Hardide Share Discussion Threads

[meijiman] 12/12/2016 10:51

Pitiful stuff. Their main achievement seems to be getting a placing away at 0.8p.

[dibs61] 09/12/2016 11:07

Year End Results out on Monday morning. The following extract from trading update in Oct:

"The Company expects to report preliminary year-end results that are in line with current market expectations with H2 seeing an improvement over H1, as projected at the time of the interim results. There are signs of a slow recovery from oil and gas markets, both from existing customers and from new opportunities. Our progress towards gaining aerospace business following Airbus technical approval is on-track and is looking positive across a range of applications for Airbus and other customers."

Important takeaways from the above:
Historical Results will be poor - as market has already priced in so this will not be a surprise to market "in line with current market expectations"
H2 will see an improvement - this is likely to continue into current year?
"Signs of a slow recovery in O&G" - currently a key market for HDD - since the trading update OPEC cut has happened so recovery secured?
Positive progress towards securing Aerospace business with Aerobus specifically mentioned - could we get a further update here? I would expect to.
Will the production move to US suggest the start of deals obtained from the much larger US market?
The Trump effect to be positive for HDD business?

These are just pointers and nothing in the bag - yet - but Monday could see the start of the worm turning and a recovery IMO

[quemaster] 08/12/2016 00:58

A mainstream aerospace contract with all the testing and certification that goes with it will tick a lot of boxes for potential new customers.

[dozey3] 07/12/2016 16:17

Would have thought with their US plant up and running they will be having serious discussions with Boeing too, along with a plethora of top engineering cos. Will be interesting to see, and I'm not ditching my holding anytime soon.

[dibs61] 07/12/2016 13:41

Not sure they will necessarily be in a position to provide a "detailed update" but an indication will suffice for now, notwithstanding a firm announcement. No matter, I'm not a T20 merchant. I can sit and hold now having secured a very satisfying price.

[meijiman] 07/12/2016 12:53

Yes no doubt they will be giving a detailed update on this matter. They raised money on the back of it.

[dibs61] 07/12/2016 12:23

Let's put a question out there? LTH's take a deep breath ;)

Why would Aerobus work in collaboration with Hardide for 8 years on alternative to HCP and then go elsewhere for an inferior product. Why would they not go ahead with an order for the tested and approved Hardide product which meets new EU regulations coming into effect next Sept 2017. The clock is ticking. Wouldn't think they (Aerobus) will delay much longer. Lots of new Aerobuses to build after the HCP ban takes effect! Roughly 700 planes a year I believe from my research. That translates into something like £7m Rev pa for HDD. Which would blow their previous growth rates out the water.

[trewinney] 07/12/2016 11:30

Added another 100k at 84p,

[dibs61] 07/12/2016 10:16

10.71% rise today. The Dibs effect lol...;)

But seriously a decent bounce as I expected (but maybe not quite this quickly)

[dibs61] 06/12/2016 19:46

HCP Ban arrives in September 2017. Just in time for the new industrial application alternative by Hardide. The following article is three years old but no less, indeed, more relevant today:

hxxp://www.materialsforengineering.co.uk/engineering-materials-features/uk-company-fights-back-against-tightening-eu-regulations/58392/

I believe exciting times are afoot for this little company.

[meijiman] 05/12/2016 14:27

Yes it will. I can hardly wait.I have written down 12 Dec in my diary -it's the day that good news will be heading our way. All your Christmas spending concerns will be taken care of by the capital gains heading your way. Rejoice.

[ansc] 05/12/2016 12:19

The increased oil price should benefit HDD as their major customer works in the oil sector. It'll be interesting to see what their chairman has to say on that subject in his annual results statement.

[quemaster] 02/12/2016 20:24

I have followed and been invested in HDD for more than 10 years. This has been a frustrating share to hold but I have also held shares in another British engineering company for the same amount of time. They are both in the high end "safety critical" part of the market and both have new superior technology.

My expectations and the feedback from company announcements led me to believe it would all be happening in the last decade for both of them but the customers are not in as much of a hurry as companies and shareholders.

Still confident in both to pull through.

[ansc] 02/12/2016 18:40

Buyers nibbling today ahead of the annual results scheduled for 12th December.

