TIDMHDD
RNS Number : 2188P
Hardide PLC
08 February 2023
8 February 2023
Hardide plc
("Hardide", the "Group" or the "Company")
Annual results for the year ended 30 September 2022
Strong revenue growth from increasing market adoption of our
patented coating technology
Hardide plc (AIM: HDD), the developer and provider of advanced
surface coating technology , announces its annual results for the
year ended 30 September 2022.
Highlights
Financial
-- Revenue increased by 39% to GBP5.0m (FY21: GBP3.6m)
-- Gross margin improved to 37% (FY21: 36%)
-- Significant reduction in the EBITDA loss to GBP0.9m (FY21:
GBP1.5m loss)
-- Statutory loss before tax of GBP2.3m (FY21: GBP2.9m)
-- Fundraising in September 2022 raised GBP0.5m to support
working capital requirements. Further initiatives to improve
the Group's financial position and to provide further working
capital have continued in the new financial year
-- Cash at bank at 30 September 2022 of GBP0.7m (FY21: GBP1.5m)
Commercial
Strong revenue growth was achieved across all end-use market
sectors:
* Energy (representing 57% of FY22 sales): 72% increase
overall, comprising 54% increase to the oil & gas
sector and an over six-fold increase to power
generation, including new business coating turbine
blades
* Industrial (representing 39% of FY22 sales): 10%
increase including increased demand from a
manufacturer of industrial pumps
* Aerospace (representing 4% of FY22 sales): 24%
increase in sales to the aerospace sector, with
production orders now regularly being received for
the Airbus A320, A330, A380 and A400M series aircraft
* In addition, the Company is pursuing significant
business development opportunities in the green
energy and electric vehicle (EV) markets, including
wind and solar power, hydrogen generation and battery
production applications
FY23 developments
* Full supplier approval received from Leonardo
Helicopters to coat flying parts. First production
orders received for helicopter transmission system
components
* Purchase, sale and leaseback completed of the
Martinsville facility in the USA, generating GBP0.5m
cash in December 2022
* The Board has recently implemented a series of
working capital efficiency and cost reduction
initiatives that are expected to generate a further
GBP0.3m-0.4m of cash during in the first half of the
current calendar year, providing additional headroom,
improving profitability, and helping to underpin
delivery on expectations for the financial year to 30
September 2023. Opportunities to further strengthen
the balance sheet are also being considered
* The Group maintains strong cost discipline and is
focused on moving toward organic cash generation.
Strategy
Following a recent strategic review, the Board is executing
a two-stage approach:
(a) Focus on becoming profitable and cash generative. This
will be driven mainly by increased sales to existing and
new customers, utilising proven coating technology and existing
production capacity, thereby benefiting from the Group's
strong operational gearing; and
(b) Developing opportunities to drive significant value
for shareholders and other stakeholders over the medium
to longer term, through further development and commercialisation
of the Group's unique high performance coatings technology,
including co-operation with other coatings companies
Commenting on the results, Philip Kirkham, CEO of Hardide plc,
said: "I am pleased to report strong revenue growth across all the
Group's end-use market sectors. In FY22, overall revenues increased
by 39% from FY21, recovering to the pre-pandemic record level of
GBP5.0m. This enabled a significant improvement in the EBITDA loss
to GBP0.9m from GBP1.5m in the prior year.
"The new financial year has started well, with revenues in the
first quarter ahead of those in the same period last year.
"Whilst the Board is mindful of economic headwinds, ongoing cost
inflation and supply chain disruption, Hardide has been successful
in recovering cost increases through selling prices, and revenues
continue to grow from increasing customer adoption of our coatings.
As evidenced by the recent action taken to improve working capital
and reduce cost, the Board is focused on becoming profitable and
cash generative.
"More broadly, the Board is seeking opportunities to drive
significant value for shareholders and other stakeholders over the
medium to longer term through further development and
commercialisation of the Group's unique high performance coatings
technology, including co-operation with other coatings
companies."
Note: EBITDA excludes depreciation and amortisation of owned
assets GBP0.9m (FY21 GBP0.9m), depreciation of right of use assets
GBP0.3m (FY21 GBP0.3m), net financing costs of GBP0.1m (FY21 GBP0.1
m) and share based payment charges GBPNil (FY21 GBP0.2m).
