Report
Mike Foster

Surface Transforms (SCE): High visibility for 2021 onwards; equity raise

ST’s position as one of only two global manufacturers of a new automotive component – carbon ceramic brake discs – brings major opportunities for investors and the automotive industry. The OEM (original equipment manufacturer) order book is ca.£28m, generating gross profits equal to the market capitalisation. Timing here is set firm: 2021 will bring material revenues from the OEMs. This only scratches the surface of the market opportunity. COVID-19 has affected 2020 and – with an increase in equity limited to 10% – investors have put their shoulder to the wheel, so that ST has successfully countered the cashflow impact.
Underlying
Surface Transforms PLC

Surface Transforms is a developer and manufacturer of carbon ceramic products for the brakes market. Co. is engaged in the design, manufacture and sell carbon fiber components. Co.'s products in the automotive industry are lightweight, durable and refined, providing heat dissipation and material strength. In the aerospace industry, Co.'s products provideweight reduction, improved brake performance and wear life. Co's research activities are concentrated on the ongoing identification of new products and applications for carbon fibre reinforced ceramic friction and non-friction materials.

Provider
Hardman & Co
Hardman & Co

We are a rapidly growing, innovative corporate research & consultancy business, based in London, serving the needs of both public and private companies.

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Analysts
Mike Foster

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