Last checked at 22 Mar 2016 07:00
22 March 2016
AIM: HDD
Hardide plc
("Hardide" or "the company")
Trading Update
Hardide (AIM: HDD), the developer and provider of advanced surface coating technology, makes the following update on trading as the company closes the first six months of its current financial year to 30 September 2016.
As previously reported, the Board has been monitoring demand from the oil & gas markets in the light of the global slowdown. Having completed its latest review, it is clear that customer demand from this sector remains low as a direct result of the fall in the oil price. The Board now expects that the trading performance for the full financial year will be below current market expectations, with results weighted towards the second half, reflecting anticipated phasing of orders.
Nonetheless, the company has maintained its pricing with customers in this sector, reflecting the value of its technology, and it continues to work with existing and new oil & gas customers on future potential high value applications. Revenues from other sectors, in particular advanced engineering and aerospace combined, have nearly doubled year-on-year in the first half as Hardide continues to make good progress and diversify its customer base. The Board also remains very encouraged by the strong pipeline of prospects evident across the range of its target sectors.
The management continues to maintain a tight control of the cost base.
Robert Goddard, Chairman of Hardide plc, said:
"While headwinds in the oil & gas sector continue to affect our key oil and gas customers, we remain encouraged by the progress made in other sectors, including in advanced engineering and aerospace. This supports Hardide's longer term prospects as our technology is increasingly adopted in new applications and markets."
For further information:
Hardide plc Philip Kirkham, CEO Jackie Robinson, Communications Manager | Tel: +44 (0) 1869 353 830
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finnCap Stuart Andrews / Grant Bergman | Tel: +44 (0)20 7220 0500
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KTZ Communications Katie Tzouliadis | Tel: +44 (0)20 3178 6378 |
Notes to editors:
www.hardide.com
Hardide develops, manufactures and applies advanced technology tungsten-carbide coatings to a wide range of engineering components. Its patented technology is unique in combining, in one material, a mix of toughness and resistance to abrasion, erosion and corrosion; together with the ability to coat accurately interior surfaces and complex geometries. The material is proven to offer dramatic improvements in component life, particularly when applied to components that operate in very aggressive environments. This results in cost savings through reduced downtime and increased operational efficiency. Customers include leading companies operating in oil and gas exploration and production, valve and pump manufacturing, nuclear, advanced engineering and aerospace industries.