REG - Hardide PLC - Funding and Annual Results Update

HardideAnnouncement

22/12/2022 07:00

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RNS Number : 5405K  Hardide PLC  22 December 2022

22 December 2022

 

Hardide plc

("Hardide", "the Group" or "the Company")

 

Funding and Annual Results Update

 

Funding

 

Hardide plc (AIM: HDD), the developer and provider of advanced surface coating
technology, is pleased to announce that further to the £0.5m equity
fundraising in September, the Group has raised a further c.£0.5m in net cash
proceeds from the purchase, sale and leaseback of its Martinsville facility in
the USA. Accordingly, the Group has entered into a new 10 year lease for the
site.

 

In addition, the Board has recently implemented a series of working capital
efficiency and cost reduction initiatives. These are expected to generate a
further £0.3m to £0.4m of cash over the next six months, providing
additional working capital headroom whilst helping to underpin expectations of
results for the financial year ending 30 September 2023. The Group maintains
strong cost discipline and is focused on moving toward organic cash
generation, but in the meantime will continue to explore options to raise
additional funds to further improve its financial position.

 

Annual results

 

The Group expects to announce its annual results for the financial year to 30
September 2022 on 8 February 2023, following completion of the external audit.

 

In the meantime, the Board reiterates its expectation of revenues for the year
to 30 September 2022 to be approximately £5.0m, an increase of almost 40% on
the previous year as per the year end trading update of 13 October 2022. The
Board also now expects to report an EBITDA loss of £0.9m (FY 2021: EBITDA
loss of £1.5m), considerably better than the previous year in line with the
Board's expectations and reflecting the improved revenue performance.

Revenue growth has continued in the new financial year, with the Group
achieving record monthly revenues in November.

 

 Enquiries:
 Hardide plc

 Andrew Magson, Non-Executive 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/ Freddie Wooding - 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
engineering and aerospace industries.

 

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