22nd Jun 2020 12:12
(Alliance News) - Surface Transforms PLC on Monday reported a significant revenue rise for the seven-month period to December, 31, 2019 with its loss for the period remaining flat.
Shares in the company - which manufactures carbon fibre reinforced ceramic materials - were trading 0.2% higher at 20.55 pence each at midday Monday in London, but 12% lower than at the start of the year.
The seven-month report covers the transitional period from the company's old year-end of May 31 to the new date of December 31.
For the seven months, Surface Transforms posted revenue of GBP1.5 million, more than doubled from GBP515,000 reported for the comparative period in 2018. Pretax loss was GBP1.76 million, marginally down from GBP1.80 million.
Administrative expenses totalled GBP2.6 million, from GBP2.1 million the year prior, with research & development costs accounting for GBP1.5 million of the amount, up from GBP1.1 million.
Looking ahead, the Liverpool-based company said that while its results for 2020 will be hurt by the Covid-19 pandemic, it remains on track to reach positive adjusted earnings before interest, tax, depreciation and amortisation in 2021 and pretax profit in 2022.
"Surface Transforms continues its journey from a development company to a mainstream volume automotive supplier with a site capable of revenues of GBP50 million per year. In 2020 we expect to build on this foundation by winning further contracts, completing the system integration of OEM Production Cell One and begin delivering both production and development parts on new contracts," said Chair David Bundred.
As at the end of December, Surface Transforms had cash of GBP770,000. Last month, it raised GBP2.3 million after fees in a placing and open offer in order to mitigate the expected reduction in turnover caused by the pandemic.
By Ife Taiwo; [email protected].
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