Surface Transforms PLC Trading and Operations Update (8709W)
20 November 2017 - 6:00PM
UK Regulatory
TIDMSCE
RNS Number : 8709W
Surface Transforms PLC
20 November 2017
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Surface Transforms plc
("Surface Transforms" or the "Company")
Trading & Operational Update
Surface Transforms (AIM: SCE) provides the following trading
update for the six months to 30 November 2017.
The Company is pleased to report that revenues and cash are in
line with management expectations. Revenues for the period will be
in excess of GBP575k (2016: GBP327k). The cash balance will be in
excess of GBP2.5m (2016: GBP2.7m) to which can be added an expected
R&D tax credit in excess of GBP500k, expected to be received in
December 2017.
The Company expects to report its interim results for the six
months ended 30 November in February 2017.
Progress with Potential OEM Customers
The Company continues to test products with customers as
described in recent announcements. Discussions with OEMs on model
introduction dates continue; overall progress is in line with
management expectation. OEM3 has again postponed the date for the
VDA 6.3 audit as we understand they would prefer to conduct the VDA
6.3 audit coterminous or shortly after the conclusion of all
product tests. OEM3 still has time to undertake the audit before
the nomination date for the target model. It now seems likely that
the Company will be audited in early 2018. Management are
optimistic they will meet the VDA 6.3 standards when audited by
OEM3 next year.
Progress with New Capital Equipment
The Knowsley factory is operating satisfactorily. The first new
major furnace is being commissioned on-site with final sign off
expected (after a number of production runs) in Q1 2018. The second
major furnace has been fully tested at the supplier's premises,
witnessed by the Company's engineers, and following a final
commissioning run it will then be dismantled for shipment to
Knowsley. The delivery and rebuild is expected to be completed in
Q1 2018. These two furnaces are the most significant items in the
capital expenditure programme. All other items are repeat purchase
and installation of existing processes and equipment.
Short Term Outlook
The Company continues to expect revenues, margins and cash
balances for the remainder of the 2017-18 financial year to be in
line with market expectations.
For enquiries, please contact:
Surface Transforms plc
Kevin Johnson, CEO +44 151 356 2141
David Bundred, Chairman
Cantor Fitzgerald Europe (Nomad & Joint-Broker) +44 20 7894 7000
David Foreman / Callum Butterfield (Corporate Finance)
Alex Pollen (Sales)
finnCap Ltd (Joint-Broker) +44 20 7220 0500
Ed Frisby / Giles Rolls (Corporate Finance)
Stephen Norcross / Richard Chambers (Corporate Broking)
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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