Enquiries:
Hardide plc
Andrew Magson, Chair Tel: +44 (0) 1869 353
Philip Kirkham, CEO 830
Jackie Heddle, Communications Manager
IFC Advisory Tel: +44 (0) 20 3934
Graham Herring 6630
Tim Metcalfe
Florence Chandler
finnCap - Nominated Adviser and Joint Broker Tel: +44 (0) 2072 200
Henrik Persson/ Abigail Kelly (Corporate 500
finance)
Barney Hayward (ECM/Broking)
Allenby Capital - Joint Broker Tel: +44 (0) 20 3328
Tony Quirke - Sales and Corporate Broking 5656
Jeremy Porter/ Dan Dearden-Williams - Corporate
Finance
Notes to editors:
www.hardide.com
Hardide develops, manufactures and applies advanced technology
tungsten carbide/tungsten metal matrix coatings to a wide range of
engineering components. Its patented technology is unique in
combining in one material, a mix of toughness and resistance to
abrasion, erosion and corrosion; together with the ability to coat
accurately interior surfaces and complex geometries. The material
is proven to offer dramatic improvements in component life,
particularly when applied to components that operate in very
aggressive environments. This results in cost savings through
reduced downtime and increased operational efficiency. Customers
include leading companies operating in the energy sectors, valve
and pump manufacturing, industrial gas turbine, precision
engineering and aerospace industries.
OVERVIEW
The Board is pleased to report the Group's annual results for
the 2022 financial year. Revenues increased by 39% from FY21,
recovering to pre-pandemic (FY19) levels of GBP5.0m. Revenue growth
was led by the oil & gas sector as the market began to recover
from the downturn during the COVID-19 pandemic.
The combination of strong revenue growth and operational gearing
led to a significant reduction in the EBITDA loss to GBP0.9m for
the year, compared with the prior year equivalent of a GBP1.5m
loss.
The improvement in revenues has continued in the current
financial year, with revenues in the first quarter ahead of the
same period last year.
STRATEGY
Following recent strategic review, the Board is executing a
two-stage approach:
(a) Focus on becoming profitable and cash generative. This will
be driven mainly by increased sales to existing and new customers,
utilising proven coating technology and existing production
capacity, thereby benefiting from the Group's strong operational
gearing; and
(b) Developing opportunities to drive significant value for
shareholders and other stakeholders over the medium to longer term
through further development and commercialisation of the Group's
unique, high performance coatings technology, including
co-operation with other coatings companies.
OPERATIONAL OVERVIEW
Customers and Markets
The mix of revenue to our main markets during the year was:
-- Energy: 57% (including oil & gas and power generation)
-- Industrial: 39%
-- Aerospace: 4%
Energy
Sales to energy customers increased by 72% during FY22,
including a 54% increase in sales to oil & gas customers. While
recovery of demand from our traditional oil & gas customers is
strong, it has taken longer than expected to be reflected in our
sales due to supply chain delays caused by the shortage of raw
materials and labour available to manufacture customers' parts.
Of particular note is that we successfully completed laboratory
and field tests for a major European oil & gas company with
excellent results, demonstrating that the use of Hardide coating
will provide longer-lasting 'nodding donkey' type land-based pumps.
The 139-day field test showed no signs of wear, scratches or
material loss on the parts. Post-period, large batch parts have
been coated for operational field testing. Production orders are
expected on successful completion of these tests in the current
financial year. The broader market potential for an extended-life
version of this well-established technology is considerable.
Further orders are expected in FY23 for the coating of wire mesh
used in a new coated sand screen. Chevron Corporation published an
exceptionally detailed conference paper in October 2022, at the
prestigious SPE Annual Technology Conference and Exhibition in
Houston, USA, reporting that the Hardide-coated sand screen
achieves a 4x-6x increase in erosion performance and a 10x
reduction in corrosion rate as compared to conventional premium
sand screens. Over 3,000 feet of these coated sand screens have
been deployed in wells to date, with more planned in 2023. This
impressive performance is only possible because the unique
properties of the Hardide coating mean that it is possible to coat
the individual wires which comprise the multi-layer woven metal
mesh. Developments are underway with other major companies on
similar sand control applications.
