Hardide plc (LON:HDD), the provider of advanced surface coating technology, has provided an update on trading for the financial year ended 30 September 2023 (“FY23”).
The Group expects to report revenues for FY23 of £5.5 million and EBITDA close to break even, representing revenue growth of 10% and a significant improvement on the EBITDA loss of £0.9 million in the prior financial year. The Group’s cash balance as at 30 September 2023 was £0.7 million, similar to both 31 March 2023 and 30 September 2022.
The Board is pleased that these results demonstrate the success of initiatives announced in December 2022 to focus on profit and working capital improvement initiatives. The benefit of these in the financial year amounted to £0.7 million, double initial expectations.
The Board is determined to accelerate revenue growth from business development, sales, marketing and other commercial initiatives without compromising its disciplined approach to costs and working capital management. This will allow existing production capacity to be better utilised and support the business in becoming cash generative and then earnings per share positive, in line with the strategy set out in February 2023.
Hardide plc is encouraged for the new financial year by sales to the aerospace sector beginning to increase in the final quarter of FY23, with regular orders now being received and customer schedules showing further growth through 2024 and into early 2025 for the coating of existing and new components. The Group also continues to anticipate repeat orders for coating gas turbine compressor blades in FY24, originally anticipated in FY23, and has near-term business development opportunities more generally in the gas and steam turbine markets, with trials under way.
The Board therefore expects the Group to deliver further growth in line with its strategy during this new financial year, moving the Group into EBITDA positive territory.
Note: The figures for FY23 provided above are unaudited. Hardide expects to announce full audited results in early February 2024.
Change of Name of Nominated Adviser and Broker
The Company also announces that its Nominated Adviser and Joint Broker has changed its name to Cavendish Capital Markets Limited following completion of its own corporate merger.
