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It’s difficult to see where the orders are coming from if the end of HCP doesn’t produce some significant results. I suppose it’s perfectly possible that companies have decided not to change until they have absolutely no choice which would explain the, so far, disappointing returns from aerospace.
Today feels like a good day to respond to Richie’s post from November.
The company has been around for 20 years now and we know Hardide works as advertised but the growth just isn’t happening. What is it about this product that isn’t solving a problem? I can see that for companies with a business model that revolves around maintenance (Rolls Royce for example) a coating that extends the life of components presents you with a new problem. But it just seems incredible that the market for a product such as this only amounts to £5million worth of orders.
Https://www.sciencedirect.com/science/article/pii/S2352152X22011100
Not sure that this is relevant in terms of PHE’s success or failure but worth 5 minutes for anyone interested in the hydrogen economy.
@secularist - I think they’re running at about 50% capacity - it might not be as high as that. If they get to the point where they need more kit anytime soon we’ll all be feeling pretty pleased with ourselves.
@Dibs61 - people are less excited about this type of RNS than they were 3/4/5 years ago. They used to produce a 25% rise in the share price - now people have learned to wait until they can see the real value.
This...
"Despite Airbus and their European Tier 1 supplier having still not finalised their own contractual arrangements, this is not preventing orders being placed by them. This agreement will cover only certain components for Airbus. Orders from other Tier 1 suppliers are subject to separate arrangements and are currently being received."
...would suggest that the long term contract will not be all that we hoped, at least not from a volume-of-orders perspective.
I think the last 12 months (ish) might have given some clarity about the future prospects of the company. My guess is they'll gradually reach their new sales capacity over the next 3-5 years, make a couple of million annual profit and I'm hoping that tranlsates to a share price of about £1. Quite possibly in 20-30 years time they'll have a site in numerous countries, but I will have sold up by then.
The May 18th announcement also included the following:
“This is just one of a number of supply arrangements currently being finalised with other UK and European Tier 1 suppliers to Airbus for components where Hardide-A has been approved already as a superior replacement for hard chrome plating.”
Unless I missed it, we haven’t heard anything about these either.
EU guidelines stopping dredging of rivers is just one of the many myths. It has a tiny basis in reality, but is 98% false.
https://fullfact.org/online/EU-dredging-floods/