City round-up: Surface Transforms; Genedrive

Patchy production problems persist at Knowsley-based specialist brakes manufacturer, Surface Transforms, but it said today it retains the support of key customers in its bid to remedy these ongoing issues.

The business makes brakes for high performance cars and aircraft. 

In a first quarter trading update this morning, the company reiterated its priorities remain focused on operational improvements and tight management of cash.

Cash constraints and supplier restrictions during much of the first quarter period further impacted the efficiency of operations, resulting in an inconsistent yield with a weekly range of between 41% to 83% against the average yield target of >85%.

Management said key customers continue to be highly supportive and they remain hugely appreciative of this, alongside their engagement on improving the company’s manufacturing yield, output and financial stability.

This support includes total cash advances, to date, of more than £8m for working capital purposes, increased disc pricing and funded external manufacturing expertise.

In addition, strategic discussions with certain key customers regarding longer term arrangements are at an advanced stage, it revealed.

Gross cash as at March 31, 2025 was more than £1.2m.

CEO, Kevin Johnson, said: “Similar to 2024, numerous challenges persist to grow output and revenue at the pace required.

“The company, aided by customer support, is working through each of these challenges, not least those posed by the cash constraints which have limited our ability to operate.

“While our efforts are starting to see improved yield, this is not yet consistent.”

He added: “The support of our customers continues to be strong and their desire to see the company succeed is highly encouraging. We remain optimistic on implementing a permanent solution to current working capital constraints and, thereafter, achieve the necessary operational volumes and targets.”

Shares in Surface Transforms slumped by more than 30% in February following a stock market note revealing that operational problems had worsened.

Last September the group revised down its full year forecasts, blaming a failure to hit growth targets.

In November it announced the immediate departure of non-executive chairman, Andrew Kitchingman, having been in the role for barely three months.

Early last month the company’s finance chief, Isabelle Maddock, announced her retirement, just 18 months after joining the company.

Surface Transforms shares closed at 0.30p per share last night. Their yearly high has been 9.4p per share, and their low has been 0.15p.

The shares opened this morning priced at 0.28p and dropped 18.87% to 0.25p in early trading.

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Genedrive

Genedrive, the Manchester-based molecular testing business which makes medical testing equipment, has received a financial fillip worth a total of £700,000.

It announced today that it has received a £500,000 R&D tax credit from HMRC in respect of the financial year ended June 30, 2024.

In addition, it revealed an extension of a multi-partner grant award from Innovate UK and the Government’s Innovation Accelerator programme.

The Development and Validation of Technology for Time Critical Genomic Testing (DEVOTE) grant, saw the company benefit from approximately £1.2m through a combination of direct grant income, in-kind partner contributions, and other aligned funding.

The success of the DEVOTE programme has led to follow-on Innovate UK Innovation Accelerator funding to further progress the project, of which the company will receive £200,000 directly over the next six months.

CEO, Gino Miele, said: “The DEVOTE programme has been an incredible success and follow-on funding provides a further opportunity for us to partner once again with the University of Manchester in continuing development of time-critical genetic test solutions.  The additional non-dilutive grant funding facilitates the mitigation of development costs that would otherwise have been absorbed by the company.”

Yesterday, genedrive announced it had raised gross proceeds of £1.23m following its latest fundraise.