Brakes specialist reports ‘period of considerable progress’
Surface Transforms, the Knowsley-based ceramic brake manufacturer, reported a period of considerable progress today.
It announced results for the seven months to December 31, 2019, covering the transitional period from the old reporting date of May 31, 2019 to the new date of December 31, 2019.
The business said revenues increased £936,000 to £1.451m, compared with £515,000 in the seven months to December 31, 2018.
The loss after taxation of £1.317m compared with £1.537m.
Cash at December 31, 2019 was £770,000, against £319,000 by December 31, 2018. Capital expenditure in the period was £621,000, up from £143,000 in the corresponding period, and the company received tax credits of £523,000, against an accrual of £400,000.
Post balance sheet date, the company successfully raised £2.25m after fees in a significantly over-subscribed placing and open offer.
Among the firm’s operational highlights, it secured an €11.8m contract over seven years from a major German automotive customer with a start of production in October 2021. Discussions continue regarding follow-on business.
It secured and delivered a £400,000 contract with a British original equipment manufacturer (OEM), and discussions also continue regarding follow-on business.
Post balance sheet date, Surface Transforms won a contract valued in excess of £5m to supply brake discs on the new Koenigsegg Gemera vehicle, and it received full regulatory approval from the Environmental Agency for its Knowsley site.
Chairman, David Bundred, said: “This seven month report is for the transitional period from the old reporting date of 31 May 2019 to the new date of 31 December 2019.
“It was a period of considerable progress in the fortunes of the company, including significant breakthrough contract awards, the delivery and installation of the key elements of the new OEM Production Cell One and improvement in current trading performance.
“The period since this reporting period end has been dominated by the huge distraction of the COVID-19 pandemic but the company has taken both operational and financial actions to mitigate the impact.
“The company is still on progress to reach positive Adjusted EBITDA in 2021 and profit before tax in 2022.”
Today’s update said the company decided to align its reporting period with that of its major OEM customer base, with the intention that, in the longer term, this would reduce variability within reporting periods.
