REG - Hardide PLC - Annual results to 30 September 2025
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RNS Number : 8579P Hardide PLC 22 January 2026
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
22 January 2026
Hardide plc
("Hardide", the "Group" or the "Company")
Annual results to 30 September 2025
Hardide plc (AIM: HDD), the provider of advanced surface coating technology,
announces its audited annual results for the year ended 30 September 2025
("FY25" or the "Period").
"Good progress in FY25. Strong Q1 FY26 trading momentum"
Financial summary
£m
Year ended: 30 September 2025 30 September 2024 Change
Revenue 6.0 4.7 +1.3
Gross profit 3.5 2.3 +1.2
Gross margin % 57% 48% +9 percentage points
EBITDA * (1) 1.0 - +1.0
EBITDA margin % 17.0% - +17 percentage points
Basic earnings per share ("EPS") (pence) 0.2 (1.9) +2.1
Gross cash at 30 September 0.8 0.7 +0.1
Net debt at 30 September 1.6 2.1 -0.5
* EBITDA is defined as Earnings Before Interest, Tax, and Depreciation and
Amortisation charges.
(1) The 30 September 2024 comparative figure for EBITDA has been adjusted to
exclude non-recurring restructuring costs of £0.4m incurred in that year.
FY25 trading and financial highlights
· Revenues up 27% from £4.7m to £6.0m driven by new recurring and development
work wins across the aerospace and energy sectors.
· Gross margins up from 48% to 57% due to volume growth, strong commercial
disciplines and operational efficiency gains.
· Revenue and margin improvements drove a material improvement in EBITDA to
£1.0m (2024: break-even(1)), at an EBITDA margin of 17.0%.
· Earnings positive for the first time in many years with basic EPS of 0.2p
(2024: 1.9p loss per share).
· Net debt reduced by £0.5m to £1.6m at 30 September 2025. Gross cash
increased from £0.7 to £0.8m in FY25, further increasing to £1.2m at 31
December 2025.
· Full harmonisation of operational capabilities between our plants in the USA
and UK completed during the year.
Recent trading and outlook
· Strong trading momentum of Q4 FY25 continued into Q1 FY26, with Q1 FY26
revenues of £1.8m up almost 40% on Q1 FY25, enabling generation of double
digit operating margins in the quarter.
· Expectations for further significant progress in FY26 as a whole are
underpinned by Q1's encouraging trading momentum and order intake of £1.75m
from a major new customer in the energy sector in North America.
· Hardide remains well positioned to drive significant further profitable growth
from the ongoing commercialisation of its unique surface treatment technology,
leveraging its well invested operational platform and significant available
capacity.
Matt Hamblin, CEO, said:
"I am pleased with the progress made during my first full year as CEO and
would like to thank all my colleagues who helped deliver these encouraging
results. We continue to work hard to drive further progress in FY26 towards
our initial strategic target of at least doubling revenues from FY24 levels as
soon as possible, utilising spare capacity to leverage significant potential
for operating margin and earnings growth".
For further information:
Hardide plc Tel: +44 (0) 1869 353 830
Matt Hamblin (CEO)
Simon Hallam (Finance Director)
Cavendish Capital Markets Ltd - Nominated Adviser and Broker Tel: +44 (0) 2072 200 500
Henrik Persson / Elysia Bough (Corporate Finance)
Jasper Berry / Dale Bellis (Sales)
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 as well as a reduced carbon footprint.
Customers include leading companies operating in the energy sectors, valve and
pump manufacturing, industrial gas turbine, precision engineering and
aerospace industries.
Chair's Statement
Overview
I am pleased to report a year of strong progress for Hardide.
Revenues grew by 27% to £6.0m (2024: £4.7m), driven by new work wins in the
aerospace and energy sectors. This enabled us to achieve a materially improved
EBITDA result of £1.0m (2024: break-even, prior to restructuring costs) at a
margin of 17.0% for the year, together with a positive earnings per share
outcome for the first time in many years.
The encouraging trading momentum has continued into the current financial
year, with revenues for the quarter ended 31 December 2025 almost 40% up on
the prior year period at £1.8m, the Group's cash balance increasing from
£0.8m at 30 September 2025 to £1.2m at 31 December 2025, and orders received
from a major new customer in the energy sector of £1.75m.
