04/08/2004
The shares in Surface Transforms lifted 5.3% to 69.5p on the announcement of a marked improvement in both turnover and pre-tax losses for the year to May. A number of contract wins assisted the carbon fibre reinforced ceramic (CFRC) material manufacturer in increasing sales by 79% to £428,60. Pre-tax losses fell dramatically from £1.1m to £249,209, primarily due to a new business model that focuses on commercially exploiting its proprietary CFRC technology. As well as making agreements with Dunlop Aerospace and the United States Air Force Research Laboratory, SF has signed a two-year co-operative agreement (initially worth Û60,000) with German automotive brake parts supplier METEK. Chairman Kevin D'Silva is optimistic that if car manufacturers adopt carbon ceramic brake technology over commonly used steel or cast iron brake pads and discs, the company should be able to take one to three per cent of a market valued at Û3.5bln (£2.4bn). Another small contract awash with potential is a £40,000 deal with the UK Ministry of Defence to develop antiballistic materials for use in infantry body armour. A £2.7m placing (after expenses) has enabled SF to strengthen its technical and management teams. Its cash position at year end was £2.7m with no debts. House broker John East expects pre-losses losses to fall further in 2005 to £60,000. Patience is still required for this one though.
| Market cap: | £9.2m |
| PE Forecast: | n/a |
| Share price: | 69.5p |
| AIM | £2.09m |
11.00p
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-1.50p
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| Other company articles: |
| 30/06/2008 |
| 15/08/2006 |
| 01/03/2005 |
| 04/08/2004 |
| 05/05/2004 |
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