(Alliance News) - Surface Transforms PLC on Wednesday eyed annual sales growth, despite constrained first quarter.
Surface Transforms is a Liverpool-based manufacturer of carbon-ceramic brake discs for automotive and aircraft applications. Shares in Surface were down 8.2% to 3.58 pence each in London on Wednesday morning.
Sales are anticipated to grow by a minimum of 111% in 2024 and up to 165% compared to sales of GBP8.3 million in financial 2023. This results in a projected financial 2024 range of GBP17.5 million to GBP22 million sales, the company said.
"With the majority of the year still to come, 2024 sales outlook is dependent on the amount of progress made on reducing scrap, building capacity and delivering to customers," the company said.
Surface Transforms said sales were constrained in the first quarter "due primarily to scrap and constrained manufacturing capacity."
However, it noted that progress has been made on reducing scrap and this is expected to continue through 2024. The company added that progress on expanding its capacity during 2024 is "advancing."
Chief Executive Kevin Johnson said: "We are providing this range of outcomes for the year, in response to shareholder request for 'worst case scenarios'. We remain committed to achieving the higher end of this range."
By Sophie Rose, Alliance News senior reporter
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Surface Transforms (SCE)