A hush of change has settled over Knowsley as a once-overlooked brake-disc specialist charts a path few would have foreseen, marrying British engineering with a streamlined production model that has quietly rewritten its prospects.
When the decision was taken to consolidate research, design and manufacturing beneath one roof in Liverpool’s north, it looked like a bold experiment in an era of fragmented supply chains. Yet that single move has steadily tightened quality control, accelerated problem-solving and driven yields from a stumbling mid-forties percentage point to well into the high seventies in just a few months. The result has been a step-change in output that has drawn fresh customer interest and turned what had been a precarious set of operations into a factory that can flex to demand without surrendering on technical precision.
By the midpoint of 2025, revenues had climbed sharply from below £5 million a year earlier to just over £8 million, reflecting both higher volumes and a slight uptick in average selling price as confidence returned to the order book. That rebound in the first six months was underpinned by a surge in manufacturing efficiency, yield improvements have slashed scrap rates and freed capacity for new contracts, and by the timely recovery of substantial R\&D tax credits and VAT receivables that bolstered the bank balance. With gross cash moving back towards comfortable levels, the business has found breathing space to reinvest in tooling and to accelerate the rollout of further production cells later in the year.
Investor watchers will note that the underlying story is less one of explosive growth and more of disciplined execution against a material opportunity. Carbon-ceramic brake discs carry clear advantages in high-performance applications, offering weight savings and superior heat management compared to traditional iron components. But historically those benefits have come with complex manufacturing challenges and fragmented supply chains that translate into long lead times and inconsistent quality. Bringing the entire process in-house in Knowsley has allowed the team to refine its proprietary material science, tighten process control and iterate more rapidly on new design variants – all while keeping production overheads lower than would be possible with multiple outsourced partners.
That control has yielded a more robust dialogue with customers, too. Instead of waiting weeks for feedback on prototype units from distant suppliers, engineers can now adjust tooling overnight, test sample batches by the next day and deliver refined components on a rolling basis. In high-value segments such as specialist motorsport and advanced rail applications, that agility has become a differentiator, allowing Surface Transforms to bid for contracts that demand rigorous proof-of-concept and performance guarantees up front. As a result, new agreements have been signed that will stretch production into 2026, broadening the revenue base beyond the core automotive clients and laying the groundwork for cross-industry expansion.
The financial outlook for the second half of the year appears equally encouraging. Management is targeting another double-digit revenue rise as the improved yields unlock extra capacity and as the new production cells come on stream in the autumn. With fixed costs largely absorbed and with a lean production footprint, most of that incremental output should flow straight to the bottom line, enhancing margins and positioning the group to generate sustained positive cash flow. That trajectory also reduces the risk of further equity raises at unfavourable valuations, a concern that weighed on sentiment during the lean years.
Surface Transforms plc (LON:SCE) are experts in the development and production of carbon-ceramic materials and the UK’s only manufacturer of carbon-ceramic brakes for automotive use.
