Hardide set to end year in line with expectations

The AIM-traded firm said that was in line with its trading update on 16 July.

Cash at bank was expected to be £2.7m, with capital commitments of £0.5m remaining to fully complete its investment in its UK site relocation.

Hardide said production had continued uninterrupted at both the UK and US sites throughout the Covid-19 pandemic, with “significant emphasis” being placed on health and safety measures to protect staff and contractors.

“The relocation of the business to the new site at Longlands Road, Bicester is now complete, on schedule and at projected cost,” the board said in its statement.

“After delays due to travel restrictions, the large reactor has now been installed and commissioned, which completes the installation of all new equipment at the facility.

“This reactor, together with the new large pre-treatment line, increases considerably the size range of components that can be coated.”

One Airbus-approved reactor was still operational at the Wedgwood Road site, which would remain in place until the Longlands Road site was fully approved by Airbus.

In addition to the developments in the UK, a fourth reactor was installed at the Martinsville, Virginia facility, making a total of nine reactors in the group.

“The extensive process of Airbus' qualification for the new site is progressing well, and on schedule to be completed in early 2021,” the board said.

“Orders are now starting to be received for the Airbus components that have been approved previously and shortly further parts are due to be approved by Airbus.”

The group had previously reported an impact on its current-year revenue from a delay in receiving a major oil and gas project order caused by the Covid-19 pandemic.

On Wednesday, it said the order had now been received, and would give a positive start to the first quarter of the new financial year.

“Generally, there has been a reduction in demand from oil and gas customers in this current second half as the global economy has slowed.

“However, it is pleasing that demand from customers in flow control and precision engineering has not been significantly affected.”

Multiple test programmes for new applications were progressing strongly, the directors explained, with customers in various sectors presenting “encouraging prospects” for new business in the 2021 financial year.

“Looking beyond the disruption of the present Covid-19 pandemic, the board of Hardide believes there are strong grounds for expecting a return to increasing demand and remain positive about the longer-term growth of the company.”

Hardide said it expected to report its preliminary results for the year ending 30 September on around 7 December.

At 1056 BST, shares in Hardide were up 15.81% at 24.9p.