REG - Hardide PLC - Annual results for year ended 30 September 2022
08/02/2023 07:00
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RNS Number : 2188P Hardide PLC 08 February 2023
8 February 2023
Hardide plc
("Hardide", the "Group" or the "Company")
Annual results for the year ended 30 September 2022
Strong revenue growth from increasing market adoption of our patented coating
technology
Hardide plc (AIM: HDD), the developer and provider of advanced surface coating
technology, announces its annual results for the year ended 30 September 2022.
Highlights
Financial
· Revenue increased by 39% to £5.0m (FY21: £3.6m)
· Gross margin improved to 37% (FY21: 36%)
· Significant reduction in the EBITDA loss to £0.9m (FY21: £1.5m loss)
· Statutory loss before tax of £2.3m (FY21: £2.9m)
· Fundraising in September 2022 raised £0.5m to support working capital
requirements. Further initiatives to improve the Group's financial position
and to provide further working capital have continued in the new financial
year
· Cash at bank at 30 September 2022 of £0.7m (FY21: £1.5m)
Commercial
Strong revenue growth was achieved across all end-use market sectors:
· Energy (representing 57% of FY22 sales): 72% increase overall,
comprising 54% increase to the oil & gas sector and an over six-fold
increase to power generation, including new business coating turbine blades
· Industrial (representing 39% of FY22 sales): 10% increase including
increased demand from a manufacturer of industrial pumps
· Aerospace (representing 4% of FY22 sales): 24% increase in sales to
the aerospace sector, with production orders now regularly being received for
the Airbus A320, A330, A380 and A400M series aircraft
· In addition, the Company is pursuing significant business development
opportunities in the green energy and electric vehicle (EV) markets, including
wind and solar power, hydrogen generation and battery production applications
FY23 developments
· Full supplier approval received from Leonardo Helicopters to coat
flying parts. First production orders received for helicopter transmission
system components
· Purchase, sale and leaseback completed of the Martinsville facility
in the USA, generating £0.5m cash in December 2022
· The Board has recently implemented a series of working capital
efficiency and cost reduction initiatives that are expected to generate a
further £0.3m-0.4m of cash during in the first half of the current calendar
year, providing additional headroom, improving profitability, and helping to
underpin delivery on expectations for the financial year to 30 September 2023.
Opportunities to further strengthen the balance sheet are also being
considered
· The Group maintains strong cost discipline and is focused on moving
toward organic cash generation.
Strategy
Following a recent strategic review, the Board is executing a two-stage
approach:
(a) Focus on becoming profitable and cash generative. This will be driven
mainly by increased sales to existing and new customers, utilising proven
coating technology and existing production capacity, thereby benefiting from
the Group's strong operational gearing; and
(b) Developing opportunities to drive significant value for shareholders and
other stakeholders over the medium to longer term, through further development
and commercialisation of the Group's unique high performance coatings
technology, including co-operation with other coatings companies
Commenting on the results, Philip Kirkham, CEO of Hardide plc, said: "I am
pleased to report strong revenue growth across all the Group's end-use market
sectors. In FY22, overall revenues increased by 39% from FY21, recovering to
the pre-pandemic record level of £5.0m. This enabled a significant
improvement in the EBITDA loss to £0.9m from £1.5m in the prior year.
"The new financial year has started well, with revenues in the first quarter
ahead of those in the same period last year.
"Whilst the Board is mindful of economic headwinds, ongoing cost inflation and
supply chain disruption, Hardide has been successful in recovering cost
increases through selling prices, and revenues continue to grow from
increasing customer adoption of our coatings. As evidenced by the recent
action taken to improve working capital and reduce cost, the Board is focused
on becoming profitable and cash generative.
"More broadly, the Board is seeking opportunities to drive significant value
for shareholders and other stakeholders over the medium to longer term through
further development and commercialisation of the Group's unique high
performance coatings technology, including co-operation with other coatings
companies."
