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 Philip Kirkham, CEO Jackie Heddle, Communications Manager |
Tel: +44 (0) 1869 353 830 |
| IFC Advisory Graham Herring Tim Metcalfe Florence Chandler | Tel: +44 (0) 20 3934 6630 |
| finnCap - Nominated Adviser and Joint Broker Henrik Persson/ Abigail Kelly (Corporate finance) Barney Hayward (ECM/Broking) | Tel: +44 (0) 2072 200 500 |
|
Allenby Capital - Joint Broker Tony Quirke - Sales and Corporate Broking Jeremy Porter/ Freddie Wooding - Corporate Finance |
Tel: +44 (0) 20 3328 5656 |
Notes to editors:
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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