7th Feb 2025 16:20
(Alliance News) - Surface Transforms PLC on Tuesday said its revenue grew in 2024 despite issues around cash constraints in the fourth quarter impacting its yield.
The Liverpool-based producer of carbon-ceramic automotive brake discs said its revenue grew 12% in 2024 to GBP8.2 million from GBP7.3 million in the previous year.
The company said its key customers are "highly supportive and engaged" in improving its manufacturing yield, output and financial stability.
It said working capital has become "increasingly constrained", with gross cash at December 31 at GBP500,000.
"These working capital constraints significantly impacted both revenue as well as yield in [the fourth quarter] and trading results will remain challenged until current constraints are resolved," the company said.
The firm said capital expenditure of around GBP5.5 million continued during 2024, due to a GBP13.2 loan agreement solely for use against capital expenditure.
It said efficiency in the fourth quarter was impacted by cash constraints, leading to a more inconsistent yield between 52% to 78% against the average yield target of 86%.
Chief Executive Officer Kevin Johnson said: "There remain numerous challenges to grow output and revenue at the pace required. The company alongside customer support is working through each of these difficulties not least those posed by the cash constraints which has limited our ability to operate. Frustratingly our efforts have not yielded the results we expect of ourselves or at the levels of demand our customers require.
"As the company navigates these difficult times the support of our customers remains steadfast and their desire to see the company succeed is highly encouraging and welcome. These Q4 results are not typical and do not reflect the progress achieved during 2024 as a whole. We remain optimistic that we can firstly, find a solution to current working capital constraints and thereafter, achieve the necessary operational volumes and targets."
Surface Transforms shares were up 6.1% to 0.35 pence in London on Friday afternoon.
By Michael Hennessey, Alliance News reporter
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