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(Alliance News) - Shares in Hardide PLC soared on Tuesday as it reported improved figures in its first half and expressed confidence in its outlook amid Covid-19-related uncertainty.
Shares in the surface coating firm were trading 19% higher at 31.50 pence each on Tuesday in London.
For the six-month period ended March 31, Hardide posted revenue of GBP3.0 million, up from GBP2.3 million recorded for the comparative period the prior year. Pretax loss narrowed to GBP347,000 from GBP657,000.
Gross margin was 55% up from 45%.
The performance was attributed to a "stronger product mix" which led to an increase in sales. Revenue from flow control - valves and pumps - increased by 49% while proceeds from oil & gas customers went up by 30%.
During the period, the company raised GBP2.5 million in a share placing with the new cash to be used to fund the purchase of additional equipment, enhance its new UK site, and improve environmental performance. Additionally, GBP400,000 of asset-backed finance was secured for a new coating reactor in the UK.
Looking ahead, Hardide said its order book going into its second-half is "strong", adding that trading since the end of March has not been significantly hurt by the Covid-19 pandemic.
"So far, trading in H2 2020 has started well and has not, to date, been significantly disrupted by the effects of Covid-19. There are grounds for cautious optimism, but in the current context, the board must be mindful of the potential for order book disruption in the second half. The group has a robust cash position and measures are being put in place to preserve cash, which positions us well in these uncertain times," said Chair Robert Goddard.
As at March 31, the company had cash of GBP4.9 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
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