REG - Surface Transforms - Interim results for six months ended 30 June 2023
27/09/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230927:nRSa7462Na&default-theme=true
RNS Number : 7462N Surface Transforms PLC 27 September 2023
27 September 2023
Surface Transforms plc
("Surface Transforms" or the "Company")
Interim results for the six months ended 30 June 2023
Surface Transforms (AIM: SCE) manufacturers of carbon fibre reinforced ceramic
automotive brake discs, announces its unaudited interims results for the six
months ended 30 June 2023 ("H1-2023").
Financial highlights:
· Revenue increased 15% to £3.3m (H1-2022: £2.9m)
· Gross profit increased 14% to £2.0m (H1-2022: £1.7m), with margin
consistent at 60%
· Operating loss(1) increased to £4.6m primarily due to £2.5m of
non-repeatable outlays to overcome technical challenges. Investment in teams,
R&D and depreciation also increased in line with plan
· Loss before tax increased to £5.5m (H1-2022: £2.5m)
· Cash at 30 June 2023 was £4.5m (31 Dec 2022: £14.9.m)
· Improving revenue post period end, with H2-2023 revenue expected to
be significantly ahead of H1-2023
(1)Before non-recurring items
Strategic highlights
· Revenues lower than plan due to H1 technical challenges now overcome
· Additional furnace capacity in place and increase in proprietary know
how
· Strengthened leadership team for next phase of growth, including new
CFO and COO
· Meeting customer demands with further OEM contract awards expected in
H2-2023
· Strategic investment programme for c.£75m capacity progressing well,
with capital expenditure of £4.8m (H1-2022: £2.8m). Phase 2 target of £50m
capacity will be available in 2024
· Strong order book unchanged with lifetime value of contracts at
£290m across 11 contracted models
· New product development for customers continues in line with the
contract roadmap
· Healthy prospective contract pipeline increased to £420m (31 Dec
2022: £393m)
· Commenced planning for site expansion to c.£150m capacity
David Bundred (Chairman) said:
"The steady growth in production seen throughout 2023 is expected to continue.
Whilst H1-2023 has been operationally challenging the Company has delivered
considerable strategic progress. We have engineered solutions to our technical
problems and brought in additional furnace capacity designed to our know-how.
Productivity efficiencies and capacity improvements are expected to continue
through 2023, a target break-even in the second half of the year, with
profitability in Q4.
We have continued to invest to reach, initially £50m sales capacity in 2024
and £75m sales capacity in the following year. Of greatest importance our
customers have understood our issues, including immersing themselves in our
capacity plans, and remain committed to awarding the Company further business.
We are appreciative of shareholders support through this learning curve."
Financial review
Revenue increased by 15% to £3.3m with approximately 75% represented by OEM
customers and related development income. Near OEM customer growth has also
continued and demand from retrofit customers remained strong.
Gross profit increased by 14% to £2.0m with margins remaining consistent at
60%.
Our operating loss (before non-recurring items) was £4.6 million compared to
£2.4 million in the same period last year. This is due to a number of ramp-up
issues we experienced as our production capacity increased to meet growing
demand. These ramp-up issues resulted in lost contribution of £1.6m and costs
of £0.9m with equipment failures and scrapped production. We have overcome
these technical challenges and do not expect these outlays to re-occur.
Indeed, the work completed has resulted in improved production processes and
the design of proprietary equipment.
Administrative costs (excluding R&D) rose 52% to £2.5m driven by
additional headcount and increased depreciation, combined with the actions to
overcome production challenges. Research and development ("R&D") expense
increased 62% to £4.1m as new product development continues in line with the
contract roadmap and the introduction of new machines and associated processes
enabled those significant technical challenges to be overcome.
Non-recurring expenditures
Management have identified non-recurring items of expenditures in H1-2023,
notably £0.5m of unprecedented energy costs from a one -off period of being
subject to a variable rate in H1-2023. The Company has fixed energy costs
until March 2024. A further £0.3m of one-off restructuring costs as ramp up
demanded temporary skills sets during this transition.
After taking into account higher administrative, R&D costs, the £2.5m one
off costs associated with ramp up challenges as well as the £0.9m of
non-recurring expenditures the Company reports a loss before tax of £5.5
million in H1-2023, compared to a loss of £2.5 million in H1-2022.
