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(Alliance News) - Hardide PLC on Monday said its annual loss widened as its oil & gas sector revenue fell sharply in the second quarter as the Covid-19 pandemic caused the global economy to slow down.
Shares in Hardide were up 4.2% at 37.00 pence in London in late morning trading.
The Oxfordshire-based advanced surface coating technology firm reported a GBP1.4 million pretax loss for its financial year ended September 30, widening from a GBP1.2 million loss the year before as revenue fell to GBP4.8 million from GBP5.1 million.
Hardide said: "Revenue was only 6% below 2019's financial year with increased revenue across all sectors other than oil & gas, which was adversely affected in the second half due to the slowdown of the global economy resulting from the Covid-19 pandemic."
Sales to the energy sector dropped 14% in financial 2020 and parts for a delayed major oil and gas project order were received post financial year ended in October.
However, sales to the flow control sector were up 9%, with a 19% rise in sales to the aerospace sector, 4% increase in sales to the precision engineering sector, and sales of coated industrial diamonds up 56%.
Chair Robert Goddard said: "Looking forward, the board retains a cautious outlook in the short-term as the uncertainty of Covid-19 continues to impact on our customers' visibility for their own businesses. This is set against a confidence that as the global economy recovers, volume demand will return and continue on the previous upward trajectory. The latest market forecasts show a good recovery in oil demand and production in the course of 2021, with good grounds for optimism across our other targets as we move towards the second half of our financial year."
By Anna Farley; annafarley@alliancenews.com
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