8th Feb 07 ARMSHARE update :Link Back to Page 6 Here


Information Archive Folder : http://www.esnips.com/web/SurfaceTransformsInfo/


Main Web Site : http://www.surface-transforms.com/

March 2008 Presentation : Presentation Link


Commerical Overview

Surface Transform plcs core activity is exploiting proprietary technologies to create innovative, lightweight, high energy dissipating braking system materials, which can be commercialised for high-performance applications.

Surface Transforms plc has worked on technology programmes in collaboration with major companies such as AlliedSignal Inc, BAE Systems/Roxel, Dunlop Aerospace and Faiveley

Today, Surface Transforms is commercialising its products for an increasing range of high-performance applications. These include automotive, motorsport and aircraft brakes, for which the company has developed Ceramic brakes with improved friction properties, enhanced lifetime and lower production costs. Other growth areas include aerospace components (principally rocket motors) and anti-ballistic armour.

Key milestones have included:

-A new aircraft brakes development contract (Jan 2004) with a leading US based aircraft brakes maker
-A licensing contract (September 2003) with Dunlop Aerospace to develop and supply CFRC brakes;
-A contract with the UK Ministry of Defence to supply innovative materials that will increase protection against high-power rifle and cannon fire;
-A contract with the United States Airforce Research Laboratory for the supply of prototype CFRC materials for military applications.
-First commercial sales of carbon-ceramic brake discs for installation on the KOENIGSEGG Swedish supercar
-First commercial sales of Carbon Ceramic road car discs to StopTech the California based brake system upgrade specialists.
-First commercial sales of Carbon Ceramic road car discs to MOVIT one of the leading brake after-market upgrade kit suppliers based in Germany.


Not expecting anything over night here but to me it is now at the stage of becoming a good play with potential rewards in 2010 onwards on success.

The other good news was the recent share options for the new people were done at nearly a 50% premium to present price, which I find encouraging in their faith that the price will be much higher in the mid to long term.

Surface Transforms PLC
15 September 2005
Surface Transforms plc
('Surface Transforms' or 'the Company')

Issue of Share Options

As part of Surface Transforms' long term incentive plan for management, the
Company announces that it has granted, in aggregate, 504,000 options over
ordinary shares to certain executive directors and senior management of the
Company . Options granted to executive directors are as follows:

Dr Kevin Johnson, Managing Director 180,000 options
Dr Geoff Gould, Sales and Marketing Director 29,000 options

The options have been granted under the Company's Enterprise Management
Incentive Scheme at an exercise price of 40 pence per share, representing a
premium of 45.5 per cent. over the closing middle market price of 27.5 pence on
14 September, 2005, and are exercisable at any time between 15 September, 2008
and 15 September, 2015.

For enquiries:

Surface Transforms plc
Kevin D'Silva Johannah Stretton 07802 306956
01928 735868
John East & Partners Limited

Simon Clements 020 7628 2200

A valid point that has been raised is the trend in rising oil prices may be a benefit for Surface Transforms as the ceramic brake is lighter in both automotive and aerospace applications. With a drive to reduce fuel consumption in cars and also planes this could bring an industry emphasis back to ways to not only improve performance but to reduce fuel consumption by reducing weight. We will have to wait and see if things now get fast tracked by industry requirements.

10/10 for plugging the company but this stock isn't going anywhere fast until it gets a half-decent contract that's anything other than just research 'cos there's been sweet diddly for the last five years and there's nothing likely for at least another three. - don't forget there's a lot of other companies already doing the business out there. At the moment all this stock is worth is the cash in the bank.

This company has problems. Firstly, I don't know how old your info is on largest shareholders but David Levis holding 5.8% looks high to me and I think you should put a date beside that list, since my understanding is Mr Levis sold at least the majority, if not his total, holding a couple of years back. Mr Levis isn't some irrelevance. He was their former, full-time Finance Director and you have to be concerned when a professionally competent Finance Director leaves and wasn't replaced. Why would he walk away from a potentially lucrative share option scheme?

OK, they now have a part-time stand-in, namely Johannah but how many days a month does she work for the company?

Secondly, there is a problem with visibility of earnings going forward, and thirdly, Armshare is a service using information put out by the directors on research the company itself paid for. That is not independent research in my opinion.

