Business
Trading Statement
Trading Statement.
About this update from Hardide Plc
[{"type":"text","content":"\n Hardide PLC\n31 July 2006\n\n\n \nPress Release 31 July 2006\n\n\n\n Hardide plc\n\n\n ('Hardide' or the 'Company')\n\n\n Trading Update\n\n\nHardide plc (AIM:HDD), the provider of unique surface engineering technology,\nannounces the following trading update.\n\n\nThe current financial year ended 30 September 2006 is likely to produce results\nbelow current market expectations. The Company is, however, expecting to report\nturnover significantly in excess of last year.\n\n\nThe expected shortage in revenue and increase in loss are attributable to two\nfactors:\n\n• One of Hardide's major customers has recently been reducing inventory and this\n has resulted in lower than expected sales. Nonetheless, Hardide remains the\n specified supplier to this customer and accordingly the Company expects orders\n to resume previous levels once the customer's inventory has stabilised in the\n near future.\n\n• Hardide has experienced a longer conversion time for customers expressing intent\n to purchase the Company's product. This slow-down is mainly attributed to high\n productivity at Hardide's major customers and has subsequently led to a\n slow-down in field-testing. Importantly, field-testing is still yielding the\n historic impressive results with a majority of customers opting to use Hardide's\n technology, albeit taking more time to fully incorporate Hardide's coating.\n\n\nProgress at Hardide's new manufacturing facility in Houston, Texas, is\nprogressing ahead of expectations with the facility on course to be open for\nbusiness on 1 September 2006, a month earlier than previously estimated. The\nCompany is extremely optimistic about the prospects for this facility and talks\nare progressing with a number of potential significant customers.\n\n\nOwing to anticipated high demand for its product from both new and existing\ncustomers, the Company has taken the opportunity to enlarge the premises in\nBicester, Oxford, to accommodate post finishing and streamlining facilities. To\naccommodate these new facilities, Hardide is leasing an additional space of\n4,000 sq. ft.\n\n\nHardide's recent exhibition at the Farnborough Air Show has produced several\nhigh level enquiries from large multinational corporations and has enhanced the\nCompany's reputation for the provision of leading surface engineering\ntechnologies. Although in earl...