Note: EBITDA excludes depreciation and amortisation of owned assets £0.9m
(FY21 £0.9m), depreciation of right of use assets £0.3m (FY21 £0.3m), net
financing costs of £0.1m (FY21 £0.1 m) and share based payment charges £Nil
(FY21 £0.2m).
Enquiries:
Hardide plc
Andrew Magson, Chair Tel: +44 (0) 1869 353 830
Philip Kirkham, CEO
Jackie Heddle, Communications Manager
IFC Advisory Tel: +44 (0) 20 3934 6630
Graham Herring
Tim Metcalfe
Florence Chandler
finnCap - Nominated Adviser and Joint Broker Tel: +44 (0) 2072 200 500
Henrik Persson/ Abigail Kelly (Corporate finance)
Barney Hayward (ECM/Broking)
Allenby Capital - Joint Broker Tel: +44 (0) 20 3328 5656
Tony Quirke - Sales and Corporate Broking
Jeremy Porter/ Dan Dearden-Williams - Corporate Finance
Notes to editors:
www.hardide.com (http://www.hardide.com/)
Hardide develops, manufactures and applies advanced technology tungsten
carbide/tungsten metal matrix coatings to a wide range of engineering
components. Its patented technology is unique in combining in one material, a
mix of toughness and resistance to abrasion, erosion and corrosion; together
with the ability to coat accurately interior surfaces and complex geometries.
The material is proven to offer dramatic improvements in component life,
particularly when applied to components that operate in very aggressive
environments. This results in cost savings through reduced downtime and
increased operational efficiency. Customers include leading companies
operating in the energy sectors, valve and pump manufacturing, industrial gas
turbine, precision engineering and aerospace industries.
OVERVIEW
The Board is pleased to report the Group's annual results for the 2022
financial year. Revenues increased by 39% from FY21, recovering to
pre-pandemic (FY19) levels of £5.0m. Revenue growth was led by the oil &
gas sector as the market began to recover from the downturn during the
COVID-19 pandemic.
The combination of strong revenue growth and operational gearing led to a
significant reduction in the EBITDA loss to £0.9m for the year, compared
with the prior year equivalent of a £1.5m loss.
The improvement in revenues has continued in the current financial year, with
revenues in the first quarter ahead of the same period last year.
STRATEGY
Following recent strategic review, the Board is executing a two-stage
approach:
(a) Focus on becoming profitable and cash generative. This will be driven
mainly by increased sales to existing and new customers, utilising proven
coating technology and existing production capacity, thereby benefiting from
the Group's strong operational gearing; and
(b) Developing opportunities to drive significant value for shareholders and
other stakeholders over the medium to longer term through further development
and commercialisation of the Group's unique, high performance coatings
technology, including co-operation with other coatings companies.
OPERATIONAL OVERVIEW
Customers and Markets
The mix of revenue to our main markets during the year was:
· Energy: 57% (including oil & gas and power generation)
· Industrial: 39%
· Aerospace: 4%
Energy
Sales to energy customers increased by 72% during FY22, including a 54%
increase in sales to oil & gas customers. While recovery of demand from
our traditional oil & gas customers is strong, it has taken longer
than expected to be reflected in our sales due to supply chain delays caused
by the shortage of raw materials and labour available to manufacture
customers' parts.
Of particular note is that we successfully completed laboratory and field
tests for a major European oil & gas company with excellent results,
demonstrating that the use of Hardide coating will provide longer-lasting
'nodding donkey' type land-based pumps. The 139-day field test showed no signs
of wear, scratches or material loss on the parts. Post-period, large batch
parts have been coated for operational field testing. Production orders are
expected on successful completion of these tests in the current financial
year. The broader market potential for an extended-life version of this
well-established technology is considerable.
Further orders are expected in FY23 for the coating of wire mesh used in a new
coated sand screen. Chevron Corporation published an exceptionally detailed
conference paper in October 2022, at the prestigious SPE Annual Technology
Conference and Exhibition in Houston, USA, reporting that the Hardide-coated
sand screen achieves a 4x-6x increase in erosion performance and a 10x
reduction in corrosion rate as compared to conventional premium sand screens.
