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(Alliance News) - Hardide PLC on Monday said its loss widened in its most recent financial year, burdened by costs from its upcoming move to a new building in Bicester.
For its year ended September 30, tungsten carbide and tungsten metal matrix coatings firm Hardide posted a GBP1.2 million pretax loss, widened from GBP913,000 the year before.
Although revenue rose 11% to GBP5.1 million from GBP4.6 million, this was offset by an 11% increase in administrative expenses to GBP3.0 million from GBP2.7 million, combined with a 29% rise in depreciation & amortisation to GBP481,000 from GBP373,000.
The expenses increase related to Hardide's signing of a 15-year lease on a newly built premises close to its existing site in Bicester, Oxfordshire.
Looking ahead, Hardide is "confident" revenue growth and business diversification will continue in the current financial year, with gross profit margins to remain at comparable levels to the second half of financial 2019.
Relocation to the new site is proceeding as planned, and the facility is set to start operating in autumn 2020. The costs of this project are being monitored and are set to be incurred in financial 2020.
Chair Robert Goddard said: "We are looking forward to the relocation of the UK business to the new site in 2020 and the increase in capacity and new opportunities that it will bring. We have made a very positive start to the new financial year and the board is confident of continued growth. This is a strategic priority and we are prepared to invest in additional [research & development] and marketing to achieve this and to position the company strongly for the future."
Shares in Hardide were up 1.2% at 61.74 pence in London on Monday at midday.
By Anna Farley; annafarley@alliancenews.com
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