Interim Results - Amendment
08 Mai 2006 - 11:10AM
UK Regulatory
RNS Number:5761C
Hardide PLC
08 May 2006
Press Release 8 May 2006
The following replaces the Interim Results announcement released today at 7.00am
under RNS number 5595C.
In the Proforma Profit and Loss Account the period headings for the final two
columns have been amended, such that they now read 'Six months ended 31st March
2005' and 'Year ending 30th September 2005.'
The full amended release appears below.
Hardide plc
("Hardide" or "the Company" or "the Group")
Interim Results
Hardide plc (AIM: HDD), the provider of unique surface engineering technology,
announces its Interim Results for the six months ended 31 March 2006.
The results of Hardide's wholly-owned operating subsidiary, Hardide Coatings
Limited, cover the trading period for the six months to 31 March 2005 and.
Highlights
* Turnover up to #1,063,000
* Gross profit increased to #653,000
* Loss before tax of #238,000
* Loss per share of 0.17p
* Formal approved supplier status to BAE Systems
* Houston facility scheduled to commence production on 1 October 2006
* New applications being successfully trialed
Commenting on the results, Jim Murray-Smith, Chief Executive of Hardide plc,
said: "These results demonstrate Hardide's continued strong performance and I am
confident that this will continue in the months ahead. The production facility
in Houston will provide the Company with an ideal platform to satisfy existing
strong demand and, importantly, will allow us to service new customers and
provide new applications."
For further information:
Hardide plc
Jim Murray Smith, Chief Executive Tel: +44 (0) 1869 353 830
jmurray-smith@hardide.com www.hardide.com
Daniel Stewart & Co plc
Tom Jenkins / Chloe Ponsonby Tel: +44 (0) 20 7776 6550
chloe.ponsonby@danielstewart.co.uk
Media enquiries:
Abchurch
Chris Lane / Katherine Murphy Tel: +44 (0) 20 7398 7700
chris.lane@abchurch-group.com www.abchurch-group.com
Chairman's Statement
The six months to 31 March 2006 have shown continuous and solid growth with the
UK coatings business showing a pre-tax profit of #34,000 compared to a pre-tax
loss of #273,000 in the same period last year.
Your Board took the decision in November 2006 to capitalise on the interest
shown in Hardide's technology by US-based companies by setting up a
manufacturing facility in the world energy capital of Houston, Texas. Funds of
#800,000 were raised in December 2005 to accelerate this expansion. This next
stage in the Company's international expansion will provide a platform for new
customers and new applications.
I would like to pay special thanks to Hardide's Chief Executive Officer, Jim
Murray-Smith, for his energy and determination in pursuit of the Company's
success. I also warmly welcome Peter Davenport to the Board in his role as
Finance Director.
The Board is confident of the Company's continued steady progress for the
remainder of the financial year and beyond as the UK and international customer
base expands.
David Chestnutt
Chairman
8 May 2006
Chief Executive's Report
These results demonstrate commercial progress and a strong balance sheet in the
six months to 31 March 2006. In order to illustrate clearly the Company's
progress, a proforma profit and loss account for Hardide Coatings Limited, the
UK coatings business, is included.
Revenue from Hardide Coatings Limited increased to #1.06 million in the six
months to March 2006 compared to #496,000 over the same period last year.
Significant growth was achieved in each of the Company's key sectors of oil &
gas, valves and pumps. The oil and gas sector remains our largest market sector
accounting for almost 75% of Company turnover. This sector proved particularly
buoyant with sales more than doubling in both the UK and the international
business. The valve and pump sectors have also demonstrated good growth, with
the pump sector, being driven from the US, achieving a comparative increase in
sales of 170%.
During the first six months, the UK coatings business achieved EBITDA of
#150,000. Group EBITDA, including the plc and US business, totalled a loss of
#136,000. Pre-tax profit for Hardide Coatings Limited was #34,000 compared to a
loss of #273,000 in the same period last year. The Group made a pre-tax loss of
#238,000. The Company has a healthy net cash balance of #1.0 million.
Over the last six months we have continued to develop strategic relationships
with leading multi-national companies in the oil & gas service sector. As well
as increasing the volume of business from existing applications, many customers
have new applications on trial which we expect to lead to commercial orders in
the next six months. We are seeing a substantial increase in the number of
customers taking advantage of our unique seven day turnaround service. In
addition, the Company completed its first commercial order for BAE Systems,
since receiving formal approved supplier status, to coat components for the
Eurofighter Typhoon aircraft.
Our 17,000 sq. ft. purpose-built manufacturing facility is under construction in
the heart of the energy community in Houston, Texas. Following a summer period
of installation and commissioning, the facility is due to open on 1 October
2006. Feedback has been positive from existing and potential US customers
across all our target sectors who want to achieve shorter supply line times than
is possible from the UK.
Our management team is going from strength to strength and I would like to pay
tribute to their success in expanding our current business and driving the
Company forward while effectively managing the set up of the Houston operation.
The positive effects of management decisions and actions are clear as our growth
and increase in revenue can testify.
The management team was strengthened further by the appointment of Stephen Guse
as Operations Manager in Bicester and Mark Telford as Technical Sales Manager to
cover the Aberdeen and Scandinavian oil & gas, and valve markets. After a
successful nine months as Financial Controller, Peter Davenport was appointed to
the Board of Hardide plc as Finance Director in March 2006. Over the next six
months additional appointments will be made to the management teams in the UK
and US.