Good progress has been made in diversifying the oil & gas
customer base with sales spread across a broadening number of
customers and with not one dominating divisional revenues.
The IEA World Energy Outlook 2022 cites global demand for energy
from oil & gas continuing to grow to 2030, while renewable
sources are forecast to account for nearly 50% of electricity
generation. Concurrently, industry and governments are committing
to transition from fossil fuels and reach net-zero targets. This
evolution will provide additional opportunities for Hardide in the
oil & gas and alternative energy sectors. The Group is pursuing
these with vigour.
Alternative Energy
It is a strategic objective for the Group to increase the
proportion of revenue generated from the alternative energy sector.
Promising progress with development projects is being made,
particularly in hydrogen applications.
Several Hardide coating variants were tested at Cranfield
University involving a process for the manufacture of 'green'
hydrogen. The results are encouraging and details of the testing
are confidential to maintain patentability of the application. A
grant has been awarded by the Henry Royce Institute to fund further
testing. In another hydrogen application, a customer is testing the
permeability of the Hardide coating for use on components in a
hydrogen compressor. Subject to positive results, this opens up a
large range of opportunities for Hardide coatings in hydrogen
storage and distribution.
The increase in sales expected to our manufacturer of products
for the solar cell industry has been lower than expected in FY22
due to the exceptionally high energy prices. Demand for their
product is increasing and they have already expanded capacity and
expect to ramp-up production in 2023. Sales of our coating on its
components will increase directly in line with their production
volumes.
Power Generation
Two high-value production orders of coated gas turbine blades
were delivered to Ansaldo Energia S.p.A. in Italy and repeat orders
are expected in 2023. Developments are also underway on additional
applications.
Currently, the Group is working on projects with five power
generation companies in the UK and overseas. These are based on
Hardide's recently patented coating for blades and vanes for
turbines.
EDF Energy is in the process of evaluating the results of
resonance tests on the Hardide-coated blades for steam turbines
before proceeding to the next stage of development.
Industrial
Demand increased in this sector by 10% from FY21. This was led
by a 39% increase in sales to our major industrial pump customer in
North America. However, there was a reduction in revenue from the
airport X-ray equipment manufacturer due to the COVID downturn.
Recovery in demand for their machines has been slow but is
projected to increase throughout 2023. Developments are still
taking place with the large EV manufacturer on components used in
the battery production process. Testing is underway on multiple
industrial applications with a large customer in the Far East.
The Group has been developing opportunities in South Korea
following a trade visit organised by Innovate UK in October 2019
and attended by the Group's Technical Director. Further progress
will require local expertise and to this end, a local partner with
extensive experience of selling high-value coatings has been
identified and with whom the Group has now signed a marketing
agency agreement.
Aerospace
Aerospace sales increased by 24% during FY22, with regular
orders being received to coat components for the Airbus A320, A330,
A380, A400M and the Beluga transport aircraft. Additional
applications are currently in development and testing. Orders
continue to be received for the BAE Eurofighter Typhoon. Further
orders are expected in FY23 for the Lockheed Martin F35 Lightning
II fighter. Technical discussions and trials are underway with
several other OEM and maintenance, repair and operations ("MRO")
companies for applications including landing gear, door mechanisms
and peripheral engine components.
In its Global Services Forecast for 2022-2041, Airbus expects
aftermarket maintenance activity to recover to pre-pandemic levels
in 2023 and to double in value to $230bn over the next 20 years.
Over this time, we expect that many additional applications for
Hardide will be approved. Airbus has also increased its 20-year
delivery forecast outlook in support of a firm market recovery.
Post-period end, the Group received full supplier approval from
Leonardo Helicopters ("Leonardo") to coat flying parts. The first
production order has been coated already. These are for components
used in helicopter gearbox transmission systems. They are part of
an existing aircraft upgrade and will reduce 'in-service' costs and
extend component life. Leonardo is one of the UK's leading
aerospace companies and one of the biggest suppliers of defence and
security equipment to the UK Ministry of Defence. This approval is
expected to open up other opportunities within the wider Leonardo
Group and the broader helicopter market.
Hardide exhibited at the Singapore Airshow in February 2022 and
at the Farnborough Airshow in July 2022, increasing its exposure in
the aerospace sector.
