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Nothing to do with Carlsberg. Interesting reading from a presentation to the Society of Petroleum Engineers on erosion resistant sand screens, "Through a combination of design and the application of a CVD based tungsten carbide coating on the filter media, the coating resistance has been increased by 4x-6x relative to conventional premium sand screens and the acid resistance has increased by 10x. Statistical sand screen failure rates of high producing wells with fines production indicate a 25% failure over a 25 year life. When a sand screen fails the impact costs hundreds of millions of dollars (Their words not mine). Over 2,000 feet of the new screen have been installed in the Gulf of Mexico. Suffice to say that in any instance where erosion is an issue, or where workover opportunities are limited the more prudent well design would be to include higher erosion resistance screens". Engineers considered 10 other coating variants. Nothing came close to the coating performance of the CVD based tungsten carbide coating. The engineers are from Chevron and Chevron provided their consent to publish. Chevron has a market cap of $313billion. I am all for outsourcing research and development but seems inequitable when Hardide has a market cap of £10million. Like many investors I long for the day when Hardide delivers for shareholders. After all Hardide is probably the best coating in the world! Bring on Airbus, gas turbine blades, wire mesh screens, Leonardo helicopters and the many applications that have been in development for so long....
The only trade showing one hour after , and shows as a sell ( I must have bought under offer price stated )
The spread shows as 10% above .
Doubled up here just before 8.30am for 15.7p .
Been trying for a few days after last weeks stock market lows and margin calls .
Sold out of these 22nd August 2019 ( D ) for 75.5p that high reached again in October 2019 .
Bought them back 18/2/21 @ 27p the covid lows in 2020 16.5p , recovered to 41p May 2021 .
Thanks for the link niky, It just shows the lead times for HDD - 3 years to get to a point where we should start getting business. Not too sure when it will become meaningful business but as the song said "what's another year"!
Would be timely to get an update on i) revenue for 2022 ii) chairman replacement.
https://hardide.com/technical-information/application-notes/
I wonder when we can expect increase in sales.
An utter disgrace to launch this 'fund raising ' on a day of national mourning.
A fundraiser to stay afloat. It’s worse than you thought, Richie.
I'm unsure re energy prices or indeed gas and wage costs. However because of our USP and high margins we do have some wriggle room to both absorb and increase basic costs.
I thought the July update was a little down beat. While some things are going slowly nothing was made of the strong $ and surely O & G business is increasing? You would also think airbus business was building up a bit. The then lack of any news see's the SP slowly drifting down. Lets hope one of the programs in testing converts to sales soon.
Your silence says more than words ever could ;-)
Anybody else wondering what the implications of high energy prices might mean for Hardide?
https://hardide.com/hardide-coatings-achieves-nadcap-gold-merit-status/
New case study posted on the Hardide website.
You have to put vox markets where the stars are
https://www.**********.co.uk/articles/traders-cafe-with-zak-mir-philip-kirkham-ceo-hardide-aedde2e/
https://www.***************************/hardide-positive-results-and-a-strong,-diverse-pipeline-video/4121064327
Please put directors talk all one word where the stars is
Hi Richie, Hope you find the following constructive. HDD was always going to be expensive to develop not just for the cost of the reactors but also by the year long lead time. Very difficult to get right. The other cost is the operators relatively high wages. This is a unique job and extensive training is needed.
However not to sure re the 3.6 mill cap raise in '17 for the new premises. There is an RNS in Oct'17 for 2.54 Mill the bulk of which was stated for 2 new US reactors. This is reiterated in the post-period of the '17 full year account and described as oversubscribed. There was a fund raise of 3.6 Mill in March '19. There is also an RNS in Aug '19 re 3 new reactors - 2 for the new UK premises and 1 for the US. I'm not saying the fund raising didn't happen but the reality is that it was done in a relatively structured way and with the need to plan some 2/3 years in advance my take is that it was done pretty much as well as could be expected without the benefit of hindsight.
I bought here in '06 for two reasons, the first was the USP which is still the case and with sufficient barriers to entry to hopefully ensure the next decade or two. The second was the operational model. It couldn't be simpler or cheaper. We have to pay premises wages power and various admin costs as does most businesses but apart from that we only have to buy and store gas. We do not have to buy store and administer any raw materials or even do the same for products. The customer supplies the part, we coat it, we attach an invoice and return it. Simples!
