Hardide PLC – Interim Results

Hardide PLC – Interim Results

Hardide (AIM: HDD), the developer and provider of advanced surface coating technology, today announces its results for the six-month period ended 31 March 2019.

Financial Highlights

  • Record revenue for a first half-year - up by 9% to £2.35m (H1 2018:
    £2.16m)
  • Gross profit of £1.05m (H1 2018:
    £1.15m)
  • Group operating loss of £0.66m (H1 2018: £0.32m
    loss)
  • EBITDA loss of £0.44m (H1 2018: loss of
    £0.14m)
  • Successful fundraising of £3.60m (before
    expenses) in March 2019 to fund continuing investment and long-term growth
  • Cash at bank at 31 March 2019 of £5.35m (£3.23m at 31 March
    2018)

Operational Highlights

  • Diversification of customer base continues - half of revenues in H1 attributable to customers gained in the last three years
  • Sales to customers in North America increased by 32%
  • Increased sales of 52% in flow control
  • Encouraging progress being made in aerospace sector:
    -     first Airbus A380 component selected for Hardide coating
    -     numerous components for Airbus in final stages of evaluation
    -     first coated components currently in-flight testing on an Airbus A321 with a global MRO (maintenance, repair and overhaul) customer
    -     Leonardo Helicopters began process to make Hardide an approved supplier for flying parts
  • Third coating reactor and large pre-treatment line installed in Martinsville
  • Order placed for the first coating reactor for the new Bicester site
  • Aerospace coating (Hardide-A) produced at the US facility for the first time
  • Successful completion of 'Innovate UK' grant-funded project to produce an ultra-low temperature coating process
  • Two National Aerospace Technology Exploitation Programme (NATEP) grant-funded projects started

A new international PCT patent was submitted protecting the latest developments and improvements in the coatings

 Commenting on the interim results, Robert Goddard, Chairman of Hardide plc, said:

"The Group is pleased to have achieved record sales revenue for a first half during this period. This was despite some short-term disruption with one customer and the unpredictability of larger customer projects, which have led us to now expect full-year revenues to be at the lower end of market expectations. More than half of demand in the period was from customers gained within the last three years. Customer and sector diversification are key strategic objectives for the Group and the Board is pleased with the progress being made.

"Indications are that demand will remain strong from customers in the oil and gas, flow control and precision engineering sectors and the Board is pleased with the advances being made towards production orders from aerospace customers in the UK and US. The announcement today with regard to our Hardide-A coating being selected by Airbus is particularly pleasing and a testament to the quality of our offering.

"We remain highly optimistic about the longer-term outlook for the business."

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