AGM Statement

Surface Transforms PLC

27 June 2023

 

27 June 2023

 Surface Transforms plc

("Surface Transforms" or the "Company")

Annual General Meeting and sales and operations presentation

Surface Transforms (AIM: SCE), manufacturers of carbon fibre reinforced ceramic brake discs, reminds shareholders of its Annual General Meeting (AGM) to be held today, Tuesday 27 June 2023 at 10:00 a.m. at the offices of finnCap, One Bartholomew Close, London, EC1A 7BL.

Following the conclusion of the AGM, at approximately 10:15 a.m., Kevin Johnson, (CEO), will provide a presentation on both sales and operations progress. The slides from this presentation will be placed on the Company's website after the meeting. www.surfacetransforms.com

Within the presentation, Kevin Johnson will advise that manufacturing output continues to improve but has not yet reached target levels. Sales for the six months to 30 June 2023 are expected to be approximately £3.3m (H1 2022: £2.9m) representing an overall increase of 14%. Within this total, the volume of manufactured discs during the period increased by more than 80%, reflecting the improvements made in production during 2023; the remainder of the sales in both periods is pre-production development income.

The production difficulties described in the first quarter trading update have not recurred, but the Company has continued to experience individually small production disruptions that have slowed the ramp up in output. As previously described the shortage of overall capacity means that any stoppage in the quarter cannot be recovered in the quarter but will be recovered as the capacity comes on stream over the rest of the year.

The installation of additional capacity continues, and the Company still expects to have excess capacity over current demand in Q4 2023. Thereafter, the Company will be adding further capacity to meet the next step change in demand as OEM 10 starts production towards the end of 2024.

At the presentation the Company will be stating that we continue to anticipate the benefits from both this additional capacity and ongoing resolution of the production disruptions and therefore reiterates previous guidance for 2023 and 2024.

The Company will issue a pre-close trading update for its half year results in July, and its full half year results in September.

For enquiries, please contact:

Surface Transforms plc David Bundred, Chairman Kevin Johnson, CEO	[phone]
Zeus (Nominated Advisor and Joint Broker) David Foreman / Dan Bate / James Edis (Investment Banking) Dominic King (Corporate Broking)	[phone]
finnCap Ltd (Joint-Broker) Ed Frisby / Abigail Kelly (Corporate Finance) Andrew Burdis / Barney Hayward (ECM)	[phone]

 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 and electric vehicles. While competitor carbon‐ceramic brake discs use discontinuous chopped carbon fibre, Surface Transforms interweaves long strand 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.

For additional information please visit www.surfacetransforms.com

 

END