Once we cover our relatively low operational costs any revenue will fall to the bottom line quite easily. My hope is that what we lose on the expansion and development swings we gain on the operational roundabout. Cheers
With respect you are missing the point I am trying to make. The Hardide Board sanctioned a capital raise in 2017 for £3.6m for the move to the new factory and increasing reactor capacity from 5 to 9 including 1 large capacity reactor. The Board could simply have sanctioned the move to the new factory, installed 1 large capacity reactor, 1 additional normal sized reactor and held back on the capex for 2 additional reactors until they were confident revenue was contracted. The Board took the risk and invested very expensive shareholder equity to increase furnace capacity to £9m. 5 years later the company is only generating £5.4m of revenue on an annualised basis and aerospace is £8,400! In addition the board then sanctioned 2 further equity raises of £2.5m and £0.8m and guess what they are now intimating more capital is required. I am not opposed to funding growth, it is that trust and confidence is extremely low given the historic track record. The share price reflects this lack of confidence at 30p. I would much prefer the board 1) deliver on the operational cashflow for which they say there is line of sight 2) raise additional capital for new furnaces against the covenant strength of contracted revenue using asset backed finance. Rob R put it much more succinctly, "Hardide needs to start producing the results - we've all had enough of hearing how bright the future looks".
There are two sides to the coin here. Unfortunately when the BoD made the decision to move to the new site and order the reactors they knew not of the coming pandemic. However on the bright side revenue is increasing at it's fastest rate. There are more sales and potential sales in the offing than ever before and the testing programs are bigger than ever before as in EV's, Solar Panels and both gas and steam turbine blades in testing and production. We should see record revenues in this current year. So it would appear that we are in the best position we have ever been in? I think it is a fact that if EDF make a production order then new larger capacity reactors will be needed.
Just think - one last push and it could all be over by Christmas and into profits !!!
Agreed, Richie. They need to start producing the results - I've had enough of hearing how bright the future looks.
The Hardide board has raised £9.4million of equity since 2017 (£2.5m in Oct 17, £3.6m in Feb 2019, £2.5m in Jan 2020, £0.8m in Feb 2021). This equity was all raised after the US factory was established in 2015. There is a familiar story to all the fund raises. Hardide needs funding for all the new capacity for all the exciting growth from aerospace, oil and gas etc. The shareholders have supported £9.4million of fund raises and there are 9 new furnaces of which 1 is large capacity and a new factory. This provides plenty of capacity for R&D, ~ £9million capacity for new business and ability to coat larger objects. I support the new factory investment but struggle with installing so much new reactor capacity so far in advance of contracted revenue. For example, Shareholders have taken massive dilution more than 5 years ago and Hardide has delivered 3% of aerospace revenue £8,400! Now the board are using the pretence of capacity restrictions for the new larger capacity reactor as a pre-cursor to yet more funding to support growth. I estimate revenue from Ansaldo in 1H 2022 was £226,000 ((£2.7 x 54% = £1,458k)- (£2.7m x 54%/1.49 = £978k x 1.26 = £1,232k)) based on disclosure in the interim results. If we assume the large capacity reactor can process £1.5m of revenue annually the reactor operated at approx 30% capacity in 1H 2022. Given the board has stated there is line of sight to positive cash flow and profitability can I suggest they do not do yet another highly dilutive equity raise. If Anasaldo want their blades coated, great, but surely it is not beyond the wit of the board to request i) prepayment ii) long term contract with sufficient covenant for asset backed financing to support the investment in new reactors. If the board of Hardide had delivered on the promised revenue growth historically I would be more supportive. Problem is they have not delivered the revenue. I would take much more confidence from asset backed financed being used to support the new reactor capacity because at least this way we can be confident the financier will have checked the revenue is contracted. It is call a win win allround - Ansaldo commit to revenue and get preferential commercial terms, Hardide gets the asset backed funding for growth, the shareholders do not have to suffer further dilution, and the Chairman is more popular.
Where the stars is, it is director talks interview all one word
https://www.morningstar.co.uk/uk/news/AN_1652173697958327900/hardide-expects-to-turn-profitable%3B-chair-robert-goddard-resigns.aspx
https://www.***************************/hardide-revenue-c.50-higher-than-last-year-with-a-strong-pipeline-for-h2/4121063900
https://www.marketwatch.com/story/hardide-1h-pretax-loss-narrowed-chairman-to-resign-271652163275