Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Supercar brake disc manufacturer Surface Transforms raises £24.2m in new funds and predicts profitability in 2024.
https://lbndaily.co.uk/brake-disc-maker-will-be-profitable-in-2024/
Should see. Re-rate now, all change
That is good ...they only needed the second part of the raise to go through as the outstanding condition..... they probably been sent the positive votes for Resolutions from the major shareholder in advance of the AGM anyway
RNS out ! GLA
You haven’t a clue what you’re talking about.
DamayHill
The thought has to be that they have learned a lot from the issues of 2023 and that with a new experienced COO added to the team things can indeed look better from now on , in terms of the production.... and of course sorting the funding requirement puts to bed the work needed for that...
The loan decision appears to be "imminent" and I would guess is waiting for the AGM to pass the Resolutions so the fund raise is fully voted on ...
Thanks pokerchips. Unfortunately, there's a world of difference between having the capacity equivalent to £50m sales per year and actually delivering product at volume, as we've seen this year. October sales were apparently £1m, so they need to demonstrate a gradual ramp-up during H1 2024 and certainly not a further reversal.
" problem-free sales of £1m+ per month "
DamayHill
They have stated.... if this can remain on course ...and the production faults be resolved ..then £1m+ per month seems more than possible
" The Company remains on course to have capacity equivalent to £50m sales per year run rate in 2024 and for £75m sales run rate in 2025"
Surely... SURELY, 2023 will be in line with guidance issued on 3 Nov of £8.6m sales. If not, the Board are continuing to tell us one story whilst conscious of another. I'm taking it as read, perhaps foolishly, that there will be very little variation from that.
Therefore, the critical moment becomes the first 2024 trading update., where we need to see largely problem-free sales of £1m+ per month. If the first few months of production are materially behind the run-rate for 2024 full year guidance, then my confidence in this management team will be eroded. In the meantime, I'm prepared to give them the benefit of the doubt.
" the share price has remained higher than the Offer price even as the Institutional shares have gone live"
Only 18.6m and 1.35m shares have gone live so far....the bulk ...62.9m and 27.4m have yet to hit the market ( post AGM)
So...the whole fund raise will collectively add 110.3m shares and be a 35.5% dilution with 90.3m shares still to go live after the AGM
" We continue to expect to move into profitability and free cash generation in 2024."
"The Company does not currently anticipate requiring any further external funding for future expansion up to Phase 3"
The production capacity must be functioning 100% as planned if they are indeed going to be able to fully fund Phase 3 from cash generation (the combined revenue capability of the existing and extended Knowsley footprint will be £150 million p.a.)
Apologies I was including the loan…Bundred seems confident…. But again with him & Johnson, the Chuckle Bros, at the helm, what could possibly go wrong?
I think it raised £2.7m not £27m and around £11m overall.
Surface Transforms (AIM:SCE), manufacturers of carbon fibre reinforced ceramic automotive brake discs is pleased to announce that the Open Offer was significantly over-subscribed, raising gross proceeds of £2.7m.
Subject to the Resolutions being passed, £11.0m gross proceeds will have been raised pursuant to the Placing, Subscription and Open Offer
£27m raised.Chairman & CEO responsible for operational/financial debacle. What could possibly go wrong?
It's good to see the level of confidence in SCE's Open Offer. £27m raised, versus £20m they were aiming for.
https://www.lse.co.uk/rns/SCE/result-of-open-offer-05tqj6w00zhm7lt.html
I have a modest holding, and a 1:12 subscription didn't net me many more shares, so I applied for quite a few more and got them all.
The Offer shares go live on 19th December, so I'd expect the share price to remain sluggish until after Christmas as PIs cash in their 5-10%, but after that (fingers crossed, touch wood, sage the room, avoiding ladders, black cats and cracks in the pavement) the share price should rise significantly from 10p over the next 12 months.
It was only July that 4 board members put in a hefty chunk of their own money, buying shares on the open market at an avg of 32p.
It's interesting to note that the share price has remained higher than the Offer price even as the Institutional shares have gone live, suggesting that they aren't being flipped significantly.
Totally agree....CFO made a big play about it. Other critical issue is that Bundred resigns and we get a competent plc chairman who can actually kick t5his into shape and hold Johnson's feet to the fire.
" 2. Successful EU capital loan this month "
That is critical....it really must get signed on agreeable terms
" 2. Successful EU capital loan this month "
That is critical....it really must get signed on agreeable terms
My dream scenario is as follows:
1. Oversubscribed placing this month
2. Successful EU capital loan this month
3. Directorate Change -Bundred to leave , experienced plc Chair to replace him
4. Strategic shareholder/PE takes stake
I'm expecting that this might bounce back a little next week/week after, following the close of the open offer. As challenging and frustrating as things have been, I'm really struggling to justify a sub-£30m market cap.
29 Nov 2023 11:06
Hardman & Co Research Hardman & Co Video | Surface Transforms (SCE) Open Offer and Q&A 29-Nov-2023 / 11:06 GMT/BST The issuer is solely responsible for the content of this announcement.
Hardman Talks Video | Surface Transforms
Surface Transforms Open Offer and Q&A
Following the recent announcement of a placing and public offer by Surface Transforms, the management team of David Bundred, chairman, Kevin Johnson, CEO, and Isabelle Maddock, CFO, appeared on Hardman Talks to explain the need for further funding. This will support the expansion in manufacturing capacity, itself driven by strong customer demand. Watch it here: https://youtu.be/FWWNhGPfrds
Does anyone else invest through HSBC Invest Direct? I received correspondence from them to the effect that I can take up my 1/12 shares but there is no option (through HSBC) to buy more in the open offer. Is this because they can't be ars*d to put up the facility?
I also invest through HL and AJ Bell and both of those are allowing me to buy shares through the open offer.
Anyone else with HSBC got the same letter?
who knows? but it says something that (1) these are potential risks and (2) one doesn't know if that includes the **** kit that had already broken down in qs 1,2,3
"identified 7 pieces of equipment that are posing a potential risk to future production"
is that the new COO at work ?
.... "potential risk" .... shows they are looking in more detail and assessing what could be done, before a problem arises ..
"potential risk" is a lower level than a "real risk "
"identified 7 pieces of equipment that are posing a potential risk to future production"
Jeez ! I was interested and I didn't attend but 7 ffs that's too many fires to fight for me for a company that has already been shown to be inefficient !