Strategy
Our strategy is to accelerate market adoption of Hardide's unique, high
performance coatings technology by marketing and developing a customer
specified coatings solutions business to augment our traditional work to
supply coatings as a service, together with strategic focus on expanding our
North American business. Our approach is described in further detail in the
Chief Executive's review.
Our first strategic milestone is to at least double revenues from 2024 levels
to £10m and beyond as soon as possible, leveraging the potential for
significant margin and profit improvement through utilisation of spare
production capacity.
People and culture
We are once again very grateful for the hard work and dedication of our
employees in both the UK and the USA in driving the growth and improved
performance of the business through the year. We were pleased to be able to
reward all employees with bonus payments following the financial year end to
recognise their achievements.
Consistent with our strategy, we continue to develop a more commercially led,
customer focused, innovative and results driven culture as we grow the
business. This is being achieved through a combination of leadership by
example, reward for success, training, and by strengthening the team to help
drive growth and build momentum.
Board
The Board continued to evolve during the year. We were delighted to welcome
Dr. Bryan Allcock to the Board in December 2024 as our Senior Independent
Non-Executive Director and Remuneration Committee Chair following the
retirement of Tim Rice. Bryan's extensive and wide-ranging knowledge of
materials science and the surface treatment sector, combined with a strong
commercial and entrepreneurial approach has brought a welcome fresh
perspective to the Board.
Investment
The Group's principal capital investments during the year were to enable
harmonisation of production capabilities between the USA and the UK as part of
our strategy to grow the North American business; and to increase the
capability of our pre-treatment facilities to enable to development of
ancillary sales, further described in the Chief Executive's report.
We also continue to invest in increasing the number of variants of the Hardide
coating to broaden our market reach, whilst developing new applications of the
technology working in collaboration with customers and supported by grant
funding where available. Examples of grant funded application development work
during the year were in carbon capture and hydrogen storage applications.
Cash flow
Over the last 18 months the Group has begun to generate cash for the first
time. With ongoing revenue growth and a well invested business with healthy
gross margins and strong overhead control, we expect cash balances now also to
grow further.
Outlook
Despite continuing uncertainties in the global economy, the Board believes the
business should continue to make good progress in the current financial year
and beyond due to increasing market adoption of our unique surface coating
technology. This is evidenced by the growth achieved in the last financial
year and in the current financial year to date; the significant new orders won
recently from a major new energy sector customer; and the growing pipeline of
business development opportunities.
Andrew Magson
Non-Executive Chair
21 January 2026
Chief Executive's Review
Results for the year
I am pleased with the progress made in my first full year as Hardide's CEO. We
are continuing to work hard to build on this in the current financial year.
The Group's results for the year ended 30 September 2025 can be summarised as
follows:
£m
Year ended: 30 September 2025 30 September 2024 Change
Revenue 6.0 4.7 +1.3
Gross profit 3.5 2.3 +1.2
Gross margin % 57% 48% +9 percentage points
EBITDA * 1.0 -(1) +1.0
EBITDA margin % 17.0% - +17 percentage points
Operating profit / (loss) 0.3 (1.2) +1.5
Profit / (loss) before tax 0.1 (1.3) +1.4
Basic earnings per share (pence) 0.2 (1.9) +2.1
* EBITDA is Earnings Before Interest, Tax, and Depreciation and Amortisation
charges.
(1) The 30 September 2024 comparative figure for EBITDA has been adjusted to
exclude non-recurring restructuring costs of £0.4m incurred in that year.
Revenues in FY25 increased by 27% to a record £6.0m compared with £4.7m in
FY24, driven mainly by new work wins in the aerospace and energy sectors.
Similarly, gross margins improved to 57% from 48% in FY24, through a
combination of better recovery of fixed costs due to revenue growth, together
with strong commercial management and operational efficiencies.
When combined with strong overhead control and the sustained benefit of fixed
cost savings, the increased revenues and gross margins enabled a material
improvement in EBITDA to £1.0m at an EBITDA margin of 17.0%, compared to a
break-even result (prior to £0.4m of one-off restructuring costs) in the
prior year.
