Based in Knowsley, Surface Transforms manufactures carbon fibre reinforced ceramic brake discs for high performance cars and has seen revenues surge 34%. Tony McDonough reports

High performance brake disc maker Surface Transforms is reporting a rise in revenues for the first half of 2021.

Based in Knowsley, ST manufactures carbon fibre reinforced ceramic brake discs for both the automotive and aerospace sector. Among the models it supplies brakes is the Aston Martin Valkyrie.

In the spring the company said it expected to move into profit this year and the latest revenue figures are promising. In the six months to June 30 revenue grew 34% to £1.2m against £900,000 in H1 2020. The figure has exceeded expectations.

Over the past 12 months ST, which is listed on the Alternative Investment Market, has securing new contracts worth £32.5m. In April it reported that it now had an order book totalling £43m. It is now in a position to start generating revenues of £20m a year – 10 times the current level.

Cash as at June 30 was £17.2m reflecting the successful £19m fund raise (after fees) in February 2021. A tax credit of £600,000 is expected in August and the drawdown of the £1m Liverpool City Region Combined Authority loan in October.

Its OEM (original equipment manufacturer) Production Cell One will be ready for the ramp up in sales forecast for the final quarter of 2021. Additionally, following the fund raise, the company has satisfactorily concluded its discussions with the furnace manufacturers for the next stages of manufacturing expansion.

It will be issuing both purchase orders and providing deposits totalling £3m across July and August to the furnace and other equipment suppliers.

Chairman David Bundred said: “This encouraging sales performance, does not yet include the impact of previously announced contract wins. As previously reported, we anticipate a ramp up of revenues from our new OEM contracts in the final quarter of 2021.

“In parallel, we are most encouraged by the strategic progress made on further contract opportunities. Similarly, positive progress has been made with regard to equipment installation.

“The combination of these factors enable the company to reiterate that it remains on track to report a profit before tax in 2022, with further significant growth contracted for many years thereafter.”