16 December 2021
Surface Transforms plc
(“Surface Transforms” or the “Company”)
Announcement of contract wins with OEM 6
Surface Transforms plc (AIM:SCE) is pleased to announce that it has been notified of its selection as a tier one supplier of a carbon ceramic brake disc on the forthcoming launches of three cars of its existing customer, previously described as OEM 6.
The carbon ceramic disc will be fitted as standard to both axles on all three cars. The lifetime value of these contract wins is more than £45m - bringing the overall Company order book to in excess of £115m.
These contract wins are in addition to the previously notified vehicle selection with this customer. The first car is a limited-edition special model with start of production (SOP) in late 2023 with a short series production period. The second two models (the base car and a derivative) have an SOP of mid 2024 and will be in production for at least six years. In total, these three new selections by OEM 6 are expected to generate approximately £0.5m of sales in 2023, increasing to approximately £4m in 2024 and to approximately £7m in 2025 and thereafter.
These wins were anticipated in our recent capacity and cash flow planning scenarios and were included within the “prospective carry-over” projections described during the February 2021 fund raising. However, consistent with our policy that we only forecast contract wins, they were not included in any previous market guidance or analyst forecasts and can therefore now be added to these projections. “Carry-over” in the automotive industry is the use of existing product approvals with existing OEM customers on their future models.
Kevin Johnson (CEO) said “We are delighted to be deepening our relationship with OEM 6 including moving from tier 2 to tier 1. We also note that this is now the third example of demonstrating our ability to win carry-over contracts after having won the first award. We expect to win further contracts in the new financial year across our range of existing and new customers in parallel to moving into profit and operational cash generation in 2022.”
Thu, 16th Dec 2021 12:34
RNS Number : 9232V
Surface Transforms PLC
16 December 2021
Surface Transforms plc
(“Surface Transforms” or the “Company”)
Director dealing
Surface Transforms (AIM: SCE) announces that the Company was notified on 16 December 2021 that Michael Cunningham, Financial Director of the Company, has purchased a total of 20,000 ordinary shares of 1p each in the Company (“Ordinary Shares”). Following this purchase Michael is beneficially interested in 170,000 shares.
Surface Transforms are experts in the development and production of carbon-ceramic materials and the UK’s only manufacturer of carbon-ceramic brakes for automotive use. ST utilises our proprietary next-generation carbon-ceramic material - CCST - to create lightweight brake discs for high-performance applications, including automotive and aircraft brakes. Surface Transforms has extensive in-house engineering and manufacturing capabilities, including the facilities for manufacturing carbon-ceramic brake discs.
Could we consider Surface Transforms please?
One of only two suppliers of Carbon Ceramic Brake disks (the other is brembo)
- SCE have a superior performing product
- Based in UK but wioth clear ambition to expand to further manufacturing facilities
- Big oversubscribed fund raise recently to invest in kit to meet orders
- forecasted huge jump in revenue in next few years
TAM is huge especially with Electric Vehicles (lightweight, non corroding, more powerful braking (so can use smaller lighter brakes)
Sell for a few hundred pound apiece but seriously priced up by OEMs think Porsche PCCB brakes £££££
Surface Transforms is a manufacturer of next-generation carbon ceramic brake discs for the automotive and aircraft industries. We also manufacture and sell brake upgrade kits for car owners.
Surface Transforms are experts in the development and production of carbon-ceramic materials and the UK’s only manufacturer of carbon-ceramic brakes for automotive use. ST utilises our proprietary next-generation carbon-ceramic material - CCST - to create lightweight brake discs for high-performance applications, including automotive and aircraft brakes. Surface Transforms has extensive in-house engineering and manufacturing capabilities, including the facilities for manufacturing carbon-ceramic brake discs.
SURFACE TRANSFORMS CONTRACT AWARD
17 Aug 2021
Knowsley-based manufacturers Surface Transforms has been selected as a tier one supplier of a carbon ceramic brake disc to a major mainstream US automotive company.
All terms and conditions have been agreed and the new OEM customer will be described by the company as “OEM 10”.
Specifically, the selection is for Surface Transforms, manufacturers of carbon fibre reinforced ceramic brake discs, to be the tier one sole supplier of the carbon ceramic brake disc as standard fit on both axles of a new edition to an existing internal combustion engine car.
The previous model already uses carbon ceramic discs and the company’s brake disc is replacing the existing supplier. The lifetime revenue on this specific contract is estimated to be approximately £20m starting in mid 2024.
Annual revenue is estimated to be approximately £5m per year from 2025 to 2027 inclusive, with around half that sum in 2024 and 2028. The contract is priced in pounds sterling.
The company expects to publish its half year results for the six months ended 30 June 2021 on 13 September 2021.
Kevin Johnson, chief executive, said: "This is a very significant win for Surface Transforms. The customer is one of the most respected names in the industry and provides a further key reference point for other OEMs.
“The contract win was one of those anticipated in the recent fund raise, and thus remains within our previously stated capacity requirements. We look forward to further extending our relationship with this new customer.”
from
nice new website
Apparent Zeus Capital have issued a note with a valuation of 85p
recent update form company says this year will be ‘transformational’ as it moves into profitability
link to Jan Trading and Pre Close update here;
https://polaris.brighterir.com/public/surface_transforms/news/rns/story/xo7z22r
final results for FY2021 will be reported in April 2022.
6 month Interim Results out today
Revenue up 137%
Profit Guidance maintained for Full Year 2022 and upgrades for 2023-2025
£190m order book compared with £43m in March 21
also stated
“The Company continues to expect to be able to announce at least one significant new contract in the remainder of 2022.”
*Source ; Company’s own website RNS
https://polaris.brighterir.com/public/surface_transforms/news/rns/story/wvjpepw
excellent interview with Surface Transforms’ Chairman
Very upbeat
Surface Transforms, Chairman says “These are exciting times” (VIDEO)
Surface Transforms plc (LON:SCE) Chairman David Bundred joins DirectorsTalk Interviews to discuss interim results for the six months ended 30 June 2022.
Looks like exciting times.
Someone’s topping up with 50k shares at a time, building up a nice collection.