TIDMHDD
RNS Number : 7704I
Hardide PLC
21 June 2011
Press Release 21 June 2011
Hardide plc
("Hardide" 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 2011.
Overview
-- Turnover increased by 13% to GBP793,000 (H1 2010: GBP702,000)
-- Gross profit increased by 10% to GBP449,000 (H1 2010:
GBP410,000)
-- Cash outflow reduced by 33% to GBP221,000 (H1 2010: GBP328,000)
-- Group EBITDA loss increased by 16% to GBP235,000 (H1 2010:
GBP203,000) mainly because of investment in business development
to accelerate growth
-- Revenue from non-oil and gas sectors increased by 96%
from H1 2010
-- Bruce Robinson appointed as non-executive director. Bruce
brings extensive experience of the oil and gas industry
and young technology businesses
-- UK projects manager and US business development manager
recruited to accelerate diversification and growth
Post-Period Events
-- $3.65 million seven-year exclusivity deal announced with
US blue chip manufacturer of high-pressure fluid handling
equipment
-- Group EBITDA profitable in May 2011
Commenting on the interim results, Graham Hine, chief executive
of Hardide plc, said: "The Group has delivered improved revenue and
gross profit on H1 2010. Over the last six months we have had
success in diversifying our customer base and as a result our
dependency on one major customer has reduced by almost a quarter
and sales to non-oil and gas sectors have nearly doubled.
"Through our investment in business development, we have
increased penetration in our core sectors of oil and gas, and flow
control and are building a stronger short term sales pipeline. Our
outlook for the remainder of the year is positive as we see upward
trends across our key markets and growing sales to current and new
customers. The Group is now accelerating growth towards
profitability," added Dr Hine.
- Ends -
For further information:
Hardide plc
Graham Hine, Chief Executive Tel: +44 (0) 1869 353
830
Jackie Robinson, Corporate Communications www.hardide.com
Seymour Pierce Limited
Guy Peters Tel: +44 (0) 20 7107
8000
www.seymourpierce.com
Notes to editors:
Hardide manufactures and applies tungsten carbide-based coatings
to a wide range of engineering components. The Group's patented
technology provides a unique combination of ultra-hardness,
toughness, low friction and chemical resistance in one coating.
When applied to 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, flow control, general engineering and
aerospace.
CHAIRMAN'S STATEMENT
Revenue for the six months to 31 March 2011 was GBP793,000, 13%
higher than in the same period last year (H1 2010 GBP702,000).
Group gross profit was GBP449,000, a rise of 10% from GBP410,000 in
H1 2010. Cost of sales increased by 18% to GBP344,000 reflecting a
one-off increase in gas costs as the company entered a new
long-term supply agreement. In spite of this, production margins
remained robust. Our investment in much needed business development
staff was the main reason for a 12% rise in administrative expenses
to GBP684,000 from GBP613,000 in H1 2010. Similarly, Group EBITDA
loss increased by 13% to GBP235,000 from GBP203,000 in H1 2010.
A non-cash movement of the value of the intercompany loan
between Hardide plc and Hardide Coatings Inc caused by exchange
rate movements meant that the operating loss increased from
GBP14,000 to GBP380,000. Similarly the loss before tax increased
from GBP67,000 to GBP432,000. Without this impact, operating loss
would have been GBP296,000 (H1 2010 loss of GBP273,000) and loss
before tax would have been GBP348,000 (H1 2010 loss of
GBP326,000).
A drop in demand from a major customer caused a fall back from
the revenue level that was reported in H2 2010. However, the board
is confident that aggregate sales to this customer are secure for
the foreseeable future, and they have already shown recovery in H2
2011. Customer diversification remains a key strategic goal and we
achieved an almost four-fold increase in sales to other oil and gas
customers in H1 2011. On the matter of revenue volatility overall,
I am pleased to report that we have made significant progress in
another of our strategic goals and have increased revenue from
non-oil and gas sectors by 96% in the first half of the year. This
has been achieved through new customer gains and increased sales to
other existing customers.
