Hardide plc (LON:HDD), the developer and provider of advanced surface coating technology, announced today its preliminary results for the year ended 30 September 2017.
·Record sales of £3.24m (2016: £2.14m). 51% higher than FY2016, largely due to recovery of demand from the oil and gas markets
·Sales in H2 2017 14% ahead of H1 2017
·Gross profit of £1.59m (2016: £0.69m)
·Gross margin of 49.1% (2016: 31.9%)
·Group operating loss of £1.24m (2016: loss of £1.47m)
·Loss before interest, tax, depreciation and amortisation reduced to £0.74m (2016: loss of £1.30m before exceptional items)
·Cash at bank at 30 September 2017 of £1.21m (2016: £1.97m)
Business & operational
·Gained full Airbus Approved Supplier status for UK site
·Achieved Nadcap accreditation for UK site – the world’s leading independent certification program for special processes within the aerospace industry
·Development and trialling of multiple components for aerospace customers well advanced
·US coatings facility performing well; 47% of total group sales to North American customers
·Technical development work underway on potentially patentable applications
·Board continues to maintain a positive view on the Company’s potential for growth
·Oversubscribed fundraising of £2.54m, in two tranches, announced during October 2017 together with a loan of US$240,000 from the local economic development corporation in Martinsville, Virginia. Proceeds will be used primarily to fund additional capacity and achieve an aerospace standard facility in the US, as well as to upgrade existing UK production equipment, in anticipation of increased demand
·Two new framework supply agreements signed: with a major international oil and gas operator and a global developer and provider of completion technology solutions. Combined potential revenue of up to £1m per annum, depending on growth of customers’ end markets, underpinning current market revenue forecasts
·Award of a grant from ‘Innovate UK (Manufacturing and Materials)’ to optimise an ultra-low temperature coating process for certain substrates that could result in new applications across several sectors
Commenting on the results, Robert Goddard, Chairman of Hardide plc, said: “I am very pleased to report that Hardide has achieved record revenue for the year to 30 September 2017. The positive trend in the underlying oil and gas market conditions that began in H2 2016 has continued through the full year and beyond. Sales to customers in each of Hardide’s other key sectors of aerospace, flow control and precision engineering also rose year-on-year.
“The board is encouraged by progress in the diversification and development of the customer base and efforts to diversify further will continue. The facility in Virginia is performing well and the post-period-end fundraise will allow us to increase our capacity in the US. The expanded production base in the US will serve multiple sectors of the North American market. At the same time, we aim to expand further our presence in selected UK & European markets.
“The civil aerospace market represents significant growth potential and, in addition to the recently-gained industry approvals for the UK plant, the Company plans to bring the US facility to aerospace standard during 2018.
“The board is confident in the outlook and expects the good progress to continue in 2018 and beyond.”