Surface Transforms Plc (LON:SCE) , which develops and markets carbon fibre reinforced ceramic products - including automotive and aircraft braking systems, announced its final results to 31 May 2010 and reported significant revenue growth (18.5% to £804,800) and reduced losses over FY2009.
The sales growth was largely the result of new business from a development contract for braking systems for a US Military vehicle, which made up for the continuing softness in the automotive sector to the tune of £250,000 for the year. The braking systems are currently undergoing trials with the military, and the company expects that this process will continue until late 2011. If the project is successful, Surface Transforms expects that increased production volumes will come online in 2013. The company has also continued to make progress on its aircraft brake and rocket component development projects. Surface Transform's two main automotive supply contracts (Mov'it in Germany and a confidential partner for racing brakes) continued to underperform over the year, but a slight pickup at the end of the year might be signalling a slow recovery. The company's OEM contract with Swedish supercar manufacturer Koenigsegg continues to perform well.
Operationally, the company has continued to develop its proprietary CViST and MiST carbon-ceramic production processes in terms of quality and cost, which are at the core of the company's value proposition of providing superior performing components at a cost below that of competing technology. As the company's products are proven in testing (aerospace and defense) and on the road (automotive), the company may become an attractive acquisition target to larger players in one or more of its markets.
SCE shares have appreciated by 105% over the last year. Surface Transforms Plc is currently graded C by LCF Research. To learn more... VISIT LINK
