Hardide Regulatory News (HDD)

28 Jun 2005 07:00

Hardide PLC28 June 2005 Press Release 28 June 2005 Hardide plc Interim Results for the Period to 4 April 2005 Hardide plc ("Hardide" or "the Company"), the provider of unique surfaceengineering technology, announces its maiden set of interim results. Theinterim results cover the trading of Hardide plc from its formation on 27January 2005 to completion of the AIM admission and fundraising on 4 April 2005.The pro forma results cover the trading of the operating subsidiary HardideCoatings Limited for the six months to 31 March 2005, which was acquired byHardide plc on 7 March 2005. Financial highlights • Turnover £496,134 (H1 2004 £124,633) • Operating Loss reduced to £281,222 (H1 2004 £519,204) • Loss before Tax reduced to £273,364 (H1 2004 £531,204) • Successful listing on AIM in April 2004 raising net proceeds of £1.4 million • Supplier status attained with BAE Systems • Appointment of Financial Controller Commenting on the results, Jim Murray-Smith, Chief Executive of Hardide plc,said: "I am delighted to report the maiden set of interim results for Hardide. Oursuccessful flotation on AIM which raised £1.4 million will help Hardide achieveits strategic goals. We are particularly encouraged by the number of newcustomers who are adopting Hardide as a solution provider. Our approved supplierstatus with BAE Systems is another excellent endorsement of our product. I amconfident that our good performance outlined in these results will continue inthe months ahead." For further information:Hardide plcJim Murray Smith, Chief Executive Tel: +44 (0) 1869 353 830jmurray-smith@hardide.com www.hardide.com Seymour PierceSarah Wharry / Jeremy Porter, Corporate Finance Tel: +44 (0) 20 7107 8000 Media enquiries:AbchurchPeter Curtain / Chris Lane Tel: +44 (0) 20 7398 7700chris.lane@abchurch-group.com www.abchurch-group.com Chairman's Statement The six months to 31 March 2005 have been an exceptionally busy period in theCompany's short history. Your Board took the decision in December 2004 to list the Company on AIM toraise its profile and to raise funds to accelerate expansion. The Companyappointed advisers early in the New Year and was admitted to trading on AIM on 4April 2005, having raised £1.75 million, before costs. The funds raised willenable Hardide to reach the next stage in its development, expand into othergeographical markets and consolidate on the Company's success to date. I must pay a special vote of thanks to your executive directors, JimMurray-Smith and Yuri Zhuk for their hard work. Jim's drive and enthusiasmensured a successful fundraising and float without the Company's tradeperformance suffering. The Board is confident of the Company's trading for the remainder of thefinancial year as the customer base expands. David ChestnuttChairman Chief Executive's Report I am pleased to have this opportunity to comment on Hardide's first set ofinterim accounts since its admission to AIM on 4 April this year. You will notethat the Interim Report reflects the position of the listed Plc Company, whichof course acquired the business of Hardide Ltd (now Hardide Coatings Ltd)immediately prior to the flotation, and therefore, the Plc accounts as filedallow no opportunity for comparison with previous trading periods. In order forour progress to be clearly seen I have had added a Pro Forma Profit and LossAccount relevant to the operational business for the past three six-monthperiods. Consequently I am able to report solid progress both in the continueddevelopment of our customer base across our chosen fields of operation and alsosuccess in consolidating our position as a reliable and worthy supplier to whatare now becoming our established customers. This progression is clearlydemonstrated by steady increases in turnover over the past three six-monthperiods. The successful fundraising in April, which was oversubscribed, means we are wellpositioned to maintain our combined strategy of growing the business by newcustomer conversion and continuing to improve our customer performance. Thefunds are being used mainly for investment in new plant, recruitment andmarketing to take advantage of opportunities in the energy and generalengineering sectors. This investment, coupled with the IPO, will help raise ourprofile to reposition the Company as a global participant in the surfacetechnology market. The flotation has enabled the Company to put additional infrastructure in place,including the appointment of a Financial Controller with a proven track recordin industry. Peter Davenport was previously a Financial Controller at the UK armof Valspar Corporation, a NYSE-listed company involved in the manufacture ofcoatings.Recent additions to our Sales, Accounting and Production teams, together withfurther investment in state-of-the-art measurement and pre-treatment equipment,underscore your management's commitment to driving the business forward in anefficient and professional manner. We are much encouraged by the number of newcustomers evaluating and adopting Hardide as a solution provider and by theposition these organisations fill in their respective markets. Our intention, announced on 25 April, to establish a sales and manufacturingfacility in Houston, Texas, was well received by our customers both in the USand elsewhere. The investment will address the growing demand for Hardide'sproducts in the oil and gas sector. The official opening of the Houston salesoffice took place on 27 June. To reinforce supply to UK and European customersand to meet the increasing demand for our products, we have also commissioned anew pre-treatment plant at Bicester. Supply relationships with our key customers are advancing and I am delighted toreport that Hardide has