AIM-listed firm's shares have rallied 122% so far in 2017
Companies: Hardide plc
Shares in micro-cap Hardide jumped 10% as the markets opened on Monday after the AIM-listed firm announced that it had secured a major seven-year supply agreement with US-based Graco Inc.
The deal, which follows an existing contract that is due to expire this year, is expected to be worth more than $4m over its lifetime and will help the company underpin its forecasts.
Broker finnCap recently covered Hardide in a morning note, saying the company had seen significant improvements in the level of demand from the oil & gas sector and is well positioned for the uplift in hydrocarbon sector activity.
"As such the shares also remain extremely attractive as two major positives occur almost simultaneously."
Analysts are expecting revenues of £3m and £4m in FY17 and 18 respectively, with losses falling markedly between 2016-18. Speaking about the contract win, CEO Philip Kirkham said:
"We have built up an excellent working relationship with Graco over the years and continue to work with them to maximise the performance of different pump components for a number of end-user markets."