Accreditations and Research & Development
In July 2022, Hardide's UK site achieved Nadcap Gold Merit
status, the highest accreditation available for commitment to
continual improvement in aerospace quality. The UK site was also
re-certified to environmental standard ISO 14001 for a further
three years.
Fundamental experimental work on the development of a new
coating variant that would open additional markets for Hardide has
been completed. Preliminary assessment has shown the new coating
could be patentable. Further development work will be necessary to
scale-up and characterise the coating and the Group is looking to
secure grant funding for this.
Intellectual Property
Our most recent patent covers the enhanced Hardide coating with
improved mechanical properties and its new applications, including
turbine blades and vanes. This has been granted in the UK and
registration of the equivalent patent is progressing in 10 leading
industrial countries.
BOARD AND EMPLOYEES
Following the financial year end, Robert Goddard, the Group's
long-serving Chairman stepped down as part of a planned Board
succession and was succeeded by Andrew Magson.
On behalf of shareholders and the Board, we'd like to put on
record our immense thanks and gratitude to Robert for over 14 years
of invaluable service and leadership to Hardide as Chairman,
without which the Group as we know it today would simply not exist.
He leaves the business well positioned for further growth. All at
Hardide wish Robert the very best for the future.
The significant improvement in the Group's recent performance
would not have been possible without the hard work and dedication
of all our employees. The Board would like to express its thanks
and gratitude to everyone for their contribution to the Group's
ongoing growth and development.
OUTLOOK
Whilst the Board is mindful of economic headwinds, ongoing cost
inflation and supply chain disruption, Hardide has been successful
in recovering cost increases through selling prices, and revenues
continue to grow as a result of increasing customer adoption of our
coatings. As evidenced by the recent action taken to improve
working capital and reduce cost, the Board is focused on becoming
profitable and cash generative.
More broadly, the Board is seeking opportunities to drive
significant value for shareholders and other stakeholders over the
medium to longer term through further development and
commercialisation of the Group's unique, high performance coatings
technology, including co-operation with other coatings
companies.
FINANCIAL REVIEW
Income Statement
Sales revenue recovered strongly across our key markets,
increasing by 39% to GBP5.0m. Despite inflationary cost pressures
across the supply chain, including an almost twofold increase in
the cost of energy, the Group improved its Gross Margins from 36%
in FY21 to 37%.
The Group's EBITDA loss was GBP0.9m (FY21: GBP1.5m loss)
reflecting the increased revenues at improved gross margins.
The statutory loss before tax was GBP2.3m (FY21: GBP2.9m).
Balance Sheet
Net assets at 30 September 2022 were GBP5.5m (FY21: GBP6.9m),
the reduction mainly reflecting the losses incurred during the
year. Non-current assets, including right of use assets, were
GBP7.2m (FY21: GBP7.7m). Hardide is well invested and therefore
depreciation exceeded capital investment during the year. Capital
expenditure was GBP0.3m (FY21: GBP0.3m), largely relating to
upgrades to the older reactors in the UK.
Working Capital
Inventory levels were at broadly the same level as the previous
year at GBP0.5m, despite the increase in sales. The main inventory
item is process gas, and inventory movements year on year are often
attributable to the timing of gas deliveries.
Trade and other receivables increased to GBP1.0m (FY22: GBP0.6m)
as a consequence of the increased sales over the last two months
compared to the equivalent period in 2021. The level of overdue
debts was GBP0.1m higher than the previous year, although this
related to one customer that paid shortly after the year end.
Cash Flow
The cash outflow from operating activities was GBP1.0m, compared
to GBP1.9m in FY21, reflecting the improved trading performance.
Capital expenditure was GBP0.3m (FY21: GBP0.3m), with the level of
capital expenditure required going forward mainly associated with
health and safety improvements and maintenance upgrades. There is
no immediate requirement to invest in capacity in either the UK or
US facilities.
The overall cash outflow for the year was GBP0.8m (FY21:
GBP1.2m).
Borrowings and right of use lease liabilities, at GBP3.1m,
remained at a similar level to FY21.
The cash balance at the end of the financial year was GBP0.7m
(FY21: GBP1.5m) whilst net debt, including lease liabilities was
GBP2.4m (FY21: GBP1.5m), and excluding lease liabilities was
GBP0.4m (FY21: GBP0.6m net cash).
