Hardide plc · LSE:HDD
Hardide — FY2021 Earnings Presentation
16 slides from Hardide's earnings presentation, December 2021
Slide 1: FY21 Preliminary Results
FY21 Preliminary Results for the ending 30th September 2021
Slide 2: 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
Slide 3: Operational Highlights: FY21
Operational Highlights: FY21 Full year revenue £3.6m: 24% lower than FY20 due to COVID-19 ✓ Trading in Q1 FY22 has improved significantly Overall demand reduced due to Fundraise of £0.8m (gross) COVID-19 pandemic Two CBILS loans totalling £0.5m Aerospace and Precision Engineering New Bicester site f
Slide 4: Financial Overview FY21
Financial Overview FY21 Results dominated by reduced Oil & Gas demand due to COVID-19 Oil & Gas down 46% Aerospace up 46% Precision Engineering (from a low base) up 38% Gross margin: 36% Gross profit: £1.3m Variable margin: 72% (FY20 49%) (FY20 £2.3m) (FY20 73%) Ebitda loss*: £1.5m Net assets: £6.9m
Slide 5: Financial Trends
Financial Trends Gross Profit £m £1.8 Steady progression £1.6 COVID-19 £1.4 before COVID-19 effect £1.2 £1.0 £0.8 £0.6 £0.4 £0.2 £0.0 Ebitda £m £0.2 £0.0 -£0.2 -£0.4 -£0.6 -£0.8 -£1.0 © 2021 All content is confidential and remains the property of Hardide plc 5
Slide 6: Operations
Operations • Full Airbus approval of new site • First large order for turbine blades: o Only possible because of new large 1.5m high coating reactor plus…. o new large nickel-strike line o New, sophisticated processing techniques had to be developed © 2021 All content is confidential and remains the
Slide 7: Energy and Flow Control
Energy and Flow Control • O&G market – FY21 revenue down by 46% • Demand forecasts positive for FY22 – Q1 is buoyant – ‘exceptional multi-year growth cycle’ predicted by Schlumberger and Halliburton • Increased demand predicted from solar cell sector • Strong demand from large US pump customer has b
Slide 8: Alternative Energy
Alternative Energy Live opportunities in Alternative Energy industries include: • Hydrogen – Coating especially useful due to being non-permeable • Solar cells – Current customer expanding production • Wind – Low friction/wear & corrosion resistance on moving parts • EV batteries – Coating not detri
Slide 9: Power Generation & Precision Engineering
Power Generation & Precision Engineering • First large turbine blade order received from major European manufacturer – delivery Q1 FY22 • EDF trials planned for 2021 delayed due to COVID-19 – now expected 2022/2023 • X-ray machine component demand constant throughout year © 2021 All content is confi
Slide 10: Aerospace
Aerospace Demand depressed during the year, but now in slow recovery • Timing of Supply Agreement with Airbus Tier 1 supplier affected • Test programs delayed, aircraft build rates reduced • Demand for BAE Systems Typhoon remained strong Market now in recovery: • Airbus increasing production rates a
Slide 11: Environmental
Environmental FY21: a Baseline year for calculating CO2 and waste emissions • UK and US sites accredited to environmental standard ISO14001 • Natural gas not used at new UK site • All UK electricity from renewable sources • Almost all process waste recycled – minor amount to landfill • New site and
Slide 12: Outlook
Outlook Recovery in demand well underway • Strong orders and sales in Q1 FY22 • Demand increasing across all sectors, including O&G • Airbus demand expected to start shortly • Development/testing underway with large EV company • Many delayed developments and test programmes now back on track • First
Slide 13: Financials
Financials
Slide 14: Consolidated Income Statement
Consolidated Income Statement £m 2018/19 2019/20 2020/21 H1 H2 H1 H2 H1 H2 Sales 2.35 2.70 3.02 1.73 1.78 1.82 Variable Gross 68% 72% 74% 72% 73% 71% Margin % Fixed costs of 0.55 0.57 0.59 0.58 0.54 0.54 sales Gross Profit % 45% 51% 55% 38% 37% 36% Overheads 1.48 1.56 1.63 1.15 1.52 1.27 EBITDA (0.4
Slide 15: Balance Sheet
Balance Sheet £m 2018/19 2019/20 2020/21 H1 H2 H1 H2 H1 H2 Assets 2.41 3.12 8.65 8.92 8.27 9.21 Cash 5.35 4.81 4.88 2.72 2.33 1.54 Net working capital 0.59 0.34 (0.60) 0.21 0.60 (0.70) Liabilities & (0.43) (0.58) (3.2) (3.0) (3.17) (3.14) provisions Capital Employed 7.92 7.70 9.74 8.84 8.03 6.91 Equ
Slide 16: Cash Flow
Cash Flow £m 2018/19 2019/20 2020/21 H1 H2 H1 H2 H1 H2 Net Operating Cash (1.20) 0.13 0.84 (1.14) (1.08) (0.63) Net Investing Cash (0.32) (0.79) (3.34) (0.83) (0.15) (0.15) Share Issues 3.45 0.13 2.35 0.02 0.76 - Finance Lease - - 0.40 - - 0.05 Lease Principal - - (0.07) (0.15) (0.08) (0.19) Loan Ch