Capital expenditure and cash
Planned capital expenditure of £4.8 million occurred in the period, primarily
aimed at delivering 2024 capacity, with full year capex now expected to be in
the region of £8m. This extra capacity will provide resilience during the
continuing ramp up in the second half of 2023 and also underpins the projected
further near doubling of sales in 2024. In addition, the Company's
manufacturing capacity expansion programme remains on track to deliver
capacity equivalent to £75 million in 2025.
Cash at the end of the period was £4.5 million, down £10.4 million from the
year-end. This was due to revenue loss whilst overcoming ramp up challenges in
H1 and continued capital investments for 2024. Prudent cash management along
with a re-phasing of capital expenditure on the next phase of capacity
expansion has minimised the impact of one-off costs incurred resolving the
technical problems and delayed production ramp up. Accordingly, year-end cash
is expected to be within £1m of previous management estimates.
Commercial progress:
Satisfying immediate customer demand whilst investing in capacity and
manufacturing resilience for strategic growth remains the Board's over-riding
priority.
Despite the production challenges in H1-2023, the Company is addressing demand
in H2-2023 for current in-series production. Whilst we have experienced delays
in shipping product owing to the ramp-up challenges earlier this year, we have
worked closely with our customers throughout and are broadly meeting their
requirements.
Our contracted order book has risen in line with expectations, from
approximately £180 million to £290 million. Our prospective contract
pipeline is now approximately £420 million. Near OEMs and Retrofit customers
remain a valued and steady income stream.
We currently have model contracts with 6 OEM manufacturers and remain in
discussions with other OEMs. Furthermore, and despite the technical problems
incurred in the period, our OEM customers have been fully supportive and the
Board expect to be awarded further OEM contracts in H2-2023.
Operational progress
The technical problems incurred in Q1 constrained our production and sales.
These challenges were resolved in Q2 and the Company has been increasing
production rates ever since. Q3 is showing steady progress, and the company
expects to continue ramping up its growth in Q4.
Supply chain challenges have caused production delays, impacting customers and
some capital investments, however we have developed alternatives to minimise
the risk.
Looking ahead to 2024, the Company's strategic focus is on:
o Installed capacity: capable of meeting demand and building inventory
headroom;
o Increasing capacity: expanding production capacity the focus is now on
phase 2 which is expected to come on stream in 2024;
o Advancing our plans for site expansion to scale up capacity to £150
million;
o Site infrastructure: investing in new facilities and equipment to support
growth;
o Building talent and capability: attracting and retaining top talent to
support the Company's growth; and
o Maintaining margin: identifying opportunities to reduce inefficiency to
improve.
People
It is a pleasure to welcome Isabelle Maddock who joins as Chief Financial
Officer and Board Director after a 9- year tenure as CFO with James Cropper
PLC. It is also a pleasure to welcome Stephen Easton to the team as
(non-Board) Chief Operating Officer, Stephen has joined after a 16-year tenure
with SGL Carbon. Both these senior appointments strengthen an already dynamic
team focused on delivering the manufacturing expansion and financial
transformation of the Company.
To support talent programmes, we work with key universities and local colleges
to secure a number of individuals on apprenticeships and graduate programmes.
These programmes help us to attract and retain top talent, develop future
leaders, reduce training costs, improve productivity, and boost morale.
Since the start of the year, we have taken in three apprentices and have
also secured nine graduates primarily in IT, Engineering, Manufacturing
Technology, Human Resources, Finance and Sales roles. Approximately 26% of the
current workforce are graduates.
We continue to be an employer of choice in the area offering well paid
employment opportunities and excellent prospects within a growing and
inclusive environment.
Environment
Brake dust is a major source of air pollution, and it is becoming an
increasingly talked-about problem. There are more vehicles on the road than
ever before, and newer models tend to have more powerful and bigger brakes.
Our carbon ceramic brake discs significantly reduce brake pad wear and hence
brake pad dust emissions compared to traditional brake discs. They are also
lighter, last longer, do not corrode and cope better with high accelerating,
heavy vehicles, making them well-suited for electric vehicles (EVs) that
require brakes which are used less frequently, but need higher energy braking
performance, weight reduction and lower brake pad dust emissions. Our research
team is collaborating with innovative automotive suppliers to develop new
brake disc technologies that can further reduce brake dust emissions and
improve the performance of EV's.
