Business
Q1 2024 sales and operations update
Q1 2024 sales and operations update.
About this update from Surface Transforms Plc
[{"type":"text","content":"\n\nThis 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 (\"MAR\"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.\n \n9 April 2024\n \nSurface Transforms plc\n(\"Surface Transforms\" or \"the Company\")\n \nQ1 2024 sales and operations update\n \nSurface Transforms (AIM:SCE) manufacturer of carbon fibre reinforced ceramic disc brake materials provides the following sales update for the three months to 31 March 2024 and reconfirms unchanged sales guidance of £23m for the 2024 financial year.\n \nSales in the first quarter were £3.0m. The sales trend for the last five quarters have therefore been 2023 Q1 £1.4m, Q2 £1.9m, Q3 £2.0m and Q4 £3.0m followed by Q1 £3.0m in 2024. Accepting that £3m maintains our run rate rather than increases it in Q1 2024 and was lower than our internal target, sales in March 2024 were £1.5m. Furthermore, significant improvements in the underlying operational performance led by Stephen Easton, Chief Operations Officer, have also been achieved. The single point of failure capacity constraints have now, almost all, been resolved, the revised maintenance procedures and continuing operator training have significantly improved plant availability, and performance.\n \nThe prime remaining operational challenge relates to continuing high levels of scrap from processes that are not yet fully capable. Again we regard these issues as a learning curve and note, that considerable success has been achieved in recent weeks in reducing scrap. We expect to continue these improvements over the coming months unlocking further capacity.\n \nThe Company has now agreed revised 2024 delivery schedules with all customers that progressively pull back arrears. We are broadly keeping to these schedules and the customer situation is stable.\n \nProgress on installing new capacity\n \nThe programme is proceeding to plan. We expect all but one of the furnaces for our £50m sales p.a to be on site by mid-year. The issue with the last furnace ...