With depreciation and interest charges also lower in FY25, the strong EBITDA
performance enabled the business to generate a positive operating profit of
£0.3m (2024: loss of £1.2m) and profit before tax of £0.1m (2024: loss of
£1.3m), driving a positive basic EPS of 0.2p (2024: loss per share of 1.9p).
High operational gearing in the business should enable future revenue growth
to translate strongly into additional profit and cash generation, and
therefore we would expect profits and earnings to grow faster than revenues in
the coming years.
Commercial review
The Group's revenues analysed by end use market application were as follows:
£m FY25 FY24 % change FY25 % Mix FY24 % Mix
Energy 2.8 1.9 + 49% 47% 40%
Industrial 1.4 1.9 - 26% 23% 40%
Aerospace 1.8 0.9 + 90% 30% 20%
Total 6.0 4.7 + 27% 100% 100%
The £1.3m revenue growth from 2024 to 2025 was largely generated by new
business won in the year in energy and aerospace applications. Whilst the
overall level of recurring work was broadly flat year on year reflecting the
challenging global economic backdrop, this masked some recovery in sales to
the energy sector after some customer de-stocking in the prior year, offset by
a reduction in industrial sector work.
The addition of a number of new customers during the year enabled us to reduce
overall customer concentration across our portfolio, although our top six
customers continue to account for the majority of the Group's sales.
Energy
Much of the £0.9m increase in year-on-year sales to this sector was explained
by new work wins. There is significant customer interest in the potential for
Hardide coatings to replace boronising and nitriding as a surface treatment
solution to increase the longevity of sleeves used in directional drilling
operations.
Revenue growth in FY25 was driven particularly by two large new customers,
based in North America and the Middle East respectively, with sales momentum
increasing in the final quarter of the year. Should development trials and
initial production orders be successful during the course of FY26, both
customers have the potential to add materially to Hardide's sales in the
current and future years.
Elsewhere we saw some recovery in volumes from one major long-standing
customer who had de-stocked in the prior year; a modest increase in demand
from another significant customer; whilst some coating programmes with smaller
customers came to a natural end during the year.
The application of Hardide coating for use in the coating of industrial gas
turbine blades to mitigate water droplet erosion, continues to be tested in
the field and we remain in close contact with the customer. Although there had
been no repeat demand since FY22, encouragingly, we recently received a repeat
order for £0.26m which will benefit this financial year.
Industrial engineering
Demand in the industrial engineering sector was somewhat subdued, perhaps
reflecting broader economic conditions, as one of our major customers reduced
ongoing volumes following de-stocking last year. Demand for recurring work
elsewhere was broadly stable.
Sales of our enhanced products range launched in 2024 grew during the year,
albeit not at the rate initially expected and efforts continue to increase
market share in this area, with continued focus on replacement and spare
copper nozzles for thermal spraying equipment.
Aerospace
In December 2024 we announced we had won additional work with a major European
aircraft manufacturer to coat parts for freight aircraft. As expected, the
initial tooling and development work added materially to sales revenue in
FY25. Production volumes are expected to begin in FY26 and, based on the
customer's anticipated build rates, this could lead to production revenues in
the range of circa £8m over the expected 10-year time frame of the contract.
The work won in 2023 with the same customer to coat parts used in commercial
passenger aircraft has continued to progress well and should also enable a
stable base load of volume work to continue for a number of years.
We continue to seek new production work within the aerospace sector (both
civil and military) and, so far, have had encouraging successes in technical
trials and achieved accreditations to work with a number of blue chip
customers.
Business development
Approach
Our refreshed approach to business development begun last year is to take a
broader and more holistic view of end use market development that places focus
on potential applications where Hardide coatings are uniquely differentiated.
