4th Dec 2018 11:21
LONDON (Alliance News) - Shares in Surface Transforms PLC fell on Tuesday as the company reported lower interim revenue and said it was worried about production delays in a British OEM6 contract.
Shares in the brake disks manufacturer were trading 12% lower at 13.00 pence each.
For the six months ended November 30, the company's revenue was GBP509,000, down from GBP524,000 a year ago.
The company also described itself as "increasingly concerned" of a possible three to six months delay to the start of production in British original equipment manufacturer 6, a limited edition contract for a "specific number of cars".
"The delay, if it happens, would likely reduce full-year 2018/19 sales by GBP500,000. As a precaution, the company has modelled the working capital impact of this as well as a "stress test" of full-year sales simply repeating last year's sales," Surface Transforms said.
It added: "In both instances the company has adequate cash headroom."
Meanwhile, the company said it continued to test products with its customers and is making particularly good progress with German OEM5, which after having reviewed the firm has approved Surface Transforms as a potential supplier.
Surface Transforms will report its interim results in February 2019.
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