Over 3,000 feet of these coated sand screens have been deployed in wells to
date, with more planned in 2023. This impressive performance is only possible
because the unique properties of the Hardide coating mean that it is possible
to coat the individual wires which comprise the multi-layer woven metal mesh.
Developments are underway with other major companies on similar sand control
applications.
Good progress has been made in diversifying the oil & gas customer base
with sales spread across a broadening number of customers and with not one
dominating divisional revenues.
The IEA World Energy Outlook 2022 cites global demand for energy from oil
& gas continuing to grow to 2030, while renewable sources are forecast to
account for nearly 50% of electricity generation. Concurrently, industry and
governments are committing to transition from fossil fuels and reach net-zero
targets. This evolution will provide additional opportunities for Hardide in
the oil & gas and alternative energy sectors. The Group is pursuing these
with vigour.
Alternative Energy
It is a strategic objective for the Group to increase the proportion of
revenue generated from the alternative energy sector. Promising progress with
development projects is being made, particularly in hydrogen applications.
Several Hardide coating variants were tested at Cranfield University involving
a process for the manufacture of 'green' hydrogen. The results are encouraging
and details of the testing are confidential to maintain patentability of the
application. A grant has been awarded by the Henry Royce Institute to fund
further testing. In another hydrogen application, a customer is testing the
permeability of the Hardide coating for use on components in a hydrogen
compressor. Subject to positive results, this opens up a large range of
opportunities for Hardide coatings in hydrogen storage and distribution.
The increase in sales expected to our manufacturer of products for the solar
cell industry has been lower than expected in FY22 due to the exceptionally
high energy prices. Demand for their product is increasing and they have
already expanded capacity and expect to ramp-up production in 2023. Sales of
our coating on its components will increase directly in line with their
production volumes.
Power Generation
Two high-value production orders of coated gas turbine blades were delivered
to Ansaldo Energia S.p.A. in Italy and repeat orders are expected in 2023.
Developments are also underway on additional applications.
Currently, the Group is working on projects with five power generation
companies in the UK and overseas. These are based on Hardide's recently
patented coating for blades and vanes for turbines.
EDF Energy is in the process of evaluating the results of resonance tests on
the Hardide-coated blades for steam turbines before proceeding to the next
stage of development.
Industrial
Demand increased in this sector by 10% from FY21. This was led by a 39%
increase in sales to our major industrial pump customer in North America.
However, there was a reduction in revenue from the airport X-ray equipment
manufacturer due to the COVID downturn. Recovery in demand for their machines
has been slow but is projected to increase throughout 2023. Developments are
still taking place with the large EV manufacturer on components used in the
battery production process. Testing is underway on multiple industrial
applications with a large customer in the Far East.
The Group has been developing opportunities in South Korea following a trade
visit organised by Innovate UK in October 2019 and attended by the Group's
Technical Director. Further progress will require local expertise and to this
end, a local partner with extensive experience of selling high-value coatings
has been identified and with whom the Group has now signed a marketing agency
agreement.
Aerospace
Aerospace sales increased by 24% during FY22, with regular orders being
received to coat components for the Airbus A320, A330, A380, A400M and the
Beluga transport aircraft. Additional applications are currently in
development and testing. Orders continue to be received for the BAE
Eurofighter Typhoon. Further orders are expected in FY23 for the Lockheed
Martin F35 Lightning II fighter. Technical discussions and trials are underway
with several other OEM and maintenance, repair and operations ("MRO")
companies for applications including landing gear, door mechanisms and
peripheral engine components.
In its Global Services Forecast for 2022-2041, Airbus expects aftermarket
maintenance activity to recover to pre-pandemic levels in 2023 and to double
in value to $230bn over the next 20 years. Over this time, we expect that many
additional applications for Hardide will be approved. Airbus has also
increased its 20-year delivery forecast outlook in support of a firm market
recovery.
