Chairman of troubled Liverpool city region supercar brake disc maker Surface Transforms resigns after just two months in the role as its share price plummets 28%. Tony McDonough reports
Carbon fibre brake disc maker Surface Transforms (ST) saw its share price plummet 28% on Wednesday following the resignation of chairman Andrew Kitchingman.
Mr Kitchingman had taken on the role of non-executive chairman of the Knowsley-based manufacturer just two months ago but has now left with immediate effect. Ian Cleminson becomes chairman on an interim basis until a successor is appointed.
ST, which is listed on the Alternative Investment Market, manufactures carbon fibre reinforced ceramic automotive brake discs for high performance cars. Customers of the business include, or have included Porsche, Ferrari, Jaguar Land Rover and Aston Martin.
It currently has a forward order book of £390m and says its prospective customer pipeline is worth around £700m. However, despite the popularity of its products in 2023 ST experienced what it described as “the most difficult year in the history of the company”.
It has been dogged by issues related to the ramping up of production and those troubles have continued into 2024. Earlier this year the company tested the patience of its investors further by tapping them for an extra £9.5m.
They had ploughed £11m into the business as recently as November 2023. ST also secured a £13.2m loan from Liverpool City Region Combined Authority.
At the end of September the firm revealed pre-tax-losses of £7.6m for the six months to June 30, wider than the £5.6m of losses for the same period in 2023.
Revenue for the half-year increased 58% to £4.7m. However, Mr Kitchingman admitted at the time: “These remain difficult times for the company as it works to grow output and revenue.”
On the same day, chief executive Kevin Johnson added: “2024 continues to be a year with contradictory positions. Real progress on scaling up and delivering growth is being made, however the pace of growth is not as we had anticipated.”
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In a statement to the Stock Exchange on Wednesday Mr Cleminson said: “Andrew’s time with the company was unfortunately brief and we wish him well in his future endeavours.
“While short term business priorities are focused on operational improvements and tight management of cash, we are reviewing strategic opportunities to bring longer term financial stability to the company.”
At the close of business on Wednesday ST’s share price had fallen by 28% to just 18p, valuing the company at £2.25m.