21 October 2024
Hardide plc
("Hardide", the
"Group" or the "Company")
Year end trading
update
Hardide plc (AIM: HDD), the provider of
advanced surface treatment solutions is pleased to announce an
update on trading for the financial year ended 30 September 2024
("FY24").
Hardide expects to report revenue of £4.7m for
the year (FY23 £5.5m). As anticipated, second half ("H2") trading
was stronger than the first half ("H1") with H2 sales of £2.6m,
compared with H1 of £2.1m, despite some delays in new business work
now expected in the first half of the new financial
year.
Adjusted EBIDTA* is anticipated to be close to
break even for the year (FY23: -£0.1m). The improved trading
momentum in H2, combined with the benefit of margin improvement and
cost reduction actions taken earlier in the year, enabled the Group
to generate an anticipated adjusted EBITDA* positive result of
c.£0.4m in H2, at an adjusted EBITDA margin of c.15% (H2 23: EBITDA
break even).
The Group's cash balance at 30 September 2024
was £0.7m (H1 24: £0.7m). Hardide began to trade at net cash
positive levels towards the end of the financial year, as
expected.
The cash breakeven point of the Group is now at
just over £5.0m of revenue per year, a significant reduction
compared with previous years due to management's profit improvement
and overhead reduction initiatives.
Matt Hamblin,
CEO commented:
"We are working hard on sales and business
development activities to support the Group's strategy of
accelerating revenue growth, and taking a more entrepreneurial and
holistic approach in identifying and assessing market
opportunities, with particular focus on:
·
areas where we offer customers true differentiation:
typically, improved product life cycles in challenging operating
environments, together with non-line of sight coating
capability;
·
better utilisation of existing spare capacity, driving
returns from our well invested asset base; and
·
prioritising opportunities that will realise additional
revenues and profit in the short to medium term.
Whilst some of our traditional base load oil
and gas business came to an end in FY24 and some OEMs continue to
seek to reduce inventory holdings, we expect to see a strong
recovery in revenues in FY25. We already have visibility of
new work from the aerospace sector and anticipate growing revenues
from our enhanced product range launched six months ago.
This is an exciting time to have joined Hardide
as CEO, with the business now increasingly well positioned to
deliver profitable growth."
Notes:
Hardide expects to announce audited
results for FY24 in late January 2025. All figures relating to FY24
provided above are unaudited.
* Adjusted EBITDA is defined as:
Earnings before interest, tax, depreciation and amortisation and,
in FY24, non-recurring restructuring costs.
Enquiries:
Hardide
plc
Matt Hamblin
(CEO)
Tel: +44 (0)1869 353830
Andrew Magson (Non-Executive Chair)
Cavendish
Capital Markets Ltd - Nominated Adviser and
Broker
Henrik Persson / Abigail Kelly (Corporate
Finance)
Tel: +44 (0) 2072 200 500
Jasper Berry / Dale Bellis (Sales)
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 as well as a reduced carbon footprint. Customers include
leading companies operating in the energy sectors, valve and pump
manufacturing, industrial gas turbine, precision engineering and
aerospace industries.