This means we have become less restricted by the Group's traditional targeting
of energy, aerospace and certain industrial customers. In addition, we are
seeking to grow market share through focus on the following growth drivers:
· Developing a Bespoke Solutions business
This business stream is based on solving unique customer problems with a
bespoke Hardide specification in both our traditional markets as well as new
markets. In our traditional markets, including aerospace in particular,
development lead times and customer approvals are long, and therefore having a
balanced opportunity pipeline in terms of timeframes to revenue realisation is
therefore critical to our success. As part of this initiative, we will seek to
become more market sector agnostic and also target customers and applications
with shorter approval cycles. Developing unique customer solutions with a
bespoke Hardide specification can create a high barrier to entry for other
surface treatment providers. It is intended that our coatings solutions
business will supplement our traditional coatings as a service business.
During the current financial year we have been progressing discussions with
two large energy companies which have the potential to develop into
significant recurring business for the Group.
· Strategic development of our North American business
We believe that revenue growth opportunities for Hardide in the USA and North
America are significant.
Traditionally, our Martinsville site in Virginia had been a satellite
production centre and operated under the close supervision of operational
management in the UK. We are evolving the organisational structure to empower
and encourage the team in Martinsville to carry out business development
activities directly; and during the year we invested to enable the site to
mirror operational capabilities with those in the UK.
Hardide's business model is to coat component parts owned by its customers and
prices are set on an ex-works basis. Hardide does not bear the financial risks
of transporting parts to and from our facilities and, following the
harmonisation of operational capabilities between our two plants carried out
this year, there is no longer the need for Hardide to coat and ship certain
parts from the UK to serve customers in North America.
We believe that the additional sales potential could be significant from the
increased competitiveness enabled by providing more coatings for the North
American market locally, thereby avoiding transport costs and tariffs which
can be material relative to ex-works selling prices, as well as providing
reduced lead times.
In recent months this has been evidenced by sizeable sales orders received
from a large new North American energy customer, where supply directly from
Martinsville was a key pre-requisite.
· Developing ancillary product ranges
During the year we began to offer a wider variety of pre and post treatment
services, such as low phosphorus electroless nickel plating and laboratory
analysis services to external customers in order to better utilise Hardide's
asset base and skill sets that exist in the business.
· Digital, sales led marketing via the internet and social media
In 2024 we launched a digital, sales led marketing programme with a specialist
external provider targeted on increasing market awareness of the unique
features and benefits of Hardide coatings, particularly for use in in
challenging operational environments and where non-line of sight coating, or
coating of internal surfaces is required. The objective, consistent with our
bespoke solutions sales strategy outlined above, is to initiate dialogue with
design engineers who have technical needs that Hardide could provide solutions
for.
This approach is proving to be more results focused and cost effective than
our previous traditional external sales team model. Instead, senior executives
within the business now follow up on leads that have already been
pre-qualified and well prioritised, often with customers having already
reached the decision to spend money on development work.
Consistent with this marketing approach we have recently refreshed Hardide's
web site (www.hardide.com) and associated visual branding.
Progress
For the first time this year we have a quantified road map that shows on a
line-by-line basis how we intend to achieve our initial strategic target of at
least doubling 2024 revenues as soon as possible and better utilise our
operational capacity. This was the case even before the recent receipt of
significant orders from our new customer in the North American energy sector.
The pipeline of potential opportunities continues to grow, albeit this still
needs to be filled further so risks of work not being secured or being delayed
is reduced, and the overall chances of success across the portfolio are
increased. The Board now reviews this schedule every month, and it considers
this discipline to be a significant step forward.
Operations
Health & safety
Once again, there were zero lost time health and safety incidents across the
Group during the FY25 financial year and more minor accidents were very
infrequent. Regular external audits and inspections are performed at both
sites and recommendations for continuous improvement followed up. Greater
focus on being placed on potential hazard and near miss identification,
reporting and continuous improvement activities in order to reduce the risk of
accidents occurring.
Accreditations
Hardide's site at Bicester in the UK is accredited to NADCAP Gold Merit
status, the highest accreditation available for commitment to continual
improvement in aerospace quality. Both the UK and the US site at Martinsville
are accredited to aerospace quality standard AS9100 Rev. D and to ISO9001. The
Bicester facility is certified to environmental standard ISO14001, while
Martinsville complies with applicable local, state and federal environmental
standards.
Continuous improvement
A number of continuous improvement projects were initiated during the year and
are bearing fruit. Initial focus has been on improving the efficiency of usage
of our two key variable input costs, process gas and energy. In addition, we
are putting increased focus on increasing the efficiency and flexibility of
production workflows to improve productivity.
