Specialist brakes maker predicts up to 165% upturn in 2024 sales
Knowsley-based specialist brakes manufacturer, Surface Transforms, is predicting a more than doubling of its sales this year, due to a reduction in scrappage and expanding capacity.
In an update to the stock exchange this morning (April 17), it said it expects sales to grow by a minimum of 111% in 2024, and up to 165% compared with financial year 2023 sales of £8.3m, resulting in a projected 2024 range of £17.5m to £22m sales.
It said with the majority of the year still to come, 2024 sales outlook is dependent on the amount of progress made on reducing scrap, building capacity and delivering to customers.
Sales were constrained in the first quarter of the year due, primarily, to scrap and constrained manufacturing capacity.
Significant progress has been made on reducing scrap and this is expected to continue through 2024.
Similarly, progress on expanding its capacity during 2024 is advancing, the company revealed.
As capacity increases from these operational activities it also creates the opportunity to deliver a more favourable product mix with customers. These three activities are all boosting sales and are driving the company’s rapid growth during the year.
Surface Transforms said it has detailed plans in place to continue to drive all three areas with the pace of progress determining a current spread in 2024 sales of approximately 20%.
As it advances operational activities and delivers to customers, it said it expect the sales range to narrow, and, therefore, will provide updates on progress throughout the year.
CEO, Kevin Johnson, said: “We are providing this range of outcomes for the year, in response to shareholder request for ‘worst case scenarios’. We remain committed to achieving the higher end of this range.”
Surface Transforms makes carbon fibre reinforced ceramic disc brake materials for specialist customers, such as high performance cars and aircraft.
It 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 (original equipment manufacturers) in the global automotive markets.
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 with 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 versus iron brake discs – weight savings of up to 70%, longer product life, consistent performance, reduced brake pad dust, and corrosion free.