Reducing manufacturing energy and carbon footprint is a top priority for the
Company. All capital investments made this year and for future furnaces and
power plants are continually assessed based on their potential to reduce
energy and carbon costs.
Outlook
The steady growth in production seen throughout 2023 is expected to continue.
Whilst H1-2023 has been operationally challenging the Company has delivered
considerable strategic progress. We have engineered a solution to our
technical problems and brought in additional furnace capacity designed to our
know-how. Productivity efficiencies and capacity improvements are expected to
continue through 2023, a target break-even in the second half of the year,
with profitability in Q4.
We have continued to invest to reach, initially £50m sales capacity in 2024
and £75m sales capacity in the following year. Of greatest importance our
customers have understood our issues, including immersing themselves in our
capacity plans, and remain committed to awarding the Company further business.
We are appreciative of shareholders support through this learning curve.
For enquiries, please contact:
Surface Transforms plc +44 151 356 2141
David Bundred, Chairman
Kevin Johnson CEO
Zeus (Nominated Adviser and Joint Broker) +44 203 829 5000
David Foreman / Dan Bate / James Edis (Investment Banking)
Dominic King (Corporate Broking)
Cavendish Capital Markets (Joint Broker) +44 20 7220 0500
Ed Frisby / Abigail Kelly (Corporate Finance)
Andrew Burdis / Barney Hayward (ECM)
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/)
Statement of total comprehensive income
For the 6 months ended 30 June 2023 Six months ended Six months ended Year ended
30-Jun-23 30-Jun-22 31-Dec-22
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue 3,282 2,857 5,121
Cost of Sales (1,323) (1,143) (2,039)
Gross Profit 1,958 1,714 3,082
Other Income 7 24 36
Administrative Expenses:
Before research and development costs (2,475) (1,626) (3,365)
Research and development costs (4,125) (2,549) (5,625)
Total administrative expenses (6,600) (4,175) (8,990)
Operating loss before non-recurring items (4,636) (2,437) (5,872)
Non-recurring items (763) - -
Financial Income 2 1 6
Financial Expenses (87) (82) (180)
Loss before tax (5,484) (2,519) (6,046)
Taxation 643 348 1,264
Loss for the year after tax (4,840) (2,171) (4,782)
Total comprehensive loss for the year attributable to members (4,840) (2,171) (4,782)
Loss per ordinary share
Basic and diluted (2.01)p (1.11)p (2.34)p
Statement of financial position As at As at As at
As at 30 June 2023 30-Jun-23 30-Jun-22 31-Dec-22
£'000 £'000 £'000
Unaudited Unaudited Audited
Non-current assets
Property, plant and equipment 18,864 11,325 15,188
Intangibles 3,412 1,018 2,237
22,277 12,343 17,425
Current assets
Inventories 4,023 2,315 3,376
Trade and other receivables 1,970 987 1,051
Other receivables 3,086 2,403 3,400
Current asset investment - 3,007 -
Cash and cash equivalents 4,506 3,712 14,924
13,585 12,424 22,750
Total assets 35,862 24,767 40,175
Current liabilities
Other interest-bearing loans and borrowings (211) (211) (211)
Lease liabilities (348) (299) (295)
Trade and other payables (4,058) (2,765) (3,710)
(4,617) (3,274) (4,216)
Non-current liabilities
Government grants (181) (194) (188)
Lease liabilities (1,290) (1,402) (1,335)
Other interest-bearing loans and borrowings (783) (1,054) (887)
Total liabilities (6,872) (5,925) (6,626)
Net assets 28,990 18,842 33,551
Equity
Share capital 2,417 1,954 2,406
Share premium 58,375 41,469 58,215
Capital reserve 464 464 464
Retained loss (32,266) (25,044) (27,534)
Total equity attributable to equity shareholders of the Company 28,990 18,842 33,551
Statement of Cash Flows
for the 6 months ended 30 June 2023
Six months ended Six months ended Year ended
30-Jun-23 30-Jun-22 31-Dec-22
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flow from operating activities
Loss after tax for the year (4,840) (2,171) (4,782)
Adjusted for:
Depreciation and amortisation charge 591 441 969
Equity settled share-based payment expenses 108 95 216
Foreign exchange losses/(gains) 43 (210) (345)
Financial expense 87 82 180
Financial income (2) (1) (6)
Non-government grant amortisation - - (12)
Taxation (643) (348) (1,264)
Changes in working capital (4,656) (2,112) (5,044)
Decrease/(increase) in inventories (647) (977) (2,038)
Decrease/(increase) in trade and other receivables (1,135) (951) (1,805)
Increase/(decrease) in trade and other payables (80) 775 1,720