Fundamentally, the cost per part of components coated is heavily dependent on
the quality of up front application engineering and tooling; together with the
volume, predictability and repeatability of demand, which together help enable
efficient batch sizes and reactor utilisation. We have recently been more far
more proactive in working with customers to optimise these areas for mutual
benefit, and this contributed to the improvement in gross margins during the
year.
Operational capacity
We believe that with appropriate maintenance we continue to have operational
capacity to support revenues at least in the range £10-12m pa, based on daily
production cycles for each of our ten coating reactors and our existing single
shift pattern. We are working on ways in which we could materially increase
this production capacity without further major capital investment.
Should additional coating reactors be required to satisfy demand, these
typically cost in the range £1.0-1.5m each, and each reactor can support at
least a similar level of annual revenues, depending on selling prices, reactor
loadings and cycle times. Our experience is that customers can support the
funding of specific additional capacity, and that asset finance is also
typically available, if needed.
Intellectual property
Hardide continues to renew patents in territories that it believes are
important to its commercial development and to protect latest developments and
applications in its coatings technology.
In effect, our most recent patents serve to increase the life span of our
original patents by covering an increased range of applications.
Management also believes that Hardide's know-how and experience in applying
the coatings technology has now become as valuable, if not more so, than the
patents themselves.
Research and development
Research and development activities during the year included:
1. A project in conjunction with a team of post graduate engineering
students from Cranfield University to evaluate the potential for Hardide
Coatings in carbon capture applications. This concluded the most likely
commercial applications for Hardide will be in transporting carbon dioxide and
work continues as to how we might commercialise this.
2. Completion of work, supported by grant funding, to assess the potential
for use of Hardide Coatings in the production of green hydrogen. Initial
results have been encouraging, and we are now engaging with commercial
partners to take development to the next stage.
3. Continuing to work with a key customer in the power generation industry
to further improve the performance of Hardide coatings when used to mitigate
the effects of water droplet erosion on turbine blades. This follows the
outcome of field trials of the components initially supplied in 2022.
The focus of our technical department is evolving to increase prioritisation
of work where customers are asking us to develop our technology to support
their needs and resolution of problems. It is likely that an increasing
proportion our technical development work will become customer funded rather
than grant funded in future. These areas include evaluating the performance
and tolerances of thinner coatings and how we improve the efficiency of
masking parts of components that do not need to be coated.
Environmental, Social and Governance ("ESG")
We believe Hardide has relatively strong ESG credentials as explained in the
ESG report later in the full Annual Report.
Hardide's coatings prolong the life of, and improve the resilience and
efficiency of, the components and parts used by our customers, thereby
reducing life cycle costs, reducing waste and avoiding the harmful chemicals
used in some competing coating technologies.
Our facilities in the UK and USA are well invested and operate to high
environmental standards, with continuous improvement initiatives targeting a
relative reduction in carbon emissions over time.
As a small team of just over 30 people, we work closely with and communicate
regularly with employees, who are involved in discussions as to how we grow,
develop and continually improve the business. We operate a profit bonus scheme
that all employees participate in, and all employees received a bonus relating
to Hardide's EBITDA performance in FY25.
We believe that Hardide as a small, listed business on London's Alternative
Investment ("AIM") market, is relatively well governed for a business of our
size, and we comply with the QCA corporate governance code (as revised in
2023) for AIM listed businesses, as set out in the Corporate Governance
report.
Strong, responsible corporate governance and ethical behaviour is fundamental
to the Board's oversight of the Group and to Hardide's broader culture and
values.
Current financial year to date trading
Year to date trading in the first quarter of FY26 has been stronger than we
had anticipated at the beginning of the year. The strong sales momentum
experienced at the end of the last financial year has continued, including
repeat orders amounting to some £1.75m from our large new energy sector
customer in North America.
Unaudited revenue for the first quarter of FY26 was £1.8m (Q1 FY25 £1.3m).
This revenue growth enabled us to generate double digit operating margins in
the quarter. The Group's cash balance at 31 December was £1.2m, compared with
£0.8m at 30 September 2025, reflecting the positive trading momentum and the
normalisation of the higher than usual working capital levels that were
carried over the last financial year end.