And just how many shares did Kevin d'Silva pay for in the open market? He doesn't feature in the major shareholders, does he? Does he not have enough faith in the company to buy a decent tranche of shares himself? If not, why not?

I could go on but anybody thinking this is the bargain of the century should very, very wary. Just look at the price ordinary shareholders paid in Rights Issues etc. 1.15 and 90p respectively. So have they made or lost money on their investments?

Thanks for the comments, the more the better to understand.

Priscilla, the list is the latest on Hemscott. It does show differences to the list in the annual report in May 2005, I take this as D Levis holding is held in the JM Finn Nominees holding as the annual report has JM Finn Nominee as having 1,530,110 holdings but Hemscott has them as 604,002. I will send an email off to Hemscott to ask them to check and clarify that the list they show as latest is the latest as per the figures in the header here.

The other director holdings are;

Peter Holland 170,515 1.203%
Kevin Alphonso D'Silva 156,986 1.107%
Geoffrey Gould 4,350 0.031%

With regards to a Finance Director that would appear to be a luxury when there has not been any significant turnover or revenue in past years. A part time one until such time as revenue bearing contracts do come in appears a sensible move (you would not have a Sales Director of a cash shell would you, so what point is a full time Finance Director when presently you have little revenue).

I certainly have not taken the view its a short term play, for me it will be a two to three year one, my view is that news will come through 2006 with a final confirmation of the ability to start getting revenue and then building those revenue levels. I know there will be a lot of aggrieved ex holders who paid much higher prices for these and have sold out on the way down to 26p but the picture I see from now and then is that now is much better placed that its been in the past to finally start putting some real contracts into effect, the first sign would be a smaller OEM like Lotus signing up for brakes as standard on certain new models some time in 2006.

papal, thanks for the quick response and I'm not trying to rubbish the company, but as you say ...'there has not been any significant turnover or revenue in past years'. The company seems to be increasing costs whilst not landing the crucial sales. Could you post up the cash burn rate per month and how long the cash raised will last, given those projections? I think that could be a key element given the recent turnover, don't you?

Priscilla I took the statements from the latest webcast as below, let me check later.

http://www.surface-transforms.com/siteengine/128/Web_Casts.stm

I know you are were a close follower of SCE in the past as I remember reading your posts on them elsewhere some time ago, so I am interested in your opinions and comments, do you still follow them closely as I have not seen you post on them for some time now I think ?

Priscilla from the web cast at August results they had cash of 2.728 million, and last year the loss was 617K (but this year already the new aircraft braking deal revenue comes in so should be less this coming year, if not more contracts or deals are announced). So if we say the cash burn rate is 50K per month then with no new contracts or deals then from 2.728 million two or three more years is no major issue in my opinion. Would you agree ?

Papal, one of my concerns is that the directors are directing about 70% of their effort on aircraft brakes and that Dunlop are not only their major partner, they are by far the largest customer. Too much resting on one company?

They do have a good relationship with METEK, which could allow them to elbow into the German market but F1 and high performance cars have been a graveyard for the company before. I'll believe it when I see a major increase in turnover.

Aerospace is hardly mentioned these days and that could be a real earnings provider. Couldn't it?

I'd agree cash burn was around 50k per month (I made it about 52k but thats a minor adjustment if they're making money). But hiring two new directors on generous salaries pushes up costs when visibility of sales is still not available and the annual spend is still over 600k a year. Against income of ?

I can't see the share price justifying a major rise without a good order.

The cash figure of 2.78 looks about right, giving approx a 20p cash cushion on the share price but I can't see any major rise coming unless there is a good order that provides income of serious quantity over a decent period of time. A 'HOLD' at best.

double post

Priscilla from the recent news there was a major aircraft brake deal with a US supplier earlier this year (presently confidential) and a third one announced later this year.

That makes on the aircraft side Dunlop (nothing really happenind) but also 2 new ones, the one announced in January will give additional revenue from this year.

I am in at this stage as I do feel that 2006 will give some real revenue contracts, the start of something good for 2007 and 2008.

This is not a traded share, its one to build a stake in in my opinion, and if news comes then I will be happy to be in now as it will move quick on news. But that is just my opinion.

