Hardide plc (LON:HDD), at the Annual General Meeting to be held at 11:30am today, Robert Goddard, Chairman of the Company, will make the following statement:
“The Company is in a sound financial position with new proceeds of approximately £1 million received from the recent fundraising. As expected, trading remains largely stable around the same levels experienced in the second half of last year, when the effects of the COVID-19 pandemic impacted our target market sectors. The Board expects recovery in demand, particularly from the oil and gas sector, to accelerate in H2 2021. The rise in oil prices to over $60 per barrel, the encouraging increase in the number of working oil and gas rigs in North America and the increasing global demand for oil, gives us confidence that the beginning of recovery is underway.
“The new UK site is fully operational, with both sufficient capacity and capability to cope with the expected near-term resumption of customer demand. Aerospace business from Airbus, while somewhat delayed due to the effects of COVID-19, is expected to commence in late 2021. The accreditation of equipment and production processes at the new site is on schedule and due to be completed in late spring/early summer of 2021. The lease on the Wedgwood Road site ends in October 2021. The US site has continued operating normally with the new, fourth coating reactor now fully operational.
“The Board retains its positive outlook and expectations that demand will return and continue on the upward trajectory that was established before the pandemic. In addition, there are a number of potential high‑volume projects in development and test with aerospace, energy and precision engineering customers. As ever, all or some of these may or may not come to fruition, but each has the potential to make a significant contribution to revenue to the Group.
“Half year results are expected to be published on or around 20 May 2021.”