The encouraging levels of trading and order intake so far in the current
financial year serve to underpin our confidence that Hardide will continue to
make good progress over the 2026 financial year as a whole.
Matt Hamblin
Chief Executive Officer
21 January 2026
Group Finance Director's Review
Income statement
The revenue and profit performance of the Group for the year is described in
the Chief Executive's review.
The Group had no corporation tax charge in FY25 due to brought forward tax
losses. There was also no charge in FY24 due to tax losses incurred in that
year. The Group benefited from modest research and development tax credits in
both years.
Cash flow, cash balance and net debt
The Group's cash flow statement can be summarised as follows:
Year ended: 30 September 2025 30 September 2024
EBITDA * 1.0 -
Change in working capital (0.3) 0.1
Net interest and tax (0.1) (0.1)
Operating cash flow 0.6 -
Restructuring cash costs - (0.4)
Capital expenditure (0.1) (0.1)
Increase / (decrease) in cash flow before financing transactions
0.5 (0.5)
Net financing cash flows (0.4) 0.5
Net cash flow for the year 0.1 -
Cash balance at 30 September 0.8 0.7
* EBITDA in FY24 is stated prior to deducting one off restructuring costs,
presented separately in the summary cash flow statement above.
In the year ended 30 September 2025 the Group generated £0.5m of cash, prior
to financing transactions, of which £0.4m was utilised to meet committed
repayments of loans and leasing liabilities, with the remaining £0.1m adding
to gross cash on the balance sheet.
Due to strong trading momentum towards the end of the 2025 financial year,
working capital requirements were higher than normal over the financial year
end, leading to £0.3m of cash being absorbed into working capital. This
position has since normalised, and by 31 December 2025 the Group's cash
balance had increased to £1.2m.
Capital expenditure of £0.1m during FY25 continued to be modest in comparison
to the Group's depreciation and amortisation charges of £0.7m for the year,
due to the business continuing to be well invested with significant spare
capacity. As described in the Chief Executive's report, the capital
expenditure mostly related to investment in our Martinsville plant in the USA
to harmonise its operational capabilities with those in the UK.
Balance Sheet and Capital Structure
The main changes in the Group's balance sheet over the year were:
· a reduction in the net value of property, plant, equipment and
right of use assets by £0.6m, from £5.5m to £4.9m, as depreciation and
amortisation charges exceeded capital expenditure for the reasons described
above;
· the additional working capital carried over the FY25 year end of
£0.3m;
· a reduction in net debt (including lease liabilities) of £0.5m,
again as shown above.
An analysis of Hardide's net debt position (including lease liabilities) at
the financial year end is set out in the table below:
At 30 September: 2025 2024
Cash (0.8) (0.7)
Loans 0.5 0.7
Lease liabilities 1.9 2.1
Net debt 1.6 2.1
In total, the value of loans and lease finance due to be repaid in FY26 is
£0.4m (FY25: £0.4m).
Therefore, total equity / shareholders' funds increased from £3.7m to £3.9m,
reflecting retained profit after tax for the year.
Funding and going concern
Hardide has become cash generative for the first time over the last 18 months.
As Hardide is already well invested with significant spare capacity, and with
typical working capital requirements being modest at around 10% of sales, the
Board does not currently believe it will need to raise further equity to
deliver its current business plans. Therefore, the financial statements have
been prepared on a going concern basis.
Reverse stress testing suggests that, absent specific actions to reduce costs,
working capital and capital expenditure, the Group may need to seek further
funding only if revenues fell by more than 25% compared to forecast. Given
trading momentum this financial year has so far continued to be strong, the
Board considers this scenario to be unlikely.