I really hope you make money on this one, Papal. But bear in mind all those investors who are still holding shares bought around 90p at the last rights issue. They will sell into any decent rise and volume.

Priscilla thanks for the comments and info. I think some will sell on a rise, but again that depends on the news that makes it rise, if we can get a good flow of news in 2006 then there may be more reasons to hold on for those people, going to be a long term play anyway so lets hope its a lucky one.

Someone asked a decent question on the ceramic aircraft brakes so I will put it here with my answer and if anyone can add anything to it please do.

Q. On a technical note for the aircraft brake systems. I know we used to have big problems with the standard braking systems with abborted take offs and prolonged taxing time in hot climates due to heat build up in the wheel hubs and tyre core plugs blowing. Does this new ceramic braking system help this problem or make it worse?

A. The heat build up and time taken to dissipate the heat is one of the delays to quick turnaround of aircraft as they cannot refuel until the heat level reduces to a safe level (so its not the aircraft cleaners who cause those delays in turning a plane around quick like most people think ;) )

With the ceramic system the heat generated is reduced helping with quicker turnaround, and the maintenance is also greatly reduced due to longer life, the other benefit is if course the reduction in weight from the heat pack and all weight savings save fuel.

Surface Transforms PLC
28 September 2005


28 September, 2005

SURFACE TRANSFORMS PLC
('the Company')

Director Shareholding
and Change of registered address

Director Shareholding

The Company has been notified that Kevin Johnson, Managing Director, purchased
22,250 shares on 27 September 2005 at 27 pence, representing 0.16 per cent. of
the issued share capital of the Company.

11,125 of the shares are registered in Mr Johnson's own name and the balance in
his wife's name, Frances Rabbich.

Registered Office

The Company also announces a change in its registered address to Cheshire
Innovation Park, Unit 306, Pool Lane, Ince, Cheshire, CH2 4NU which will take
effect from 3rd October, 2005.

For further enquiries please contact:

Surface Transforms plc Telephone: 0151 472 3733
Kevin D'Silva 07802 306956

Going up today for some reason with a few buys coming through, that would indicate no overhang left and a fair market, which with the tight holdings of large amounts of shares will cause larger swings in price on buys (and sells) as they have to try to get sellers to fill buys, but then again maybe not.

Plenty of steps on the way back up to see if resistance comes in with some sells.

Considering Kevin Johnson just got 29,000 options at 40p its a good sign I think that he purchased with his own money 22,250 at 27p, all goes into the long term aspect of things in a positive way.

Watching trades and trying to remember the MM's have picked up about 12K at 28p and 15K at 27p from recent small sells, this is why they are now offering at 29p for buyers.

Sells update

1,400 @25p, 15,000 @ 27p and 12,000 @28p

A nice drop today presents a good buying opportunity this week, will have a top up later this week for sure.

I was not expecting it to move up so quick, the MM's should have about 20K at 21p to sell off and 20K at about 27p to sell off, so whoever is getting in first gets the best price on the buys, not me at the moment.

copy of my recent post on AFN

Gelp there is a lot more going on than meets the eye. The development contract with not one (Jan 2005) but two (new deal later in 2005) of aircraft braking for certain new and existing aircraft is on going. This is not a quick process, the same for cars, as it must go through massive amounts of testing and qualification to put it under all types of stress and lifetime cycles. System ST for car brakes is available for certain models but for OEM's as yet there is not one, this is due to the testing and qualification, with the System ST sold from ST they have the responsibility for performance (and problems), but when it comes from an OEM the OEM takes the fall, so all we know now is that some OEM's are testing and trialling the system, and when one passes it for fitment on OEM models, this will be the big sign in so far as car brakes (as passing tests for one OEM means it should pass all later OEM tests). That is expected to be some time in 2006 and should link in with the new factory being finished (as a small OEM would likely get SCE to make the disks but a larger OEM later would do it under license and the new factory allows

Also going on is the rocket components trials and all sorts of other tests and trials for other applications. Keep holding and adding is what I will do and as I say, in 4 years time I fully expect these to be well over 200p. Patience is the key, this is an investor share, not a trader share, one to build a holding in at cheap prices for later years.

