Manufacturer revs up for ‘game changing’ deals

SURFACE Transforms, the Liverpool company which manufactures of carbon fibre reinforced ceramic materials used to make brakes in sports cars, has grown revenues and cut losses.

The company said its results for the six months to the end of November last year showed the business was recovering after a furnace break down in May 2015.

Turnover in the period rose 26% from £623,000 to £782,000, while the EBITDA loss was just £27,000 compared to £165,000 the year before. At the bottom line, Surface Transforms lost £430,000, down from £471,000.

Chairman David Bundred said while sales in the second half are normally stronger, because the company had seen a “catch-up effect” after the furnace fire, revenues in the second half would be at similar levels to the first.

Looking forward he stated: “In the second half of the year, the key issue for the company will be the advancement of the game changing contracts.”

In avaiation, a deal with a customer, an aircraft brake systems supplier, is moving forward and this could lead to sales of £1.3m a year by 2018/19.

In the core automotive sector he said the company is in “detailed discussions with five mainstream” automotive manufacturers, three in Germany and two from this country.

If the company succeeds in landing all these deals, by 2020 it will have secured more than £10m from Germany and a further £5m from the British manufacturers.
 
Bundred said the company was planning to ramp-up capacity and would have to invest in a new manufacturing facility.

He added: “After a difficult start to negotiations, the company is pleased with recent progress on grant discussions with local authorities. Additionally the company has now identified a preferred site for the “pilot plant” and is in negotiations with the site owner on rental terms. An announcement providing further details on both these points is expected in the very near future.”