Surface Transforms plc (LON:SCE) today provided an update on the timing of the announcement of its preliminary results for the period ended 31 December 2019. As announced by the UK Financial Conduct Authority on 23 March, the FCA has written to all listed companies strongly requesting that such companies who were intending on announcing their results in the coming days, observe a moratorium on the publication of their preliminary statements for at least two weeks. This is intended to ease the practical challenges faced by those companies and the audit profession during the current COVID-19 pandemic.
Whilst the FCA letter was targeted at Main Market listed companies, Surface Transforms has decided to follow that guidance and will now not announce its audited results for the seven month period ended 31 December 2019 (“FY19”) on 30 March 2020. Accordingly, the Company now expects to announce its audited FY19 financial statements in early May. The FY19 results remain in line with the Company’s announcement released on 28 February 2020.
In light of this, we are today also providing an update on the effect of the rapidly evolving COVID-19 pandemic on the Company and the measures being taken to actively manage and mitigate the risks to its employees, customers and operations.
In order to ensure business continuity in its day-to-day operations, the Group has implemented a series of actions to protect the health and safety of its employees. These include the segregation of operational teams into distinct shifts; regular dialogue with employees and clients; the strict enforcement of the Company’s health and hygiene practices which follow specific health protection protocols; the adoption of flexible working arrangements including home working wherever possible; and stringent restrictions on travel and meetings.
The COVID-19 situation continues to evolve rapidly which could impact revenues going forward. However, Surface Transforms remains fully operational and is manufacturing brake discs with sufficient raw material and component inventory to continue to do so for some months. Since the start of the year, the Company has not yet received any notification of orders being rescinded or OEM deferment of pre-contracted purchases. The Company remains in active communications with all its key customers; the Board continues to closely monitor the situation whilst also actively exploring the availability of various government announced initiatives and will provide further updates as appropriate.