Hardide Plc · LSE:HDD
Hardide — Mello 2019 Investor event
24 slides from Hardide's conference presentation, May 16, 2019
Slide 1: Mello 2019 Investor event
Mello 2019 Investor event 16 May 2019 Philip Kirkham, CEO Peter Davenport, Finance Director
Slide 2: Disclaimer
Disclaimer This presentation does not constitute or form part of, and should not be construed as, an offer, invitation or inducement to purchase or subscribe for any securities nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoev
Slide 3: History of Hardide
History of Hardide We apply patented, advanced surface technology nano-structured coatings to industrial metal components, using the gas-phase technology Chemical Vapour Deposition (CVD). This significantly increases the working life of the components 2003 2016 2000 2005 2017 relocated opened compan
Slide 4: Hardide group facilities
Hardide group facilities UK – Head office and 10,000 sq.ft coating facility in Oxfordshire* Russia – Research lab in Moscow. Scientists with decades in CVD research. Working on new Hardide formulations USA – 25,000 sq.ft coating facility in Martinsville, Virginia, opened in 2016 *Shortly moving to n
Slide 5: Key facts of FY18
Key facts of FY18 Turnover c. £4.6m High margins: Patented coating technology • Variable margin: >70% • Gross margin: > 50% • High operational gearing Head office and main facility in Bicester, Oxfordshire Leonardo Helicopters full approval in progress Approved supplier to Group headcount c. 45 BAE
Slide 6: Key Markets
Key Markets Oil & Gas Flow Control ➢Used by leading oil ➢Severe service & gas service pumps & valves for providers – demanding downhole, well environments stimulation and subsea ➢Coating of industrial diamonds Precision Aerospace Engineering ➢BAE and Airbus ➢Power generation, approved, plastics extr
Slide 7: Technology
Technology Nano-structured tungsten carbide, metallurgical coatings that significantly extend the life of critical parts and tools. A CVD (Chemical Vapour Deposition) process creates an extremely hard, tough and thin layer with a number of advantages over competitor processes. Superior wear & erosio
Slide 8: Accreditations
Accreditations Hardide coating sites are accredited to various international standards:- ➢Aerospace quality management system: AS9100 RevD ➢Nadcap: the global aerospace accreditation (currently UK site only) ➢Quality management system: ISO 9001:2015 ➢Environmental standard: ISO 14001:2015 (currently
Slide 9: FY19 – interim results
FY19 – interim results Half year ending 31 March 2019: comparison with H1 FY18 • Record first half revenue of £2.35m: increase of 9% • Continuing strategy of customer diversification: - over half H1 revenues from customers new within last 3 years • Sales to North America - increase of 32% • Sales to
Slide 10: Financial trends
Financial trends Product mix effect © 2019 All content is confidential and remains the property of Hardide plc 10
Slide 11: Year on Year comparison
Year on Year comparison Sales grew strongly over the past three years (47% per year) but gross profit grew nearly twice as fast (87% per year) and fixed costs (production overheads + admin costs) grew at only 16% per year. £m 2015/16 2016/17 2017/18 CAGR Sales 2.14 3.24 4.61 47% Variable Gross Margi
Slide 12: Business development
Business development ➢Two new major supply ➢ Selected for wing flap pad contracts in place components on A380 and Oil & Gas ➢Three new major customer Airbus multiple other components applications at final stage of approval Flow ➢Additional high volume components from the major Control pump customer
Slide 13: UK site expansion plans
UK site expansion plans • UK revenue potential constrained by size of current premises • Successful recent fundraising of £3.6m for relocation and new equipment • Moving to new 20,000 ft2 factory unit on prestigious business park in Bicester • Doubling UK productive capacity - 3 new coating reactors
Slide 14: Investment proposition
Investment proposition ❖A unique coating technology that fills a major gap in the range of competitors’ ➢Strong revenue growth coatings:- ➢Large market size ➢coats uniformly where others cannot: ➢Solid position in oil & gas sector ❖complex shapes ➢On verge of significant breakthroughs in ❖internal a
Slide 15: Thankyou for listening! Questions?
Thankyou for listening! Questions? © 2019 All content is confidential and remains the property of Hardide plc 15
Slide 16: Application case studies Customer testimonials
Application case studies Customer testimonials © 2019 All content is confidential and remains the property of Hardide plc 16
Slide 17: Eurofighter Typhoon
Eurofighter Typhoon Richard Goldie, Senior Designer - Eurofighter Typhoon BAE Systems “Hardide has developed a unique coating technology which addressed a specific challenge being faced on Typhoon. We worked together with Hardide to engineer a solution which was tested extensively and proven success
Slide 18: EDF Energy Nuclear Generation
EDF Energy Nuclear Generation Graham Young , Steam & Rotating Plant Engineer, EDF Energy Nuclear Generation Ltd, owner and operator of Hinkley Point B nuclear power station: “Hardide offered a very cost-effective, high- performance solution to extend the life of the 15MW boiler feed pump steam valve
Slide 19: Weatherford: Bearing Pins for Expandable Tooling
Weatherford: Bearing Pins for Expandable Tooling “The expansion tooling is required to function under a harsh loading environment to expand both slotted and solid base pipe. The rollers are required to function smoothly and effectively over a potentially long, continuous string of ESS®. Therefore th
Slide 20: Severe Service Valves: Heap & Partners
Severe Service Valves: Heap & Partners Peter Burnett, Business Development Manager, Heap & Partners: “ Hardide has an excellent reputation as a high-performing coating for severe service metal-seated ball valves and seats. We began design and testing of the coating in 2011 and it is now being used o
Slide 21: Hardide Triples Life of Severe Service Valves
Hardide Triples Life of Severe Service Valves Flowserve tested Hardide coating on McCANNA metal seated ball valve. Hardide-coated 316 stainless ball and seats were compared to Stellite ball valve in an abrasive slurry: • Stellite failed in 29,000 cycles • Hardide-coated stainless valve was still in
Slide 22: Customer Testimonials
Customer Testimonials Jeff Rutland, Director of Engineering, D Tech Drilling “Hardide allows a level of design flexibility that we have not found in other coatings. This means that we can easily revise designs and increase component complexity in the knowledge that Hardide can be applied exactly whe
Slide 23: Centrifugal Pump Bearings: Field Tests
Centrifugal Pump Bearings: Field Tests • Alfred Conhagen, Inc. tested CVD coating on hydrodynamic/hydrostatic radial and thrust bearings in eight-stage and six-stage high-performance centrifugal pumps in high temperature refinery service. • Product temperature of 450oF, when both the octane and dies
Slide 24: Centrifugal Pump Bearings: Field Tests
Centrifugal Pump Bearings: Field Tests Dennis Bowman, Consulting Engineer, Alfred Conhagen, Inc. : “For years we have struggled with the design of unique pump components, trying to strike a balance between performance and manufacturability. The Hardide process allows us to finish machine the intrica