Post-period end, the Group received full supplier approval from Leonardo
Helicopters ("Leonardo") to coat flying parts. The first production order has
been coated already. These are for components used in helicopter gearbox
transmission systems. They are part of an existing aircraft upgrade and will
reduce 'in-service' costs and extend component life. Leonardo is one of the
UK's leading aerospace companies and one of the biggest suppliers of defence
and security equipment to the UK Ministry of Defence. This approval is
expected to open up other opportunities within the wider Leonardo Group and
the broader helicopter market.
Hardide exhibited at the Singapore Airshow in February 2022 and at the
Farnborough Airshow in July 2022, increasing its exposure in the aerospace
sector.
Accreditations and Research & Development
In July 2022, Hardide's UK site achieved Nadcap Gold Merit status, the highest
accreditation available for commitment to continual improvement in aerospace
quality. The UK site was also re-certified to environmental standard ISO 14001
for a further three years.
Fundamental experimental work on the development of a new coating variant that
would open additional markets for Hardide has been completed. Preliminary
assessment has shown the new coating could be patentable. Further development
work will be necessary to scale-up and characterise the coating and the Group
is looking to secure grant funding for this.
Intellectual Property
Our most recent patent covers the enhanced Hardide coating with improved
mechanical properties and its new applications, including turbine blades and
vanes. This has been granted in the UK and registration of the equivalent
patent is progressing in 10 leading industrial countries.
BOARD AND EMPLOYEES
Following the financial year end, Robert Goddard, the Group's long-serving
Chairman stepped down as part of a planned Board succession and was succeeded
by Andrew Magson.
On behalf of shareholders and the Board, we'd like to put on record our
immense thanks and gratitude to Robert for over 14 years of invaluable service
and leadership to Hardide as Chairman, without which the Group as we know it
today would simply not exist. He leaves the business well positioned for
further growth. All at Hardide wish Robert the very best for the future.
The significant improvement in the Group's recent performance would not have
been possible without the hard work and dedication of all our employees. The
Board would like to express its thanks and gratitude to everyone for their
contribution to the Group's ongoing growth and development.
OUTLOOK
Whilst the Board is mindful of economic headwinds, ongoing cost inflation and
supply chain disruption, Hardide has been successful in recovering cost
increases through selling prices, and revenues continue to grow as a result of
increasing customer adoption of our coatings. As evidenced by the recent
action taken to improve working capital and reduce cost, the Board is focused
on becoming profitable and cash generative.
More broadly, the Board is seeking opportunities to drive significant value
for shareholders and other stakeholders over the medium to longer term through
further development and commercialisation of the Group's unique, high
performance coatings technology, including co-operation with other coatings
companies.
FINANCIAL REVIEW
Income Statement
Sales revenue recovered strongly across our key markets, increasing by 39% to
£5.0m. Despite inflationary cost pressures across the supply chain, including
an almost twofold increase in the cost of energy, the Group improved its Gross
Margins from 36% in FY21 to 37%.
The Group's EBITDA loss was £0.9m (FY21: £1.5m loss) reflecting the
increased revenues at improved gross margins.
The statutory loss before tax was £2.3m (FY21: £2.9m).
Balance Sheet
Net assets at 30 September 2022 were £5.5m (FY21: £6.9m), the reduction
mainly reflecting the losses incurred during the year. Non-current assets,
including right of use assets, were £7.2m (FY21: £7.7m). Hardide is well
invested and therefore depreciation exceeded capital investment during the
year. Capital expenditure was £0.3m (FY21: £0.3m), largely relating to
upgrades to the older reactors in the UK.
Working Capital
Inventory levels were at broadly the same level as the previous year at
£0.5m, despite the increase in sales. The main inventory item is process gas,
and inventory movements year on year are often attributable to the timing of
gas deliveries.