[pgs2] 14/11/2016 01:25

Another way of looking at Hardide is revenue from 2 furnaces peaked at £3m per year. With 5 furnaces, revenue capacity will be £7.5m per year with no additional capex, just working capital to be financed. Hardide has £2.6m of cash with no capex required to get to EBITDA positive. Aerospace contracts will be very long term so Hardide should trade at a higher p/e to reflect quality of long term earnings.

I have convinced myself to invest more!

[pgs2] 14/11/2016 01:14

40% of the register now in the hands of high net worth individuals and 28% in venture capital trusts. This is quite a transformation since first listing. Such investors are only interested in primary money and will have done their own research and dd on Hardide rather than "passive stock pickers".

Institutional "stock picking" money investing in the secondary market is what is required but they will only consider an investment when the market cap and share liquidity reach appropriate thresholds plus the company generating positive cashflow so risk of dilution is lower.

Commercialising the technology has been disappointing slow. However cumulative sales are £17.5m since 2008 so technology is "proven". Hardide coatings provides a much better performance coating than HVOF which is the main competition. Hardide coatings solves problems other coatings cannot address and customers are willing to pay a premium for this.

To date revenues have been leveraged to big oil and gas drilling customers and diversification across other customers is happening helped by a US manufacturing presence. Airbus will be a game changer if it happens. Hardide reference A320s parts in coating tests. A320 is Airbus's biggest seller increasing to 700 planes per year in 2019. By way of illustration 50 parts per plane and average revenue of £200 per part equates to £7m per annum. Given the margin the operating gearing is substantial.

Yes it is frustratingly slow and for those investors who have been diluted out of sight this has been a poor investment but I prefer to look forward. Major milestones are an Airbus customer conversion and marketing Hardide from this news.

The high net worths and VCT trusts who control the register should have high return expectations and will have been consulted on the option package which vests at 2.5p. Next news event is the final results and I look forward to a much better 2017

[meijiman] 10/11/2016 11:16

Lateralam-what bits of the Share Prophets article do you disagree with?

[meijiman] 26/10/2016 14:20

Another great day for Hardide. I think there are more shares in issue than there are people in China. What a great cosy lifestyle company this is. I think I will apply for a job.

[dozey3] 24/10/2016 21:49

Development in the States and the upcoming proscribing of chrome just could be indicators of an explosive future on the upside... or they might bomb. IMO worth playing the odds at this valuation, and my small holding is not for sale.

[meijiman] 18/10/2016 21:47

Here's the comment from TW team at Share Prophets
I wrote on provider of advanced surface coatings for a wide range of engineering components, Hardide (HDD) in June – ‘half-year results dire, cash crunch & thus (explicitly) fundraising ahoy!’. I now update on developments on the back of a trading update from the company today.

This reports “signs of a slow recovery from oil and gas markets”, “progress towards gaining aerospace business following Airbus technical approval is on-track and is looking positive across a range of applications for Airbus and other customers” and that the company's “new US coatings facility in Virginia has achieved the required major customer approvals after extensive verification trials and is now regularly producing revenue”.

Overall, “the company expects to report preliminary year-end results that are in line with current market expectations with H2 seeing an improvement over H1”.

This follows it having recently raised £1.6 million at 0.8p per share “to progress with its plans for future developments and growth”.

Hmmm. The fundraising followed half-year results which showed an underlying loss of £0.88 million and, after particularly also £0.34 million of investment spending more than depreciation, cash down by £1.32 million to £1.01 million (and current assets over liabilities by £1.20 million to £1.32 million).

So “to progress with its plans for future developments and growth” or ‘to keep the lights on’? I’ll review the cash flow and balance sheet with interest on the 12th December-scheduled full-year results announcement and, for now, continue to avoid.

[ansc] 18/10/2016 09:07

The Mingy Machs appear to have misinterpreted the pre-close trading update ..... share price marked up at opening but, with no demand from investors, having to drop the price. Well done!

[chrisgail] 29/9/2016 16:33

Phew, I was beging to worry, no fund raise for................ but no everyhing is OK, fundraise number........... the Directors can rest well tonight, they will be in a job for another year or so, shareholders ...... dilution ...... value ........... returns ............ one day .................

[meijiman] 29/9/2016 16:04

Why not have a look at Haydale. A properly managed company which in a short space of time has got market traction. The share price says plenty. On the other hand this POS has gone nowhere for 10 years and is kept alive by endless dilutive placings. A cosy lifestyle company.