Funding
To strengthen its cash position and provide greater working
capital flexibility and headroom, the Group has recently raised new
funds as follows:
-- GBP0.5m, net of expenses, through an equity fundraising
in September 2022; and
-- GBP0.5m from the purchase, sale and leaseback of our facility
in Martinsville, USA, in December 2022.
In addition, the Board recently put in place a series of
initiatives to improve working capital and reduce costs by
GBP0.3m-0.4m by the end of the first half of the current calendar
year. This will provide additional headroom, improve profitability,
and help to underpin delivery of expectations for the financial
year to 30 September 2023. Opportunities to further strengthen the
balance sheet are also being considered.
Going Concern
The directors have adopted the going concern basis in preparing
the financial statements after assessing the principal risks and
having considered the impact of various downside scenarios compared
to the Group's base case financial plans, the pace of sales growth
and the level of profit margins for a period of at least 12 months
from the date of signing the Annual Report. Whilst the
macro-economic position is highly volatile, making scenario
planning difficult, the directors have considered various impacts
on sales, profitability and cash flows and believe that the Group
will have adequate resources to continue in operational existence
for the foreseeable future.
The directors considered how the current economic climate,
including external forecasts of lower economic growth or recession
in 2023, higher interest rates and inflation, may affect the
performance of the business; from the supply chain to the ability
of our customers to operate. A major disruption caused by such
factors would most likely result in reduced sales volumes and
require significant action in relation to operational cost
reductions, working capital management and control over capital
investment. We considered the sensitivity of sales volume
reductions over a substantial part of our 2023 financial year and
also into 2024. The revenue and operational leverage impact of such
a volume loss would have a significant negative impact on the
performance of the Group, albeit cash would be released from lower
working capital requirements and lower capital spend. The scenario
modelling indicates that the Group would have sufficient cash
reserves over the foreseeable future. In addition, the Group has a
successful track record of raising additional equity finance, if
required, to support solvency and growth. The directors therefore
believe that the Group is reasonably placed to manage its financing
and other business risks satisfactorily, and have a reasonable
expectation that the Group will have adequate resources to continue
in operation for at least 12 months from the date of signing of the
Group financial statements. Therefore, they consider it appropriate
to adopt the going concern basis of accounting in preparing the
financial statements.
SUSTAINABILITY AND ESG
On completion of the move to the new UK site in 2020, targets
were set in FY21 to reduce emissions per GBPm of sales by 15% from
this baseline year. In FY22, these targets were exceeded
considerably on every measure. More broadly, the use of Hardide
coatings contributes to the sustainability agenda by significantly
increasing the operational life of coated parts, thereby reducing
waste and improving efficiency for our customers. The Group is
committed to high standards of ethical behaviour and strong
governance. Full details are within the ESG section of the annual
report.
Andrew Magson Philip Kirkham
Chair CEO
7 February 2023
CONSOLIDATED INCOME STATEMENT
for the year ended 30 September 2022
Audited Audited
12 months 12 months
to 30 September to 30 September
2022 2021
GBP000 GBP000
Revenue 5,015 3,597
Cost of sales (3,135) (2,286)
Gross profit 1,880 1,311
-------------------------------------------- ----------------- -----------------
Administrative expenses (2,830) (2,795)
Depreciation and amortisation of
owned assets (890) (854)
Depreciation of right of use assets (318) (280)
Share based payments 9 (202)
Provisions - (6)
Operating (loss) (2,149) (2,826)
-------------------------------------------- ----------------- -----------------
Finance income 4 3
Finance costs (49) (17)
Finance costs on right of use assets (80) (87)
(Loss) on ordinary activities
before taxation (2,274) (2,927)
-------------------------------------------- ----------------- -----------------
Taxation 86 125
(Loss) on ordinary activities
after taxation (2,188) (2,802)
-------------------------------------------- ----------------- -----------------
(Loss) per share: Basic (3.9)p (5.1)p
(Loss) per share: Diluted (3.9)p (5.1)p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 30 September 2022
Audited Audited
As at 30 As at 30
September September
2022 2021
GBP000 GBP000
Assets
Non-current assets
Goodwill 69 69
Intangible assets 19 36
Property, plant & equipment 5,402 5,700
Right of use assets 1,660 1,881
-------------------------------------- ----------- -----------
Total non-current assets 7,150 7,686
-------------------------------------- ----------- -----------
Current assets
Inventories 487 504
