Hardide PLC Pre-close Trading Update (7760Z)
September 23 2020 - 1:00AM
UK Regulatory
TIDMHDD
RNS Number : 7760Z
Hardide PLC
23 September 2020
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
23 September 2020
Hardide plc
("Hardide" or "the Group" or "the Company")
Pre-close Trading Update
Hardide plc (AIM: HDD), the developer and provider of advanced
surface coating technology, is pleased to provide an update on
trading for the financial year ending 30 September 2020.
The Group expects (subject to audit and year-end adjustments) to
report revenues of GBP4.7 million and an EBITDA loss of c.GBP0.5
million. This is in line with the Trading Update issued on 16 July
2020. Cash at bank is expected to be c.GBP2.7 million and there are
capital commitments of c.GBP0.5 million remaining to fully complete
the investment in the UK site relocation.
Production has continued uninterrupted at both the UK and US
sites throughout the COVID-19 pandemic, with significant emphasis
being placed on health and safety measures to protect staff and
contractors.
The relocation of the business to the new site at Longlands
Road, Bicester is now complete, on schedule and at projected cost.
After delays due to travel restrictions, the large reactor has now
been installed and commissioned, which completes the installation
of all new equipment at the facility. This reactor, together with
the new large pre-treatment line, increases considerably the size
range of components that can be coated. One Airbus-approved reactor
is still operational at the Wedgwood Road site and this will remain
in place until the Longlands Road site is fully approved by Airbus.
In addition to the developments in the UK, a fourth reactor has
been installed at the Martinsville, Virginia facility making a
total of nine reactors in the Group.
The extensive process of Airbus' qualification for the new site
is progressing well and on schedule to be completed in early 2021.
Orders are now starting to be received for the Airbus components
that have been approved previously and shortly further parts are
due to be approved by Airbus.
The Group previously reported the impact on its current year
revenue from a delay in receiving a major oil and gas project order
caused by the COVID-19 pandemic. Hardide is pleased to report that
this order has now been received and will give a positive start to
the first quarter of the new financial year. Generally, there has
been a reduction in demand from oil and gas customers in this
current second half as the global economy has slowed. However, it
is pleasing that demand from customers in flow control and
precision engineering has not been significantly affected.
Multiple test programmes for new applications are progressing
strongly with customers in various sectors and therefore present
encouraging prospects for new business in the 2020-21 financial
year. Looking beyond the disruption of the present COVID-19
pandemic, the Board of Hardide believes there are strong grounds
for expecting a return to increasing demand and remain positive
about the longer-term growth of the Company.
The Group expects to report its preliminary results for the year
to 30 September 2020 on or around 7 December 2020.
Enquiries:
Hardide plc
Robert Goddard, Non-Executive Chairman Tel: +44 (0) 1869
Philip Kirkham, CEO 353830
Jackie Robinson, Communications Manager
IFC Advisory Tel: +44 (0) 20 3934
Graham Herring / Tim Metcalfe / Florence 6630
Chandler
finnCap - Nominated Adviser and Joint Broker Tel: +44 (0) 20 7220
Henrik Persson / Matthew Radley (corporate 0500
finance)
Richard Chambers (ECM)
Tel: +44 (0) 20 3328
Allenby Capital- Joint Broker 5656
Jeremy Porter (Corporate Finance)
Tony Quirke (Sales)
Notes to editors:
Hardide develops, manufactures and applies advanced technology
tungsten carbide/tungsten metal matrix coatings to a wide range of
engineering components. Its patented technology is unique in
combining, in one material, a mix of toughness and resistance to
abrasion, erosion and corrosion; together with the ability to coat
accurately interior surfaces and complex geometries. The material
is proven to offer dramatic improvements in component life,
particularly when applied to components that operate in very
aggressive environments. This results in cost savings through
reduced downtime and increased operational efficiency. Customers
include leading companies operating in oil and gas exploration and
production, valve and pump manufacturing, precision engineering and
aerospace industries.
www.hardide.com
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