Surface Transforms PLC Trading, OEM Pipeline & Operations Update (5149K)
05 Gennaio 2021 - 8:00AM
UK Regulatory
TIDMSCE
RNS Number : 5149K
Surface Transforms PLC
05 January 2021
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.
5 January 2021
Surface Transforms plc.
("Surface Transforms" or the "Company")
Trading, OEM Pipeline & Operations Update
Surface Transforms (AIM: SCE), manufacturers of carbon fibre
reinforced ceramic automotive brake discs is pleased to provide an
update on trading for the year ended 31 December 2020, OEM
pipeline, operations and increased Knowsley footprint revenue
capacity.
Trading update
In line with the Company's trading statement issued on 14
September 2020, revenue for the year to 31 December 2020 was
GBP2.0m (2019: GBP1.9m). Cash as at 31 December 2020 was GBP1.1m
(2019: GBP0.8m) and to this cash sum can be added an estimated
GBP0.6m tax credit, expected to be received in July 2021. Other
interest bearing loans and asset finance totalled GBP0.5m (2019:
GBP0.6m).
The Company has maintained operations throughout the Covid-19
pandemic and whilst all OEM customers have been impacted, the
Company has continued to win new contracts in each of its OEM, near
OEM and retrofit segments.
Progress with OEM customers
The Company continues to work both with a number of potential
new customers and, increasingly importantly, with existing
customers making use of existing product approvals, for nomination
on their future models (known in the automotive industry as "carry
over"). All the tests, and carry-over discussions are proceeding to
plan and the Board remain confident of being nominated on further
vehicles in the near future.
Operations update
The new machines in OEM Production Cell One are being
commissioned in line with the Company's installation plan to be
ready for series volume production in Q2 2021. Recruitment is also
continuing and the Company is pleased to announce that it has
appointed its first Human Resources Executive - Rebecca Hooper,
reporting to the Chief Executive, Kevin Johnson. Rebecca has worked
at both large and small companies, including Raytheon and Unilever
and in both traditional engineering and newer digital companies.
She brings considerable experience in what has previously been a
gap in the management team.
Increased Knowsley footprint revenue capacity
Revenue capacity of OEM Production Cell One plus the existing
small volume production cell) is circa GBP20m. This capacity will
be available in Q2 2021. The Company has contracts stretching into
2024 and 2025 and thus has an improved view of expected average
selling prices (ASP). Even allowing for the "cost down" and "volume
break" clauses in our contracts, these ASPs are higher than
originally anticipated. Accordingly the Board has now concluded
that, primarily for reasons of the ASP, the total potential revenue
of the five OEM cells in Knowsley is likely to be circa GBP75m per
annum and not the previously stated GBP50m with no change to the
anticipated cost of building each cell.
Outlook
David Bundred (Chairman) commented: "2020 has been
transformational for the Company with new vehicle nominations and a
significant increase in contracted pipeline revenues. Moreover
testing and negotiations with both existing and new OEM clients
alike are progressing well and we remain confident of being
nominated on further vehicles in the near future. We continue to
expect to see the impact of this success in the 2021 results and
beyond."
Preliminary Results
The Company expects to report its preliminary results for the
year ended 31 December 2020 in May 2021.
For enquiries, please contact:
Surface Transforms plc. +44 151 356 2141
David Bundred, Chairman
Kevin Johnson, CEO
Michael Cunningham, CFO
Zeus Capital Limited (Nominated Adviser and Joint Broker) +44 203 829 5000
David Foreman / Dan Bate/ Jordan Warburton (Corporate
Finance)
Dominic King (Corporate Broking)
finnCap Ltd (Joint-Broker) +44 20 7220 0500
Ed Frisby / Giles Rolls (Corporate Finance)
Richard Chambers (ECM)
About Surface Transforms
Surface Transforms plc. (AIM:SCE) develop and produce
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 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.
For additional information please visit
www.surfacetransforms.com
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