Hardide Q&A: Encouraging and very positive period (LON:HDD)

Hardide plc (LON:HDD) Chief Executive Officer Philip Kirkham caught up with DirectorsTalk for an exclusive interview to discuss half-year results, their new UK premises, encouraging progress with aerospace and power generation customers, the transition to alternative energy and the longer term outlook for the group.

Q1: Interims published today for Hardide, it’s been a half-year that has seen effects of the pandemic in some of your key sectors like energy and aerospace. Phil, how would you characterise the half-year?

A1: Well, it’s been very challenging and frustrating but we’ve made some really good progress on some exciting new fast-track applications, which I can go into a bit more detail about shortly.

If you look at the first half of the last financial year, we were on a very steep upward trajectory, before the pandemic affected our customers’ demand, and obviously it especially affected the oil and gas sector. This sector and other sectors are now showing quite good signs of recovery, the higher oil price and the rising rig count should see demanding increasing again throughout the second half. It’s interesting that there was a very encouraging statement recently from the CEO of one of the major oil service companies, Schlumberger, that said that they were expecting demand to pick up significantly in the second half of 2021 and onwards into 2022.

If you look at the aerospace sector, civil aircraft bill rates have obviously been cut back substantially and maintenance and overhaul reduced as aircraft have been flying fewer hours. As yet we’ve not really started to supply Airbus in any significant way so that’s not affecting our revenues but it has pushed back the starting date of our supplying into them to later this year.

However, interestingly, we’ve also seen a fivefold increasing in demand for the canopy locking components that we coat for the Typhoon Eurofighter compared to the same period last year so that’s been very encouraging and very positive.

Q2: Is your move to new and expanded UK premises now complete?

A2: Yes, it is, the move really sort of completed in the middle of autumn last year. The move went very smoothly, all the processes have been running since with no problems, we’ve been doing a lot of qualification with Airbus on the new site to get this approved production. The final part of that is an audit that is due to take place later in June and, following that, we should be fully qualified to process Airbus parts of the new site.

The last coating reactor that we had to leave at the old Wedgewood Road site, for Airbus components, that comes out at the end of June and will be transferred over to the Longlands Road site.

We can get on with the final site clearance with the lease at Wedgewood Road ending in October this year.

Q3: Now, as you mentioned, you reported encouraging progress with aerospace and power generation customers. Can you tell us more about that?

A3: We’re very close to signing a long-term agreement with a large German tier-one supplier to Airbus for various A330 A320 20 components and they’re just waiting for some last minute details from Airbus to put into the agreement. We’re also getting close to production orders from other tier-one suppliers for new components for Airbus as well.

In the power generation side of things, we’ve had a long development process with EDF, on the steam turbine blades, which is coming to a conclusion. We’ve a much quicker development that’s happened more recently with a major European manufacturer of industrial gas turbines, where they’ve now written a technical specification for our coatings and we are now rapidly moving into a qualification and validation phase. First orders expected for coated blades later in 2021 and more expected in 2022.

Q4: The group is embracing the transition to alternative energy with a strategy to build its position in this area. How is that progressing now?

A4: We’re very conscious of the long-term global moves to reduce dependency on fossil fuels and we’ve developed a strategy to really look at new applications in the alternative energy sectors.

Now, one very interesting application we’re currently involved with is a coating of components used in the manufacturer of electric vehicle batteries and here we’re working with a major US electric vehicle manufacturer.

Another alternative energy sector is solar energy which we have been in for some time, we’re supplying coated components using the production process of the materials that go into solar cells. As you would expect, this demand is growing, the customers are growing and rapidly expanding their production facilities. So, we will see more business from that area as their demand grows.

We’re also looking at other potential opportunities in areas such as geothermal energy, energy from biomass, and also nuclear fusion and we’ve got a number of interesting leads in these areas at the moment.

Q5: Phil, how do you view the next year and the longer term outlook for Hardide?