Simon Hallam
Group Finance Director
21 January 2026
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 September 2025
2025 2024
£000 £000
Revenue 2 6,030 4,730
Cost of sales (2,574) (2,454)
Gross profit 3,456 2,276
Administrative expenses (2,435) (2,244)
Adjusted EBITDA before restructuring costs 1,021 32
Restructuring costs 3 - (399)
EBITDA 1,021 (367)
Depreciation and amortisation 3 (761) (823)
Operating profit / (loss) 3 260 (1,190)
Finance income 4 6 4
Finance costs 5 (141) (157)
Profit / (loss) on ordinary activities before taxation 125 (1,343)
Taxation 7 53 23
Profit / (loss) on ordinary activities after taxation 178 (1,320)
Basic earnings / (loss) per share 8 0.2p (1.9)p
Diluted earnings / (loss) per share 8 0.2p (1.9)p
Other Comprehensive Income
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations (3) (71)
Total comprehensive income / (loss) for the year attributable to owners of the 175 (1,391)
parent company
All operations are continuing.
The accompanying accounting policies and notes form an integral part of these
financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For Hardide plc, company registered number 05344714
at 30 September 2025
2025 2024
£000 £000
Assets
Non-current assets
Intangible assets 9 - 9
Property, plant & equipment 10 3,516 3,979
Right of use assets
1,526
11 1,369
Total non-current assets 4,885 5,514
Current assets
Inventories 12 173 167
Trade and other receivables 12 1,405 980
Other current financial assets 12 324 391
Cash and cash equivalents 12 827 700
Total current assets 2,729 2,238
Total assets 7,614 7,752
Liabilities
Current liabilities
Trade and other payables 13 1,235 795
Loans 13 168 235
Deferred income 13 15 393
Right of use lease liability 13 231 216
Total current liabilities 1,649 1,639
Net current assets 1,080 599
Non-current liabilities
Loans 14 309 479
Deferred income 14 34 50
Right of use lease liability 14 1,693 1,875
Provisions
Provision for dilapidations 15 50 50
Total non-current liabilities 2,086 2,454
Total liabilities 3,735 4,093
Net assets 3,879 3,659
Equity attributable to equity holders of the parent
Share capital 16 3,153 4,845
Share premium 16 19,193 19,188
Capital redemption reserve 16 1,707 -
Retained earnings (20,460) (20,638)
Share-based payments reserve 632 607
Translation reserve (346) (343)
Total equity 3,879 3,659
The financial statements were approved and authorised for issue by the Board
on 21 January 2026.
Matthew
Hamblin
Simon Hallam
Director
Director
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 September 2025
Capital Redemption Reserve
Share Share Share-based Payments Translation Reserve Retained Total
Capital Premium Earnings Equity
£000 £000 £000 £000 £000 £000 £000
At 1 October 2023 4,063 19,242 - 577 (272) (19,318) 4,292
Issue of new shares 782 98 - - - - 880
Share issue costs - (152) - - - - (152)
Share options - - - 30 - - 30
Exchange translation - - - - (71) - (71)
Loss for the year - - - - - (1,320) (1,320)
At 30 September 2024 4,845 19,188 - 607 (343) (20,638) 3,659
At 1 October 2024 4,845 19,188 - 607 (343) (20,638) 3,659
Cancellation of deferred (1,707) - 1,707 - - - -
shares
Issue of new shares 15 5 - - - - 20
Share options - - - 25 - - 25
Exchange translation - - - - (3) - (3)
Profit for the year - - - - - 178 178
At 30 September 2025 3,153 19,193 1,707 632 (346) (20,460) 3,879
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 September 2025
2025 2024
£000 £000
Cash flows from operating activities
Operating profit / (loss) 260 (1,190)
Depreciation and amortisation of owned assets 538 605
Depreciation of right of use assets 223 218
Share option charge 25 30
(Increase) / decrease in inventories (6) 69
(Increase) in receivables (355) (270)
Increase in payables 63 269
Cash generated from / (used in) operations 748 (269)
Finance income 6 4
Finance costs (141) (157)
Tax received 50 -
Net cash generated from / (used in) operating activities 663 (422)
Cash flows from investing activities
Purchase of intangibles, property, plant and equipment (69) (64)
Net cash (used in) investing activities (69) (64)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital 20 728
New loans raised - 235
Loans repaid (236) (260)
Repayment of leases (233) (269)
Net cash (used in) / generated from financing activities (449) 434
Effect of exchange rate fluctuations (18) 12
Net increase / (decrease) in cash and cash equivalents 127 (40)
Cash and cash equivalents at the beginning of the year 700 740
Cash and cash equivalents at the end of the year 827 700
Notes
1. Basis of preparation of financial information
The financial information presented is extracted from the audited financial
statements. Full statutory accounts for Hardide plc for the year ended 30
September 2024 have been delivered to the Registrar of Companies and those for
the year ended 30 September 2025 will be delivered following the Company's
annual general meeting.
