Hardide lifts FY outlook on the back of £2.4m contract

(Sharecast News) - Hardide surged on Wednesday as it lifted its full-year outlook after receiving orders from its large North American energy sector customer to cover the remainder of the client's expected requirements for the course of the year.

The contract value of £2.4m is higher than the board's previous expectations for this current financial year and will "materially" improve revenue and overall financial performance expectations for FY26.

The AIM-listed provider of advanced surface coating technology said the majority of this new order intake will be delivered from its Martinsville facility in the USA. Hardide said operational improvements in recent months have enabled the company to deliver its existing order book at a faster rate than previously anticipated.

"The new orders reflect the increased output Hardide is now able to deliver to meet growing demand," it said, adding that these orders will be supplied concurrently with the recently announced orders being fulfilled by the UK facility in Bicester.

The new orders include selling price surcharges which seek to mitigate the impact of recent input cost inflation, Hardide noted. It also said it continues to broaden its supply chain for process gas to manage cost inflation as far as possible and ensure supply continuity.

Ongoing supplies of gas have been secured at known costs, covering expected demand for the remainder of this year and into the first half of next year, it said.

Chief executive Matt Hamblin said: "We are very pleased that the customer has again placed an order with us and that we have visibility of their orders for the rest of the financial year. We expect these orders to continue into the next financial years and, as we work more closely with the customer, are developing a mutually beneficial schedule for orders and deliveries which will underpin FY27.

"We are also pleased to see developments across business lines and with our wider customer base, and look forward to reporting on progress in this regard later in the year."

At 1331 BST, the shares were up 19.2% at 60.80p.

See latest RNS on Investegate

Hardide