Hardide PLC on Thursday announced a new interim chief executive and increased revenue, but shares plunged as the firm seeks essential funds from investors.
Shares in Hardide were trading 19% lower at 7.90 pence on Thursday morning in London. The stock is down 42% over the past 12 months.
The Oxfordshire, England-based company reported a £1.2 million pretax loss for the financial year to September 30, narrowed from its £2.3 million loss the year before.
Loss before interest, tax, depreciation and amortisation narrowed to £100,000 from £900,000.
Revenue increased 10% to £5.5 million from £5.0 million. Hardide said this ‘record’ figure was thanks to strong demand from the oil and gas sector, increased new aerospace work in the fourth quarter, and recovery of cost inflation in sales prices.
However, the developer and provider of advanced surface coating technology also reported a slower than anticipated start to the current year, which more than offset continued growth in aerospace demand.
Hardide said it now expects revenue for the current year to be broadly in line with that of financial 2023. Trading should ‘gather momentum as the year progresses’ and the firm expects to be Ebitda positive in financial 2024.
Less positively, Hardide explained that the slower trading has ‘depleted’ its cash headroom. Consequently, it is seeking additional equity and debt funding from existing shareholders and other investors, having concluded that it needs to raise £1 million before early March.
Non-Executive Chair Andrew Magson lamented the ‘unexpectedly challenging’ trading, saying that Hardide has ‘taken all reasonable internal measures to mitigate the impact without damaging the core of our business.’
He continued: ‘Having managed the business to cash break-even in FY23, we regret now being in the position of asking investors for their support. The funding we are seeking will enable us to execute our strategy of accelerating revenue growth...and to unlock the significant value potential provided by our unique coatings technology.’
Also on Thursday, Hardide announced the hiring of Stephen Paul as interim chief executive officer, effective from Monday. It had confirmed in early November that current CEO Philip Kirkman was stepping down after 11 years in his role.
Paul, who co-founded and currently leads consultancy firm Sketchley GmbH, has previously spent ‘a number of months’ working with Hardide on an advisory basis. He intends to serve as interim CEO for up to six months.
Hardide remains in the process of recruiting a permanent new CEO.
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