News blog

Hardide

• BY: Andrew Hore |
• POSTED: 26/11/2014 |

Surface coating technology developer Hardide reported better than expected full year results.

Hardide generated a 28% increase in revenues to £3.03m in the year to September 2014. Stripping out changes in provisions and asset revaluations, the underlying loss fell from £436,000 to £65,000. There was even a small cash inflow from operations.

There was strong growth in aerospace and oil and gas sectors. The first order for coating a fracking tool component was won in the second half. Aerospace demand is starting to build and a process using hexavalent chromium salts has to be replaced by 2017 under EU regulations.

In the summer, a placing at 1.6p a share raised £2.7m. Amati also £633,000 of convertible loan notes converted into shares at 0.45p each. Net cash was £3.4m at the end of September 2014 and this will reduce to £2.5m in 12 months time as capital investments are made. New capacity has also been installed at Bicester, which has increased UK capacity by nearly 50%.

A new production facility is being planned in the US. Hardide already has business in the US and it is getting to the point when a US facility will be economic. The new GE contract is boosting US revenues although last year they dipped to £550,000. There is demand from customers for US production.

Hardide is expected to make a higher underlying loss this year.

At 1.75p a share, Hardide is valued at £23.4m.

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