(6,518) (3,265) (7,167)
Taxation received 1,172 - 709
Net cash used in operating activities (5,346) (3,265) (6,458)
Cash flows from investing activities
Acquisition of tangible and intangible assets (4,839) (2,751) (8,351)
Cash transfer (to)/from current asset investments - - 3,007
Interest received 2 - 6
Net cash used in investing activities (4,838) (2,751) (5,337)
Cash flows from financing activities
Proceeds from issue of share capital, net of expenses 171 24 18,051
Cost for issue of share capital - - (828)
Payment of finance lease liabilities (85) (80) (153)
Proceeds from long term loans - - -
Payments of long term loans (191) (303) (473)
Interest paid (87) (82) (180)
Net cash generated from financing activities (192) (441) 16,417
Net (decrease)/increase in cash and cash equivalents (10,375) (6,457) 4,620
Foreign Exchange losses (43) 210 345
Cash and cash equivalents at the beginning of the period 14,924 12,966 9,959
Cash and cash equivalents at the end of the period 4,506 6,719 14,924
Statement of changes in equity
For the six months ended 30 June 2023
Share capital Share premium account Capital reserve Retained loss Total
£'000 £'000 £'000 £'000 £'000
Balance as at 31 December 2022 2,406 58,215 464 (27,534) 33,551
Comprehensive income for the period
Loss for the period - - - (4,840) (4,840)
Total comprehensive income for the period - - - (4,840) (4,840)
Transactions with owners, recorded directly to equity
Share options exercised 11 160 - - 171
Equity settled share based payment transactions - - - 108 108
Total contributions by and distributions to the owners 11 160 - 108 279
Balance at 30 June 2023 2,417 58,375 464 (32,266) 28,990
Notes
1. Accounting policies
The interim financial statements are the responsibility of the Directors and
were authorised and approved by the Board of Directors for issuance on 27
September 2023.
Basis of preparation
The Company is a public limited liability Group incorporated and domiciled
in England & Wales. The financial information is presented in Pounds
Sterling (£) which is also the functional currency. The Company's
accounting reference date is 31 December.
These interim condensed financial statements are for the six months to 30 June
2023. They have not been prepared in accordance with IAS 34, Interim Financial
Reporting that is not mandatory for UK AIM listed companies, in the
preparation of this half-yearly financial report. While the financial
information included has been prepared in accordance with the recognition and
measurement criteria of International Financial Reporting Standards (IFRS), as
adopted by the European Union (EU), these interim results do not contain
sufficient information to comply with IFRS.
These interim results for the period ended 30 June 2023, which are not
audited; do not comprise statutory accounts within the meaning of section 435
of the Companies Act 2006.
Full audited accounts of the Company in respect of the year ended 31 December
2022, which received an unqualified audit opinion and did not contain a
statement under section 498(2) or (3) (accounting record or returns
inadequate, accounts not agreeing with records and returns or failure to
obtain necessary information and explanations) of the Companies Act 2006 and
have been delivered to the Registrar of Companies.
The accounting policies used in the preparation of the financial information
for the six months ended 30 June 2023 are in accordance with the recognition
and measurement criteria of IFRS as adopted by the EU and are consistent with
those which will be adopted in the annual statutory financial statements for
the year ending 31 December 2022.
Going concern
The financial statements have been prepared on a going concern basis which the
Directors believe to be appropriate. The Company incurred a net loss of
£4.8 million during the period however the Directors are satisfied, based on
detailed cash flow projections and after the consideration of reasonable
sensitivities, that sufficient cash is available to meet the Company's needs
as they fall due for the foreseeable future and at least 12 months from the
date of authorising the accounts. The detailed cash flow assumptions are based
on the Company's annual budget, prepared, and approved by the Board, which
reflects a number of key assumptions including revenue growth, underpinned by
current pipeline; customer compliance with payment terms; other receipts of a
value and timing consistent with previous years.
