Surface Transforms (LON: SCE) has provided the following trading update for the seven months to 31 December 2019, being the end of the new truncated financial year as announced on 15 August 2019.
Revenue for the seven month period was £1,451k (seven months to December 2018: £512k). This outturn is in line with expectations. Cash as at 31 December was £768k (December 2018: £319k) to which can be added customer receipts of £425k received in the first trading week of January 2020. Whilst lower than expectations, this is due to temporary factors including the phasing of sales in the seven months, delayed payment by customers and slower than planned inventory reduction.
The Company expects to report its audited results for this truncated financial period on 30 March 2020. The unaudited report on the six months to 30 November 2019 will be published on 28 February 2020.
Progress with Potential OEM Customers
Discussions with potential OEM customers are progressing well and the Company still expects to be able to make significant contract announcements during the new 2020 financial year.
Progress with New Capital Equipment
The Company has now received full regulatory approval from the UK Environmental Agency for all the new furnaces in OEM Cell One. Additionally all the furnaces have now demonstrated functional capability and the Company is on target to demonstrate full system integration in Q1 2020.
David Bundred, Surface Transforms Chairman commented: “This significant acceleration in sales growth in the period is very encouraging and, we believe, sustainable. We look forward to 2020 and beyond with confidence.”