Surface Transforms PLC Trading Update (2460R)
08 December 2016 - 6:00PM
UK Regulatory
TIDMSCE
RNS Number : 2460R
Surface Transforms PLC
08 December 2016
Surface Transforms Plc
("Surface Transforms" or the "Company")
Trading and Operations Update
Surface Transforms (AIM: SCE) provides the following trading
update for the six months to 30 November 2016.
Revenue for the period was GBP327k (2015: GBP782k) and whilst
less than the corresponding period last year, is in line with
management expectations and guidance provided in the Outlook
section of the Company's 2015-16 financial statements.
The overall sales comparison masks significant changes in
underlying mix. Sales to near OEM customers increased by GBP67k to
GBP163k (2015: GBP96k), whereas sales to retrofit customers fell by
GBP46k to GBP164k (2015: GBP210k) partially reflecting a one off
sales catch up last year in H1 2015 following a previous furnace
break down. However the biggest change was the absence of any sales
into the race car customer in the six months to November 2016
(2015: GBP337k). There were also no aerospace development revenues
in this half-year (2015: GBP111k), as the Company's military
aircraft development activity has now concluded, in anticipation of
series production from early 2018.
Whilst the Company expects full year sales and gross margin
percentages will be broadly similar to prior year, increased
overheads reflecting additional costs of the new larger site, and R
& D costs are expected to mean that losses will be higher than
the prior year, but within the range of broker expectations.
Cash at 30 November 2016 was GBP2,660k (2015: GBP523k) but this
did not include the GBP338k R&D tax credit, receipt of which is
expected in the next few weeks.
The Company expects to report its interim results for the six
months ended 30 November in February 2017.
Knowsley Facility
The Company's move to its new Knowsley factory remains on track
for completion by February 2017. Orders have been placed and
deposits paid for substantially all new capital equipment for the
factory expansion, with delivery expected in 2017.
Progress with Potential OEM Customers
The Company continues to make progress with potential OEM
customers in line with management expectations and anticipate
meeting German OEM 3's environmental and testing requirements in
the first six months of 2017. In addition, the Company expects to
be VDA 6.3 - the German automotive industry standard which focuses
on manufacturing processes - compliant over the same period
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014
Enquiries:
Surface Transforms plc.
Kevin Johnson, CEO +44 151 356 2141
David Bundred, Chairman
Cantor Fitzgerald Europe (Nomad & Joint Broker)
David Foreman, Michael Reynolds (Corporate Finance) +44 20 7894 7000
David Banks, Alex Pollen (Sales)
finnCap Ltd (Joint Broker)
Stephen Norcross, Camille Gochez (Corporate Broking) +44 20 7220 0500
Ed Frisby Giles Rolls (Corporate Finance)
For further Company details, visit
www.surfacetransforms.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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