Funding and going concern
The directors have adopted the going concern basis in preparing the financial
statements after assessing the principal risks and considering the impact of
various downside scenarios to the Group's base case financial plans, including
latest sales expectations and profit margins for the period to March 2027.
The Board expects the Group to have sufficient financial and other resources
to continue to operate as a going concern for the foreseeable future, but in
reaching that conclusion the Board has undertaken a series of sensitivity
analyses based on the Group not achieving its base case sales forecast.
Reverse stress testing suggests that, absent specific actions to reduce costs,
working capital and capital expenditure, the Group may need to seek further
funding only if revenues fell by more than 25% compared to forecast. Given
trading momentum this financial year has so far continued to be strong, the
Board considers this scenario to be unlikely.
2. Segmental analysis
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
into UK and USA operation and Corporate central functions, and this factor
identifies the Group's reportable segments.
Year ended UK operation US operation Corporate Total
30 September £000 £000 £000 £000
2025 2024 2025 2024 2025 2024 2025 2024
External revenue 4,581 3,129 1,449 1,601 - - 6,030 4,730
Operating profit / (loss) 592 (442) 338 296 (670) (1,044) 260 (1,190)
Segment assets 5,461 5,779 1,978 1,754 175 219 7,614 7,752
Expenditure for non-current assets 33 25 36 - - 69 48
23
Segment liabilities 2,399 2,686 1,148 1,188 188 219 3,735 4,093
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
2025 2,309 1,048 1,681 992 6,030
2024 2,096 159 2,033 442 4,730
The UK operation sells to customers globally, while the US operation sells to
North America and to the Far East. All revenue is recognised at a point in
time and no revenue is recognised over time.
Four external customers (2024 - four) contributed more than 10% of the Group's
continuing external sales for the year ended 30 September 2025.
3. Earnings Before Interest, Taxation, Depreciation and Amortisation
("EBITDA")
Earnings Before Interest, Taxation, Depreciation and Amortisation ("EBITDA")
is a key financial performance indicator used by management to assess the
operational performance of the Group.
2025 2024
£000 £000
Operating profit / (loss) 260 (1,190)
Add back non-cash other operating costs:
Depreciation and amortisation of owned assets 538 605
Depreciation and amortisation of right of use assets 223 218
EBITDA 1,021 (367)
Non-recurring restructuring costs - 399
Adjusted EBITDA 1,021 32
4. Earnings / (losses) per share
2025 2024
£000 £000
Profit / (loss) on ordinary activities after tax 178 (1,320)
Basic earnings per ordinary share:
Weighted average number of ordinary shares in issue 78,737,808 70,849,596
Dilutive effect of potential ordinary shares 4,950,362 -
Basic earnings / (losses) per share 0.2p (1.9)p
Diluted earnings / (losses) per share 0.2p -
As net losses were recorded in 2024, the potentially dilutive share options
are anti-dilutive for the purposes of the loss per share calculation. and
their effect is therefore not considered.
5. Loans
2025 2024
£000 £000
Total loans 477 714
Maturity analysis:
Within 1 year 168 235
1 to 2 years 103 169
2 to 3 years 85 103
3 to 4 years 54 86
4 to 5 years 39 54
5+ years 28 67
6. Right of use lease liabilities
2025 2024
£000 £000
Total lease liabilities 1,924 2,091
Maturity analysis:
Within 1 year 231 216
1 to 2 years 207 193
2 to 3 years 205 195
3 to 4 years 218 205
4 to 5 years 229 218
5+ years 834 1,064
7. Annual report and accounts and notice of AGM
The full audited annual report and accounts for the year ended 30 September
2025, including the basis for preparation and other explanatory notes, will be
made available to shareholders in February 2025. These will be available as
soon as possible 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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