Business
Financing, trading and operations update
Financing, trading and operations update.
About this update from Surface Transforms Plc
[{"type":"text","content":"\n\nSurface Transforms plc\n(\"Surface Transforms\" or \"the Company\")\nFinancing, trading and operations update\n \nSurface Transforms (AIM:SCE), manufacturers of carbon fibre reinforced ceramic automotive brake discs, announces the following financing, trading and operations update for quarter ended 31 March 2025 (\"Q1-25\").\nFinancing and working capital\nKey customers continue to be highly supportive of Surface Transforms and we remain hugely appreciative of this alongside their engagement on improving our manufacturing yield, output and financial stability. This support includes total cash advances (to date) of more than £8m for working capital purposes, increased disc pricing and funded external manufacturing expertise.\nIn addition, strategic discussions with certain key customers regarding longer-term arrangements are at an advanced stage. Further updates will be provided in due course as appropriate.\nGross cash as at 31 March 2025 was over £1.2m.\nTrading and operations update\nThe Company's priorities remain focused on operational improvements and tight management of cash. Cash constraints and supplier restrictions during much of Q1-25 further impacted the efficiency of operations, resulting in an inconsistent yield with a weekly range of between 41% to 83% against the average yield target of >85%.\nKevin Johnson (CEO) said: \"Similar to 2024, numerous challenges persist to grow output and revenue at the pace required. The Company, aided by customer support, is working through each of these challenges not least those posed by the cash constraints which have limited our ability to operate. While our efforts are starting to see improved yield, this is not yet consistent. The support of our customers continues to be strong and their desire to see the Company succeed is highly encouraging. We remain optimistic on implementing a permanent solution to current working capital constraints and thereafter, achieve the necessary operational volumes and targets.\"\n \nFor enquiries, please contact:\n\n\n\n\nSurface Transforms plc\n\n\n+44 151 356 2141\n\n\n\n\nIan Cleminson, Interim Chairman\n\n\n\n\n\n\n\nKevin Johnson CEO\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nZeus (Nominated Adviser and Broker)\n\n\n+44 203 829 5000\n\n\n\n\nDavid Foreman / James Edis (Investment Banking)\n\n\n\n\n\n\n\nDominic King (Corporate Broking)\...