Exciting times at Hardide

Hardide's nanotechnology coatings are back in demand, and full-year results are now expected to beat market forecasts. A huge deal with General Electric, struck in March, is beginning to pay off and an oil-major is placing bigger orders, too. A potentially lucrative deal with Airbus, meanwhile, continues to create excitement.

All the fuss centres around Hardide's surface coating. Gases are introduced into a vacuum and heated to 500ºC. They then react and coat the surface of metal components, doing a much better job than traditional methods. It's incredibly tough and resists corrosion, too.

That's why plane-maker Airbus is interested. A test programme could see Hardide's coating replace toxic hard-chrome plating - which may soon be restricted or banned - for some plane parts. It's now in the qualification phase and "is progressing well and with greater speed than previously."

Last month, Hardide raised a net £2.5 million from new and existing institutional shareholders through a placing at 1.6p. That money will help beef up capacity in the UK - probably by the end of 2014 - and a new facility in the US needed to cope with an anticipated uptick in demand.

It has already won a big supply contract with General Electric. That guarantees Hardide turnover of at least $1.3 million (£794,000) over the two years to February 2016. Money will start to come through over the next few months, and the company is also trialling other applications with GE.

"While currently trading close to our price target, the market is likely to take encouragement from today's announcement and we are comfortable that the share price runs ahead on the signs that trading is now gaining positive momentum," says David Buxton at house broker finnCap.

Results for the year to 30 September 2014, due late November, are expected to show sales up 17% to £2.8 million and adjusted pre-tax loss of £300,000. Next year, it's tipped to be £3.5 million and £200,000 loss, before a maiden profit in 2016 of £100,000. Of course, a deal with Airbus changes the game. Keep an eye on progress there.

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