Hardide (AIM:HDD), the AIM-listed advanced surface coatings developer, said trading momentum has pushed full-year performance materially ahead of its previous guidance.
Revenue for the third quarter to 30 June came in at £4.1m, bringing the total for the financial year to date to £8.9m, driven by new contract wins and improved factory utilisation.
Operating profit margins are also running ahead of plan, reflecting effective management of tungsten gas cost inflation, operational efficiencies, and lower-than-expected investment needs to support growth.
The board now expects to hit its target of doubling annual revenue in the current financial year, well ahead of schedule, and believes the business can more than double revenue again over the next two to three years.
To support that ambition, Hardide has approved £4.5m of capital investment in three new coating reactors, expected to become operational in the latter part of the 2027 financial year, funded from internal cash and borrowings.
Tungsten gas costs have stabilised at higher levels than in the first half, and the company has now secured around 50% of its anticipated 2027 supply requirements, giving greater pricing visibility.
Growth is expected to come from diversifying customers, expanding supply arrangements with its major North American energy sector customer, and pursuing opportunities in the Middle East and semiconductor sectors.
"We are now focused on doubling revenues again from current year levels and diversifying our customer base over the next few years," said chief executive Matt Hamblin.
Hardide will also establish a new leadership team from 1 October, with Yuri Zhuk moving to Chief Technology Officer and stepping down as a director on 30 September.
News Intelligence what this means for the company
Hardide has upgraded its full-year outlook for a second time, now expecting to double annual revenue ahead of schedule, driven by Q3 revenue of £4.1m and accelerating momentum from new contract wins and factory utilisation gains. The company is backing its growth ambition with £4.5m in capital investment in three new coating reactors, to be funded from internal cash and borrowings, signalling confidence in sustained demand and operational leverage.
The upgrade materially strengthens Hardide's near-term earnings trajectory and validates its operational model—margin expansion despite tungsten gas cost inflation, combined with revenue acceleration, suggests pricing power and operational discipline. The capex commitment and multi-year revenue-doubling target hinge on execution risk (reactor deployment, customer diversification, Middle East and semiconductor sector penetration) and external factors (tungsten pricing, energy sector demand), but the secured 50% of 2027 tungsten supply at known prices reduces one key variable.
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