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Hardide operating losses widen

By BFN News | 07:30 AM | Monday 12 December, 2016

Hardide posts a group operating loss of £1.47m for the year to the end of September - up from £0.22m last time. Sales, as expected, were affected by the oil and gas downturn and fell to £2.14m (2015: £3.00m) but sales in H2 were 25% ahead the first half amidsigns of a slow recovery from existing oil and gas customers and conversion of new opportunities. Other key points: - Loss before interest, tax, depreciation and amortisation of £1.30m (2015: loss of £0.33m), before crediting reversal of fixed asset impairment and release of provision - Successful fundraising of £1.60m completed during September 2016. Enables implementation of growth plans - Cash at bank at 30 September 2016 of £1.97m Chairman Robert Goddard said: "In common with most companies operating in the oil and gas supply chain, Hardide's full year performance was, as anticipated, adversely affected by depressed demand. This was due to the sector's longest and most severe downturn in decades. H2 saw an improvement over H1 with signs of a tentative recovery from oil and gas. New opportunities are emerging from key customers in this sector and we saw a substantial rise in sales to precision engineering customers. "Despite weak demand in the oil and gas sector, the underlying picture is encouraging. Good progress is being made with Airbus and other aerospace companies in Europe and North America as well as with our new X-ray machine customer. For the first time, sales to customers in North America were higher than to UK customers. The new facility in Virginia is producing regular revenue following customers' exhaustive verification trials and approvals. "Accurate forecasting of demand from our oil and gas customers is always difficult but indications are that the bottom of the cycle has been reached. With the market reported to be close to balance, demand is expected to continue on an upward trend during 2017 and beyond. The board remains positive about the Group's progress in diversifying by end-user and geography, and therefore the medium and longer-term prospects. "The cost base is stable and under tight control and the recent fundraising of £1.6m significantly strengthens the balance sheet and will enable the Group to move forward with its development plans." Story provided by

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