TIDMHDD
RNS Number : 9808E
Hardide PLC
11 June 2012
Press Release 11 June 2012
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 2012.
Overview
-- Turnover increased by 94% to GBP1.54m (H1 2011: GBP793,000)
-- Gross profit increased by 149% to GBP1.12m (H1 2011: GBP449,000)
-- Group records maiden interim profit of GBP201,000 (H1
2011: GBP432,000 loss)
-- Group EBITDA of GBP308,000 (H1 2011: GBP235,000 loss)
-- Positive operating cash flow
-- Revenue from flow control sector, excluding one dominant
customer, increased by 77% compared to H1 2011; revenue
including dominant customer increased by 100% compared
to H1 2011
-- Revenue from aerospace and advanced engineering sectors
increased by 66%
-- Strong pipeline growth: an increase in the number of parts
in customer test compared to H1 2011 and steady progress
on all strategic development projects with customer partners
-- Fundraising of GBP750,000 gross in November 2011 from
a placing with new and existing shareholders
-- Cash at bank at 31 March 2012 of GBP1.07 million
Commenting on the interim results, Robert Goddard, executive
chairman of Hardide plc, said: "I am very pleased to report an
excellent start to the year as evidenced by record first half
revenue of GBP1.54m and a maiden profit for the Group of
GBP201,000. This has been driven by increased demand, underpinned
by strong technical and operational effectiveness.
"While we have achieved excellent growth in the first half of
the year, we are aware that there has been an element of stock
building by certain key customers. We therefore need to be cautious
in basing our full year expectations on a repetition of the first
six months. Nonetheless, we do expect the full year results to show
good growth over last year."
- Ends -
For further information:
Hardide plc
Robert Goddard, Executive Chairman Tel: +44 (0) 1869 353 830
Jackie Robinson, Communications jrobinson@hardide.com
Manager www.hardide.com
N+1 Brewin (Nomad & Broker)
Andrew Craig/Ben Wright Tel: +44 (0) 203 201 3916
www.nplus1brewin.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
I am pleased to report that in the six months to 31 March 2012,
the Group recorded revenue of GBP1.54m, a 94% increase from the
same period last year (H1 2011: GBP793,000). Furthermore, the Group
achieved a maiden profit of GBP201,000 (H1 2011 loss of
GBP432,000).
Group gross profit was GBP1.12m, a rise of 149% from GBP449,000
in H1 2011. Cost of sales increased by only 23% to GBP422,000
reflecting that more than 50% of the cost of sales are relatively
fixed production staff salaries with only the balance being truly
variable. Operating profit was GBP257,000 compared to a loss of
GBP380,000 in H1 2011; last year's result included an adverse
exchange rate variance of GBP84,000 which is now treated as a
movement in reserves. Despite a significant increase in working
capital, the Group generated cash from operating activities in the
first half. The Group achieved an EBITDA positive position of
GBP308,000 compared to a loss of GBP235,000 in H1 2011.
Sales were strong in the oil and gas sector, but still weighted
too much towards a small number of major customers. The Group
continues to focus on diversifying the customer base and some
progress has been made; flow control revenue increased by 77% and
aerospace and advanced engineering by 66% on the same period last
year. However, a relatively small number of customers continue to
dominate and so, broadening the customer base remains a key
strategic goal.
In November 2011, the Group raised GBP750,000 gross from the
issue of 125,000,000 new ordinary shares of 0.1p each at 0.6p per
share in a placing from existing and new investors. Now, with
sufficient cash on the balance sheet from the placing, together
with profitable trading, we are able to increase our marketing
efforts. This will include market investigation and awareness
raising, as well as widening the range of specialised test results
often looked for by customers.
Since early 2011, we have regularly calculated the risk and
time-adjusted value of our pipeline of applications. Since then we
have seen a considerable increase in this measure; although
customers continue to take longer in testing than they initially
indicate. We have also seen a strong rise in the number of
application projects in the pipeline, with specific parts in
customer test, in comparison to H1 2011.
Strategic projects with customer partners in industrial tooling,
aerospace, coating for diamonds and industrial turbine blades
continue to make steady progress and represent good long term
prospects. In addition, we have begun the coating and testing of
parts for a Tier One supplier to an aircraft manufacturer as well
as for several other turbine blade and aircraft engine
applications.
Since August 2011, the Group has been managed on an interim
basis through two part-time roles; myself as executive chairman and
Bruce Robinson as chief operating officer. A search firm has been
appointed to recruit a group managing director and we expect to
make an appointment in the near future. This process has taken
longer than anticipated but is not out of the ordinary and the
board is united in its view that it is vital to secure the right
candidate to lead Hardide.
The board is pleased and encouraged with performance in the
first half of 2012 and expect that the full year results will show
good growth over FY 2011.
