Last checked at 17 Aug 2021 07:00
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
17 August 2021
Surface Transforms plc ("Surface Transforms" or the "Company")
Contract Award from OEM 10 and Notice of Results
Surface Transforms (AIM:SCE), manufacturers of carbon fibre reinforced ceramic brake discs, is pleased to announce that it has been formally notified of its selection as a tier one supplier of a carbon ceramic brake disc to a major mainstream US automotive company. All terms and conditions have been agreed. Hence forth, this new OEM customer will be described by the Company as "OEM 10".
Specifically, the selection is for Surface Transforms to be the tier one sole supplier of the carbon ceramic brake disc as standard fit on both axles of a new edition to an existing internal combustion engine car. The previous model already uses carbon ceramic discs and thus the Company's brake disc is replacing the existing supplier. The lifetime revenue on this specific contract is estimated to be approximately £20 million commencing in mid 2024. Annual revenue is estimated to be approximately £5 million per year from 2025 to 2027 inclusive, with approximately half that sum in 2024 and 2028. The contract is priced in pounds sterling.
The Company expects to publish its half year results for the six months ended 30 June 2021 on 13 September 2021.
Kevin Johnson, CEO commented:
"This is a very significant win for Surface Transforms. The customer is one of the most respected names in the industry and provides a further key reference point for other OEMs. The contract win was one of those anticipated in the recent fund raise, and thus remains within our previously stated capacity requirements. We look forward to further extending our relationship with this new customer."
Moreover, it is particularly encouraging to note that this award primarily reflects the advanced technical capabilities of our product and provides further validation of our 15 years of technical development."
We look forward to making further contract award announcements over the next few months."
For enquiries, please contact:
Surface Transforms plc. +44 151 356 2141
David Bundred, Chairman
Kevin Johnson, CEO
Michael Cunningham, CFO
Zeus Capital Limited (Nominated Adviser and Joint Broker) + 44 203 829 5000
David Foreman / Dan Bate / Jordan Warburton (Corporate Finance)
Dominic King (Corporate Broking)
finnCap Limited (Joint Broker) +44 207 220 0500
Ed Frisby / Abigail Kelly (Corporate Finance)
Richard Chambers / Barney Hayward (ECM)
About Surface Transforms
Surface Transforms plc. (AIM:SCE) develops and produces carbon‐ceramic material automotive brake discs. The Company is the UK's only manufacturer of carbon‐ceramic brake discs, and only one of two mainstream carbon-ceramic brake disc companies in the world, serving customers that include major OEMs in the global automotive markets.
The Company utilises its proprietary next generation Carbon Ceramic Technology to create lightweight brake discs for high‐performance road and track applications for both internal combustion engine and electric vehicles. While competitor carbon‐ceramic brake discs use discontinuous chopped carbon fibre, Surface Transforms interweaves continuous carbon fibre to form a 3D matrix, producing a stronger and more durable product with improved heat conductivity compared to competitor products; this reduces the brake system operating temperature, resulting in lighter and longer life components with superior brake performance. These benefits are in addition to the benefits of all carbon‐ceramic brake discs vs. iron brake discs: weight savings of up to 70%, longer product life, consistent performance, reduced brake pad dust and corrosion free.
For additional information please visit www.surfacetransforms.com