Trade and other receivables 955 583
Other current financial assets 450 442
Cash and cash equivalents 693 1,543
-------------------------------------- ----------- -----------
Total current assets 2,585 3,072
-------------------------------------- ----------- -----------
Total assets 9,735 10,758
-------------------------------------- ----------- -----------
Liabilities
Current liabilities
Trade and other payables 1,077 702
Financial liabilities 257 208
Right of use lease liability 201 201
Provisions
Provision for onerous lease and
dilapidations - 34
Total current liabilities 1,535 1,145
-------------------------------------- ----------- -----------
Net current assets 1,050 1,927
-------------------------------------- ----------- -----------
Non-current liabilities
Financial liabilities 878 738
Right of use lease liability 1,742 1,911
Provision for dilapidations 50 50
Total non-current liabilities 2,670 2,699
-------------------------------------- ----------- -----------
Total liabilities 4,205 3,844
-------------------------------------- ----------- -----------
Net assets 5,530 6,914
-------------------------------------- ----------- -----------
Equity attributable to equity
holders of the parent
Share capital 4,063 3,942
Share premium 19,242 18,854
Retained earnings (18,200) (16,012)
Share-based payments reserve 553 562
Translation reserve (128) (432)
-------------------------------------- ----------- -----------
Total equity 5,530 6,914
-------------------------------------- ----------- -----------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 September 2022
Audited Audited
12 months 12 months
to 30 September to 30 September
2022 2021
GBP000 GBP000
Cash flows from operating activities
Operating (loss) (2,149) (2,826)
Amortisation of intangibles 18 18
Depreciation on owned assets 872 836
Depreciation on right of use assets 318 280
Share option charge (9) 202
Decrease in inventories 17 61
(Increase) in receivables (372) (115)
Increase / (decrease) in payables 372 (204)
(Decrease) in provisions (34) (183)
Cash used in operations (967) (1,931)
--------------------------------------------- ----------------- -----------------
Finance income 4 3
Finance costs (49) (17)
Right of use asset interest (80) (87)
Tax received 78 96
Net used from operating activities (1,014) (1,936)
--------------------------------------------- ----------------- -----------------
Cash flows from investing activities
Proceeds from sales of property, plant
and equipment 7 18
Purchase of intangibles (1) (4)
Purchase of property, plant and equipment (298) (313)
Net cash used in investing activities (292) (299)
--------------------------------------------- ----------------- -----------------
Cash flows from financing activities
Net proceeds from issue of ordinary share
capital 509 764
New loans raised 325 553
Loans repaid (261) (101)
Repayment of leases (251) (273)
Net cash used in financing activities 322 943
--------------------------------------------- ----------------- -----------------
Effect of exchange rate fluctuations 134 120
Net (decrease) in cash and cash equivalents (850) (1,172)
--------------------------------------------- ----------------- -----------------
Cash and cash equivalents at the beginning
of the year 1,543 2,715
--------------------------------------------- ----------------- -----------------
Cash and cash equivalents at the end
of the year 693 1,543
--------------------------------------------- ----------------- -----------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 September 2022
Share Share Share-based Translation Retained Total
Capital Premium Payments Reserve Earnings Equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------------------- --------- --------- ------------ ------------ ---------- --------
At 1 October 2020 3,836 18,196 360 (345) (13,210) 8,837
---------------------- --------- --------- ------------ ------------ ---------- --------
Issue of new shares 106 658 - - - 764
Share options - - 202 - - 202
Exchange translation - - - (87) - (87)
Loss for the year - - - - (2,802) (2,802)
---------------------- --------- --------- ------------ ------------ ---------- --------
At 30 September
2021 3,942 18,854 562 (432) (16,012) 6,914
---------------------- --------- --------- ------------ ------------ ---------- --------
At 1 October 2021 3,942 18,854 562 (432) (16,012) 6,914
---------------------- --------- --------- ------------ ------------ ---------- --------
Issue of new shares 121 388 - - - 509
Share options - - (9) - - (9)
Exchange translation - - - 304 - 304
Loss for the year - - - - (2,188) (2,188)
---------------------- --------- --------- ------------ ------------ ---------- --------
At 30 September
2022 4,063 19,242 553 (128) (18,200) 5,530
---------------------- --------- --------- ------------ ------------ ---------- --------
Notes
1. Basis of preparation of financial information
While the financial information included in this annual
financial results announcement has been prepared in accordance with
the recognition and measurement principles of international
accounting standards in conformity with the requirements of
Companies Act 2006 , this announcement does not contain sufficient
information to comply with IFRSs.
