Trading Update

RNS Number : 0589D

Hardide PLC

24 April 2013

 



Press Release

24 April 2013

Hardide plc

("Hardide" or "the Group" or "the Company")

Trading Update

Hardide plc (AIM: HDD), the provider of advanced surface coating technology, provides a trading update following the end of the interim period to 31 March 2013.

Despite the Company continuing to reduce its dependence on a small number of large customers, a major inventory reduction exercise by one major customer, combined with delays in new product introductions by others has resulted in what is expected to be a short-term reduction in demand. As such the Board now expects that the Company will record revenue for the current year to 30 September 2013 of approximately £2.5 million. The Company has a strong balance sheet with a healthy cash position and is continuing to invest in marketing resources in line with its plan to further expand and diversify its customer base.   

The Hardide coating itself is performing well, is not related in any way to these customer issues, and sales to other than the major customer remain steady and are projected to be higher for the full year than last. The inventory reduction exercise by the one major customer is projected by them to be resolved during the second half of 2013.  This customer's confidence in Hardide is demonstrated by their recent creation of a global internal material specification for the Hardide coating.  This means that it is now available for use by its engineers worldwide. They are also performing a comprehensive test programme for potential use on a range of new applications.

Robert Goddard, Chairman of Hardide plc commented:

 "It is disappointing to report this dip because there are so many other positive developments within the Group.  The underlying confidence and optimism of the Board is not affected and we will continue to strengthen our sales and marketing resources as we believe that this is crucial to growing sales and diversifying our customer and sector bases.

The Company has appointed two further Business Development Managers, one each in the US and the UK, to develop sales in existing and new markets, will shortly be appointing an agent in Germany and is making strong headway with several world-leading customers in the aerospace and advanced engineering industries.

We are very pleased with the rapid progress that has been made on the recently-announced project that is part-funded by the Technology Strategy Board to develop, manufacture and test a new Hardide coating for use in a 'hardfacing' material for downhole and other high wear applications. First sales of the coated products have been achieved more quickly than expected, a patent has been filed in the US and the UK, and the Company is working closely with a strong commercial marketing partner who has an established presence in this market with current demand for the new material."

Ends

For further information:

Hardide plc

Robert Goddard, Chairman                                                                              Tel: [phone]

Jackie Robinson, Communications Manager                                                              www.hardide.com

N+1 Singer                                                                                                      Tel: [phone]

Andrew Craig/Ben Wright                                                                                          www.n1singer.com

Note to editors

Hardide Coatings develops, manufactures and applies tungsten carbide-based coatings to a wide range of engineering components.  The Group's patented technology is unique in that it combines abrasion, erosion and corrosion resistant properties in one coating.  When applied to metal components, the technology is proven to offer dramatic cost savings through reduced downtime and extended part life.  Customers include leading companies operating in oil and gas exploration and production, valve and pumps manufacturing, general engineering and aerospace.  

 

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