Surface Transforms warns on further losses
SURFACE Transforms, a manufacturer of reinforced ceramic materials used for brake discs, saw its pre-tax losses widen to £558,191 (2009: £485,188) in the six months to November 30 as its turnover edged up by 5% to £288,554.
The company, which completed a fundraising exercise in November allowing it to raise a net £1.2m said that it finished the period with cash of £1.21m.
Chairman Kevin D’Silva also warned that it expected sales growth for its current financial year to be lower than expected due to delays in signing a number of contracts to provide ceramic brake discs to automotive firms.
“Operating costs, reflecting higher development costs during the year, are expected to lead to increased losses. There is also the possibility R&D tax credits may not be as high as in previous year,” he warned.
He said that he expected prospects to improve beyond its current financial year, which ends in May.
“We anticipate increased revenues from the automotive sector in Europe; the defence automotive market in the US and the possible commencement of supply of aircraft brake discs.”
