Hardide interim loss widens amid oil and gas downturn

Hardide reported a wider interim loss as the downturn in the oil and gas exploration market takes its toll on the company.

For the six months to the end of March, the AIM-listed surface coating technology provider posted a group operating loss of £624,000 compared to a £68,000 loss the year before as revenue fell to £949,000 from £1.8m.

Chairman Robert Goddard said: “Advanced engineering and aerospace sector revenues more than doubled during the half year and group order intake showed a 44% rise from the prior six months. However, we are in the midst of the longest and most severe global downturn in our core market of oil and gas and this has led to group revenues falling 46% from the same period last year.

“In response, the company has acted quickly and decisively to reduce its cost and expense base while retaining its ability to react quickly when demand from the oil and gas market recovers.”

Nevertheless, Hardide said it expects to be operating in these challenging market conditions for the foreseeable future and continues to grow its business outside oil and gas.

With this in mind, the board is considering potential funding options for the business as a precautionary measure.

Hardide said that given uncertainty about the timing of a recovery in oil and gas activity, it remains cautious about the near-term outlook but reckons second-half revenues will be higher than those in the first half.

At 1007 BST, shares were down 10.3% to 0.74p.