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Should now be kicking in nicely....there are plenty of A320's out there.
The Hardide-coated components, which are critical to the operation of the flap mechanism, will be used on new-build A320s and as replacement parts for the existing fleet of aircraft as these are maintained. Initial components are expected to be coated in June 2023 with regular monthly volumes thereafter.
Invested here today having taken BCE profits. Hardide business is escalating in contrast to this nadir of a shareprice. Such a low MCap does not reflect the big upswing being seen in all aspects of HDD business. I am expecting a really positive t/u anytime reflecting a highly optimistic outlook.
Https://hardide.com/hardide-coatings-awarded-innovate-uk-funding/
By reference to Schlumberger, Halibuton, Baker Hughes recent results presentations driling service companies are very busy and outlook also positive. This is reaffirmed by various contacts who work at the above companies who also state a lot of drilling activity, especially in Middle East, Brazil, Guyana etc. Hopefully this translates into a healthy orderbook for Hardide. Would be great to hear that first orders are being processed for Gardner Aerospace and an update on the gas turbine blade order with the second largest manufacturer...
Https://hardide.com/hardide-t-mesh-coating-for-multi-layer-woven-mesh/
Good luck i think at 12.5 a fair buy . T
RR, I echo your sentiments. The key for me is in the Business Development section that states positive EPS will be achieved when revenues rise to between
£7.5mln to £8.0mln. This looks achievable given the existing operational capacity to generate £10mln revenue being currently used at 60% and the areas identified to find a further £3mln in sales. My only concern is financing which would struggle to absorb any future unforeseen negative events. I welcome current efforts to strengthen this area and, like you, wish to avoid a dilutive equity raise but with present high interest rates and tightening liquidity standards it might be the best option. This I suspect is what is depressing the share price.
Good to hear progress on profit and working capital plan to save £0.5m and achieving EBITDA breakeven. Fingers crossed more new customers, continued revenue growth, cashflow positive and access to finance (other than highly dilutive equity). Fill up the furnaces, bring home the bacon!
The furnaces used to take a year to make and cost around a million. My guess is that the price is up but the lead time is the same. I said a couple of years ago that news of a new order would be a milestone.
If airbus orders are climbing to a meaningful level (rather than the 4% as in the last update) then for me that will be an important moment.
@secularist - I think they’re running at about 50% capacity - it might not be as high as that. If they get to the point where they need more kit anytime soon we’ll all be feeling pretty pleased with ourselves.
Does any one have any idea how much spare capacity they have before they will have to invest in more kit?
Gosh Richie - It just gets better and better.
Yes great. 10,000 A320s x 20 parts x £200/part is £40million revenue x 75% margin is £30million of profit! The point I was trying to make is it is incumbent on the Directors to update Hardide's guidance rather than us all guessing. Share price reaction reflects the hesitation to believe all the hubris before we see the results.
Hi Riche, The real money lies in the maintenance and overhaul market. There are some 10,000 A320s in service. It might not be worth retrofitting the older ones but certainly the newer ones.
Assuming 20 parts per A320, 50 new A320's a month equals 1,000 parts per month or 12,000 parts per year. At £100 per part, this equals £1.2million of additional revenue or £2.4million additional revenue at £200 per part. This is all conjecture but possible to see the impact of a major order on the Airbus A320 platform. The Hardide board have a fiduciary duty to act in the best interests of shareholders. I agree it is important for Hardide to update their revenue and profit guidance in line with news so we don't have to guess!
This is moving in the right direction but we won't get jumps in the SP unless a RNS about additional volumes incluses some financial quantification. I hope that the forthcoming results live up to expectation.
RobR yes I agree I’ve followed this stock a good few years I know the score.
Results next week. Hoping for good update and better outlook. I believe the tide is turning. That’s my bet.
@Dibs61 - people are less excited about this type of RNS than they were 3/4/5 years ago. They used to produce a 25% rise in the share price - now people have learned to wait until they can see the real value.
Correction "losses" not "loses" OCD kicked in and could not leave it!!!!
Hi Truro, Like you I have been in here for a long time. Just had a look back on my contract notes and 13 Mar 2006 (15.45pps) was my maiden purchase!!!! Looks like we have shared the same path. I hope the call that we both made back in the days proves to be the right call and I would like to see that sooner rather than later though considering how long we both have been in here............. I still continue to have faith in this company but as you say we could have a game changer. Keep the faith and may your gains always exceed your loses. Rgds S
Interesting timing here. We start in June so will have 3 good months to boost our September year end. In addition the September '24 year ban on HCP can only boost both year end '24 but all future years.
Hi saintly, I've been hear since '06 and yes the delays have been horrendous, some 13 years for airbus and around 9 for Leonardo and if my memory serves HCP was originally announced to be banned In '17. I think at last we have a game changer on our hands. Nice to know I made the right call! Only 20 years to make a profit!