Hardide wins UK court approval for capital reduction plan

Hardide PLC said on Tuesday it had received approval from the High Court of England and Wales for a capital reduction of up to £10 million.

The British engineering group, which specializes in advanced surface coatings for aerospace and industrial applications, plans to reduce its share capital to enhance operational efficiency and provide greater financial flexibility. The company did not specify a final reduction amount in its filing.

Hardide said the reduction would involve cancelling and reducing the nominal value of its ordinary shares without returning cash to shareholders. The move follows a resolution passed by shareholders at an extraordinary general meeting in May.

The court approval is a procedural step required under UK company law for such capital restructuring. Hardide’s shares were suspended from trading on the London Stock Exchange’s AIM market on June 11 pending the court decision.

The company, headquartered in Bicester, Oxfordshire, has faced operational challenges in recent years, including supply chain disruptions and variable demand in its core aerospace sector. Management has highlighted the capital reduction as part of efforts to strengthen the balance sheet amid a prolonged period of subdued trading conditions.

Hardide did not provide an updated financial outlook or timeline for the capital reduction’s implementation. The company’s next scheduled update is its full-year results for the year ended March 31, 2025, due in early July.