13th Jun 2018 13:46
LONDON (Alliance News) - Surface Transforms PLC said Wednesday that its annual revenue doubled "broadly in line with market expectations".
For the year to May 31, the carbon-ceramic brake-disks manufacturer expects to record GBP1.4 million in revenue, up from GBP700,000 in the year ago period. Capital expenditure is estimated to total GBP2.0 million versus GBP2.1 million.
Chief Executive Officer Kevin Johnson said: "These results are encouraging with good progress being made in virtually all areas. We expect continued revenue growth in all areas during the coming financial year, but principally from Aston Martin as well as improved gross margins."
Johnson added that the company intends to maintain a higher level of research & development, GBP200,000 more than originally budgeted for 2018-19.
Surface Transforms said it continues to work with British car manufacturer Aston Martin Lagonda Ltd and expects production to start in the first quarter of 2019.
"The resultant revenues following start of production are particularly important to the company because they are expected to be sufficient for the company to then immediately generate ongoing net cash inflows from operations," the company said.
The company also said discussions concerning a limited edition racetrack only car have not progressed further. It added that it does not expect the contract to be finalised until "at least" 2019.
Surface Transforms shares were trading 8.1% lower at 17.00 pence each.
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