As I outlined in our first annual report in January 2006, now that our UK
facility is fully operational we are re-establishing our research and
development (R&D) activities. Over the last six months we have been focusing on
a new variation of the Hardide product; a 'super-slippy' self-lubricating
wear-resistant coating. The laboratory results are promising and the R&D
process will continue over the next six months. This next generation of
proprietary Hardide coatings will ensure that the Company remains at the
forefront of innovations in surface engineering technology.
Hardide coated components are now being used routinely in hostile environments
around the world; from oil & gas exploration and production, power plants and
chemical refineries to food manufacture, aerospace and cryogenics. The Company
has a strong UK and international orderbook and a pipeline of major
opportunities that we are seeking to convert. The Company's revenue growth over
the next six months is anticipated to come from an increase in business from
existing customers and new applications together with our moves to build on the
aerospace sector breakthrough. Our declared commitment to our US operation is
also expected to generate new customers and revenues.
Over the next six months, I believe we will deliver a steady pace of organic
growth as we pursue our strategy with a focus on sectors and markets where we
can add greatest customer value. I am confident that our strategy and healthy
financial position are strong foundations for building shareholder value.
Jim Murray-Smith
Chief Executive Officer
Hardide Plc Group Profit & Loss Account
For the six months ended 31st March 2006
Six months ended 27th January to 27th January to
31st March 2006 4th April 2005 30th September 2005
(unaudited) (unaudited)
#'000 #'000 #'000
Turnover 1,063 100 692
Cost of Sales (410) (30) (283)
Gross Profit 653 70 409
Administrative Expenses (789) (141) (864)
Earnings before interest, tax, depreciation & (136) (71) (455)
amortisation
Depreciation & Amortisation (165) (17) (106)
Operating Profit / (Loss) (301) (88) (561)
Other Income 57 23 68
Profit / (Loss) on ordinary activities (244) (65) (493)
Interest Receivable 19 4 19
Interest Payable (13) (7)
Profit / (Loss) on ordinary activities before (238) (61) (481)
taxation
Earnings / (Loss) per Share (0.17)p (0.05)p (0.37)p
Hardide Plc Group Consolidated Balance Sheet
31st March 2006 4th April 2005 30th September 2005
(unaudited) (unaudited)
#'000 #'000 #'000
Fixed Assets
Tangible 1,050 1,032 1,100
Intangible (50) (86) (48)
1,000 946 1,052
Current Assets
Stock 51 35 63
Trade Debtors 399 265 339
Other Debtors 183 66 51
Prepayments 145 59 70
Cash at bank & in hand 1,371 1,909 1,107
2,149 2,334 1,631
Creditors: Amounts falling due within one (285) (578) (312)
year
Net Current Assets 1,863 1,756 1,318
Creditors: Amounts falling due after one year (266) (73) (314)
Net Assets 2,597 2,629 2,056
Capital & Reserves
Called up Share Capital 1,341 1,275 1,275
Share Premium Reserve 1,975 1,415 1,261
Profit & Loss Account (717) (61) (480)
Shareholders Funds 2,597 2,629 2,056
Hardide Plc Group Cash Flow Statement
Six months ended 27th January to 27th January to
31st March 2006 4th April 2005 30th September 2005
(unaudited) (unaudited)
#'000 #'000 #'000
Cash outflow from Operating Activities (364) (47) (851)
Returns on investment and servicing of finance
Interest element of finance lease rental payments (13) - (7)
Interest Received 19 - 19
Taxation - - -
Capital Expenditure and Financial Investment
Payments to acquire tangible fixed assets (113) (48) (245)
Acquisitions & Disposals
Net cash transferred with subsidiary undertakings 454 456
Net Cash Inflow / (Outflow) before financing (471) 359 (628)
Financing
Issue of Shares 780 1,550 1,437
Capital element of finance lease rental payments (44) (20)
New finance lease agreements 318
Increase / (Decrease) in cash 265 1,909 1,107
Reconciliation of Movement in Shareholders Funds
31st March 2006
(unaudited)
#'000
Profit / (Loss) for the period (238)
On issue of shares 780
Increase in Shareholders Funds 542
Opening Shareholders Funds 2,056
Closing Shareholders Funds 2,598
542
Reconciliation of Operating Loss to Net Cash Outflow from Operating Activities
31st March 2006
(unaudited)
#'000
Operating Loss (244)
Depreciation of Tangible Fixed Assets 163
(Increase) / Decrease in operating debtors and prepayments (267)
(Increase) / Decrease in stock 12
Increase / (Decrease) in operating creditors and accruals (30)
Amortisation of Goodwill 2
Cash Inflow / (Outflow) from Operating Activities (364)
Proforma Profit & Loss Account Hardide Coatings Limited
For the six months ended 31st March 2006
Six months ended Six months ended Year ending
31st March 2006 31st March 2005 30th September 2005
(unaudited) (unaudited)
#'000 #'000 #'000
Turnover 1,063 496 1,089
Cost of Sales (410) (205) (459)
Gross Profit 653 291 630
Administrative Expenses (503) (512) (1,191)
Earnings before interest, tax, depreciation & 150 (220) (561)
amortisation
Depreciation & Amortisation (165) (107) (236)
Operating Profit / (Loss) (15) (327) (797)
Other Income 57 46 91
Profit / (Loss) on ordinary activities 42 (281) (706)
Interest Receivable 5 10 13
Interest Payable (13) (2) (9)
Profit / (Loss) on ordinary activities before 34 (273) (701)
taxation
This information is provided by RNS
The company news service from the London Stock Exchange
END
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