Based in Knowsley, stock market-listed Surface Transforms makes brake discs for high performance cars and has secured a £1m loan from the Liverpool City Region Combined Authority. Tony McDonough reports
High performance car brake disc manufacturer Surface Transforms (ST) has secured a £1m loan from the Liverpool City Region Combined Authority.
Based in Knowsley, the fast-growing business is listed on the London Stock Exchange’s Alternative Investment Market. In 2020 the business secured two major contracts that it says will be “transformational” for future revenues.
In January it raised £18m in a new share placing to fund an expansion of its production facilities. Now it has secured a £1m Growth Fund loan via Liverpool loan and equity provider MSIF. It will be drawn down between March 29 and September 29.
The loan carries interest at 2% above the Bank of England base rate and is repayable over five years in equal monthly instalments following a three-month repayment holiday. As a condition of the finance ST has agreed two maintain its employment levels.
ST chairman David Bundred said: “We would like to thank the Combined Authority and MSIF for their contribution to our investment and employment plans.
“In combination with the excellent support we are receiving from Knowsley Council on other issues it is symptomatic of their collective wish to help. Liverpool city region is, indeed open for business.”
Its new deals include a “game-changing” £27.5m deal with an unnamed global vehicle maker. Revenue for the the year to December 31, 2020, came in at £2m, a small increase on the £1.9m generated in 2019. However, the new deals could see that figure soar to £20m in 2021 eventually rising to £75m a year in the next few years.
It is confident of securing further deals with vehicle manufacturers to supply its carbon brake discs for future models. ST works using ‘production cells’ and needs to build a second production cell (Production Cell Two) in order to meet current and future demand.