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RNS Number : 1869P

Surface Transforms PLC

08 June 2020

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

8 June 2020

Surface Transforms plc.

("Surface Transforms" or the "Company")

Koenigsegg Contract Award

Surface Transforms (AIM: SCE) manufacturers of carbon fibre reinforced ceramic materials, is pleased to announce that it has been selected as the tier one sole supplier of carbon ceramic brake discs on the recently launched Koenigsegg Gemera. The lifetime value of the contract is in excess of GBP5m with a start of production in mid 2022 completing in mid 2027. Revenue is expected to be generated broadly evenly over the contract with approximately GBP1m per year being recognised in each of the four mid-programme years commencing 2023.

The Koenigsegg Gemera was launched at the 2020 "virtual" Geneva motor show as the world's first Mega-GT and Koenigsegg's first four-seater. It has a hybrid propulsion system, achieving 1700 bhp or 1.27 MW. The internal combustion engine can be powered by either petrol or CO2 neutral methanol.

In 2019 Koenigsegg received a $150m investment from National Electric Vehicle Sweden (NEVS) in exchange for a 20% interest for NEVS in the Koenigsegg group. As part of this transaction, NEVS and Koenigsegg have formed a 65:35 joint venture to exploit Koenigsegg's intellectual property, technology licences and product designs. The Gemera has been designed by and will be badged as Koenigsegg but manufactured in Sweden by NEVS.

Kevin Johnson, Chief Executive said: "This contract is now the third award from Koenigsegg and again demonstrates that when we win an initial contract with a customer we can achieve follow on business. Our relationship with Koenigsegg is long standing and we are therefore delighted that we continue to work with them as they transition to the next level in the automotive market through their partnership with NEVS. We are also particularly pleased that this is another example of the importance of weight reducing carbon ceramic discs in electric vehicles, whether BEVs or hybrids.

This announcement reinforces our view that the Company will be profitable before tax in 2022.

The Company expects to make further announcements of contract awards with other automotive OEMs over the next twelve months."

For enquiries, please contact:

   Surface Transforms plc.                                                    +44 151 356 2141 

David Bundred, Chairman

Kevin Johnson, CEO

Michael Cunningham CFO

   Cantor Fitzgerald Europe (Nomad & Joint--Broker)   + 44 20 7894 7000 

David Foreman (Corporate Finance)

Caspar Shand-Kydd (Sales)

   finnCap Ltd (Joint--Broker)                                               +44 20 7220 0500 

Ed Frisby / Giles Rolls (Corporate Finance)

Richard Chambers (Corporate Broking)

For further Company details, visit www.surfacetransforms.com

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June 08, 2020 02:00 ET (06:00 GMT)

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