Member Info for RichieRichie

Please refer to the interim announcement, "The upgrade to infrastructure at Martinsville, together with the improvements we are making to operational efficiency, should enable us to increase our operational capacity to around £20m of revenue per annum without significant further investment. Capacity could be further increased by adding coating reactors to our two operational sites. Each coating reactor has a capital cost of circa £1.3m. We are working on and testing design improvements intended to realise significant improvements in the output of future coating reactors, with the aim of improving the ratio of annual revenue to capital cost for each new reactor from 1-2 times to 3-4 times. This should enhance Hardide's incremental returns on capital over time as the business grows"

The previous broker forecast was annual revenue of £12.4m. Add on the £2.4m contract orfer less the first half revenue of £4.8m equates to £10m revenue for the second half. This is an annualised revenue of £20m which is the same as the capacity improvements referenced in the interims. This is a staggering turnaround in performance. At a 65% margin less £3.5m for overheads equates to £9.5 of PBT. Hardide is cheap!

I am not an Arsenal fan, but after 20 years of investing in Hardide i share Arsenal fans euphoria after winning the premier league! Great to see Hardide turning the corner. Onwards and upwards to glory!

What a difference in 6 months! Looking forward to next Thursday's results...

Brokers are forecasting £12.4m turnover for the full year to 30 Sep 2026. Hardide is guiding £4.5m turnover for the first half to 31 March 2026. This suggests turnover of £8m or an annual run rate of £16m, which is incredible given the history. Of course this is all conjecture and only time will tell. Maybe turnover will be even higher. Transformation of Hardide under refreshed board and management is impressive. Long may it continue.

Broker Cavendish has increased the target price from 45p to 52p. Turnover is expected to double from the prior year to circa £12.4m and PBT to £2.9m. With all the doom and gloom, great to hear more positive news.

A clear and bullish AGM statement. Resiliant revenue growth continues. Encouraging reference to a new Middle East customer, once all the chaos calms down.

I fully agree with the sentiment to thank the refreshed management. Since the arrival of the new chairman and CEO the step change in energy, drive, clarity and operating performance is impressive. Whilst the new customer in oil and gas is getting all the headlines, it would be great to understand progress with aerospace. My perception is aerospace revenue is much more challenging to secure, but once secured and baked into supply chains is very resiliant. After years of Hardide experiencing oil and gas customers rapid destocking, it is good to have the diversification across resiliant aerospace revenue. My understanding is Hardide has all the approvals required for Airbus and revenue is circa £2m per annum. What is managements prognosis for aerospace and what are they doing to speed up conversion and access to decision makers?

Broker target price increased from 30p a share to 45p. This is based on earnings of 3p and 15x PE. Gross cash forecast to increase to £2.8m. Good riddance to the days of repeated equity dilution...

Help! After 20 years of investing in Hardide I am being swamped with good news. Please advise?

Speaking to a mate who has worked at Halliburton drilling for the past 30 years he describes the HVOF transition as a bit like AI. 30 years ago no one had heard of HVOF and now they coat everything in HVOF as though they can't live without it. I understand the expression whenever they have a problem with wear is "HVOF it!" HVOF has its limitations relative to Hardide as a non-line of sight process and therefore cannot coat complex parts. HVOF is not as high performing as Hardide but HVOF coating is widely available. I look forward to the day when the expression "Hardide it" is used when ever engineers and operators are struggling with a wear problem...

Lets hope you are right. Only time will tell. Hardide has had an unfortunate history of being on the "destocking" whim of the major oil companies. It would be great if we are now caught on the "restocking" wave. For this reason diversification across industry groups is key to a resiliant business. For example baking Hardide coated parts into high production Airbus A320s or Industrial Gas Turbines to my mind equates to resiliant demand which supports a resiliant Hardide. Therefore it is great to hear Hardide being baked into 20 year supply chains with Airbus, Boeing, Leonardo, BAE and all their tier 1, 2, 3 suppliers. I can only imagine how frustratingly slow the conversion process is. But once Hardide is in with Aerospace it will be better than true love; it will last forever!

Latest Cavendish research note forcasting £9m of revenue for FY 26 and profit after tax of £1.5m or 1.9p per share.

Whilst faith and conviction with Hardide has been tested over many years (stopped counting at 19 years) , since the refresh of board and CEO, there has clearly been a step change for the better. Great to hear continued good news and may it continue across all product and revenue streams.

Hardide is the gold

Great news. If my interpretation of the news release is correct most of the £1.75m in revenue is due in the first half of the year to 31 March 2026. Assuming the current revenue run rate of £3.2m this would equate to £8.15m revenue for the full year to 30 September 2026 with no other growth. At a 70% margin over the breakeven revenue of £5m this equates to £2.2m of cash generation. I.e. any immediate concerns around liquity and going concern disappear. Time will tell whether this customer generate ongoing revenue or a flash in the pan. Great to hear the progress being made.

Great to see. Robert and Virginia Millington look to be linked to Constance Private Asset Management.

As a long term investor, faith has been stress tested with Hardide. Countless surprising destocking events, compounded by raising money to buy furnesses well ahead of revenue generation has meant massive equity dilution. However, Hardide has been making progress and blue chip customers are impressive. It feels under new leadership costs are being managed and will hopefully start to see results of revenue growth bear fruit. I am still a believer. Pure conjecture but would be great to hear revenue >£6m for last year

I think you are correct in your assertion that we will have to wait for a year end trading update, but always great to hear news of more contract wins.

What are your thoughts on revenue and positive cash outturn for this financial year to 30 September 2025?

Thank you. Great to see very good progress under the refreshed board and management. Progress with Aerospace is looking great and gas turbine coating still remains an option. What has happened to all the US oil and gas revenue and "Drill baby Drill!"?