LONDON (Alliance News) - Shares in Surface Transforms PLC dropped 24% Thursday morning after it said that whilst revenue in the year that ended May 31 will be ahead of the previous year, it will miss market expectations and will widen its expected pretax loss for the year to end-May.
Surface Transforms develops and manufactures carbon fibre reinforced ceramic products for automotive, aircraft and rocket components.
The company said it expects to post revenue of GBP1.3 million, up 18% on the previous year.
The shortfall in revenue was due to under-performance from the company's original distributors Alcon Inc and Movit Products Ltd. However, it has since modified its sales distribution policy, recruited a European sales manager and appointed complementary distributors. These include FF Corse Ltd, Pean Sweden AB, SIEA-Monstaka and Perfection Lab S.R.L.
Whilst this has helped to generate new sales, it is at a "slower rate" than the company originally expected. It will continue to appoint further distributors and pursue sales opportunities, particularly in Germany.
The company said it was making progress with an aerospace customer and two automotive customers, and expects to make further announcements on these contracts during the year.
Surface Transforms said it will announce its full-year results in the second half of August.
Shares in Surface Transforms were trading down 24% at 8.55 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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