26th Feb 2019 11:06
LONDON (Alliance News) - Surface Transforms PLC on Tuesday said its interim loss widened on the back of lower sales and higher costs.
For the six months to November 30, 2018, the carbon fibre materials manufacturer posted a pretax loss of GBP1.5 million versus GBP1.3 million in the comparative period a year ago.
Revenue slightly decreased to GBP509,000 from GBP524,000. Furthermore, sales to OEM6 were due to start in March 2019 but have further been delayed by six months.
Total administrative expenses rose to GBP1.8 million from GBP1.6 million, of which GBP1.1 million consisted in research & development costs. The surge in administrative costs was mainly due to higher insurance costs, IT upgrades and increased headcount, the company explained.
Looking ahead, Surface Transforms said that, besides the OEM6 delays, there are no changes to its annual expectations.
"The outlook for the next financial year ending May 31, 2020, is unchanged in respect of automotive sales but the on-going lack of clarity on the potential aerospace contract, hazards GBP600,000 of forecast sales in that year, albeit there is still time to resolve the financial discussions between the key parties," Surface Transforms added.
Surface Transforms shares were untraded at 16.02 pence each.
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