Trade and other receivables increased to £1.0m (FY22: £0.6m) as a
consequence of the increased sales over the last two months compared to the
equivalent period in 2021. The level of overdue debts was £0.1m higher than
the previous year, although this related to one customer that paid shortly
after the year end.
Cash Flow
The cash outflow from operating activities was £1.0m, compared to £1.9m in
FY21, reflecting the improved trading performance. Capital expenditure was
£0.3m (FY21: £0.3m), with the level of capital expenditure required going
forward mainly associated with health and safety improvements and maintenance
upgrades. There is no immediate requirement to invest in capacity in either
the UK or US facilities.
The overall cash outflow for the year was £0.8m (FY21: £1.2m).
Borrowings and right of use lease liabilities, at £3.1m, remained at a
similar level to FY21.
The cash balance at the end of the financial year was £0.7m (FY21: £1.5m)
whilst net debt, including lease liabilities was £2.4m (FY21: £1.5m), and
excluding lease liabilities was £0.4m (FY21: £0.6m net cash).
Funding
To strengthen its cash position and provide greater working capital
flexibility and headroom, the Group has recently raised new funds as follows:
· £0.5m, net of expenses, through an equity fundraising in September 2022; and
· £0.5m from the purchase, sale and leaseback of our facility in Martinsville,
USA, in December 2022.
In addition, the Board recently put in place a series of initiatives to
improve working capital and reduce costs by £0.3m-0.4m by the end of the
first half of the current calendar year. This will provide additional
headroom, improve profitability, and help to underpin delivery of expectations
for the financial year to 30 September 2023. Opportunities to further
strengthen the balance sheet are also being considered.
Going Concern
The directors have adopted the going concern basis in preparing the financial
statements after assessing the principal risks and having considered the
impact of various downside scenarios compared to the Group's base case
financial plans, the pace of sales growth and the level of profit margins for
a period of at least 12 months from the date of signing the Annual Report.
Whilst the macro-economic position is highly volatile, making scenario
planning difficult, the directors have considered various impacts on sales,
profitability and cash flows and believe that the Group will have adequate
resources to continue in operational existence for the foreseeable future.
The directors considered how the current economic climate, including external
forecasts of lower economic growth or recession in 2023, higher interest rates
and inflation, may affect the performance of the business; from the supply
chain to the ability of our customers to operate. A major disruption caused by
such factors would most likely result in reduced sales volumes and require
significant action in relation to operational cost reductions, working capital
management and control over capital investment. We considered the sensitivity
of sales volume reductions over a substantial part of our 2023 financial year
and also into 2024. The revenue and operational leverage impact of such a
volume loss would have a significant negative impact on the performance of the
Group, albeit cash would be released from lower working capital requirements
and lower capital spend. The scenario modelling indicates that the Group would
have sufficient cash reserves over the foreseeable future. In addition, the
Group has a successful track record of raising additional equity finance, if
required, to support solvency and growth. The directors therefore believe that
the Group is reasonably placed to manage its financing and other business
risks satisfactorily, and have a reasonable expectation that the Group will
have adequate resources to continue in operation for at least 12 months from
the date of signing of the Group financial statements. Therefore, they
consider it appropriate to adopt the going concern basis of accounting in
preparing the financial statements.
SUSTAINABILITY AND ESG
On completion of the move to the new UK site in 2020, targets were set in FY21
to reduce emissions per £m of sales by 15% from this baseline year. In FY22,
these targets were exceeded considerably on every measure. More broadly, the
use of Hardide coatings contributes to the sustainability agenda by
significantly increasing the operational life of coated parts, thereby
reducing waste and improving efficiency for our customers. The Group is
committed to high standards of ethical behaviour and strong governance. Full
details are within the ESG section of the annual report.
