Troubles continue at Liverpool city region supercar brake disc maker Surface Transforms which admits ‘cash constraints’ have ‘limited our ability to operate’. Tony McDonough reports
Supercar brake disc manufacturer Surface Transforms (ST) says it is in talks with key customers with a view to shoring up its cash position.
On Wednesday the Knowsley firm, which is listed on the Alternative Investment Market, issued an update in which it admitted “cash constraints” had “limited our ability to operate”.
ST 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 continued into 2024. Earlier in the year the company tested the patience of its investors further by tapping them for an extra £9.5m.
Its February update revealed revenues for the 12 months to December 31, 2024, of £8.2m, up from £7.3m in 2023. However, the statement laid bare the company’s woes. It said: “Gross cash at December 31 was £0.5m with working capital becoming increasingly constrained.”
On Wednesday the firm reported an improved gross cash position. As of March 31 the figure was more than £1.2m.
In the trading update it said that key customers continued to be “highly supportive” of Surface Transforms. It added: “This support includes total cash advances (to date) of more than £8m for working capital purposes, increased disc pricing and funded external manufacturing expertise.”
It said strategic discussions with certain key customers regarding longer-term arrangements are at an “advanced stage”. Its priorities, it added, remained on “operational improvements and tight management of cash”.
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Chief executive Kevin Johnson said: “Similar to 2024, numerous challenges persist to grow output and revenue at the pace required. The company, aided by customer support, is working through each of these challenges, not least those posed by the cash constraints which have limited our ability to operate.
“While our efforts are starting to see improved yield, this is not yet consistent. The support of our customers continues to be strong and their desire to see the Company succeed is highly encouraging.
“We remain optimistic on implementing a permanent solution to current working capital constraints and thereafter, achieve the necessary operational volumes and targets.”
