Pre-Close Trading Statement and Issue of Shares
Surface Transforms Plc
13June 2012
Surface Transforms Plc
("Surface Transforms" or the "Company")
Pre-Close Trading Statement and Issue of Shares
Surface Transforms Plc (AIM: SCE), one of the world's two manufacturers of carbon ceramic brake discs for the aircraft and automotive industries, is pleased to provide a trading update for the financial year ended 31 May 2012.
The Company's turnover is expected to be in excess of £1.0 million, approximately 16% higher than last year (2011: £0.86 million) and in line with market expectations.
Last year we announced a reduction to the Company's operating cost base and during this year we have focused, in particular, on reducing the direct costs of the main carbon ceramic brake products. Progress has been made on both fronts and overall, we expect our audited loss before tax to be lower than last year and in line with market expectations.
In line with the Company's strategy of increasing its in-house production capacity, the Company's second carbon vapourisation furnace is expected to come on stream during the second half of this calendar year and will ensure that the Company's capacity at the Ellesmere Port plant has the potential to deliver up to £3 million of revenues from carbon ceramic brake discs.
Management continue to focus on improving gross margins and driving the business towards the immediate objective of cash break-even. The Board expects a marked improvement in the Company's revenues over the next 12 months given the new business opportunities it has developed. The Board expects that operating losses will be further reduced during the 2013 financial year.
To support the Company's objective of cash conservation, two of the Company's non-executive directors, Kevin D'Silva and Richard Gledhill, have agreed to accept 134,884 and 120,930 ordinary shares of the Company ("Shares") respectively, in lieu of fees for the year ended 31 May 2012. The Shares have been issued at 10.75 pence, being the 3 day weighted average closing price before issue on 13 June 2012.
Following the issue, Kevin D'Silva is now interested in 521,370 Shares and Richard Gledhill is interested in 7,785,653 Shares (equivalent to 1.6 per cent. and 24.2 per cent. respectively of the total issued share capital of the Company).
Application has been made for the 255,814 new Shares to be admitted to trading on AIM ("Admission") and it is expected that Admission will be effective from 19 June 2012. Following Admission, there will be a total of 32,141,236 Shares in issue. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Surface Transforms under the FSA's Disclosure and Transparency Rules.
Shareholders will receive a further update when the audited accounts are published in mid August 2012.
For further information on the Company visit: www.surface-transforms.com.
David Bundred
Chairman
Enquires:
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Surface Transforms Plc |
+44 151 356 2141 |
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Dr. Kevin Johnson, CEO |
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David Bundred, Chairman |
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Seymour Pierce Ltd |
+44 207 107 8000 |
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Guy Peters / David Foreman (Corporate Finance) |
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David Banks (Corporate Broking) |
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This information is provided by RNS
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