Surface Transforms reports below-target yields, customer support
By Josh White
Date: Wednesday 02 Apr 2025
(Sharecast News) - Surface Transforms said in an update on Wednesday that it saw continued support from key automotive customers during the first quarter, with over £8m in cash advances provided to bolster working capital and assist in improving manufacturing performance, although it reported varying yields well below its average target.
The AIM-listed manufacturer of carbon fibre reinforced ceramic brake discs said customers were also backing the business through increased pricing, and by funding external manufacturing expertise.
Strategic discussions with several of the customers regarding longer-term commercial arrangements were said to be at an advanced stage, with further updates expected in due course.
Gross cash at the end of March stood at over £1.2m.
However, the company noted that cash constraints and supplier-related issues negatively affected production efficiency throughout the quarter.
Yields varied significantly, ranging from 41% to 83% on a weekly basis, well below the company's average target of above 85%.
Surface Transforms said its primary focus remained on operational improvement and tight cash management as it worked to stabilise output and improve consistency across its manufacturing processes.
"Similar to 2024, numerous challenges persist to grow output and revenue at the pace required," said chief executive officer Kevin Johnson.
"The company, aided by customer support, is working through each of these challenges, not least those posed by the cash constraints which have limited our ability to operate.
"While our efforts are starting to see improved yield, this is not yet consistent."
Johnson said the support of customers continued to be strong, adding that their desire to see the company succeed was "highly encouraging".
"We remain optimistic on implementing a permanent solution to current working capital constraints and thereafter, achieve the necessary operational volumes and targets."
At 1038 GMT, shares in Surface Transforms were down 14.35% at 0.27p.
Reporting by Josh White for Sharecast.com.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN