Surface Transforms, the U.K. manufacturer of carbon fiber reinforced ceramic automotive brake discs, has announced a widened pretax loss for the first half of the year. This was primarily due to higher administrative expenses, despite an increase in revenue and gross profit.
Financial Performance
The pretax loss for the six months ended June 30 amounted to £5.5 million ($6.7 million), compared with a loss of £2.5 million in the same period last year. Revenue showed improvement, rising from £2.86 million to £3.3 million. This growth was mainly driven by the company’s original equipment manufacturer customers.
Gross profit also saw a significant increase of 14% to £2.0 million, up from £1.7 million.
Strong Order Book
Despite the challenging financial results, Surface Transforms is pleased to announce that its order book remains unchanged. The company currently holds lifetime contracts worth £290 million across 11 contracted models.
Chairman David Bundred stated, “We have continued to invest in our expansion plans, aiming to reach £50 million in sales capacity by 2024, followed by £75 million in the subsequent year.”
Market Reaction
Following the announcement, shares of Surface Transforms declined by 5.3% to 27.0 pence at 0753 GMT.