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(Alliance News) - Surface coating firm Hardide PLC on Tuesday said it will be raising over GBP2 million in a "significant oversubscribed" placing.
Hardide also said Finance Director Peter Davenport is to leave to pursue a career in education. He will step down shortly after a replacement is found.
Hardide is to place 4.0 million new shares at a price of 63.0 pence each, raising GBP2.5 million. Shares were 8.1% higher on Tuesday morning in London at 67.00p - the placing price is a 1.6% premium to Hardide's closing price on Monday.
"The placing follows significant demand from new and existing investors and is an opportunity to welcome new investors to the register. The board is pleased to announce that the placing has been significantly oversubscribed," said Bicester, Oxfordshire-based Hardide.
Hardide is currently moving to a new location in Bicester, and the company said the funds will allow it to replace and purchase GBP1.5 million worth of equipment. This, it added, will make it more efficient and be more environmentally friendly.
Plans include upgrading the existing three coating reactors, alongside new pre-treatment and cleaning equipment and a new development reactor.
Hardide said the firm needs new equipment to continue making components for Airbus SE at its current site whilst moving to the new one. The new site will need fresh audit and approval by Airbus, but Hardide said this is not likely until early 2021.
"I am delighted we have been supported by new and existing shareholders to provide the company with additional capital to support our growth strategy. The new money raised will enable the company to promote the continuing growth of Hardide and strengthen its balance sheet," said Chair Robert Goddard.
"The funds will mainly be employed at the new UK site which will see improvements to production capacity, capability and environmental performance to deal with the increased demand for our products," he added.
By George Collard; georgecollard@alliancenews.com
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