Hardide (AIM: HDD), the developer and provider of advanced surface coating technology, is pleased to provide an update on trading and expectations for the financial year ending 30 September 2019.
Early indications of strong demand across the Company's target markets have continued:
- Sales to the Company's major flow control customer in North America have more than doubled
- Large project-based orders have been received for an oil and gas operator
- Increase in the coating of industrial diamonds used in the oil and gas industry
- Increased sales to the precision engineering sector
Accordingly, the Company expects (subject to audit and year-end adjustments) to report revenues of around £5.0 million, ahead of expectations. Reflecting the sales mix and continuing investment, EBITDA is expected to be in line with expectations.
Fitting-out of the Company's new UK premises has commenced and the timing of the relocation to the new facility is currently on track to be completed during September 2020. As previously announced, three new coating reactors have been ordered, with two of these to be installed at the new UK site and one at the Martinsville site in the USA. The existing three reactors in Martinsville are currently working at full capacity.
The Company expects to report its preliminary results for the year to 30 September 2019 on or around 9 December 2019.
Philip Kirkham, CEO of Hardide plc, commented:
"We are pleased to announce the second consecutive year of record sales revenue. Revenue for the second half year is expected to be approximately 13% ahead of the first half and the full year approximately 9% ahead of the last financial year. It is also pleasing that demand is spread across a continually broadening range of customers, sectors and applications. Demand remains strong and we are optimistic about further growth in the year ahead."