Hardide eyeing recovery in revenues for FY25

Hardide, the Oxfordshire-based manufacturer of advanced surface coatings, told investors this week that it expects to see a "strong recovery" in revenues in its next financial year (FY25), not least from its enhanced product range launched six months ago.

Reporting a FY24 trading update (covering the 12 months to September 30 this year) it said it expected to report revenue of £4.7 million - down from the £5.5 million seen in FY23.

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Improved trading in the second half, combined with margin improvement and cost reduction actions taken earlier in the year, had enabled the firm to generate an anticipated adjusted positive EBITDA of around £0.4 million in the second half, it added.

The company defined adjusted EBITDA as earnings before interest, tax, depreciation and amortisation and, in FY24, non-recurring restructuring costs.

Hardide highlighted too that, as expected, it had began to trade at net cash positive levels towards the end of the financial year.

While some of its traditional base load oil and gas business came to an end in FY24 and some original equipment manufacturers (OEMs) continue to seek to reduce inventory holdings, the company said it expected to see a strong recovery in revenues in FY25.

"We already have visibility of new work from the aerospace sector and anticipate growing revenues from our enhanced product range launched six months ago," it said in a stock market statement.

CEO Mark Hamblin said the company was "working hard" on sales and business development activities to support accelerating revenue growth and taking a more "entrepreneurial and holistic approach" to identify market opportunities.

"This is an exciting time to have joined Hardide as CEO, with the business now increasingly well positioned to deliver profitable growth," he said.