10 February 2012

Surface Technology Systems

NO RECOMMENDATION

02/08/2002

Surface Technology Systems supplies the equipment that allows makers of micro-electro mechanical systems to scratch silicon chips. In the words of chief executive Ian Smith - 'we make large and hi-tec capital equipment that is then used to make other devices fabricated using semiconductor technology'. In a bearish trading statement, Smith said the global downturn has continued to put pressure on some of its markets throughout the world in 2002. In addition he said that first-half orders were below expectations as customers delayed their purchasing decisions. Furthermore, where orders have been won the gross margin has been affected by lower average prices for machines. He also flags up a £1.3m one-off component inventory charge for the first half. All of this means interim losses will be wider than expected when the company reports next month. Furthermore, expectations of a 2002 full-year profit will not be met, since Smith expects to make a further loss in the second half as 'adverse market conditions' continue. Back in March the group unveiled a sparkling set of annual numbers to 31 December. Sales surged 58% to £56.7m, operating profits put on 70% to £6.1m and pre-tax profits powered ahead 86% to £5.3m. House broker Rowan Dartington now expects a £6.8m pre-tax loss for 2002. The shares were issued at 138p in December 2000.

Sector: Software & Computer Services

Companies: Surface Technology

Market cap: £10.97m

PE Forecast: n/a

Share price: 35p

Subscribe today


Subscribe today and save 50%. Receive company watch recommendations and extensive company profile tips, released two months ahead of the market.

Sign up here

Spread Trading. New from Halifax Share Dealing

£100 credit when you open five trades within 60 days – terms apply. Spread Trading is not for everyone please ensure you understand the risks as you may lose more than your initial deposit. Click here for more information.

Institutional Investors in AIM 2011 - New Report

This unique study analyses the shareholdings of companies listed on AIM, extracting trends including rankings of the value and number of their investments.
Please click here to order your copy of the report or call 0207 250 7056.

Coverage of AIM, techMARK and PLUS Markets

Informative features and research on fast-growing companies, small-cap and growth stocks, penny shares, stock market tips and share recommendations, directors' dealings, company news and analysis, new issues and upcoming IPOs.

If you're interested in business tax updates visit our specialist tax guide website.

Share recommendations and small-cap stock picks

Small-cap and growth company share recommendations on AIM- and PLUS-listed companies. Latest analysts' stock tips and advice on which are the best shares to buy on London's junior stock markets.

Popular Recommendations

Latest Recommendations

Homeserve 08/02/2012

Home maintenance and emergency repairs concern Homeserve has warned that its reduction in customer numbers is 3% higher than expected.

Tags: Full list, Home repairs, Support services sector

Sector: Support Services

Companies: Homeserve

Low & Bonar 07/02/2012

Performance materials specialist Low & Bonar (LWB) reported a 26% rise in profits amidst considerable growth in its yarns business.

Tags: Increase in profits, Performance material specialist, Yarns business

Sector: Construction & Materials

Companies: Low and Bonar

Avon Rubber 02/02/2012

A trading update from gas masks to dairy products specialist Avon Rubber (AVON) has confirmed that it is on track to meet current-year expectations, but it is likely to be second half loaded.

Tags: Dairy products, Filter products, Main market, Masks, US DOD

Sector: Aerospace & Defence

Companies: Avon Rubber

More Recommendations

Sectors