# Hardide plc Good progress in diversification and growth

- Link: https://www.directorstalkinterviews.com/hardide-plc-good-progress-diversification-growth/412729199
- Published: 2017-05-16T07:12:10+01:00
- Author: Giles Arbor

**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.”

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