Have attached below in bold the key items from the results about brake tests and also the new ST Tech 2 factory, which all point to some time in 2006 some very good news.


Science & Technology Group

Good progress has been made by the Science & Technology Group headed by Julio
Faria. The first design phase of the new carbon siliconisation plant (ST-Tech 2) was completed within budget in June 2005. The next two phases comprising plant assembly and commissioning are scheduled for completion in early 2006.

This next generation ST-Tech 2 plant is a key part of delivering the Company's
business model. Once brake applications have been developed and commercialised,
the business model incorporates the sale and commissioning of Surface
Transforms' technology at the client's production site. Surface Transforms will
then base its licence fee on the number of each brake unit produced. When
completed, the new plant should cost less than half the capital cost of the
current technology and it is expected to reduce the current unit cost of an
automotive ceramic brake disc significantly.

Patent applications for ST-Tech 2 have been filed during July 2005. Further
patent applications are being processed and these cover most of the chemical
processes relating to the manufacture of a carbon ceramic brake disc. The
Company's goal is to ensure that it has a robust platform of proprietary
intellectual property that can produce revenues either under licence or as
separate joint venture contracts.

and this

Agreed two-year supply programme to Roxel, Europe's largest manufacturer
of rocket and missile propulsion systems

Awarded a new US-based ceramic aircraft brake development programme in
January 2005

Enhanced the management and engineering teams, and invested in next
generation CFRC technology

Commenced development test programmes with two British high-performance
car manufacturers using the SystemST ceramic brake

So my expectation is some time in 2006 a smaller OEM like Lotus to go for System ST brakes as standard, followed by other smaller ones, and give it 12 months after that, if all goes well, the big OEM's will start to come on board.

Someone has been taking up the slack whenever it comes, I keep trying to let it build up and average. Anyway 10K at 25p sold yesterday, now they should be available for 26p soon, keep watching.

Surface Transforms PLC
15 November 2005
To be embargoed until 7.00am
15 November 2005
Surface Transforms Plc
('Surface Transforms' or 'the Company')

Award of 200,000 Research & Development Grant

Surface Transforms plc, manufacturers of carbon fibre reinforced ceramic (CFRC)
materials, is pleased to announce the award of a Grant for Research and
Development from the English Northwest Development Agency.

The Grant has a maximum value of 200,000 and the development project is
required to be completed by November, 2008.

The purpose of the Grant is to enable the Company to develop a lower cost
approach to the manufacturing processes, for the company's lightweight, CFRC
brake system for automotive applications. CVIST, MIST and ST Preforms are trade
names for the key process technologies in the Company's patented manufacturing
process.

Once the project is completed, the Company expects to benefit not only from
lower unit cost of a brake disc, but also from shorter process times, which in
turn will help to reduce the levels of inventory required. Another key benefit
is that the Company will be better positioned to provide turnkey solutions to
third parties wishing to license the technology.

Current automotive brake disc capacity at Surface Transforms is approximately
3000 brake discs per annum.

Dr.Kevin Johnson, Managing Director of Surface Transforms plc, said:

'The grant from the Northwest Development Agency is most welcome as it is
focused on advancing brake disc technology which I believe is unique in the UK.

Furthermore, the knowledge acquired through developing a lower cost
manufacturing process will make it considerably easier for Surface Transforms
to license its proprietary technology to European and US automotive car and
brake system manufacturers.'

For enquiries, please contact:

Surface Transforms plc John East & Partners Limited(Nomad)
Dr. Kevin Johnson 0151 373130 Johnny Townsend, Simon Clements
Mr. Kevin D'Silva 07802 306956 0207 628 2200

Teather & Greenwood(Broker)
Mark Dickenson, Sindre Ottesen
0207 426 7775

Details of the Company's business and financial performance and its share price
can be found on www.armshare.com which is accessed from the Armshare icon on

www.surface-transforms.com
.. A webcast of the 2005 results is also available on

www.surface-transforms.com
/Investor and Media relations .

This information is provided by RNS
The company news service from the London Stock Exchange

Lost a fortune on this, glad I sold when I did..... Any news on the Airbus deal or is it dead and forgotton now?

explosive I would not expect any news on aircraft braking systems until late 2007 earliest, the immediate future of news will be car braking systems, and I think news on rocket systems and aircraft braking due later in 07/08.

