A contract supplying brake discs for a £3m Aston Martin supercar has boosted revenues at Liverpool city region-based Surface Transforms. Tony McDonough reports
Carbon fibre brake disc maker Surface Transforms (ST) says revenues soared 240% in the first six months of 2022 to £2.9m.
In a trading update on Wednesday morning Knowsley-based ST said deliveries on a contract with Aston Martin was a key factor in the rise. It supplies brake discs for the limited edition Aston Martin Valkyrie which retails at £3m.
The company makes brake discs for a number of high performance cars. Customers have also included Porsche, Ferrari and Nissan. In April the firm said it was on course to make a profit after a “decade of development”.
During the past year ST, which is listed on the stock exchange’s Alternative Investment Market, has secured contracts with a number of major automotive manufacturers. In March it won its biggest deal to date worth £100m, taking its total order book to £180m.
In Wednesday’s update it said gross cash at June 30 was £6.7m. This includes £3m in the form of an irrevocable letter of credit for furnaces and excludes an R&D tax credit of £700,000 expected in September 2022.
As it looks to ramp up production, ST has been in discussions with all participants in its supply chain. It is aiming to match their demand with the details of suppliers’ capacity constraints.
Although these discussions caused a small delay to start of production it is now reporting that deliveries will begin in July. Production schedules and run rates will now continue in line with management expectations. ST said it expects further contract wins before the end of the year.
Its statement added: “The production issues reported at the year-end have been resolved and the company has spent the subsequent period increasing output on all the machines and furnaces.
“The board is satisfied with the current status. All arrears have been cleared and we can meet the immediate demand requirements of all customers. The second phase of the plant expansion which significantly increases capacity and builds resilience into our manufacturing processes is progressing well with completion still expected in H1 2023.
“As previously announced in September 2021, the company has implemented a revised manufacturing strategy that increases installed capacity from the phase 1 £20m sales capacity to £50m sales capacity without the need for extra capital expenditure.
“The company continues its journey to profitability in 2022 and remains confident that this goal will be achieved, while maintaining our commitment to environmental and social goals.”