The Directors believe that the Company is well placed to manage its business
risks successfully. The Directors have a reasonable expectation that the
Company has adequate resources to continue in operational existence for the
foreseeable future. Accordingly, they continue to adopt the going concern
basis in preparing the interim report and accounts.
Leases and right of use assets
The Company assesses whether a contract is or contains a lease at inception of
the contract. A lease conveys the right to direct the use and obtain
substantially all the economic benefits of an identified asset for a period of
time in exchange for consideration.
A right of use asset and corresponding lease liability are recognised at
commencement of the lease. The lease liability is measured at the present
value of the lease payments, discounted at the rate implicit in the lease, or
if that cannot be readily determined, at the lessee's incremental borrowing
rate specific to the term, country, currency and start date of the lease.
The lease liability is subsequently measured at amortised cost using the
effective interest rate method. The right of use asset is initially measured
at cost, comprising: the initial lease liability; any lease payments already
made less any lease incentives received; initial direct costs. The right of
use asset is subsequently depreciated on a straight-line basis over the
shorter of the lease term or the useful life of the underlying asset. The
right of use asset is tested for impairment if there are any indicators of
impairment.
Leases of low value assets and short-term leases of 12 months or less are
expensed to the income statement, as are variable payments dependent on
performance or usage, 'out of contract' payments and non-lease service
components.
Segmental reporting
Due to the nature of the business the Company is currently focused on building
revenue streams from a variety of different customer markets. As there is
only one manufacturing facility, and as this has capacity above and beyond the
current levels of trade, there is no requirement to allocate resources to or
discriminate between specific markets or products. As a result, the
Company's chief operating decision maker, the Chief Executive, reviews
performance information for the Company as a whole and does not allocate
resources based on products or markets. In addition, all products manufactured
by the Company are produced using similar processes. Having considered this
information in conjunction with the requirements of IFRS 8, as at the
reporting date the board of Directors have concluded that the Company has only
one reportable segment that being the manufacture and sale of carbon fibre
materials and the development of technologies associated with this.
The Company considers it offers product technology namely carbon fibre
re-enforced ceramic material, which is machined into differing shapes
depending on the intended purpose of the end user.
Critical accounting estimates and judgements
The preparation of financial statements in conformity with adopted IFRSs
requires management to make judgements, estimates and assumptions that affect
the application of policies and reported amounts of assets and liabilities,
income, and expenses. In considering key judgements, management have
considered revenue recognised over time as judgement however this is not
material in current period. See revenue recognition accounting policy for
further details.
Key judgements assessed by management are as follows:
Research and development expenditure
The Board considers the definitions of R&D costs as outlined in IAS 38:
Intangible Assets when determining the correct treatment of costs incurred.
Where such expenditure is technically and commercially feasible, the Company
intends and has the technical ability and sufficient resources to complete
development, future economic benefits are probable and if the Company can
measure reliably the expenditure attributable to the intangible asset it is
treated as development expenditure and capitalised on the statement of
financial position.
In considering whether an item of expenditure meets these criteria, the Board
applies judgement in determining when the items are technically and
commercially feasible.
Deferred tax
Judgement is required to determine the amount of deferred tax assets that can
be recognised, based upon the likely timing and level of future taxable
profits together with an assessment of the effect of future tax planning
strategies. At present management have not recognised deferred tax assets
above the value of the deferred tax liability recognised, on the basis that
future taxable profits are possible, not probable.
Management do not consider there to be any significant estimates included in
the accounts which have a significant risk of causing a material adjustment to
carrying amount of assets and liabilities within the next financial year.
Revenue recognition
Revenue arises primarily from the provision of carbon ceramic brake discs.
To determine whether to recognise revenue, the company follows a 5-step
process:
1. Identify the existence of a contract with a customer
2. Identify the separable performance obligations
3. Determine an appropriate transaction price for the contract
4. Allocate the transaction price to the performance obligations
5. Recognise revenue either at a point in time, or over time, dependent on
how the obligation is satisfied.
The majority of revenue is currently recognised at a point in time, when the
control of the goods has passed to the buyer (usually on dispatch of the
goods). These contracts contain only one performance obligation being the
provision of the specified goods.
