Hardide raises £2.54m to invest in new reactors, strengthen balance sheet

The company, which provides advanced surface coating technology, said the net proceeds will be used to fund two additional reactors at its US facility, enhance existing equipment at UK and US sites, increase sales and marketing and strengthen the balance sheet.

Hardide also said on Friday that results for the year to 30 September are expected to be in line with the board's expectations, with a cash balance of £1.21m at that date.

Chief executive officer Philip Kirkham said: "We are delighted to have received such strong support from investors for this fundraising. The new funding will principally allow us to invest in up to two new reactors in the US which will, when deployed, create the capacity required at the company's existing facilities to accommodate projected new business.

"We are excited by the recent progress made regarding two new commercial agreements, one being a signed framework agreement with a major international operator in the oil and gas sector. The company is also in the final stages of discussion with a well-known manufacturer of drilling and production tools. These agreements underpin existing market forecasts and the board's belief in the company's further growth."

At 1011 BST, the shares were up 3.5% to 1.84p.