Surface Transforms sees sales pick up

SURFACE Transforms, the Liverpool company which manufactures high-tecv carbon ceramic brakes for high performance vehicles, aerospace, military and motorsport, is reporting an improvement in its financial performance.

In a trading update for the six months to the end of November, the company said its progress had been better than expected.

Revenue for the period was £782,000 (2014: £623k) and increase of 26% , meaning that its EBITDA loss (inclusive of the R&D tax credit booked in the first half of the year) will be “significantly lower” than the same period last year.

The firm said increased revenue was assisted by a catch up in sales following the furnace break down in May 2015 and approximately £107,000 from increased aircraft revenues. Within its core automotive division it reported an “encouraging” 60% increase in retrofit car sales and a 20% increase in near OEM car sales, equivalent to approximately £100,000 aggregate between the comparable half year periods; the former reflecting new additional customers, the latter being increased sales to existing customers.

Chairman David Bundred said: “These better than expected results are most encouraging. Additionally at the recent AGM, the company was able to confirm further progress on the aerospace and five game-changing automotive contract discussions.

“The company continues to believe it will be able to announce automotive contract awards in 2016 and that it will meet sales, EBITDA and cash useage expectations for the full year to May 2016.”