Hardide plc (LON:HDD), the developer and provider of advanced surface coating technology, has announced that further to the £0.5m equity fundraising in September, the Group has raised a further c.£0.5m in net cash proceeds from the purchase, sale and leaseback of its Martinsville facility in the USA. Accordingly, the Group has entered into a new 10 year lease for the site.
In addition, the Board has recently implemented a series of working capital efficiency and cost reduction initiatives. These are expected to generate a further £0.3m to £0.4m of cash over the next six months, providing additional working capital headroom whilst helping to underpin expectations of results for the financial year ending 30 September 2023. The Group maintains strong cost discipline and is focused on moving toward organic cash generation, but in the meantime will continue to explore options to raise additional funds to further improve its financial position.
Annual results
The Group expects to announce its annual results for the financial year to 30 September 2022 on 8 February 2023, following completion of the external audit.
In the meantime, the Board reiterates its expectation of revenues for the year to 30 September 2022 to be approximately £5.0m, an increase of almost 40% on the previous year as per the year end trading update of 13 October 2022. The Board also now expects to report an EBITDA loss of £0.9m (FY 2021: EBITDA loss of £1.5m), considerably better than the previous year in line with the Board’s expectations and reflecting the improved revenue performance.
Revenue growth has continued in the new financial year, with Hardide achieving record monthly revenues in November.