A5: With excitement really, it’s an exciting time, we’ve lots of very positive developments underway with Airbus and other outer space companies and add to that, the electric vehicle battery opportunities, and the industrial gas turbine opportunities. These are potentially huge numbers for us.

During the pandemic, we didn’t lose any customers at all, there are good signs of recovery happening in our traditional markets, and we very much look forward to an improved second half and a very positive 2022.

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Share on facebook
    Facebook
    Share on twitter
    Twitter
    Share on linkedin
    LinkedIn
    Hardide Plc

    More articles like this

    Hardide Plc

    Hardide appoints Steve Paul as Interim CEO to drive revenue growth

    Hardide plc (LON:HDD), the provider of advanced surface coating technology, has announced the appointment of Stephen (Steve) Paul as Interim Chief Executive Officer with effect from 12 February 2024. Steve will succeed Philip (Phil) Kirkham who, as announced on 1

    Hardide Plc

    Hardide revenue increased by 10% to a record £5.5m

    Hardide plc (LON:HDD), the developer and provider of advanced surface coating technology, announces its preliminary annual results for the year ended 30 September 2023, which remain subject to audit sign off. FY23 Financial Highlights FY23 FY22 Change Revenue (£m) 5.5

    Hardman & Co

    Hardide plc results demonstrate the success of its initiatives

    Hardide plc (LON:HDD), the provider of advanced surface coating technology, has provided an update on trading for the financial year ended 30 September 2023 (“FY23”). The Group expects to report revenues for FY23 of £5.5 million and EBITDA close

    Hardide Plc

    Hardide firmly back on upwards trajectory (LON:HDD)

    Hardide’s Philip Kirkham discusses financial highlights from interim results, increased sales in energy & aerospace, power generation opportunities and what investors can expect going forward in this exclusive interview with DirectorsTalk.

    Hardide Plc

    Hardide excited by success in the power generation sector (VIDEO)

    Hardide Plc (LON:HDD) CEO Phil Kirkham joins DirectorsTalk Interviews to discuss results for the six-month period ended 31 March 2023. In this interview CEO Phil Kirkham talks us through the financial highlights, explains why total energy sales increased by

    Hardide Plc

    Hardide revenues up 9% from H1 FY22 and 22% higher than H2 FY22

    Hardide plc (LON:HDD), the developer and provider of advanced surface coating technology, has announced its results for the six-month period ended 31 March 2023. Highlights Financial ·    Revenue of £2.9m (H1 FY22: £2.7m), a 9% increase over H1 FY22

    Hardide Plc

    Hardide partners with Gardner Aerospace to coat Airbus components

    Hardide plc (LON:HDD), an advanced surface coating technology company, has entered into a partnership with Gardner Aerospace to coat key wing components for the Airbus A320 family of aircraft. The Hardide CVD (chemical vapour deposition) nano-structured tungsten/tungsten carbide

    Hardide Plc

    Hardide experiencing growth across its key markets

    Hardide plc (LON:HDD) will be holding its Annual General Meeting at 10.30am today, at which the Chair will provide the following update on trading to date in its financial year ending 30 September 2023. The Board reiterates its cautiously

    Hardide Plc

    Hardide strong growth with revenue increasing by 39% to £5.0m

    Hardide plc (LON:HDD), the developer and provider of advanced surface coating technology, has announced its annual results for the year ended 30 September 2022. Highlights Financial · Revenue increased by 39% to £5.0m (FY21: £3.6m) · Gross margin improved

    Hardide Plc

    Hardide revenues expected to be 40% up on last year

    Hardide plc (LON:HDD), the developer and provider of advanced surface coating technology, has provided an update on trading for the financial year ended 30 September 2022 (subject to audit and year-end adjustments). Revenues for the year to 30

    Hardide Plc

    Hardide positive results and a strong, diverse pipeline (VIDEO)

    Hardide Plc (LON: HDD) CEO Philip Kirkham joins DirectorsTalk Interviews to discuss results for the six-month period ended 31st March 2022. Phil talks us through the Group’s first half performance, the strong pipeline for H2, progress in diversifying the

    No more posts to show