Hardide plc (LON:HDD), the developer and provider of advanced surface coating technology, today announced its results for the six-month period ended 31 March 2017.
Financial Highlights
· Revenue of £1.51m (H1 2016: £0.95m), increase of 59% from H1 2016 and 27% from H2 2016
· Gross profit of £0.69m (H1 2016: £0.25m)
· Group operating loss of £0.69m (H1 2016: £0.63m loss, which included a £0.23m reversal of impairment and grant income of £0.14m). On a like-for-like basis, Group operating loss of £0.72m (H1 2016: £1.02m loss excluding reversal of impairment, release of provision and effect of grants)
· EBITDA loss (gross profit less administrative expenses) of £0.43m (H1 2016: loss of £0.72m)
· Cash at bank at 31 March 2017 of £1.56m
Operational Highlights
· Demand returning from oil and gas sector
– sales from this sector rose 115% compared with H1 2016 and 38% compared with H2 2016
– testing completed successfully and commercial discussions underway with major oil service company in North America for onshore drilling components
· Approved Supplier status with the Airbus Group gained
– detailed commercial and technical discussions progressing with Airbus and other equipment manufacturers about coating specific aircraft parts
· Increase in sales to aerospace and precision engineering
– additional new parts approved for the BAE Systems Typhoon aircraft
– test plan for new transmission components with Leonardo Helicopters is progressing well. The original testing programme for other safety-critical main rotor components awaits the availability of the customer’s highly-specialised test rig
· US facility in Virginia fully operational and producing regular production parts for blue-chip North American customers
Post Period
· Further order of $100k received from the General Electric Company Inc (“GE”) for the same components as were supplied under the three-year Strategic Supply Agreement which expired at end of February 2017
· First production order from new, major oilfield service company for coating of a family of subsea flow-control components
· Royal Mail approval for coating of a component for letter sorting machines
Commenting on the interim results, Robert Goddard, Chairman of Hardide plc, said: “We are pleased to see that there is significant evidence of improvement in demand for the Hardide product in a still challenging and volatile oil and gas market. At the same time, the Group has made good progress in its diversification and growth strategy with the award of Approved Supplier status from Airbus and encouraging developments with customers in the aerospace and precision engineering sectors. Overall, with the early signs of recovery in the oil and gas market, particularly in North American onshore drilling, and the expectation of new aerospace business in the near future, the Board’s outlook is positive. The Board expects the trading performance for the full financial year to be in line with market expectations.”
