LONDON (Alliance News) - Surface Transforms PLC, the manufacturer of carbon fibre reinforced ceramic materials, on Monday reported a 38% rise in revenue, and narrowed its losses in the first-half of the year.
Surface Transforms narrowed its pretax loss to GBP373,000 in the six months ended November 30 2013, compared with GBP429,000 a year earlier, boosted by a 38% increase in revenues during the period, to GBP558,000.
It said the sales increase and loss reduction in the six month period, were mainly supported by the income from the technology transfer agreement to a major global clutch manufacturer.
The group said it expects to meet full-year profit and cash expectations, albeit sales slightly lower than forecast.
"Surface Transforms is currently trading broadly in line with broker expectations, year-end sales may be slightly lower than previously forecast but profit and cash are expected to be largely on target. Any sales variance will be in road car retrofit sales; whilst we expect the changes to channel and end user pricing to further increase retrofit sales, orders in this segment are short lead times and the buying season is only now beginning," said Chairman David Bundred commenting on the group's full-year outlook.
The group said that in the first-half of the year, strong orders and sales with a major European brake manufacture customer, was partly offset by a disappointing first half performance on road car retrofit sales by both its German and UK distributors.
Surface Transforms said it held GBP375,000 in cash at the end of the first-half period, and activities on cost reduction and quality improvement are progressing in line with broker expectations.
Shares in the company were down 2.7% at 9.00 pence per share before midday Monday.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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