Hardide ends year in line with expectations

13th Oct 2022 13:19

(Sharecast News) - Surface coating technology company Hardide said in a trading update on Thursday that revenues for the financial year just ended were set to meet its expectations of £5m, up almost 40% on last year.

The AIM-traded firm said that as it reported in an update on 14 July, the volatility in its key markets influenced revenue in the 12 months ended 30 September.

It said that was driven by lengthened raw material lead times for customers, and delays in certain project orders originally scheduled for the final quarter of the year.

"None of these delayed orders have been lost and will now be recognised in the new financial year starting 1 October," the board said in its statement.

"The group is not experiencing any negative effect because of current exchange rates.

"The board is grateful for the support of new and existing investors in the Group's recent fundraising."

Hardide said it had about £0.7m of cash at year-end on 30 September, and was continuing to maintain "strict" cost and investment discipline, as well as continuing to explore options for raising new working capital support.

"Approximately half of the delayed cash receipt from a significant customer was received prior to year-end, with the balance expected soon.

"The group is also pleased to be in final contract negotiations relating to a sale and leaseback arrangement for its property in Martinsville, US, which will, when completed, make a substantial contribution to the Group's financial position."

Despite well-documented headwinds, Hardide said it had started the current financial year with a "strong" order book and, with revenues from certain contracts arriving in the period, the board maintained its "positive outlook" for the business beyond the near-term, as supply chains stabilised and markets continued to recover.

"The company sees clear potential for the current financial year to show considerable improvement on recent years, and the board is optimistic about the future."

At 1015 BST, shares in Hardide were up 3.16% at 15.99p.

Reporting by Josh White at Sharecast.com.