(Alliance News) - Hardide PLC on Thursday announced the slowing of customer demand as its order book starts to feel Covid-19's grip, particularly in the oil & gas sector.
This however comes after the surface coating firm marked record revenue in its first half of its financial year.
The slowing of demand is expected to continue throughout the remainder of the financial year, ending September 30, and into the next, Hardide said.
The Oxfordshire, England-based firm expects no less than GBP4.7 million in revenue for the current financial year.
Back in May, Hardide posted revenue of GBP3.0 million for the six-month period ended March 31, up from GBP2.3 million recorded for the comparative period the prior year. Its interim pretax loss narrowed to GBP347,000 from GBP657,000.
This means it expects to make at least GBP1.7 million in revenue in the second half.
Adjusted earnings before interest, tax, depreciation and amortisation loss is expected to be in the region of GBP500,000, the company said.
As at June 30, Hardide had GBP3.4 million of cash and cash equivalents out of which there are future capital commitments of approximately GBP700,00 associated with the relocation and capital investment projects.
Hardide's order book was particularly affected by the delay of a large order from a "major" oil well operator due to international travel restrictions. It didn't provide the size of its current order book.
Despite the recent drop in customer demand, Hardide saw a high number of new oil and gas applications that are in current evaluation and test programmes which indicated the potential for new business in the coming months.
Hardide reported that its work with Airbus SE and its supply chain continues to progress well. Hardide also is receiving regular orders for Lockheed Martin Corp's F35 Joint Strike Fighter components.
The group's facilities in Bicester and Martinsville have continued to work throughout the pandemic.
Commissioning of a new large reactor in Bicester will take place in the coming months once engineers are able to travel from Europe.
Hardide's shares were down 2.0% at 29.90 pence each on Thursday morning in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Hardide (HDD)