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 30 September 2022
or 2021 but is derived from those accounts. Statutory accounts for
Hardide plc for the year ended 30 September 2021 have been
delivered to the Registrar of Companies and those for the year
ended 30 September 2022 will be delivered following the Company's
annual general meeting. The auditors have reported on those
accounts; their reports were unqualified and did not include
references to any matters to which the auditors drew attention by
way of emphasis without qualifying their reports. Their reports for
the year ended 30 September 2022 and 30 September 2021 did not
contain statements under s498 (2) or (3) of the Companies Act
2006.
The consolidated financial statements present the results of the
Company and its subsidiaries ("the Group") as if they formed a
single entity. Intercompany transactions and balances between Group
companies are therefore eliminated in full. Subsidiaries are fully
consolidated from the date on which control is transferred to the
Group and cease to be consolidated from the date on which control
is transferred out of the Group.
2. Segmental information
Under IFRS8, operating segments are defined as a component of
the entity (a) that engages in business activities from which it
may earn revenues and incur expenses (b) whose operating results
are regularly reviewed and (c) for which discrete financial
information is available. The Group management is organised in to
UK and USA operation and Corporate central functions, and this
factor identifies the Group's reportable segments.
Year ended UK operation US operation Corporate Total
30 September 2022 GBP000 GBP000 GBP000 GBP000
2022 2021 2022 2021 2022 2021 2022 2021
External revenue 3,076 1,923 1,939 1,674 - - 5,015 3,597
Interest revenue - 1 1 - 3 2 4 3
Interest expense 105 96 16 8 8 - 129 104
Depreciation 835 818 373 316 - - 1,208 1,134
Income tax - - - - 86 125 86 125
Reportable segment
profit / (loss) (1,650) (1,939) 186 79 (724) (942) (2,188) (2,802)
--------------------- -------- -------- ------- ------ ------ ------ -------- --------
Segment assets 6,855 7,083 2,323 2,891 557 784 9,735 10,758
Expenditure for
non-current assets 221 255 81 62 - - 302 317
Segment liabilities 2,962 3,061 893 439 350 344 4,205 3,844
The Group currently has a single business product, so no
secondary analysis is presented. Revenue from external customers is
attributed according to their country of domicile. Turnover by
geographical destination is as follows:
UK Europe N America Rest of World Total
External sales GBP000 GBP000 GBP000 GBP000 GBP000
2022 1,314 666 3,007 28 5,015
2021 1,257 176 2,149 15 3,597
3. Earnings per share
2022 2021
GBP000 GBP000
(Loss) on ordinary activities after tax (2,188) (2,802)
Basic earnings per ordinary share:
Weighted average number of ordinary shares
in issue 56,058,053 54,980,286
Earnings per share (3.9)p (5.1)p
As net losses were recorded in 2022 and 2021, the potentially
dilutive share options are anti-dilutive for the purposes of the
loss per share calculation and their effect is therefore not
considered.
4. Post balance sheet events
On 21 December 2022, Hardide Coatings Inc completed a purchase,
sale & leaseback of its facility in Martinsville, Virginia, and
entered into a new 10 year lease agreement with the purchaser of
the site. The consideration paid amounted to $617,000 and the gross
sale proceeds realised were $1,200,000.
5. Annual report and accounts and notice of AGM
The full annual report and accounts for the year ended 30
September 2022, including the basis for preparation and other
explanatory notes, will be posted to shareholders in mid-February
2022 and will be available immediately thereafter on the Company's
website ( www.hardide.com ). The announcement of the publication of
the full report and accounts will be notified. Notice of the
Company's annual general meeting will be sent to shareholders at
the same time.
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END
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(END) Dow Jones Newswires
February 08, 2023 02:00 ET (07:00 GMT)
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