10th Jun 2015 07:04
LONDON (Alliance News) - Surface Transforms PLC Wednesday said that revenue in its recently-ended financial year had fallen below expectations due to a temporary breakdown of a chemical vapor infiltration furnace in May, although it's hoping to make up most of the shortfall in the current year.
The company, which makes carbon ceramic brakes for high performance vehicles, aerospace, military and motorsport markets said the breakdown of the furnace used to make its products has been investigated, understood and is currently being rectified.
"The furnace is again operational although not yet operating at full capacity. We are confident the majority of the revenue shortfall will be recovered in the first quarter of the new financial year," the company said.
It said revenue in the financial year that ended May 31 was GBP1.1 million, down from GBP1.3 million a year earlier, missing expectations. However, it said total revenue "when normalised to take account of non-recurring items" that boosted the previous year were 10% up on the year.
"The reduction in revenue will adversely affect the group's expected loss before tax for the year. However, because the shortfall is one principally of timing, the impact on the group's working capital requirement over the next year is minimal; albeit management now intend to add new features to the CVI furnace in the new financial year to permanently rectify the recent problems at a cost of approximately GBP150,000, the company said.
By Steve McGrath; [email protected]; @stevemcgrath1
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