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LONDON (Alliance News) - Hardide PLC on Wednesday said it is optimistic for the future as its revenue grew in excess of market expectations in its financial year 2018.
The stock was trading 4.9% higher on Wednesday at 1.94 pence per share.
The surface coating technology provider said it expects its revenue in the full-year to grow ahead of market expectations of GBP4.4 million. In financial 2017, Hardide generated revenue of GBP3.2 million.
Earnings before interest, tax, depreciation and amortization are expected to be in line with market reports.
The growth in revenue was boosted by stronger-than-expected demand from the two major supply agreements, the company said. In July, Hardide highlighted the strong demand from oil & gas customers in the US and said it intends to install a third coating reactor by the fourth quarter of 2018.
The company's coating are a replacement for hard chrome and cadmium plating, chemically formed ceramics and HVOF tungsten carbides, and can be applied to "a wide range of metallic substrates".
However, costs associated with these contracts are greater than usual, Hardide noted, due in one case to the sophisticated geometry of the component, which requires an unusually-high amount of process gas.
In the other case, Hardide is responsible for the full supply of components including the metal and manufacturing costs.
"We are pleased to announce record revenue underpinned by a recovery in demand from the oil and gas sector," said Chief Executive Philip Kirkham.
"We are continuing to work with these customers to explore further opportunities and are optimistic for the future," added Kirkham.
Hardide said it plans to publish its preliminary results on December 10.
