Member Info for TruroTrader

Hi Dibs - this is from the 12th December Half year release. Major new customer trials and industry accreditations The Hardide coating has been technically approved by Airbus and Leonardo Helicopters (formerly AgustaWestland) as a replacement for hard chrome plating (HCP). The HCP process uses hexavalent chrome, which has a sunset date of 21 September 2017 imposed by EU REACh regulations. While this creates opportunities for Hardide, it is important to realise that demand for Hardide coatings within the aerospace sector is not limited to just hard chrome replacement. For example, the application of Hardide coating to components on the Eurofighter Typhoon aircraft is related to its anti-galling properties. Also, the coating is currently being tested as an alternative to HCP, HVOF (high velocity oxy-fuel) and other hard coatings in several aerospace companies in Europe and North America. The component testing programme with Leonardo Helicopters has progressed much more slowly than expected. This has been due to the unavailability of the customer's highly-specialised rig used to test these safety-critical components. It is now expected that the tests will begin in early 2017. Post-period we received new parts from this customer for coating and testing. These are for less-critical applications, which do not need the specialised rig and so we expect the testing of them to be quicker. Trials have also been underway for some time on hydraulic actuators with a major European manufacturer of aircraft landing gear. They are now considering the use of Hardide on additional components. For some while now, industries traditionally using hard chrome have been lobbying the EU for an extension of the REACh sunset date. Part of their argument for this has been the difficulty that a ban on HCP would present for replacement parts for aircraft no longer in production. The Company has been in dialogue with its aerospace customers for some time about the possible extension and as a result we are confident that if the seven-year extension now proposed by the European Chemicals Agency is accepted by the European parliament, it will have no material impact on our progress in the aerospace markets. None of our aerospace test programmes or current revenue opportunities are for 'legacy' parts and none are expected to be affected by any deferral of the sunset date. In November 2015, Hardide Coatings Ltd passed its triennial re-certification audit for the aerospace AS9100:Rev C and ISO9001 quality management systems. During the year, we also upgraded our environmental certification to the new ISO14001:2015 standard. Certification of the facility in Virginia is intended to take place in 2017. For some time now we have been preparing for the aerospace industry's global accreditation standard, Nadcap. Audit of the Bicester site has been scheduled by the assessors for the second quarter of calendar 2017.

as this rises in the east and travels west for the next 8 months or so we seem to be testing with a variety of suppliers. The bit that caught my eye in the latest RNS was the new announcement re multiple testing against the AVOF and other coatings in the 'Major new trials' section. There is a huge potential here with customers spread across a large range of suppliers - it really does seem to me to be the 'sky is the limit' - or maybe the Moon!!!

Hi Megabux, Yes, as you say, the capital reduction is a great help and was an early indication to the company achieving dividends. If we have 7 Mill of cash plus long term contracts then unless we achieve some super-duper take over what else do we do with the cash?

IF, we break into a small profit for last year (and the cost cutting and reorganisation over the last year or so will help) and IF the two long term MOD contracts are confirmed then, because we're cash rich, will this year see a maiden dividend? 30/40% chance?

Hi Bakky, many thanks your info re SRT and ExactE. Apologies re the delay in my response. There seems to be more flexibility in loosening the tie-up but I notice that ExactE seem to be closing some contracts but I'm guessing that reflects their size. If we get another decent contract before March year end then SRT will really be established. However even if there are delays the current contract gives us real breathing space. Again thanks.

A bit of a mystery. We were the preferred bidder and an announcement was expected some 4-6 Months ago. I thought the requirement was part of the EU Directive re clean water. 22 Mill is of course a lot of cash for a small population - perhaps it's funding issues?

Hi Bakky, Re your last couple of posts. I've noticed you've made posts re ExactEarth and SRT previously. There is some sort of tie up but I'm not to sure what it is. SRT is obviously going forward - is ExactEarth a potential partner or just a customer? Either way - I'm a happy bunny and thank you for your posts.

comeonvog. Your 15.08. The only reason we get positive posts is because this is a positive company that attracts positive posters. Oh, and of course, positive RNS's. Negative posters are not needed as there is little dead wood here.

