Surface Transforms confident heading into new year

Brake specialist Surface Transforms said it is making progress, despite the impact of the coronavirus pandemic on its business and business partners.

The Knowsley-based company, which makes brakes for high performance cars and aircraft, said in a trading update for the year ended December 31, 2020, that revenue for the year was £2m, compared with £1.9m in 2019, cash as at December 31, 2020 was £1.1m (2019: £0.8m) and to this cash sum can be added an estimated £0.6m tax credit, expected to be received in July 2021.

Other interest bearing loans and asset finance totalled £0.5m (2019: £0.6m).

The company maintained operations throughout the COVID-19 pandemic, and while all OEM (original equipment manufacturer) customers have been impacted, the company has continued to win new contracts in each of its OEM, near OEM and retrofit segments.

It said it 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 remains confident of being nominated on further vehicles in the near future.

The company has also announced the appointment of its first human resources executive, Rebecca Hooper, reporting to chief executive Kevin Johnson, as it continues to grow.

Rebecca has worked at both large and small companies, including Raytheon and Unilever and in both traditional engineering and newer digital companies.

Chairman David Bundred said: “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.”