Hardide plc (LON:HDD), developer and provider of advanced surface coating technology, has provided an update on trading for the financial year ending 30 September 2021 (subject to audit and year-end adjustments).
The Board is pleased that expected improvements across all key markets have come through in the closing months of the financial year. This is evidenced by the value of orders received during H2 FY21 at £2.5m being 52% higher than in H1 FY21, though a significant proportion of this will be recognised as revenue in H1 FY22. This shift means that revenue for H2 FY21 will be in line with that of H1, though a disciplined approach to cost means that EBITDA loss will be in line with expectations. Cash at bank at 30 September 2021 was approximately £1.5 million.
Going into FY22, there are promising signs of recovery across all the Group’s key market sectors:
There are very encouraging signs of recovery in this key market for the Group. For example, one major customer, whose demand reduced significantly in late 2020 due to the pandemic-induced downturn, is placing orders again for delivery in Q1 FY22. Demand from a major UK-based oil and gas customer is also returning. In addition, large project-based orders from a US customer for sand screens have been placed recently for Q1 FY22 delivery.
The substantial first order for coated gas turbine blades that was announced recently is also due for delivery in Q1 FY22 and developments are still continuing with EDF Energy on the coating of large steam turbine blades.
Demand from our major industrial pump manufacturing customer in North America continues to be strong and is projected to continue in H1 FY22.
This market is also continuing to show promising signs of a recovery. Following the successful approval by Airbus of our new Bicester facility, initial orders have been received for A320 aircraft wing components. The coating has already been approved on components for the A330, A380 and A400M aircraft. The Group continues to await finalisation of commercial terms between Airbus and one of its Tier 1 suppliers before that supplier can sign a major supply agreement with the Group. Leonardo Helicopters has now completed its long-running transmission system test programme that included Hardide-coated components. We look forward to production orders of these starting in FY22. Other exciting development projects are underway with multiple aerospace customers, including landing gear and MRO (Maintenance, Repair and Overhaul) companies.
Alternative Energy and Other Sectors
Testing and evaluation of our coated components are also progressing with a large US-based manufacturer of electric vehicles. Indications of the coating’s performance are positive, and more progress is expected in the next few months. The Company is also working on other developments for applications in various sectors of alternative energy production, including solar, nuclear and gas turbines.
Commenting on the trading update, Robert Goddard, Chairman of Hardide plc, said:
“Hardide has experienced significant improvements across all key markets over the course of H2 FY21 and we are seeing increased orders as we continue to emerge out of the worst of the COVID-19 pandemic. The Board and management have continued to make excellent progress in developing the Group’s strategy, particularly to build its position in the global transition to alternative energy sources. The new opportunity with a large manufacturer of electric vehicles in the US is an exciting prospect for Hardide.
“The Board believes that a number of factors, including diversification of our customer base, product development, increased awareness of the benefits of our coatings and strong customer relationships, position the Group well for growth. The Board is looking forward to an improved performance in FY22 and providing further updates on the various exciting projects in progress.”
The Company expects to announce its preliminary results for the year to 30 September 2021 on or about 8 December 2021.