Shares in Hardide PLC (AIM:HDD), the surface coatings specialist, rose 21% to 90.5p after the company said full-year results would be materially ahead of previously upgraded expectations.
Third-quarter revenue reached £4.1 million, taking the total for the year to 30 June to £8.9 million.
The company now expects to hit its target of doubling annual revenues in the current financial year, well ahead of the original schedule.
Hardide applies hard-wearing coatings to metal components using chemical vapour deposition, a process that builds up a protective layer atom by atom, extending the life of parts used in punishing environments such as oil and gas drilling.
Operating margins are running higher than anticipated, helped by better factory utilisation, operational efficiencies and a lower-than-expected investment requirement.
The board has approved £4.5 million of capital spending on three new coating reactors and supporting infrastructure, due to become operational late in the 2027 financial year.
That will be funded from internal cash and borrowings as needed.
Management believes the foundations are in place to more than double revenues again over the next two to three years.
Growth is expected to come from broadening the customer base and expanding existing accounts, including supply arrangements with a major energy sector customer in North America.
The company also sees potential for significant revenues in the Middle East from a similar application, alongside a pipeline of opportunities in new sectors including semiconductors.
Input cost pressure has eased, with tungsten gas prices stabilising, though at levels above those seen in the first half.
Hardide has diversified its supply sources and secured roughly 50% of its expected requirements for the 2027 financial year, and plans to carry higher inventory over the year-end as a buffer against commodity price swings.
The company will establish a new leadership team from 1 October, including operational leaders for its plants in Bicester and Martinsville, Virginia, both reporting to chief executive Matt Hamblin.
Yuri Zhuk, currently technical director, becomes chief technology officer and will step down from the board on 30 September to focus on technology and product development.
Hamblin said the company was now focused on doubling revenues again from current levels while diversifying its customer base.