Work continues apace with customer partners in major longer term
projects including aerospace, coating for diamonds and industrial
turbine blades and these projects remain an important part of
building shareholder value. Significant progress was made in our
development programmes, especially in aerospace where excellent
results were recorded from some particularly demanding tests, and
we expect major aerospace approvals in 2012.
In February 2011, the board welcomed Bruce Robinson as a new
non-executive director. The Group has already benefited from his
understanding of the oil and gas industry, where he has helped us
to identify more and more accurately the areas where the Hardide
coating will add the greatest value.
As we progress through the year, we are seeing some steadiness
return to our main markets and opportunities within new sectors are
looking favourable. The diversification strategy is ongoing and the
board is optimistic that the second half of the year will see
significantly increased demand and good prospects for further
improvement. Indeed, total sales for the three months ending 31 May
2011 were nearly 60% higher than for the previous three months.
Robert Goddard
Chairman
21 June 2011
CHIEF EXECUTIVE OFFICER'S REVIEW
The Group has delivered improved revenue and gross profit on the
same period last year. Following two years of successful cost
reduction, we have created a streamlined and efficient business and
are now carefully investing in business development to accelerate
growth towards profitability.
The investment in business development and project management
personnel is opening doors for us in sectors and geographies that
previously we have not had the resources to address. It is also
enabling us to hasten short term development projects from within
our existing market specialisms such as oil and gas exploration and
severe-service flow control.
We are successfully diversifying our customer base and over the
last two years have built a strong sales pipeline intended to
create significantly improved performance. Controlled
diversification into new applications for existing customers and
into new markets has been a key focus for the management team. One
of our successes in H1 2011 has been the swift progress that has
been made with a development for an extrusion device for abrasive
polymer mixes, where sales have already been made for coating the
prototype parts. We are optimistic about future revenue from this
and similar applications.
Revenue from the flow control sector has increased. This is due
to a combination of new business and increased demand from existing
customers. A renewed focus on this sector has converted an
encouraging level of new valve and pump business, with several
trials underway with new valve customers.
The engagement of a well-connected business development
representative in the US has enabled us to build relationships with
prospective blue chip customers in Houston. As a result, we expect
to see increased revenues from the US during the year.
We reviewed, valued and re-oriented our pipeline in the first
half of the year and now believe that we have a healthy mix of
short and long term development projects that are aligned to the
resources that we have available now and can make available as
revenues grow. All of our long term test programmes including
aerospace and coating for diamonds have continued to progress and
we are focusing on those projects with greater potential to
generate revenue in the shorter term.
Our outlook for the remainder of the year is positive as we see
upward trends across our key markets and growing sales to current
and new customers. The Group is now accelerating growth towards
profitability.
