Losses rocket at Surface Transforms

LOSSES at rocket component maker Surface Transforms have soared but the group is confident of weathering the storm.

The Liverpool-based group said that demand in two of its markets – aircraft braking and rocket components – is encouraging, however  trading conditions in the automotive high performance braking sector have “deteriorated significantly” since October 2008.

In the six months to November 30, turnover was up from £205,000 to almost £389,000 while losses after tax were £396,000 from £213,000.

The group warned that losses for the full year will now be above previous expectations despite cost reductions.

However Surface Transforms has cash reserves of more than £700,000 and is optimistic it will break even next year.

Chairman Kevin D’Silva said: “The board recognises that trading conditions for the company’s non-aerospace customers will continue to be challenging over the next 18 months.

“However, our focus will be on achieving new business wins in the aerospace markets, some of which have already occurred in December 2008 with more expected.

“Whilst forecasting with any degree of accuracy is difficult in the current economic conditions the board remains completely focused on achieving its goals and is cautiously optimistic that the business is capable of breaking even, in cash terms, at an operational level, in the financial year ended 31 May 2010.”