2nd Feb 2017 09:41
LONDON (Alliance News) - Surface Transforms PLC on Thursday said it has been selected to supply its carbon ceramic brake discs to an undisclosed brake system supplier for a limited edition car model.
Surface Transform's production is expected to start in its year to the end of May 2018 or 2019, and it said the limited edition car is expected to be produced over the period from the start of 2019 to mid-2020. It expects revenues of around GBP1 million during this period.
The company highlighted the contract as "strategically important", as it marks the company's first mainstream original equipment manufacturer contract success. Additionally, it reduces risks to potential other original equipment manufacturer programme delays.
"This is another key milestone for the business. It is a significant short term win in its own right at an important period for the company; a tier 2 contract award for this high profile customer on this prestigious model advances our increasing reputation in the industry; and obviously, whilst this tier 2 supplier nomination solely relates to this model, we would hope to build on this foundation to extend our relationship with our tier 1 customer and OEM in the future," said Chief Executive Officer Kevin Johnson in a statement.
To support this and other expected contract wins, Surface Transforms is continuing to move to a higher capacity new factory in Knowsley in Merseyside.
Surface Transforms will report its interim results and provide a further update on February 13.
Shares in Surface Transforms were up 8.3% at 23.15 pence Thursday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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