(Sharecast News) - Carbon fibre-reinforced ceramic disc brake materials manufacturer Surface Transforms provided detailed sales guidance for 2024 on Wednesday, in response to shareholder demand for a 'worst case' forecast.
The AIM-traded firm said sales were expected to see significant growth, with an anticipated minimum increase of 111% and a maximum increase of 165% compared to the 2023 financial year sales of £8.3m.
That projection would cause a projected sales range of £17.5m to £22m for the year.
The sales outlook for 2024 was contingent on a number of factors, including progress in reducing scrap, expanding manufacturing capacity, and the timely delivery to customers.
Sales in the first quarter were constrained primarily due to scrap and limited manufacturing capacity.
However, significant progress was achieved in reducing scrap, with expectations for continued improvement throughout 2024.
Additionally, efforts to expand capacity were currently underway, and expected to contribute to sales growth.
The board said the operational activities would increase capacity, and also present opportunities to offer a more favourable product mix to customers, further driving sales growth.
Surface Transforms said it had detailed plans in place to continue advancing its operational activities, with the pace of progress influencing the current spread in projected 2024 sales, estimated to be about 20%.
As operational activities progressed and deliveries to customers were made, the firm said anticipated the sales range to narrow.
Updates on progress would thus be provided throughout the year to keep stakeholders informed.
"We are providing this range of outcomes for the year, in response to shareholder request for 'worst case scenarios'," said chief executive officer Kevin Johnson.
"We remain committed to achieving the higher end of this range."
At 0844 BST, shares in Surface Transforms were down 4.36% at 3.73p.
Reporting by Josh White for Sharecast.com.
Surface Transforms (SCE)