The Company has entered contracts which have a number of separable elements
included as part of the provision of pre-production services to the customers.
For such contracts where it has been determined that a good or service is
being transferred, the performance obligations which are capable of being
distinct must first be identified and then an assessment made of whether the
identified performance obligations are distinct in the context of the
contract. Judgement is exercised in making this assessment and is driven by
what the customers expectation of goods and services to be received are.
When transferring a good or service to the customer the revenue recognition
point is determined based on whether the control of the good or service is
transferred over time or at a point in time. Where the customer receives and
consumes benefits simultaneously over the period of the performance revenue is
recognised over time whereas when the service is transferring a good at a
point in time the revenue is recognised at that time. Where revenue is
recognised on an over time basis, the Company uses a percentage of completion
model to recognise the appropriate revenue in the year. This percentage of
completion is a judgement based on time booked to the contract.
2. Taxation
Analysis of credit in the period
Six months Six months Year
ended ended ended
30-Jun-23 30-Jun-22 31-Dec-22
£'000 £'000 £'000
(unaudited) (unaudited) (unaudited)
UK Corporation tax
Adjustment in respect of prior years' R&D tax allowance (33) - 59
R&D tax allowance for current period 676 348 1,205
643 348 1,264
The effective rate of tax for the period/year is lower than the standard rate
of corporation tax in the UK of 20%, principally due to losses incurred by the
Company.
The potential deferred tax asset relating to losses has not been recognised in
the financial statements because it is not possible to assess whether there
will be suitable taxable profits from which the future reversal of the
underlying timing differences can be deducted.
3. Loss per share
Loss per ordinary share
Six months ended 30 June Year ended 31 December
Basic 2023 2022 2022 2021
Loss after tax (£) (4,840,000) (2,171,000) (4,782,00) (3,952,000)
Weighted average number of shares (No. of shares) 240,979,421 195,311,933 204,340,456 190,215,345
Loss per share (pence) (2.01p) (1.11p) (2.34p) (2.08p)
Loss per ordinary share is based on the Company's loss for the financial
period of £4,840k (30 June 2022: £2,171k loss; 31 December 2022: £4,782k
loss). The weighted average number of shares used in the basic calculation is
240,979,421 (30 June 2022: 195,311,933; 31 December 2022: 204,340,456).
The calculation of diluted loss per ordinary share is identical to that used
for the basic loss per ordinary share. This is because the exercise of share
options would have the effect of reducing the loss per ordinary share and is
therefore not dilutive under the terms of International Accounting Standard 33
"Earnings per share".
4. Segment reporting
Due to the start-up nature of the business the Company is currently focused on
building revenue streams from a variety of different customer markets. As
there is only one manufacturing facility, and as this has capacity above and
beyond the current levels of trade, there is no requirement to allocate
resources to or discriminate between specific markets or products. As a
result, the Company's chief operating decision maker, the Chief Executive,
reviews performance information for the Company as a whole and does not
allocate resources based on products or markets. In addition, all products
manufactured by the Company are produced using similar processes. Having
considered this information in conjunction with the requirements of IFRS 8, as
at the reporting date the Board of Directors has concluded that the Company
has only one reportable segment that being the manufacture and sale of carbon
fibre materials and the development of technologies associated with this.
The Company considers it offers product technology namely carbon fibre
re-enforced ceramic material which is machined into different shapes depending
on the intended purpose of the end user.
Revenue by geographical destination is analysed as follows:
Revenue by Geographical Destination Six months ended 30 June Year ended 31 December
2023 2022 2022
£'000 £'000 £'000
United Kingdom 418 1,167 1,623
Germany 291 136 349
Netherlands 300 - -
Sweden 33 84 354
Rest of Europe 39 212 341
United States of America 2,148 1,157 2,254
Rest of World 53 102 200
3,282 2,857 5,121
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR PPUUCBUPWGMQRecent news on Surface Transforms
See all newsREG - Surface Transforms - Result of Placing, Open Offer Launch & GM Notice
AnnouncementREG - Surface Transforms - Proposed Placing, Subscription and Open Offer
AnnouncementREG - Surface Transforms - 2024 Sales Outlook
AnnouncementREG - Surface Transforms - Holding(s) in Company
AnnouncementREG - Surface Transforms - Q1 2024 sales and operations update
Announcement