Andrew Magson Philip Kirkham
Chair CEO
7 February 2023
CONSOLIDATED INCOME STATEMENT
for the year ended 30 September 2022
Audited Audited
12 months to 30 September 2022 12 months to 30 September 2021
£000 £000
Revenue 5,015 3,597
Cost of sales (3,135) (2,286)
Gross profit 1,880 1,311
Administrative expenses (2,830) (2,795)
Depreciation and amortisation of owned assets (890) (854)
Depreciation of right of use assets (318) (280)
Share based payments 9 (202)
Provisions - (6)
Operating (loss) (2,149) (2,826)
Finance income 4 3
Finance costs (49) (17)
Finance costs on right of use assets (80) (87)
(Loss) on ordinary activities before taxation (2,274) (2,927)
Taxation 86 125
(Loss) on ordinary activities after taxation (2,188) (2,802)
(Loss) per share: Basic (3.9)p (5.1)p
(Loss) per share: Diluted (3.9)p (5.1)p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 30 September 2022
Audited Audited
As at 30 September 2022 As at 30 September 2021
£000 £000
Assets
Non-current assets
Goodwill 69 69
Intangible assets 19 36
Property, plant & equipment 5,402 5,700
Right of use assets 1,660 1,881
Total non-current assets 7,150 7,686
Current assets
Inventories 487 504
Trade and other receivables 955 583
Other current financial assets 450 442
Cash and cash equivalents 693 1,543
Total current assets 2,585 3,072
Total assets 9,735 10,758
Liabilities
Current liabilities
Trade and other payables 1,077 702
Financial liabilities 257 208
Right of use lease liability
201
201
Provisions
Provision for onerous lease and dilapidations - 34
Total current liabilities 1,535 1,145
Net current assets 1,050 1,927
Non-current liabilities
Financial liabilities 878 738
Right of use lease liability 1,742 1,911
Provision for dilapidations 50 50
Total non-current liabilities 2,670 2,699
Total liabilities 4,205 3,844
Net assets 5,530 6,914
Equity attributable to equity holders of the parent
Share capital 4,063 3,942
Share premium 19,242 18,854
Retained earnings (18,200) (16,012)
Share-based payments reserve 553 562
Translation reserve (128) (432)
Total equity 5,530 6,914
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 September 2022
Audited Audited
12 months to 30 September 2022 12 months to 30 September 2021
£000 £000
Cash flows from operating activities
Operating (loss) (2,149) (2,826)
Amortisation of intangibles 18 18
Depreciation on owned assets 872 836
Depreciation on right of use assets 318 280
Share option charge (9) 202
Decrease in inventories 17 61
(Increase) in receivables (372) (115)
Increase / (decrease) in payables 372 (204)
(Decrease) in provisions (34) (183)
Cash used in operations (967) (1,931)
Finance income 4 3
Finance costs (49) (17)
Right of use asset interest (80) (87)
Tax received 78 96
Net used from operating activities (1,014) (1,936)
Cash flows from investing activities
Proceeds from sales of property, plant and equipment 7 18
Purchase of intangibles (1) (4)
Purchase of property, plant and equipment (298) (313)
Net cash used in investing activities (292) (299)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital 509 764
New loans raised 325 553
Loans repaid (261) (101)
Repayment of leases (251) (273)
Net cash used in financing activities 322 943
Effect of exchange rate fluctuations 134 120
Net (decrease) in cash and cash equivalents (850) (1,172)
Cash and cash equivalents at the beginning of the year 1,543 2,715
Cash and cash equivalents at the end of the year 693 1,543
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 September 2022
Share Share Share-based Payments Translation Reserve Retained Total
Capital Premium £000 £000 Earnings Equity
£000 £000 £000 £000
At 1 October 2020 3,836 18,196 360 (345) (13,210) 8,837
Issue of new shares 106 658 - - - 764
Share options - - 202 - - 202
Exchange translation - - - (87) - (87)
Loss for the year - - - - (2,802) (2,802)
At 30 September 2021 3,942 18,854 562 (432) (16,012) 6,914
At 1 October 2021 3,942 18,854 562 (432) (16,012) 6,914
Issue of new shares 121 388 - - - 509
Share options - - (9) - - (9)
Exchange translation - - - 304 - 304
Loss for the year - - - - (2,188) (2,188)
At 30 September 2022 4,063 19,242 553 (128) (18,200) 5,530
Notes
1. Basis of preparation of financial information
While the financial information included in this annual financial results
announcement has been prepared in accordance with the recognition and
measurement principles of international accounting standards in conformity
with the requirements of Companies Act 2006, this announcement does not
contain sufficient information to comply with IFRSs.
