Last checked at 18 Oct 2023 07:00
The information contained within this announcement is deemed by Hardide to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.
18 October 2023
Hardide plc
("Hardide", "the Group" or "the Company")
Year End Trading Update
Hardide plc (AIM: HDD), the provider of advanced surface coating technology, is pleased to provide an update on trading for the financial year ended 30 September 2023 ("FY23").
The Group expects to report revenues for FY23 of £5.5 million and EBITDA close to break even, representing revenue growth of 10% and a significant improvement on the EBITDA loss of £0.9 million in the prior financial year. The Group's cash balance as at 30 September 2023 was £0.7 million, similar to both 31 March 2023 and 30 September 2022.
The Board is pleased that these results demonstrate the success of initiatives announced in December 2022 to focus on profit and working capital improvement initiatives. The benefit of these in the financial year amounted to £0.7 million, double initial expectations.
The Board is determined to accelerate revenue growth from business development, sales, marketing and other commercial initiatives without compromising its disciplined approach to costs and working capital management. This will allow existing production capacity to be better utilised and support the business in becoming cash generative and then earnings per share positive, in line with the strategy set out in February 2023.
The Group is encouraged for the new financial year by sales to the aerospace sector beginning to increase in the final quarter of FY23, with regular orders now being received and customer schedules showing further growth through 2024 and into early 2025 for the coating of existing and new components. The Group also continues to anticipate repeat orders for coating gas turbine compressor blades in FY24, originally anticipated in FY23, and has near-term business development opportunities more generally in the gas and steam turbine markets, with trials under way.
The Board therefore expects the Group to deliver further growth in line with its strategy during this new financial year, moving the Group into EBITDA positive territory.
Note: The figures for FY23 provided above are unaudited. Hardide expects to announce full audited results in early February 2024.
Change of Name of Nominated Adviser and Broker
The Company also announces that its Nominated Adviser and Joint Broker has changed its name to Cavendish Capital Markets Limited following completion of its own corporate merger.
Enquiries: | |
Hardide plc Andrew Magson, Chair Philip Kirkham, CEO Jackie Heddle, Communications Manager |
Tel: +44 (0) 1869 353 830 |
IFC Advisory Graham Herring Tim Metcalfe Florence Chandler |
Tel: +44 (0) 20 3934 6630 |
Cavendish Capital Markets Ltd - Nominated Adviser and Joint Broker Henrik Persson/ Abigail Kelly (Corporate Finance) Barney Hayward (ECM/Broking) |
Tel: +44 (0) 2072 200 500 |
Allenby Capital - Joint Broker Tony Quirke/ Joscelin Pinnington - Sales and Corporate Broking Jeremy Porter/ Dan Dearden-Williams - Corporate Finance
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Tel: +44 (0) 20 3328 5656 |
Notes to editors:
www.hardide.com
Hardide develops, manufactures and applies advanced technology tungsten carbide/tungsten metal matrix 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 as well as a reduced carbon footprint. Customers include leading companies operating in the energy sectors, valve and pump manufacturing, industrial gas turbine, precision engineering and aerospace industries.