Surface Transforms plc (LON:SCE), manufacturers of carbon fibre reinforced ceramic brake discs, has reminded shareholders of its Annual General Meeting (AGM) to be held today, Tuesday 27 June 2023 at 10:00 a.m. at the offices of finnCap, One Bartholomew Close, London, EC1A 7BL.
Following the conclusion of the AGM, at approximately 10:15 a.m., Kevin Johnson, (CEO), will provide a presentation on both sales and operations progress. The slides from this presentation will be placed on the Company’s website after the meeting. www.surfacetransforms.com
Within the presentation, Kevin Johnson will advise that manufacturing output continues to improve but has not yet reached target levels. Sales for the six months to 30 June 2023 are expected to be approximately £3.3m (H1 2022: £2.9m) representing an overall increase of 14%. Within this total, the volume of manufactured discs during the period increased by more than 80%, reflecting the improvements made in production during 2023; the remainder of the sales in both periods is pre-production development income.
The production difficulties described in the first quarter trading update have not recurred, but the Company has continued to experience individually small production disruptions that have slowed the ramp up in output. As previously described the shortage of overall capacity means that any stoppage in the quarter cannot be recovered in the quarter but will be recovered as the capacity comes on stream over the rest of the year.
The installation of additional capacity continues, and the Company still expects to have excess capacity over current demand in Q4 2023. Thereafter, the Company will be adding further capacity to meet the next step change in demand as OEM 10 starts production towards the end of 2024.
At the presentation the Company will be stating that we continue to anticipate the benefits from both this additional capacity and ongoing resolution of the production disruptions and therefore reiterates previous guidance for 2023 and 2024.
The Company will issue a pre-close trading update for its half year results in July, and its full half year results in September.