Advanced surface coating technology company, Hardide Coatings, which doubled the size of its UK production facility with a move to a new 20,000 sq. ft. site in Bicester earlier this year, has reported signs of improvement across all its key markets.
The company reported revenues of £1.8 million for the six months ended March 31, which is in line with the second half of last year and also with the Board’s expectations.
The company also said that there is an “exciting development under way with a very large UK-based electric vehicle manufacturer”. Gas turbine blade developments are also well advanced with a major European manufacturer.
Hardide plc is a leading global innovator and provider of advanced tungsten carbide coatings that significantly increase the working life of critical metal components operating in abrasive, erosive, corrosive and chemically aggressive environments. It employs around 50 members of staff.
Robert Goddard, Chairman of Hardide plc, said: “Whilst the Group has had a challenging first half and the ongoing effects of COVID-19 remain unclear, there are signs of improvement across all of our key markets. Revenue from energy, flow control and aerospace customers all increased in the first half compared with H2 2020 with sales to aerospace customers increasing by 26 per cent and to energy and flow control by four per cent each. Predictably, the recovery in demand from oil and gas customers is slow. The overall rate of recovery will depend largely on the speed of roll-out of the vaccination programme, and the associated recovery of air travel and industrial energy consumption, both of which are already being seen across the Far East and North America. The Board believes that a number of factors, including diversification of our customer base, product differentiation, increased awareness of the benefits of the coatings and strong customer relationships position us well for medium- and long-term growth.
“Meanwhile, the Board and management has made excellent progress in developing further the Group’s strategy to build its position in the transition to alternative energy sources, and are pursuing new growth opportunities in various fields. Several applications have been identified already, just one being the exciting development with a large, US-based manufacturer of electric vehicles. Testing is progressing well and at a swift pace.
“Looking ahead, the Board remains confident of an improvement in revenues in H2 and into full year 2022. The Group’s cash position remains sufficient to meet the Company’s working capital requirements for the foreseeable future.”