LONDON (Alliance News) - Tungsten-carbide coating firm Hardide PLC said Monday its half-year loss narrowed as revenue rose amid a bounce-back in sales to its oil and gas customers and as its trials and a new US facility progressed.
For the six months ended March, pretax loss narrowed to GBP317,000 from GBP684,000 the year prior. This was after revenue rose to GBP2.2 million from GBP1.5 million the year before.
Hardide does not pay a dividend.
"The group has delivered a strong first half with growth in sales to flow control and precision engineering customers alongside improving demand from the oil and gas sector," Hardide Chairman Robert Goddard said.
Sales from the oil & gas segment were up 54% compared to the first half of financial 2017, up 20% compared to the second half of the that year. Hardide added its "major customers" in this segment were "optimistic about continuing growth into 2019".
"Trials and new commercial discussions continue to make good progress with our aerospace customers and the board remains confident in its expectation of new aerospace business in the near future."
Hardide said its trials with Airbus SE are "developing strongly", with the European aircraft maker "committing considerable resources and time" to the work.
"However," Hardide cautioned, "progress is slow due to the safety-critical nature of the industry. While this is understandable, it is frustrating for the parties concerned who are all working hard to conclude this process. However, once specified on components, lengthy commercial supply arrangements can be expected."
During the period, Hardide raised GBP2.5 million through the issue of 134.5 million shares, which was originally announced in October. At the end of March, Hardide had GBP3.2 million in cash which was higher than the GBP1.6 million the year prior.
Hardide said its Martinsville, Virginia facility "continues to perform well" with a new reactor due to be delivered in the second half of financial 2018. Accreditation for the site to the aerospace quality management system AS9100 was described as "on-track".
"The board is pleased with progress made during the first half of the year and expects this momentum to continue through the second half," Goddard said. "Forward visibility has always been limited in our business but all indications are that higher activity from oil and gas customers will continue and, together with sales to other sectors, the board is confident of the outlook for the second half and expects the trading performance for the full financial year to be in line with market expectations."
Shares in Hardide were 4.7% higher at 1.91 pence on Monday.
Hardide (HDD)