Trading & Operational Update

About this update from Surface Transforms Plc

RNS Number : 2966J Surface Transforms PLC 04 December 2018   The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. Surface Transforms plc. ("Surface Transforms" or the "Company") Trading & Operational Update Surface Transforms (AIM: SCE) provides the following trading update for the six months to 30 November 2018. Revenues for the period were £509k (2017: £524k). The cash balance at 30 November was £744k (2017: £3.3m) to which can be added an expected R&D tax credit in excess of £500k, expected to be received in December 2018. The Company expects to report its interim results for the six months ended 30 November in February 2019. Progress with Potential OEM Customers The Company continues to test products with customers as described in recent announcements and is making particularly good progress with German OEM5. Having reviewed the Company's quality processes, logistics capability, financial strength and capacity plan, German OEM 5 has approved Surface Transforms as a potential supplier to them. The Company has been informed, "… it is now officially possible for (OEM 5) to place orders under the condition that the development department is happy with the required performance of ST discs". In respect to engineering approval, test track testing is underway and on schedule. To save later car development time, OEM5 has indicated to Surface Transforms that it intends to approve, at this stage, a pad/disc combination with a new environmentally friendly pad; this new pad requirement is lengthening the test programme and therefore engineering sign off is now expected in early 2019, still within the nomination time frame on the target vehicle. The work on passing the OEM 3 rig test is also continuing with good progress having been made on understanding the reason for process variability. This work is expected to complete in the first quarter of calendar 2019, consistent with the next round of nomination dates. Progress with New Capital Equipment The Company has been awarded the environmental standard ISO 14001 ahead of schedule. The final furnace for OEM production cell one has successfully completed a number of production runs a...

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