Surface Transforms, the Cheshire based supplier of carbon fibre reinforced ceramic products, released interim results for the six months to 30 November 2010. Revenues were £288,554 (2009/10 £254,776), with a net loss of £458,191 (H1 FY 2009/10: £274,117 loss). In October 2010, revenue of £1.1 million for the year to 31 May 2011 was expected, with a net loss of c. £700,000. ST’s management team now expects revenues for FY 2010/11 to be £700,000 to £800,000.
The reason for the revenue shortfall is that expected automotive brake disc supply contracts have been slower to materialise than anticipated. The increased loss reflects the increased cost associated with development projects not funded by partners along with an unexpected delay (and potential reduction) of the R&D tax credit.
Though the increase in revenue vs. FY2009/10 appears to be very modest, it does represent a significant increase in trading of its existing automotive contracts, which include Mov’it in the European aftermarket and AP Racing in the American aftermarket. ST did not receive revenue from its next-generation military vehicle contract in the US — this drop was expected as the field testing of the original disc supply is expected to last most of 2011. The test units have been performing well, so ST has not sold any replacement units to the development partner.
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