Surface Transforms Q1 Sales Update

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Surface Transforms plc Reports Steady Q1 2024 Sales, Maintains Annual Forecast

Surface Transforms plc, a leading manufacturer specializing in carbon fiber-reinforced ceramic disc brakes, has announced its sales figures for the first quarter ending 31 March 2024. Despite sales aligning with the previous quarter at £3.0 million, the company confirms it is on track to meet its £23 million sales guidance for the fiscal year 2024. Significant operational improvements have been noted, with Chief Operations Officer Stephen Easton spearheading efforts to enhance production efficiency and reduce scrap rates.

Key Highlights:

• Q1 2024 Sales Reached £3.0m: Staying consistent with Q4 2023’s figures, indicating stability.
• Annual Sales Guidance Reconfirmed at £23m: No adjustments to the company’s financial outlook for 2024.
• Operational Improvements: Led by COO Stephen Easton, notable advancements in plant performance and scrap reduction.
• Capacity Expansion on Track: Progress in the installation of new furnaces to meet a £50 million sales target, with financing secured.
• Board Transition: Chairman David Bundred announces retirement plans, with a search for his successor underway.

Despite a steady start to the year, the company acknowledged that sales in March were beneath internal targets, yet improvements in operational performance have compensated. Efforts to resolve capacity constraints and enhance maintenance procedures have shown promising results, with a significant reduction in scrap levels highlighting the company’s commitment to efficiency and growth.

Surface Transforms has also made strides in addressing delivery schedule commitments to customers, maintaining stability and confidence among its clientele. The addition of new furnaces, essential for scaling up production to meet a £50 million sales target, remains on schedule, with the company overcoming challenges related to site expansion.

Forthcoming Financial Announcements and Outlook: The preliminary results for 2023 are anticipated in late May, with the company maintaining a positive outlook for the remainder of 2024. Despite challenges related to scrap management impacting working capital, strategic assessments are underway to mitigate these short-term issues.

The announcement also highlighted forthcoming board changes, with Chairman David Bundred planning to retire in 2024, marking the end of a significant era for the company. The search for a new chairman is led by Julia Woodhouse, promising a smooth transition and continued leadership excellence.

CEO Kevin Johnson emphasized the dual focus on operational fundamentals and customer relationship enhancement as pivotal for the company’s strategy in 2024. With solid progress in building capacity and minimizing waste, Surface Transforms is poised for sustained growth and profitability in the upcoming fiscal periods.