recently received approval to act as a supplier to BAESystems. Interest shown in the Company among potential customers and business partnersduring and since the Offshore Technology Conference in Houston, USA, in May2005, has been most encouraging, and we look forward to extending our customerbase through these potential opportunities. We are confident that our positive performance will continue in the monthsahead. Jim Murray-SmithChief Executive HARDIDE COATINGS LIMITED (FORMERLY HARDIDE LIMITED) PROFORMA PROFIT AND LOSS ACCOUNTSIX MONTHS ENDED 31 MARCH 2005 Six months Six months Six months ended 31 ended 30 ended 31 March 2005 September 2004 March 2004 (unaudited) (unaudited) (unaudited) £'000 £'000 £'000 Turnover 496,134 206,368 124,633 Cost of Sales (204,781) (163,984) (130,016) Gross Profit 291,353 42,384 (5,384) Administrative Expenses (618,553) (554,680) (540,320) Other Income 45,978 26,500 26,500 Operating Loss (281,222) (485,797) (519,204) Interest receivable 9,952 8,000 - Interest payable and similar charges (2,094) (6,668) (12,000) Loss on ordinary activities beforetaxation (273,364) (484,465) (531,204) GROUP PROFIT AND LOSS ACCOUNTFOR THE PERIOD FROM 27 JANUARY 2005 TO 4 APRIL 2005 27 January 2005 to 4 April 2005 (unaudited) Notes £'000 Turnover 100Cost of sales 30 Gross profit 70Administrative expenses (158) Operating loss (88) Profit on disposal of operations -Income from other fixed assets investments -Other income 23 Loss on ordinary activities beforeinvestment income, interest and taxation (65)Other interest receivable 4Interest payable and similar charges - Loss on ordinary activities beforetaxation (61)Taxation on loss on ordinary activities - Loss on ordinary activities aftertaxation (61)Minority interest: equity -Dividends received - Loss for the financial year attributableto members of the parent company (61) Loss per share: basic and diluted (penceper share) 2 (0.05) There are no recognised gains or losses other than the loss for the period. GROUP BALANCE SHEETFOR THE PERIOD FROM 27 JANUARY 2005 TO 4 APRIL 2005 Unaudited 4 April 2005 Notes £'000Fixed assetsIntangible assets 9,772Tangible assets 1,032 ----- 10,804 -----Current assetsStock 35Debtors 4 390Cash at bank and in hand 1,909 ----- 2,334 Creditors: amounts falling due within one year (578) ----- Net current assets 1,756 -----Creditors: amounts falling due after one year (73) ----- Net assets 12,487 =====Capital and reservesCalled up share capital 1,275Share premium reserve 11,273Profit and loss account (61) -----Total shareholders' funds 5 12,487 The interim financial report was approved by the board of directors on 27 June2005 and was signed on their behalf by: J S Murray-SmithDirector GROUP CASH FLOW STATEMENTAT 4 APRIL 2005 Notes 27 January 2005 to 4 April 2005 (unaudited) £'000 Cash outflow from operatingactivities 6 (47) _________ Returns on investment and servicing of financeInterest element of finance lease rental payments -Interest received -Dividends received - __________ - __________ TaxationTaxation paid - __________ Capital expenditure and financial investmentPayments to acquire tangible fixedassets (48)Payments to acquire intangible fixed assets __________ (48) __________ Acquisitions and disposalsNet cash transferred with subsidiaryundertakings 454 __________ - __________ Net cash inflow before financing (359) __________ FinancingIssue of shares 1,550 __________ 1,550 __________ Increase in cash 1,909 NOTES TO THE INTERIM REPORTFOR THE PERIOD ENDED 4 APRIL 2005 1. ACCOUNTING POLICIES (i) Basis of preparationThe interim report for the period ended 4 April 2005 is unaudited and does notconstitute statutory accounts within the meaning of Section 240 of the CompaniesAct 1985. It has been prepared under the historical cost convention and on abasis consistent with the accounting policies used to prepare audited accountsof the company's wholly owned subsidiary Hardide Coatings Limited for the yearended 30 September 2005. (ii) Basis of consolidationThe group financial statements consolidate the financial information of thecompany and of its subsidiaries. The financial information for each company inthe group has been prepared to 4 April 2005. 2. EARNINGS PER SHARE The calculation of basic and diluted loss per share is based on loss of £61,000the period ended 4 April 2005 and on the weighted average number of ordinaryshares in the period of 127,493,242. 3. INVESTMENTS (a) Subsidiary Undertakings Company No. of Type of Share Nominal Nature of business Shares Shares Capital Value £ Hardide CoatingsLimited 1,927,706 Ordinary 100% 0.10 Surface Coating 4. DEBTORS Unaudited 4 April 2005 £'000 Trade debtors 265Other debtors 125 __________ 390 __________ NOTES TO THE INTERIM REPORT (continued)FOR THE PERIOD ENDED 4 APRIL 2005 5. RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS Unaudited 4 April 2005 £'000Group (Loss)/profit for the period (61)On issue of shares 12,548On share for share exchange - __________ ------------ Increase in shareholders' funds 12,487 Opening shareholders' funds - __________ ------------- Closing shareholders' funds 12,487 6. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES Unaudited 4 April 2005 £'000 Operating loss (20)Depreciation of tangible fixed assets 17Increase in operating debtors and prepayments (93)Increase in stocks (18)Increase in operating creditors and accruals 67Amortisation of goodwill - __________ Cash inflow from operating activities 47 7. COPIES OF THE INTERIM REPORT Copies of this Interim Report will be posted to shareholders and further copieswill be available from the Company's office at Unit 11, Wedgwood Road, Bicester,Oxfordshire OX26 4UL. This information is provided by RNS The company news service from the London Stock Exchange