Extract from the www.armshare.com commentary on SCE, recently updated;

"In November, the English Northwest Development Agency awarded a 200,000 grant to enable the company to develop a lower cost approach to certain elements of its manufacturing processes. The company expects to benefit not only from lower unit cost of a brake disc, but also from shorter process times, which in turn will help to reduce the levels of inventory required. Another key benefit is that the Company will be better positioned to provide turnkey solutions to third parties wishing to license the technology.

Research Standing
Until two years ago the company operated in a manner which provided little control over its destiny. Since then it has strengthened its management team and developed its business model so that it a) no longer relies on a major order to achieve profitability and b) can achieve breakeven at quite a modest level of sales (see above section AGM ON 20 OCTOBER 2004). Furthermore it has enough cash (equivalent to 20p per share as at May 2005) to withstand the inevitable setbacks which occur when developing a business of this nature.

The market invariably canes a company's share price where there is a setback such as has occurred on the aircraft brake project with Dunlop. This provides opportunities for the more dispassionate and longer term investor. ArmShare is an advocate of constructing portfolios comprising at least 80% invested in established businesses combining growth and value and up to 20% in a portfolio of earlier stage higher risk businesses considered to have the potential to develop into the former - Surface Transforms is an obvious candidate for the '20%' category of such a portfolio."

Thank you PP and P and all others on this thread,Most informative, BLoody awful chart, but is certainly one to watch.

Mind I have been watching for 18 months. Hope it comes good.

Yes Fred, its not one to watch for sudden excitment, paint drying and all that.

Another 18 months and 18 months more than that, and you might be a very very happy holder, but then again, you might still be saying bloody awful chart ;) I hope not though.

All good news, but the German Autobahn leads to questions of which company does not have a deal in place for advanced braking systems (Porsche ? BMW ? Merc?)



Track Testing News

Surface Transforms Plc held a track day at the Ty Croes racing circuit on the North Wales island of Anglesey on the 16th of November, 2005.

System ST ceramic brakes were fitted to the amazing new TVR Sagaris http://www.tvr-eng.co.uk/intro.html#tamint3 . The following quote was given by: Gavin Beach, Technical Director of TVR Engineering Ltd.

The SystemST ceramic brakes installed on our new TVR Sagaris behaved extremely well on the Anglesey track on November 16th, and from an efficacy and performance viewpoint they met or exceeded our expectations. In terms of performance the stopping distance is equivalent to the best high performance steel disc we use, and performance appears unaffected by the more extreme temperatures encountered on the race track. In addition, four ceramic brake discs reduce the critical unsprung weight of our cars by 12 kg. We shall continue to test and evaluate SystemST with a view to using these ceramic brake systems on our cars in the near future.

A Westfield Megabird http://www.westfield-sportscars.co.uk/megabird-kitcar.htm fitted with SystemST brakes was fielded by NEWI (North East Wales Institute of Higher Education). The compact and low cost Westfield Megabird installation was developed in collaboration with Dr. Hastings McKenzie, senior lecturer in Motorsport Engineering. The System ST brakes have transformed the braking behaviour of this stunning road and track car.

The Surface Transforms demonstrator vehicle, an Audi Allroad 2.7 Turbo Quattro was also put through its paces, demonstrating the virtues of SystemST ceramic brake disc technology on a relatively large 4 wheel drive vehicle.

The track day allowed us to demonstrate the technology to prospective customers as well as test the SystemST braking technology at unrestricted speed levels, simulating heavy duty brake use on the German Autobahn and on racing circuits.

SystemST ceramic brakes are unique in their suitability for both road and track use.

Surface Transforms Plc offers ceramic discs and upgrade kits for a variety of high performance cars including several Ferrari, Porsche and BMW models. If you are interested in getting SystemST lightweight ceramic brakes on your car, and more performance into your braking, contact Antoni Sznerch at as@surface-transforms.com

The cars do look very good as well !

I suggest keeping an eye on the offer price in the next few weeks, the MM's will want to offload any spare stock they have, and may drop down to tempt buyers, so some bargain prices might be offered at times before year end.