If I've read the results right it appears that any extension of the HCP ban will not apply to current production parts but to 'Legacy Parts'. As Sisyphus says you would think the industry in general would be looking to change anyway. The other interesting point is that HDD is apparently being tested against other coatings as well so there is a possibility of HDD being the coating of choice. Now that would be happy days - and nights!

I said in September that I thought a small profit was achievable this year. I was looking at the recent re-organisation and cost cutting to help achieve this. With the new contracts announced since then and the consequential long term future revenue, particularly if the two MOD ones come off, is there a possibility of a maiden final dividend in the next financial year?

I've been here since November '06 and whenever the results are published it seems that the next year or two will bring a breakthrough. But to be fair there does seem to be a broader testing base than in the past plus of course a potentially broader customer base. I've always had faith in the Board and they are not prone to over enthusiasm as some start-ups are. So 2018 is to be this years breakthrough year for me. (Well at least 'till next year!). Onwards and upwards.

Virginia is allegedly testing with suppliers to Airbus who will be our customers. Airbus has approved HDD for their suppliers to use. It's now a question of do they want to use HDD and do they have alternatives? As dibs said if there are it helps to support the ban. Hopefully this is the home straight - but there may be a curve or two yet!

Hi Dibs, We've met before on HDD. Wow what a difference this company is. Idea is expensive but has many legs (I hope!) HDD was a pure gamble, Idea is a controlled money maker. It seems to have a clear focus on snapping up profitable companies that add to the bottom line without incurring debt. I simply don't beleeeve it. It is not yet fully valued. Maybe it never will be?!!

My point is that we need the sp/mk to reflect a growing profitable company. At the moment it does not seem to do this. The last three Annual Reports have been filed towards the end of the permitted reporting period and have also failed to specify dividends. There is no need to be tardy in reporting as I believe this company has real potential. I want the company to be upfront in reporting results in order to assist market credibility. In turn this may help the sp.

While the last line of the accounts said the BOD intended to operate a progressive dividend policy there was no mention of when or how much. This is not a good way to increase the sp particularly as we are almost 6 months into the current Financial year and there should be an indication of how this year is going. I believe this company will grow quite well but clarity gives confidence to the sp. Any inside info out there?

You are quite right re the fund raising. My concern is revenue. Oxford on it's own was probably capable of some 4.5 Mill. so the Virginia plant is a cash drain. I think there are 6 people there so the cost is some 350k per year? The announcement in September did say that it was going to be spent but as you say the some will be kept back. Oh well lets hope.

You are quite right re the fund raising. My concern is revenue. Oxford on it's own was probably capable of some 4.5 Mill. so the Virginia plant is a cash drain. I think there are 6 people there so the cost is some 350k per year? The announcement in September did say that it was going to be spent but as you say the some will be kept back. Oh well lets hope.

Yes, a little current pessimism dosed with current reality. The last cash call to fund Virginia, some two years ago, was done at 1.6 pence a share with positive noises. Unfortunately we haven't had the revenue increase to pay for this, partly due to the Oil & Gas slow down. I really really hope you're right. But we have no cash reserves to continue to fund both Oxford and Virginia. We need something very quickly. so pointm

Viability of HDD. The Virginia Plant is an extra straight drain on cash. Revenue must climb over and above previous returns to cover this. Either that or: shareholders stump up the difference, further cash calls are made or HDD folds. We can but hope!!

No Dibs. I only buy. I started in Nov/06 at 11p per share! Oh yes, they were the days! I've bought in over 20 times since. Some were at a third of a penny. I now am now in profit - just. Because of the length of time and the high price I started at, this is my biggest punt. Please the god of hardness shine on HDD! The BOD have always been straight up and honest - if a little light hiding under the bushel. But far better that than the many high-tech start-up companies that promise the stars tomorrow.