News blog

Hardide

• BY: Andrew Hore |
• POSTED: 25/11/2013 |

Surface coating technology developer Hardide believes that next year it will benefit from the investment in developing products and customers but it has limited cash resources.

In the year to September 2013, revenues were 17% lower at £2.36m and a profit of £265,000 was turned into a loss of £902,000, including provisions for a lease and the write down of the US facility which will not come into operation until demand increases significantly. The gross profit did not even cover the admin expenses. Net cash was £330,000 at the end of September 2013, which is similar to the cash outflow from operations last year.

Revenues from the oil and gas sector have slumped by 27%, although that was mainly due to one customer. Newer engineering and aerospace uses are growing. One major flow control customer continues to increase its orders.

Airbus and AgustaWestland continue to test the company’s products and the programmes should be complete in the middle of 2014. The coating for a fracking tool is being tested. A marketing partner is being sought for the pump, valve and power generation markets in Italy.

At 0.93p a share, down 0.2p, Hardide is valued at £9.54m.

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