Business
Trading Update
Trading Update.
About this update from Hardide Plc
[{"type":"text","content":"\n \n \n RNS Number : 1377T\n Hardide PLC\n 16 July 2020\n \n \n \n \n 16 July 2020\n \n Hardide plc\n (\"Hardide\" or \"the Group\" or \"the Company\")\n \n Trading Update\n \n Hardide plc (AIM: HDD), the developer and provider of advanced surface coating technology, provides the following update on trading for the year ending 30 September 2020.\n \n Previously, the Company announced record revenues for its first half to 31 March 2020 and minimal disruption to the Company's sales pipeline and order book in the first few months of the COVID-19 lockdown. More recently, the Company has started to see the risk, as indicated, of a slowing in the previously-robust customer demand, and order book delays come through. This lower level of demand is expected to remain throughout the rest of this financial year, and it is reasonable to expect this trend to continue into the beginning of the next financial year. The Company expects to report revenue for the current financial year of not less than £4.7 million. The Company has, as previously indicated, taken prudent measures to manage its cost base so that adjusted EBITDA loss is expected to be in the region of £0.5 million (on an IFRS 16 basis).\n \n The Company's order book has been particularly impacted by the delay to a large order from a major oil well operator who, due to international travel restrictions, has rescheduled the development of a major project to 2021 and therefore their planned order from Hardide. This has been compounded by a marked slowing in orders from the Company's customers elsewhere in the oil and gas sector together with other similar, albeit smaller, order delays.\n \n Despite the recent delay in customer demand, it has been very encouraging to see the high number of new oil and gas applications that are in current evaluation and test programmes. This is indicative of new business potential in the coming months.\n \n The work with Airbus and their Tier 1 supply chain continues to progress well, with further orders received for A380 components. Meanwhile, additional components for Airbus have been approved for production and further parts are currently in their testing phase. Work on components for the higher volume A330 and A320 aircraft is rapidly nearing a conclusion, with Airbus finalising drawings specify...