the Board is
optimistic about the future.
A summary of our progress in each of our key customer sectors is
set out below.
Energy
The major oil service companies are seeing rising demand,
however, the supply of components to be coated by Hardide is being
restricted by raw material availability and machining capacity. We
have good visibility on orders and this demand is expected to reach
us in the next few months. Components for a major project order for
coating mesh sand--control screens, originally scheduled for the
last financial quarter, were received just prior to the year end.
As a result, revenue will now be recognised early in the new
financial year. Another large project order received from a North
American oil and gas customer and currently being processed will
also be completed early in the new financial year. Several new and
potentially significant, high-volume applications are in
development in this sector.
Two large orders for coating gas turbine compressor blades were
completed in FY22, with further similar orders expected during the
current financial year. Trials are ongoing with several other
turbine producers.
Testing is underway to obtain data to show the beneficial
effects of the coating in hydrogen applications, as well as
separate testing in a hydrogen production application.
Aerospace
Regular orders are now being received for components for the
Airbus A320, A330, A380 and A400M series aircraft. Further
applications for Airbus are in development and testing. Orders
continue to be received for the BAE Eurofighter Typhoon. Technical
discussions and trials are also underway with several other OEM and
MRO companies.
Industrial
Demand from our major industrial pump customer in North America
has remained buoyant throughout the past year and is expected to
remain so. As the airline industry recovers, we are seeing signs of
increasing demand for the airport X-ray screening machine
application. We expect much higher revenues from this customer in
the current financial year as they increase their production
output. Trials are still taking place with the large EV
manufacturer on components used in the battery production
process.
Enquiries:
Hardide plc
Robert Goddard, Non-Executive Chairman Tel: +44 (0) 1869 353
Philip Kirkham, CEO 830
Jackie Heddle, Communications Manager
IFC Advisory Tel: +44 (0) 20 3934
Graham Herring 6630
Tim Metcalfe
Florence Chandler
finnCap - Nominated Adviser and Joint Broker Tel: +44 (0) 2072 200
Henrik Persson/ Abigail Kelly (Corporate 500
finance)
Barney Hayward (ECM/Broking)
Allenby Capital - Joint Broker Tel: +44 (0) 20 3328
Tony Quirke - Sales and Corporate Broking 5656
Jeremy Porter/ Freddie Wooding - Corporate
Finance
Notes to editors:
www.hardide.com
Hardide develops, manufactures and applies advanced technology
tungsten carbide/tungsten metal matrix coatings to a wide range of
engineering components. Its patented technology is unique in
combining in one material, a mix of toughness and resistance to
abrasion, erosion and corrosion; together with the ability to coat
accurately interior surfaces and complex geometries. The material
is proven to offer dramatic improvements in component life,
particularly when applied to components that operate in very
aggressive environments. This results in cost savings through
reduced downtime and increased operational efficiency. Customers
include leading companies operating in the energy sectors, valve
and pump manufacturing, industrial engineering and aerospace
industries.
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