Hardide Plc · LSE:HDD
Hardide — FY2020 Earnings Presentation
19 slides from Hardide's earnings presentation, December 2020
Slide 1: Preliminary Results for the year to 30th September 2020
Preliminary Results for the year to 30th September 2020
Slide 2: Highlights of 2020
Highlights of 2020 Full year revenue £4.8m: 6% down on FY19 due to COVID-19 effect in H2 Strong H1, H2 hit badly by COVID Fundraise of £2.5m (gross) Aerospace sales up 19% Simon Hallam appointed as Finance Director April 2020 Flow Control sales up 9% Site relocation completed on- time and on-budget
Slide 3: Financial Overview FY20
Financial Overview FY20 Record H1 revenue:£3.0m Gross profit: £2.3m H2 affected by reduced O&G demand -only slightly lower despite COVID due to COVID Record half year EBITDA loss:revenue:£3.02m £0.5m Gross margin: 49% - Increase of 29% (before exceptionals and after IFRS -maintained adjustment) Fund
Slide 4: Financial Trends (Full Years)
Financial Trends (Full Years) FY20 includes £0.2m relocation costs © 2020 All content is confidential and remains the property of Hardide plc 4
Slide 5: Financial Trends (Half Years)
Financial Trends (Half Years) Clear Covid-19 effect in H2 © 2020 All content is confidential and remains the property of Hardide plc 5
Slide 6: Financial Commentary
Financial Commentary Strong H1 but slower H2 due to reduced O&G demand – full year sales 6% lower than FY19 H1 EBITDA break-even: H2 £0.5m EBITDA loss • Site relocation costs of £0.2m for the year • Gross margin maintained despite lower revenue • Overhead costs down by 6% • One-off benefits in FY20:
Slide 7: Cash
Cash Cash balance at 30 • £0.3m allocated for completion of relocation September: £2.7m project • 6 month rent payment holiday on new premises: £90k Actions to improve • Reduction on Wedgwood Rd lease: £23k cash in FY21 • Furloughing of staff where appropriate • Tight expenditure controls Cash reser
Slide 8: Operational Update
Operational Update Site re-location Two new reactors (one completed on time large) installed in Group has 9 reactors and within budget- Bicester compared to 6 at end operational from One new reactor 2019 August 2020 installed in Martinsville Two new nickel strike Large reactor increases lines (one l
Slide 9: Market Update
Market Update Energy ➢Depressed O&G market - forecast to recover in H2 2021- see separate graph… ➢Demand forecasts elusive from oil service companies ➢Subsea sector demand has remained strong ➢Significant new opportunities in coating filtration screens ➢Exciting new opportunities in Renewable energy
Slide 10: Market Update
Market Update Aerospace ➢Approved already by: BAE Systems, Airbus, Triumph Aerospace & Lockheed Martin ➢ Leonardo Helicopters approval underway ➢Multiple applications with other companies ➢See separate slide…. Power Generation and Precision Engineering ➢EDF trials in 2021 and plans for field testing
Slide 11: Oil Production / Demand Forecast
Oil Production / Demand Forecast © 2020 All content is confidential and remains the property of Hardide plc 11
Slide 12: Aerospace Update
Aerospace Update Airbus: production orders Airbus A330/A320: Supply received for A380 wing agreement with major Tier 1 compression pads – long term supplier for A330 & A320 demand for replacements on wing components existing fleet Emirates’ President, Tim Continuing orders for coating Clark: “...by
Slide 13: Relocation to Longlands Road Site
Relocation to Longlands Road Site Relocation completed August 2020 Twice working area with room for expansion • 2 new reactors - 1 large: size up to 1.5m • Total of 9 reactors: 5 UK and 4 in US • New component cleaning machine • 2 new nickel strike lines: 1 large • Airbus approval of site due Spring
Slide 14: Outlook
Outlook Airbus approvals for Short term is difficult to Production orders for Longlands Rd in Spring predict but positive market Airbus A380 and A320 2021 will enable transfer forecasts for oil & gas components expected to of remaining reactor and recovery in H2 2021 commence in H2 closure of old si
Slide 15: Financials
Financials
Slide 16: Consolidated Income Statement
Consolidated Income Statement £m 2017/18 2018/19 2019/20 H1 H2 H1 H2 H1 H2 Sales 2.16 2.45 2.35 2.70 3.02 1.73 Variable Gross 75% 71% 68% 72% 74% 72% Margin % Fixed costs of 0.46 0.51 0.55 0.57 0.59 0.58 sales Gross Profit % 53% 51% 45% 51% 55% 38% Overheads 1.29 1.42 1.48 1.56 1.63 1.26 EBITDA (0.1
Slide 17: Balance Sheet
Balance Sheet £k 2017/18 2018/19 2019/20 H1 H2 H1 H2 H1 H2 Assets 1,868 2,392 2,413 3,121 8,651 8,916 Cash 3,233 3,302 5,348 4,809 4,881 2,715 Net working capital 342 (301) 591 343 (595) 210 Liabilities & (65) (314) (433) (575) (3,197) (3,004) provisions Capital Employed 5,378 5,079 7,919 7,698 9,74
Slide 18: Cash Flow
Cash Flow £k 2017/18 2018/19 2019/20 H1 H2 H1 H2 H1 H2 Net Operating Cash (138) 530 (1,203) 126 844 (1,233) Net Investing Cash (360) (527) (321) (785) (3,336) (753) Share Issues 2,470 63 3,451 127 2,348 24 Finance Lease (2) - - - 402 - Lease Principal - - - - (73) (148) Loan Changes 51 3 119 (7) (19
Slide 19: Disclaimer
Disclaimer This document is being made available for information purposes only and 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 or to enter into investment activity in any jurisdiction nor shall it