Hardide PLC Trading Update (0589D)
24 April 2013 - 8:00AM
UK Regulatory
TIDMHDD
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 GBP2.5 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: +44 (0) 1869 353830
Jackie Robinson, Communications Manager www.hardide.com
N+1 Singer Tel: +44 (0) 207 496 3000
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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