Surface Transforms PLC Pre-close trading update and operations update (6411H)
31 Luglio 2023 - 8:00AM
UK Regulatory
TIDMSCE
RNS Number : 6411H
Surface Transforms PLC
31 July 2023
31 July 2023
Surface Transforms plc
("Surface Transforms" or the "Company")
Pre-Close Trading Statement and Operations Update
Surface Transforms (AIM:SCE), manufacturer of carbon fibre
reinforced ceramic brake disc materials is pleased to provide the
following trading update for the six months to 30 June 2023.
As reported at the Company's recent AGM, sales for the six
months to 30 June 2023 grew to GBP3.3m (H1 2022: GBP2.9m )
representing an overall increase of 14%. Within this total, the
volume of manufactured discs during the period increased by more
than 80%, reflecting the improvements made in production during
2023; the remainder of the sales in both periods was pre-production
development income.
Gross cash on 30 June 2023 was GBP4.5m (31 December 2022:
GBP14.9m). Capital expenditure in the six months to 30 June 2023
was GBP5.4m with the balance of cash movement arising from the the
previously announced production issues resulting in delayed sales
and non recurring operational costs.
Progress on operations and capacity
The improvement in June output rates, reported in the AGM
statement, has continued into July. Customer arrears have been
reduced over the past six weeks. Accordingly, the Board maintains
its 2023 revenue expectations.
Installation of extra capacity is still on track with a further
GBP3.4m of capital expenditure expected in the second half of this
year. This extra capacity will provide resilience during the
continuing ramp up in the second half of 2023 and also underpins
the projected further near doubling of sales in 2024.
Outlook
The revenue expectations for 2023 and 2024 are unchanged. The
production problems of the last six months have inevitably had cost
and cash implications. However, cash has been managed by prudent
cash management, the use of some contingencies in the original plan
and the phasing of capital expenditure for the next phase of
capacity expansion. Reflecting the Board's expectation of
continuing operational performance, gross cash at 31 December 2023
is now expected to be no worse than GBP1m lower than previous
estimates.
The Board still expects the Company to be profitable in the
second half of 2023.
The Company is continuing its work with customers on converting
its prospective contact pipeline into firm orders with further
announcements expected in the current financial year.
Further Announcements
The Company will announce its 2023 interim results on 27
September 2023.
For enquiries, please contact:
Surface Transforms plc +44 151 356 2141
David Bundred, Chairman
Kevin Johnson CEO
Zeus (Nominated Adviser and Joint Broker) +44 203 829 5000
David Foreman / Dan Bate / James Edis (Investment
Banking)
Dominic King (Corporate Broking)
finnCap Ltd (Joint Broker) +44 20 7220 0500
Ed Frisby / Abigail Kelly (Corporate Finance)
Andrew Burdis / Barney Hayward (ECM)
About Surface Transforms
Surface Transforms plc. (AIM:SCE) develops and produces
carbon--ceramic material automotive brake discs. The Company is the
UK's only manufacturer of carbon--ceramic brake discs, and only one
of two mainstream carbon ceramic brake disc companies in the world,
serving customers that include major OEMs in the global automotive
markets.
The Company utilises its proprietary next generation Carbon
Ceramic Technology to create lightweight brake discs for
high--performance road and track applications for both internal
combustion engine cars and electric vehicles. While competitor
carbon--ceramic brake discs use discontinuous chopped carbon fibre,
Surface Transforms interweaves continuous carbon fibre to form a 3D
matrix, producing a stronger and more durable product with improved
heat conductivity compared to competitor products; this reduces the
brake system operating temperature, resulting in lighter and longer
life components with superior brake performance. These benefits are
in addition to the benefits of all carbon--ceramic brake discs vs.
iron brake discs: weight savings of up to 70%, longer product life,
consistent performance, reduced brake pad dust and corrosion
free.
The Company holds the London Stock Exchange's Green Economy
Mark.
For additional information please visit
www.surfacetransforms.com
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END
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