Source: Parts of the following were excerpted from a The Business Desk post by Neil Hodgson on the 2020 financial results of U.K. performance brakes specialist Surface Transforms.
LIVERPOOL, U.K. – Performance-braking specialist Surface Transforms finished 2020 flat in terms of financial results according to figures published this week. The Knowsley, U.K. firm ended last year with revenues of £1.952 million compared with £1.938 million in 2019; it expects a move to profitability in 2021.
These revenue figures encompass pre-tax losses of £2.917m compared with a pre-tax loss of £2.982m in 2019.
According to Hodgson’s article:
The company’s report also revealed that net research costs were also relatively stable at £2,468, against £2,437 for the previous year.
As of December 31, 2020, Surface Transforms’ cash position was £1.058m, compared with £770,000 in the prior year.
Post balance sheet date, the company successfully raised £19m net of fees in a significantly over-subscribed placing, subscription and open offer.
In addition to this, the company agreed a £1m low interest loan with the local authority in March.
During the reporting period, Surface Transforms secured a £27.5m contract over four years from a global automotive client, (OEM 8) with start of production in the second half of 2021. Discussions continue regarding follow on business.
It also secured a contract in excess of £5m over five years on the Koenigsegg Gemera with start of production mid-2022 – the third contract award from this customer.
The company said the impact of Brexit has not been dramatic. As previously reported only about 15% of revenues up to 2024 are into the EU zone and as such it is not a central issue in its planning.
It also revealed that it learned during the year that a significant proportion of one client’s car production on models involving Surface Transforms is to be manufactured in South Africa, not Germany.
Nonetheless supply disruption has been seen in the early post- Brexit days, it revealed.
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