Graham Hine
Chief Executive Officer
21 June 2011
Consolidated income statement
for the period ended 31 March 2011
6 Months 6 Months
to to Year to
31 March 31 March
2011 2010 30 Sept 2010
(unaudited) (unaudited) (audited)
GBP '000 GBP '000 GBP '000
Revenue 793 702 1,735
Cost of Sales (344) (292) (649)
Gross Profit 449 410 1,086
----------------------------------- ------------ ------------ -------------
Administrative expenses (684) (613) (1,293)
Depreciation (61) (70) (136)
Exchange difference on
intercompany loan (84) 259 66
Exceptional item: Impairment
of fixed assets - - (126)
Operating profit / (loss) (380) (14) (403)
----------------------------------- ------------ ------------ -------------
Finance income - 2 2
Finance costs (52) (55) (106)
Loss on disposal of fixed
assets - - -
Profit on ordinary activities
before tax (432) (67) (507)
----------------------------------- ------------ ------------ -------------
Tax - - 33
Profit for the period (432) (67) (474)
----------------------------------- ------------ ------------ -------------
Consolidated statement of recognised
income and expense for the period
ended 31 March 2011
6 months 6 months
to to Year to
31 March 2011 31 March 2010 30 Sept 2010
(unaudited) (unaudited) (audited)
GBP '000 GBP '000 GBP '000
Profit for the period (432) (67) (474)
Exchange differences on
translation of foreign
operations 318 (832) (45)
Total recognised income and
expense for the year (114) (899) (519)
-------------------------------- ----------------- ---------------- ----------------
Consolidated balance sheet at 31 March
2011
31 March 2011 31 March 30 Sept 2010
(unaudited) 2010 (unaudited) (audited)
GBP '000 GBP '000 GBP '000
Assets
Non-current assets
Investments
Goodwill 69 69 69
Intangible assets - 1 -
Property, plant &
equipment 520 747 569
Total non-current assets 589 817 638
--------------------------- -------------- ------------------ -------------
Current assets
Inventories 24 24 26
Trade and other
receivables 305 285 337
Other current financial
assets 47 77 62
Cash and cash equivalents 315 604 536
Total current assets 691 990 961
--------------------------- -------------- ------------------ -------------
Total assets 1,280 1,807 1,599
--------------------------- -------------- ------------------ -------------
Liabilities
Current liabilities
Trade and other payables 264 292 258
Financial liabilities 26 90 55
Provisions - - -
Total current liabilities 290 382 313
--------------------------- -------------- ------------------ -------------
Net current assets 401 608 648
--------------------------- -------------- ------------------ -------------
Non-current liabilities
Financial liabilities 851 732 801
Total non-current
liabilities 851 732 801
--------------------------- -------------- ------------------ -------------
Total liabilities 1,141 1,114 1,114
--------------------------- -------------- ------------------ -------------
Net assets 139 693 485
--------------------------- -------------- ------------------ -------------
Equity
Share capital 2,541 2,541 2,541
Share premium 5,259 5,259 5,259
Retained earnings (7,069) (6,549) (6,955)
Share-based payments
reserve 272 275 269
Translation reserve (864) (833) (629)
Total equity 139 693 485
--------------------------- -------------- ------------------ -------------
Consolidated condensed cash flow
statement for the period ended 31 March
2011
6 months 6 months
to to Year to
31 March 31 March 30 Sept 2010
2011 (unaudited) 2010 (unaudited) (audited)
GBP '000 GBP '000 GBP '000
Cash flows from
operating
activities
Operating loss (380) (14) (403)
Impairment of
intangibles - 1 2
Depreciation 61 68 134
Impairment of fixed
assets - - 126
Share option charge 4 1 2
(increase) /
decrease in
inventories 2 2 -
(increase) /
decrease in
receivables 47 (87) (89)
Increase /
(decrease) in
payables 6 31 (1)
Exchange rate
variance 84 (259) (66)
-------------------- ------------------ ------------------ -------------
Cash generated from
operations (176) (257) (295)
--------------------- ------------------ ------------------ -------------
Finance income - 2 2
Finance costs (3) (8) (10)
Tax received /
(paid) - - 39
Net cash generated
from operating
activities (179) (263) (264)
--------------------- ------------------ ------------------ -------------
Cash flows from
investing
activities
Purchase of
property, plant
and equipment (13) (7) (25)
Net cash used in
investing
activities (13) (7) (25)
--------------------- ------------------ ------------------ -------------
Cash flows from
financing
activities
Net proceeds from
issue of ordinary
share capital - - -
Finance lease
inception - - -
Finance lease
repayment (29) (58) (107)
New loans raised - - -
Net cash used in
financing
activities (29) (58) (107)
--------------------- ------------------ ------------------ -------------
Net increase /
(decrease) in cash
and cash
equivalents (221) (328) (396)
--------------------- ------------------ ------------------ -------------
Cash and cash
equivalents at the
beginning of the
period 536 932 932
Cash and cash
equivalents at the
end of the period 315 604 536
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EASKEAAEFEFF
Hardide (LSE:HDD)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Hardide (LSE:HDD)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
