Liverpool’s supercar brake maker rebounds with 63% revenue growth and £390M order book, eyeing further profit and production boosts.
After enduring “very difficult 18 months,” Surface Transforms (ST) roared back in 2023, reporting a 63% surge in annual revenues to £8.3 million. The Knowsley-based carbon fiber brake disc manufacturer, favored by high-performance brands like Porsche and Ferrari, finally overcame production roadblocks that hampered its 2022 performance.
See also: Surface Transforms on Track to Profitability in 2024
The turnaround is evident across the board. ST’s Q4 sales hit £3 million, a significant jump from the previous three quarters, and the company confidently maintains its £23 million revenue forecast for 2024. This optimism stems from a robust £390 million forward order book and CEO Kevin Johnson’s anticipation of securing additional contracts this year.
“We now believe that the worst of our growing pains are behind us,” Johnson stated, acknowledging that resilience building remains crucial. He expressed confidence in ST’s customers, citing their aligned production schedules with the company’s capacity assessments.
This newfound stability paves the way for ambitious expansion plans. Surface Transforms, already backed by a £13.2 million loan from the Liverpool City Region Urban Development Fund, secured a further £2.7 million through an oversubscribed share offering. These funds, alongside an earlier £8.3 million share raise, total £24.2 million and will fuel ST’s ambitious capacity expansion goals.
The company aims to install £50 million per year sales capacity by mid-2024, reaching £75 million by the end of 2025. This will not only fulfill existing contracts and cater to anticipated growth but also strengthen ST’s operational resilience.
“Our factory expansion remains a crucial task in positioning the company for the future,” Johnson stated, underscoring the importance of the debt facility in furthering this program. He emphasized the team’s focus on operational improvements, including enhanced productivity and a new senior leadership team to drive these advancements.
Surface Transforms’ story is a testament to overcoming challenges and capitalizing on opportunities. From navigating production hurdles to securing substantial funding and customer confidence, the company is now poised for sustained growth within the high-performance automotive market. With a clear roadmap and experienced leadership, ST’s future appears as polished and powerful as the brakes it manufactures.