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 30 September 2022 or 2021 but is
derived from those accounts. Statutory accounts for Hardide plc for the year
ended 30 September 2021 have been delivered to the Registrar of Companies and
those for the year ended 30 September 2022 will be delivered following the
Company's annual general meeting. The auditors have reported on those
accounts; their reports were unqualified and did not include references to any
matters to which the auditors drew attention by way of emphasis without
qualifying their reports. Their reports for the year ended 30 September 2022
and 30 September 2021 did not contain statements under s498 (2) or (3) of the
Companies Act 2006.
The consolidated financial statements present the results of the Company and
its subsidiaries ("the Group") as if they formed a single entity. Intercompany
transactions and balances between Group companies are therefore eliminated in
full. Subsidiaries are fully consolidated from the date on which control is
transferred to the Group and cease to be consolidated from the date on which
control is transferred out of the Group.
2. Segmental information
Under IFRS8, operating segments are defined as a component of the entity (a)
that engages in business activities from which it may earn revenues and incur
expenses (b) whose operating results are regularly reviewed and (c) for which
discrete financial information is available. The Group management is organised
in to UK and USA operation and Corporate central functions, and this factor
identifies the Group's reportable segments.
Year ended UK operation £000 US operation Corporate Total
30 September 2022 £000 £000 £000
2022 2021 2022 2021 2022 2021 2022 2021
External revenue 3,076 1,923 1,939 1,674 - - 5,015 3,597
Interest revenue - 1 1 - 3 2 4 3
Interest expense 105 96 16 8 8 - 129 104
Depreciation 835 818 373 316 - - 1,208 1,134
Income tax - - - - 86 125 86 125
Reportable segment profit / (loss) (1,650) (1,939) 186 79 (724) (942) (2,188) (2,802)
Segment assets 6,855 7,083 2,323 2,891 557 784 9,735 10,758
Expenditure for non-current assets 221 255 81 62 - - 302 317
Segment liabilities 2,962 3,061 893 439 350 344 4,205 3,844
The Group currently has a single business product, so no secondary analysis is
presented. Revenue from external customers is attributed according to their
country of domicile. Turnover by geographical destination is as follows:
External sales UK Europe N America Rest of World Total
£000 £000 £000 £000 £000
2022 1,314 666 3,007 28 5,015
2021 1,257 176 2,149 15 3,597
3. Earnings per share
2022 2021
£000 £000
(Loss) on ordinary activities after tax (2,188) (2,802)
Basic earnings per ordinary share:
Weighted average number of ordinary shares in issue 56,058,053 54,980,286
Earnings per share (3.9)p (5.1)p
As net losses were recorded in 2022 and 2021, the potentially dilutive share
options are anti-dilutive for the purposes of the loss per share calculation
and their effect is therefore not considered.
4. Post balance sheet events
On 21 December 2022, Hardide Coatings Inc completed a purchase, sale &
leaseback of its facility in Martinsville, Virginia, and entered into a new 10
year lease agreement with the purchaser of the site. The consideration paid
amounted to $617,000 and the gross sale proceeds realised were $1,200,000.
5. Annual report and accounts and notice of AGM
The full annual report and accounts for the year ended 30 September 2022,
including the basis for preparation and other explanatory notes, will be
posted to shareholders in mid-February 2022 and will be available immediately
thereafter on the Company's website (www.hardide.com (http://www.hardide.com)
). The announcement of the publication of the full report and accounts will be
notified. Notice of the Company's annual general meeting will be sent to
shareholders at the same time.
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. END FR UPUPGPUPWGMMRecent news on Hardide
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