Last checked at 10 Mar 2009 07:00
| Press Release | 10 March 2009 |
Hardide plc
("Hardide" or the "Group")
Trading Update
Hardide plc (AIM:HDD), the provider of unique metal surface engineering technology, gives the following trading update.
The Group has recently had discussions with a number of its customers in the UK and US to endeavour to secure firmer forecasts of demand for Hardide's product in the light of the current global economic situation.
A number of Hardide's customers' markets, particularly in the oil and gas, automotive and construction industries, have been adversely affected by the economic downturn and the latest sales forecast for Hardide's product to these sectors for the year ending September 2009 is significantly below current management expectations. In the light of continuing uncertainty over sales and the adverse market conditions, the Group is implementing a cost reduction plan formulated to protect its future. This will include the hibernation of the Hardide manufacturing facility in Houston until such time as sales are sufficient to re-commence operations. All product and samples being processed in the US will be transferred to the UK in a managed transition. In the UK, the Group is reviewing its options to deal with the reduction in sales. This will include, subject to full consultation with staff, a redundancy programme. Hardide has seven employees in the US and 26 in the UK.
Commenting on the announcement, Graham Hine, Chief Executive Officer of Hardide plc, said: "The global economic downturn has hit our key markets severely and it is with regret that we have to take these measures to re-align our business to the new market conditions. We are acting quickly to secure the base level of operations from which we can create longer term stability and build the business as circumstances improve.
"It is always hard to lose employees but we have no choice but to ensure that our staffing levels are in line with future business demands. It is particularly hard as this comes at a time when we have been making notable progress in commercialising a coating for titanium, in testing for the coating of diamonds and diamond grit, and when we have secured our first volume production order from a new blue chip oil and gas technology service provider. There has been no reduction in sales due to customer dissatisfaction with Hardide or our coating technology."
- Ends -
For further information:
| Hardide plc | |
| Dr Graham Hine, Chief Executive Jackie Robinson, Head of Communications | Tel: +44 (0) 1869 353 830 |
| www.hardide.com |
| Seymour Pierce Limited | |
| Nicola Marrin | Tel: +44 (0) 20 7107 8000 |
| www.seymourpierce.com |
Media enquiries:
| Abchurch | |
| Chris Lane | Tel: +44 (0) 20 7398 7708 |
| chris.lane@abchurch-group.com | www.abchurch-group.com |
Notes to editors:
Hardide manufactures and applies tungsten carbide-based coatings to a wide range of engineering components. The Group's patented technology provides a unique combination of ultra-hardness, toughness, low friction and chemical resistance in one coating. When applied to components, the technology is proven to offer dramatic cost savings through reduced downtime and extended part life. Customers include leading companies operating in oil and gas exploration and production, valve and pumps manufacturing, general engineering and aerospace.