Robert Goddard
Chairman
11 June 2012
Consolidated income statement
for the period ended 31 March 2012
6 Months 6 Months
to to Year to
31 March 31 March
2012 2011 30 Sept 2011
(unaudited) (unaudited) (audited)
GBP '000 GBP '000 GBP '000
Revenue 1,539 793 1,947
Cost of Sales (422) (344) (733)
Gross Profit 1,117 449 1,214
------------------------------------- ------------ ------------ -------------
Administrative expenses (809) (684) (1,439)
Depreciation (51) (61) (115)
Exchange difference on intercompany
loan (84) -
Exceptional item: Impairment
of fixed assets - -
Operating profit / (loss) 257 (380) (340)
------------------------------------- ------------ ------------ -------------
Finance income 1 - -
Finance costs (57) (52) (106)
Loss on disposal of fixed
assets - -
Profit / (loss) on ordinary
activities before tax 201 (432) (446)
------------------------------------- ------------ ------------ -------------
Tax - - 65
Profit / (loss) for the period 201 (432) (381)
------------------------------------- ------------ ------------ -------------
Consolidated statement of recognised
income and expense for the period
ended 31 March 2012
6 months 6 months
to to Year to
31 March 31 March 30 Sept 2011
2012 (unaudited) 2011 (unaudited) (audited)
GBP '000 GBP '000 GBP '000
Profit / (loss) for the period 201 (432) (381)
Exchange differences on translation
of foreign operations (9) 318 (3)
Cancellation of share options
previously charged to profit - - 26
Total recognised income and
expense for the year 192 (114) (358)
----------------------------------------- -------------------- ---------------------- ----------------
Consolidated balance sheet at 31 March
2012
31 March 2012 31 March 30 Sept 2011
(unaudited) 2011 (unaudited) (audited)
GBP '000 GBP '000 GBP '000
Assets
Non-current assets
Investments - - -
Goodwill 69 69 69
Intangible assets - - -
Property, plant & equipment 459 520 478
Total non-current assets 528 589 547
-------------------------------- -------------- ------------------ -------------
Current assets
Inventories 25 24 24
Trade and other receivables 606 305 406
Other current financial assets 80 47 102
Cash and cash equivalents 1,072 315 292
Total current assets 1,783 691 824
-------------------------------- -------------- ------------------ -------------
Total assets 2,311 1,280 1,371
-------------------------------- -------------- ------------------ -------------
Liabilities
Current liabilities
Trade and other payables 387 264 370
Financial liabilities - 26 -
Provisions - - -
Total current liabilities 387 290 370
-------------------------------- -------------- ------------------ -------------
Net current assets 1,396 401 454
-------------------------------- -------------- ------------------ -------------
Non-current liabilities
Financial liabilities 912 851 895
Total non-current liabilities 912 851 895
-------------------------------- -------------- ------------------ -------------
Total liabilities 1,299 1,141 1,265
-------------------------------- -------------- ------------------ -------------
Net assets 1,012 139 106
-------------------------------- -------------- ------------------ -------------
Equity
Share capital 2,666 2,541 2,541
Share premium 5,848 5,259 5,259
Retained earnings (7,109) (7,069) (7,310)
Share-based payments reserve 248 272 248
Translation reserve (641) (864) (632)
Total equity 1,012 139 106
-------------------------------- -------------- ------------------ -------------
Consolidated condensed cash flow statement
for the period ended 31 March 2012
6 months 6 months
to to Year to
31 March 31 March 30 Sept 2011
2012 (unaudited) 2011 (unaudited) (audited)
GBP '000 GBP '000 GBP '000
Cash flows from operating
activities
Operating profit / (loss) 258 (380) (340)
Impairment of intangibles - - -
Depreciation 51 61 115
Impairment of fixed assets - - -
Share option charge 0 4 5
(increase) / decrease in
inventories (1) 2 2
(increase) / decrease in
receivables (178) 47 (109)
Increase / (decrease) in
payables 16 6 112
Exchange rate variance - 84 -
--- --------------------------------- ------------------ ------------------ -------------
Cash generated from operations 146 (176) (215)
-------------------------------------- ------------------ ------------------ -------------
Finance income 1 - -
Finance costs (43) (3) (10)
Tax received / (paid) - - 48
Net cash generated from operating
activities 104 (179) (177)
-------------------------------------- ------------------ ------------------ -------------
Cash flows from investing
activities
Purchase of property, plant
and equipment (38) (13) (21)
Net cash used in investing
activities (38) (13) (21)
-------------------------------------- ------------------ ------------------ -------------
Cash flows from financing
activities
Net proceeds from issue of
ordinary share capital 714 - -
Finance lease inception - - -
Finance lease repayment - (29) (46)
New loans raised - - -
Net cash used in financing
activities 714 (29) (46)
-------------------------------------- ------------------ ------------------ -------------
Net increase / (decrease)
in cash and cash equivalents 780 (221) (244)
-------------------------------------- ------------------ ------------------ -------------
Cash and cash equivalents
at the beginning of the period 292 536 292
Cash and cash equivalents
at the end of the period 1,072 315 536
This information is provided by RNS
The company news service from the London Stock Exchange
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