Based in Knowsley, Surface Transforms manufactures carbon ceramic brake discs for high performance cars and has signed two ‘game-changing’ deals. Tony McDonough reports
Supercar brakes manufacturer Surface Transforms says 2020 was a “transformational” year for the company with 2021 likely to see a big surge in revenues.
Knowsley-based Surface Transforms (ST) manufactures carbon ceramic brake discs for high performance cars. In the last few months the business has signed two major deals. This included a “game-changing” £27.5m deal with an unnamed global vehicle maker.
In a trading update it revealed revenues for 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.
ST, which is listed on the Alternative Investment Market, has successfully maintained its operations through the COVID-19 pandemic. It has continued working with existing customers and with potential new customers.
It hopes to secure contracts with vehicles manufacturers to supply its brake discs for future models. ST works using ‘production cells’ and it reported on Tuesday that new machines for production cell line were being commissioned ready for volume production in the second quarter of 2021.
It says this cell is likely to generate around £20m in revenues each year. The company has contracts stretching into 2024 and 2025 and once its five production cells are up and running the annual revenue potential is around £75m.
As part of this expansion, ST is continuing to grow its headcount and it announced in the update it has appointed its first human resources executive, Rebecca Hooper, who will reporting to chief executive, Kevin Johnson.
Ms Hooper has worked at both large and small companies, including Raytheon and Unilever and in both traditional engineering and newer digital companies. She brings considerable experience in what has previously been a gap in the management team.
ST chairman David Bundred, said: “2020 has been transformational for the company with new vehicle nominations and a significant increase in contracted pipeline revenues.
“Moreover testing and negotiations with both existing and new clients alike are progressing well and we remain confident of being nominated on further vehicles in the near future.”