REG-Hardide PLC Trading Update
Released: 10/03/2009
com:20090310:RnsJ5640O
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RNS Number : 5640O
Hardide PLC
10 March 2009
Press Release 10 March 2009
Hardide plc
("Hardide" or the "Group")
Trading Update
Hardide plc (AIM:HDD), the provider of unique metal surface engineering
technology, gives the following trading update.
The Group has recently had discussions with a number of its customers in the UK
and US to endeavour to secure firmer forecasts of demand for Hardide's product
in the light of the current global economic situation.
A number of Hardide's customers' markets, particularly in the oil and gas,
automotive and construction industries, have been adversely affected by the
economic downturn and the latest sales forecast for Hardide's product to these
sectors for the year ending September 2009 is significantly below current
management expectations. In the light of continuing uncertainty over sales and
the adverse market conditions, the Group is implementing a cost reduction plan
formulated to protect its future. This will include the hibernation of the
Hardide manufacturing facility in Houston until such time as sales are
sufficient to re-commence operations. All product and samples being processed
in the US will be transferred to the UK in a managed transition. In the UK, the
Group is reviewing its options to deal with the reduction in sales. This will
include, subject to full consultation with staff, a redundancy programme.
Hardide has seven employees in the US and 26 in the UK.
Commenting on the announcement, Graham Hine, Chief Executive Officer of Hardide
plc, said: "The global economic downturn has hit our key markets severely and it
is with regret that we have to take these measures to re-align our business to
the new market conditions. We are acting quickly to secure the base level of
operations from which we can create longer term stability and build the business
as circumstances improve.
"It is always hard to lose employees but we have no choice but to ensure that
our staffing levels are in line with future business demands. It is particularly
hard as this comes at a time when we have been making notable progress in
commercialising a coating for titanium, in testing for the coating of diamonds
and diamond grit, and when we have secured our first volume production order
from a new blue chip oil and gas technology service provider. There has been no
reduction in sales due to customer dissatisfaction with Hardide or our coating
technology."
- Ends -
For further information:
Hardide plc
Dr Graham Hine, Chief Executive Tel: +44 (0) 1869 353 830
Jackie Robinson, Head of Communications
www.hardide.com
Seymour Pierce Limited
Nicola Marrin Tel: +44 (0) 20 7107 8000
www.seymourpierce.com
Media enquiries:
Abchurch
Chris Lane Tel: +44 (0) 20 7398 7708
chris.lane@abchurch-group.com www.abchurch-group.com
Notes to editors:
Hardide manufactures and applies tungsten carbide-based coatings to a wide range
of engineering components. The Group's patented technology provides a unique
combination of ultra-hardness, toughness, low friction and chemical resistance
in one coating. When applied to components, the technology is proven to offer
dramatic cost savings through reduced downtime and extended part 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
END
TSTQKLFBKXBBBBD
.
RNS Number : 5640O
Hardide PLC
10 March 2009
Press Release 10 March 2009
Hardide plc
("Hardide" or the "Group")
Trading Update
Hardide plc (AIM:HDD), the provider of unique metal surface engineering
technology, gives the following trading update.
The Group has recently had discussions with a number of its customers in the UK
and US to endeavour to secure firmer forecasts of demand for Hardide's product
in the light of the current global economic situation.
A number of Hardide's customers' markets, particularly in the oil and gas,
automotive and construction industries, have been adversely affected by the
economic downturn and the latest sales forecast for Hardide's product to these
sectors for the year ending September 2009 is significantly below current
management expectations. In the light of continuing uncertainty over sales and
the adverse market conditions, the Group is implementing a cost reduction plan
formulated to protect its future. This will include the hibernation of the
Hardide manufacturing facility in Houston until such time as sales are
sufficient to re-commence operations. All product and samples being processed
in the US will be transferred to the UK in a managed transition. In the UK, the
Group is reviewing its options to deal with the reduction in sales. This will
include, subject to full consultation with staff, a redundancy programme.
Hardide has seven employees in the US and 26 in the UK.
Commenting on the announcement, Graham Hine, Chief Executive Officer of Hardide
plc, said: "The global economic downturn has hit our key markets severely and it
is with regret that we have to take these measures to re-align our business to
the new market conditions. We are acting quickly to secure the base level of
operations from which we can create longer term stability and build the business
as circumstances improve.
"It is always hard to lose employees but we have no choice but to ensure that
our staffing levels are in line with future business demands. It is particularly
hard as this comes at a time when we have been making notable progress in
commercialising a coating for titanium, in testing for the coating of diamonds
and diamond grit, and when we have secured our first volume production order
from a new blue chip oil and gas technology service provider. There has been no
reduction in sales due to customer dissatisfaction with Hardide or our coating
technology."
- Ends -
For further information:
Hardide plc
Dr Graham Hine, Chief Executive Tel: +44 (0) 1869 353 830
Jackie Robinson, Head of Communications
www.hardide.com
Seymour Pierce Limited
Nicola Marrin Tel: +44 (0) 20 7107 8000
www.seymourpierce.com
Media enquiries:
Abchurch
Chris Lane Tel: +44 (0) 20 7398 7708
chris.lane@abchurch-group.com www.abchurch-group.com
Notes to editors:
Hardide manufactures and applies tungsten carbide-based coatings to a wide range
of engineering components. The Group's patented technology provides a unique
combination of ultra-hardness, toughness, low friction and chemical resistance
in one coating. When applied to components, the technology is proven to offer
dramatic cost savings through reduced downtime and extended part 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
END
TSTQKLFBKXBBBBD