28th Feb 2020 12:56
(Alliance News) - Automotive brake discs manufacturer Surface Transforms PLC on Friday said it doubled its interim revenue though its loss widened slightly on rising expenses.
In the six months to November 30, revenue climbed to GBP1.0 million from GBP509,000 in the year prior. Its pretax loss however, widened to GBP1.6 million from GBP1.5 million.
Administrative expenses climbed 21% to GBP2.2 million from GBP1.8 million, with sales costs more than doubling to GBP399,000 from GBP187,000.
The rise in expenses were "largely driven by above budget plant repair costs of GBP66,000, certification and consultancy costs of GBP45,000 to achieve environmental agency approval together with the introduction of IFRS 16."
IFRS 16 is an accounting standard governing the financial treatment of leases.
Surface Transforms said: "The board continues to expect gross margin percentages and overheads to be in line with previous guidance."
The company changed its year end date to December 31, meaning its numbers posted on Friday will be its last interim report for the period to November 30.
The company earnings before interest, tax, depreciation and amortisation in the second half of 2021, and forecasts reaching a breakeven Ebitda in the first half of 2020. It predicts it will report pretax profit in 2022.
Shares in the company were 12% lower at 22.96 pence each in London on Friday afternoon.
By Eric Cunha; [email protected]
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