29th Apr 2015 08:08
LONDON (Alliance News) - Surface coating technology company Hardide PLC on Wednesday said it expects the second half of its financial year to be hit by reduced spending in the oil and gas industry.
Hardide said it is taking a cautious view on the remainder of its financial year, ending September, despite a solid first-half performance. It said that while the decline in the oil price and subsequent spending cuts in the oil and gas industry did not have an impact on demand in the first half, the indications are that this will begin to eat into demand for its products in the second half.
As a result, Hardide is taking a cautious stance on the year, though its said demand outside of the oil and gas industry has held up.
It added its plans for the opening of a new production facility in the US are on track, as are test programmes being conducted for a range of customers.
Hardide will publish first-half results in late May.
Shares in the company dropped 19% to 1.14 pence on Wednesday morning, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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