REG-Hardide PLC Aerospace - development plans
Released: 21/08/2007
RNS Number:5245C
Hardide PLC
21 August 2007
Press Release 21 August 2007
Hardide plc
("Hardide" or "the Company" or "the Group")
Hardide to fast track Aerospace Market development plans
Hardide plc (AIM:HDD), the provider of unique surface engineering technology, is
pleased to announce that it is to fast track its plans to penetrate the
aerospace sector in order to take advantage of significant new market conditions
and blue chip customer opportunities.
The move has been prompted by the new EU REACH1 environmental legislation on
chemicals which has driven many manufacturers to source alternative coating
technologies to replace hard chrome. In addition, Hardide has been progressing
alternative coating studies and/or test programmes with customers such as
Messier-Dowty. This has resulted in the Company deciding to accelerate its five
year plan to grow its market share within the aerospace industry. Hardide is
currently 18 months into the plan which has, to date, included success in
securing approved supplier status with BAE Systems. The new timescale will
compact the programme to complete within the next year and a half, and will
include securing further industry approvals and registrations.
Hardide's accelerated growth in the aerospace sector will be funded by raising
up to £1 million of debt; the first £500,000 of which is through a two year
fixed term loan from an existing shareholder, the Boyce Group, who constitute a
related party under the AIM Rules. The loan is to take the form of an
assignable company debenture; will have an interest rate of base plus two
percent; attracts no penalty for early repayment; and will be repayable on
demand on a change of control of the Company. The deal also includes the option
for the Boyce Group to subscribe for £500,000 worth of shares at 12p per share,
exercisable for a period of up to three years from 21 August 2007. The
directors, having consulted with Seymour Pierce, the Company's nominated
adviser, consider the terms to be fair and reasonable insofar as shareholders
are concerned. The Company will make an announcement regarding the balance of
up to a further £500,000 of debt in due course.
The additional working capital provided by the loan will support the creation of
an aerospace business unit by funding a dedicated team of engineering, technical
and quality specialists as well as IT, measuring, metrology and tooling
equipment for the unit.
The Company has parts in test with five of the largest global aircraft
manufacturers and systems designers and is in application-specific discussions
with a further ten.
Jim Murray-Smith, Chief Executive of Hardide plc, said: "Hardide has generated
a lot of interest and excitement among the industry's leading players. Over the
last 18 months, the prospect of the new REACH regulations has prompted many
manufacturers to replace hard chrome with alternative technologies, a number of
which are not meeting the required standards. Subsequent discussions with
potential customers have concluded that Hardide offers a very attractive
possible alternative if we can fast track our development programme. We
therefore have decided to leverage significantly more resource into the Company
so that we are able to capitalise on these ripe conditions.
"I am confident that this sector, should we gain the necessary approvals,
together with our continued success in expanding our oil and gas business, will
provide an even stronger platform to deliver substantial growth for the Company
over the next 18 months from Hardide's operating facilities in the UK and, in
due course, the US."
The aerospace industry is a growth sector with the UK host to the largest
aerospace industry outside of the US and demand for freight and passenger
traffic increasing year on year. In 2006, the UK industry had a turnover of
£19.82 billion, up 5.5% in real terms from 2005, with new orders increasing by
nearly 6% to £26.2 billion. 2
- Ends -
1 Registration, Evaluation, Authorisation and Restrictions of Chemicals,
effective from 1 June 2007
2 UK aerospace industry survey of 2006 undertaken by the Society of British
Aerospace Companies (SBAC) in 2007
For further information:
Hardide plc
Jim Murray Smith, Chief Executive Tel: +44 (0) 1869 353 830
jmurray-smith@hardide.com
Jackie Robinson, Head of Communications Tel: +44 (0) 1869 353 830
jrobinson@hardide.com www.hardide.com
Seymour Pierce
Nicola Marrin, Corporate Finance Tel: +44 (0) 20 7107 8000
Media enquiries:
Abchurch
Henry Harrison-Topham / Chris Lane Tel: +44 (0) 20 7398 7702
henry.ht@abchurch-group.com www.abchurch-group.com
Notes to editors
Hardide provides and applies tungsten carbide-based coatings to a wide range of
engineering components. The Company's patented technology is unique in that it
combines both abrasion and corrosion resistant properties in one coating. When
applied to components, the technology is proven to offer dramatic cost savings
through reduced downtime and extended component life. Customers include leading
companies operating in oil and gas exploration and production, valve and pumps
manufacturing, general engineering and aerospace.
This information is provided by RNS
The company news service from the London Stock Exchange
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