Hardide revenue, profit jump as demand from oil and gas sector improves

AIM-listed Hardide, which develops and provides advanced surface coating technology, posted a jump in interim revenue and profit on Monday as demand from existing customers in the oil and gas sector improved.

In the six months to the end of March, revenue was up 43% to £2.16m while group profit was 67% higher at £1.15m and earnings before interest, taxes, depreciation and amortisation improved to a loss of £0.14m from a £0.43m loss in the same period a year ago.

Hardide attributed the rise in revenues to better demand from existing customers and new business, and said indications suggest that demand will remain strong from these customers throughout the second half of the year.

"The balancing of the oil market is leading to increased activity for our major customers in this sector and they are optimistic about continuing growth into 2019," the company said.

Sales from the oil and gas sector were up 54% compared with the first half of 2017 and 20% higher compared with the second half of last year, while sales to flow control and precision engineering customers were ahead of both the first and second halves of last year.

Chairman Robert Goddard said: "The group has delivered a strong first half with growth in sales to flow control and precision engineering customers alongside improving demand from the oil and gas sector. Trials and new commercial discussions continue to make good progress with our aerospace customers and the board remains confident in its expectation of new aerospace business in the near future.

"The board is pleased with the group's performance in the first half, is confident of the outlook for the second half and expects the trading performance for the full financial year to be in line with market expectations."

At 1050 BST, the shares were up 6.8% to 1.95p.