# ANALYST INTERVIEW: Surface Transforms Rapid acceleration – game-change announcements

- Link: https://www.directorstalkinterviews.com/analyst-interview-surface-transforms-rapid-acceleration-game-change-announcements/412792577
- Published: 2019-09-11T10:08:51+01:00
- Author: Giles Arbor

**[Surface Transforms](https://www.directorstalkinterviews.com/company/surface-transforms-plc/sce.l)**(
[LON: SCE](https://www.directorstalkinterviews.com/company/surface-transforms-plc/sce.l))
are the topic of conversation when Mike Foster, Analyst at Hardman & Co joins DirectorsTalk.
Mike explains who this company is and why investors should take note, why there 
is a need for ceramic brake discs, the addressable market potential, its position
in the market, risks involved and company financials.

Surface Transforms manufactures and sells carbon ceramic brake discs. The last three-
month period of contract awards since the financial year-end has been transformational
in the development of the company. It now has multi-year, multi-million, recurring
income contracts from European-based global OEMs. These will support cash breakeven
during 2020, moving to EBITDA-positive (post-tax credit) in fiscal 2021 and profitability
in 2022. Long-term contracts collectively bring lifetime revenues of over £20m. 
The overwhelming significance is that this follows many years’ client-testing, and
this product-endorsement opens the path to order-of-magnitude sales expansion.

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