REG - Surface Transforms - Financing, trading and operations update

Surface TransformsAnnouncement

02/04/2025 07:00

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RNS Number : 1913D  Surface Transforms PLC  02 April 2025

Surface Transforms plc

("Surface Transforms" or "the Company")

Financing, trading and operations update

 

Surface Transforms (AIM:SCE), manufacturers of carbon fibre reinforced ceramic
automotive brake discs, announces the following financing, trading and
operations update for quarter ended 31 March 2025 ("Q1-25").

Financing and working capital

Key customers continue to be highly supportive of Surface Transforms and we
remain hugely appreciative of this alongside their engagement on improving our
manufacturing yield, output and financial stability. This support includes
total cash advances (to date) of more than £8m for working capital purposes,
increased disc pricing and funded external manufacturing expertise.

In addition, strategic discussions with certain key customers regarding
longer-term arrangements are at an advanced stage. Further updates will be
provided in due course as appropriate.

Gross cash as at 31 March 2025 was over £1.2m.

Trading and operations update

The Company's priorities remain focused on operational improvements and tight
management of cash. Cash constraints and supplier restrictions during much of
Q1-25 further impacted the efficiency of operations, resulting in an
inconsistent yield with a weekly range of between 41% to 83% against the
average yield target of >85%.

Kevin Johnson (CEO) said: "Similar to 2024, numerous challenges persist to
grow output and revenue at the pace required. The Company, aided by customer
support, is working through each of these challenges not least those posed by
the cash constraints which have limited our ability to operate. While our
efforts are starting to see improved yield, this is not yet consistent. The
support of our customers continues to be strong and their desire to see the
Company succeed is highly encouraging. We remain optimistic on implementing a
permanent solution to current working capital constraints and thereafter,
achieve the necessary operational volumes and targets."

 

For enquiries, please contact:

 Surface Transforms plc                           +44 151 356 2141
 Ian Cleminson, Interim Chairman
 Kevin Johnson CEO

 Zeus (Nominated Adviser and Broker)              +44 203 829 5000
 David Foreman / James Edis (Investment Banking)
 Dominic King (Corporate Broking)

About Surface Transforms

Surface Transforms plc. (AIM:SCE) develops and produces carbon‐ceramic
material automotive brake discs. The Company is the UK's only manufacturer of
carbon‐ceramic brake discs, and only one of two mainstream carbon ceramic
brake disc companies in the world, serving customers that include major OEMs
in the global automotive markets.

The Company utilises its proprietary next generation Carbon Ceramic Technology
to create lightweight brake discs for high‐performance road and track
applications for both internal combustion engine cars and electric vehicles.
While competitor carbon‐ceramic brake discs use discontinuous chopped carbon
fibre, Surface Transforms interweaves continuous carbon fibre to form a 3D
matrix, producing a stronger and more durable product with improved heat
conductivity compared to competitor products; this reduces the brake system
operating temperature, resulting in lighter and longer life components with
superior brake performance. These benefits are in addition to the benefits of
all carbon‐ceramic brake discs vs. iron brake discs: weight savings of up to
70%, longer product life, consistent performance, reduced brake pad dust and
corrosion free.

The Company holds the London Stock Exchange's Green Economy Mark.

For additional information please visit www.surfacetransforms.com
(http://www.surfacetransforms.com/)

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