Surface Transforms: Growth rate and visibility enhanced even further

Hardman & Co
[shareaholic app="share_buttons" id_name="post_below_content"]

On 24 March, Surface Transforms PLC (LON:SCE) announced a further major multi-year contract from OEM 8. This contract is its largest to date, and brings an additional ca.£70m lifetime sales value. The company’s strong outlook is entrenched, as aptly summarised by the Chairman some time ago with the FY’22 interim results, which were announced on 13 September 2021: “The Company now expects to enter a period of high growth, partially, but not solely based on a lifetime value OEM order book of ca.£70m”. The £70m order book of seven months ago has expanded to over £180m, via existing and new clients. Capacity expansion is in place and documented.

  • Order book growth: The order book has grown two-and-a-half-fold in the past seven months. Up to then, it had trebled in the previous couple of years. The book steadily lengthens, giving strong visibility. The overwhelming majority of end-sales of cars have order books themselves, which adds visibility too.
  • How we got here: The first bespoke pieces were supplied in 2002. The proof-of-performance has come from a combination of OEM trials, and on-road retrofit and track cars. Complex manufacturing processes and a supply chain honed over many years provide excellent hurdles to new competition.
  • Where we are going: There is only one – larger – competitor, BremboSGL. Surface Transforms itself has been proactive and clear on its expansion of capacity, which has been crucial in winning orders. Equipment to accommodate further growth from £20m capacity to £50m p.a. is under way, for completion in mid-2023.
  • Risks: This is a rapidly growing market, and SCE is flexible with clients and potential clients to accommodate the rapid evolution. A major sales increase leads to a (definable) increase in working capital needs. The successful commissioning of new capacity is now being achieved, but is always a risk.
  • Investment case: This market is ca.96%-supplied by one, profitable competitor. Single supply was a most anomalous position for an auto OEM market; now Surface Transforms also supplies. Thus, the two combined OEM 8 orders, while true “game changers”, simply fitted into the broader SCE place in the market expansion. This is being delivered on a broad customer base of global OEMs.

DOWNLOAD THE FULL REPORT

Share on:
Find more news, interviews, share price & company profile here for:

The technology driving supercar performance

In the world’s fastest cars, carbon ceramic brakes have become the defining technology of control, marrying aerospace materials with automotive precision.

Surface Transforms positions itself for a new phase of expansion

Surface Transforms is shifting from recovery to expansion, with rising revenue, stronger margins, and new investment paving the way for long-term scaling.

Surface Transforms signals steadier ground with CFO appointment

Surface Transforms appoints Steve Harrison as its CFO permanently, signalling a deeper commitment to financial discipline at the core of its growth plan.

Surface Transforms reports 72% revenue growth in H1 2025 with upgraded FY outlook

Surface Transforms, the manufacturer of carbon fibre reinforced ceramic brake discs, has reported a 72% rise in revenue to £8.1m for H1 2025, with operating losses narrowing to £5.2m.

Surface Transforms confirms Steve Harrison as permanent CFO

Surface Transforms has appointed Steve Harrison as permanent Chief Financial Officer and board member. Harrison, who joined as Interim CFO in March 2025, brings over 20 years of senior finance experience across public and private companies, including AIM IPOs, fundraising, M&A and transformation projects.

The advantages of Carbon Ceramic Brakes

Born from Formula 1 engineering, carbon ceramic brakes offer a rare blend of performance, longevity and refinement that can redefine both driving dynamics and long-term ownership value.

Search

Search