Hardide plc (LON: HDD), the developer and provider of advanced surface coating technology, has provided an update on trading for the third quarter of the financial year to 30 September 2022 and year to date.
The improvements across the Company’s key markets reported in the Company’s results for the first half have continued in line with the Board’s expectations although, in recent weeks, there has been increased volatility emerging in demand driven by lengthened raw material lead times for customers, and certain project revenues scheduled for the final quarter may now be recognised in the next financial year starting 1 October 2022. Revenues for the year to 30 September 2022 are expected to be broadly in line with the Board’s expectations albeit with a slightly wider range of possible outcomes, which will also be reflected at the EBITDA level.
The Group had £0.8m of cash at 30 June 2022 (31 March 2022: £0.9m) and continues to maintain strict cost and investment discipline. However, the Board is mindful that the Group is exposed increasingly to an extended period between purchasing key raw materials and receiving payment from customers. As previously stated, the Group is exploring financing options to support its near-term working capital requirements in addition to potential investment in equipment.
The Board maintains a positive outlook for the business beyond the near term as supply chains and markets continue their recovery and developments currently under way become realised. The Company sees clear potential for the next financial year to show considerable improvement on recent years.