Hardide upgrades outlook, approves £4.5 million capacity investment

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Hardide upgrades outlook, investment

Highlights

Hardide expects to double revenue in the current financial year ahead of schedule due to new contracts, higher factory utilisation, and improved margins.
The board approved £4.5 million capital investment for three new coating reactors, increasing capacity by late 2027, funded by internal cash and borrowings.
Hardide secured about 50% of tungsten gas needs for 2027, with cost stabilisation and inventory management measures enhancing supply and pricing visibility.

Revenue growth and capacity expansion plan

As reported by London Stock Exchange, citing the Regulatory News Service, Hardide says new contract wins and improved operational performance are lifting factory utilisation, output rates and profit margins beyond earlier forecasts.

The company says operating margins are running higher than anticipated because of management of input cost inflation, continued efficiency gains and a lower than expected investment requirement to support current growth. The board now expects to meet its goal of doubling revenue in the current financial year, ahead of its original timetable.

To support anticipated demand, the board has approved £4.5 million of capital spending on three new coating reactors and related infrastructure. The new capacity is due to become operational in the latter part of the 2027 financial year and will be funded through internal cash resources and borrowings as needed.

Hardide says future growth is expected to come from a broader customer base, expansion within existing key accounts and ongoing supply arrangements with its major North American energy customer. The company also points to potential for significant Middle East revenue from a similar end-use application, alongside a growing pipeline in sectors including semiconductors.

Input cost management and leadership changes

The company says tungsten gas costs have recently stabilised, although at levels above those seen in the first half of the year. Hardide says earlier management actions have mitigated those additional costs, while the group has diversified supply sources and secured about 50% of its expected tungsten gas needs for the 2027 financial year.

That supply position gives the business and its customers greater visibility on costs and pricing, according to the company. Hardide adds that it plans to hold higher inventory levels over the financial year end to manage any fluctuations in commodity prices.

Hardide also intends to establish a new leadership team from 1 October 2026 to manage its strategic plans and expanding day-to-day operations. The structure includes two operational leaders for its plants in Bicester, UK, and Martinsville, Virginia, U.S., both reporting to Chief Executive Matt Hamblin.

Dr. Yuri Zhuk, currently technical director, is due to become group chief technology officer and join the leadership team, focusing on product range expansion, intellectual property development and improving coating capacity and efficiency. He intends to step down as a director of Hardide plc on 30 September 2026 to dedicate more time to that role.

In our earlier report on the London Stock Exchange’s plan to extend equity trading to 22.83 hours a day, we explained how rising retail participation, cross-border investing and digital-first platforms are pressuring traditional exchanges to operate closer to an always-on model. We also noted that while longer hours could modernize legacy market structures, moving toward near-24/7 stock trading still brings unresolved operational and market-structure challenges.

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