Trading Update

RNS Number : 1267I

Surface Transforms PLC

07 December 2015

 

Surface Transforms Plc

("Surface Transforms" or the "Company")

Trading Update

Surface Transforms (AIM:SCE) is pleased to provide the following pre-close trading update, for the six months to 30 November 2015 being better than our expectations.

Revenue for the period was £782k (2014: £623k) being approximately 26% higher than the corresponding period last year. The Company expects that this higher revenue, will result in an EBITDA loss (inclusive of the R&D tax credit booked in the first half of the year) being significantly lower than the same period last year.

The increased revenue was assisted by a catch up in sales following the furnace break down in May 2015 and approximately £107k from increased aircraft revenues, but within the core automotive sales, it is encouraging to note that there was a 60% increase in retrofit car sales and a 20% increase in near OEM car sales, equivalent to approximately £100k in aggregate between the comparable half year periods; the former reflecting new additional customers, the latter being increased sales to existing customers.

Cash was £523k at the half year end (2014: £132k) and £829k at the year ended 31 May 2015.  However net current assets increased by £266k in the period and will convert to cash over the next few months demonstrating the business being close to operating cash break-even in the first half.

David Bundred, Chairman, said "these better than expected results are most encouraging. Additionally at the recent AGM, the Company was able to confirm further progress on the aerospace and five game changing automotive contract discussions. The Company continues to believe it will be able to announce automotive contract awards in 2016 and that it will meet sales, EBITDA and cash useage expectations for the full year to May 2016."

The Company expects to report its interim results for the six months ended 30 November in February 2016.

Enquiries

Surface Transforms plc

Dr. Kevin Johnson, CEO	[phone]
David Bundred, Chairman	[phone]

Cantor Fitzgerald Europe

David Foreman, Michael Reynolds (Corporate Finance)	[phone]
David Banks , Tessa Sillars (Corporate Broking)	[phone]

 

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