It would be nice if they would drop the offer price a bit faster, they move the bid down quickly but not so quickly on the offer. Will be adding some more before year end, as the MM's will be wanting to sell off their holdings before the end of this month and bargains will be had by some who want to buy.

Just looking at trades, someone sold 15K at 22p, it is crazy to sell any shares like this in December, the MM's do not want to hold at year end, and you really get low prices for sells in this kind of stock in December. Never mind, they should learn in future.

To be embargoed until 7.00am on 14 December, 2005

Surface Transforms Plc
('Surface Transforms' or 'the Company')
Trading Update, Directorate Change & Director's Interests

Surface Transforms first six months trading for the 2005/6 financial year
closed on 30 November, 2005.Unaudited turnover for the six months was 68,302 (
2004: 208,442) and Cash on deposit was 2.1 million ( May 2005: 2.73
million)

Despite the reduction in turnover from the comparative period in 2004 which
included sales from a development contract with Dunlop Aerospace, turnover has
increased compared to the previous six months ended 31 May 2005 of 49,914.
Turnover in the first half comprised principally revenues from a development
contract with a US aircraft brake manufacturer, sales of rocket motor
components and a small amount of sales of high performance automotive brake
disc systems. The Company's order book is currently 44,500. The interim
results will be released during February 2006.

Automotive

a) General

The most recent on road tests were on 16 November and 12 December at the
Anglesey racetrack, where ceramic brakes on a number of cars were evaluated by
both test drivers and engineering teams. There were encouraging successes and
up to date news, including endorsements from certain car manufacturers which
can be accessed on
www.systemst.com
and www. surface-transforms.com. The grant
award announced last month assists and underscores the Company's drive to
deliver a highly cost effective brake, which can be used for both Track and
Road car requirements.

b) Aftermarket

Sales from the automotive after market had been expected to be higher by this
stage. However, the first sales channel established has not yet proved
successful. In order to provide greater control over the entry to this market,
the Company has taken two steps. The first has been development of the ability
to tune the whole braking system (ie brake disc, brake pad, wheel bell and
bobbin) for a targeted vehicle model so as to ensure satisfactory braking
performance in terms of both stopping distance performance and noise, vibration
and harshness. The second is to enter the UK aftermarket by targeting
particularly suitable models of Porsche and Ferrari initially, and then select
brake fitting companies specialising in those models to assemble and fit the
company's system - three such companies in the UK have already been contracted
with. Once this business model is established, the company intends to roll it
out by vehicle model and by country.

c) Vehicle Manufacturers

A number of EU car manufacturers of high performance cars (both high and low
volume) continue to evaluate System ST brake systems. Further to the Anglesey
track day referred to above, it is expected that low volume manufacturers of
specialist sports cars will be the first category of manufacturers to adopt the
system.

The Board

Peter Holland has indicated that due to his other executive business
commitments he wishes to resign as a non-executive director with immediate
effect. Peter is a successful businessman in the industrial chemical market and
since his appointment as a non-executive director in 2003, he has been
instrumental in guiding the reshaping of the Company. During 2005, he assumed
an interim executive role to ensure a smooth management transition, which led
to the appointment of Dr. Kevin Johnson as Managing Director. His wise counsel
will be missed but he will continue to be available to the Company for advice
on specific issues. The Company has started the process of looking for another
industry relevant non-executive director.

Peter Holland owns 170,515 shares in Surface Transforms and as part of his
departure has agreed to sell 31,000 shares to Julio Faria, resulting in the
latter's holding increasing to 2,357,845 shares in the Company, representing
16.8 per cent. of the issued share capital of the Company.

Outlook

Whilst introducing a new, high technology product is never straightforward,
particularly in terms of predicting timing of take up, the board continues to
view the future with confidence based on the steps which it is taking to
provide the Company with greater control over its entry into the automotive
aftermarket and also the greater control and understanding which the Company
now has over every stage of its production process, leading to lower
manufacturing costs and a stronger platform from which to conduct licensing
negotiations with OEMs.

For enquiries, please contact:

Surface Transforms plc John East & Partners Limited (NOMAD)

Dr. Kevin Johnson 0151 373130 Johnny Townsend, Simon Clements

Mr. Kevin D'Silva 07802 306956 0207 628 2200

Teather & Greenwood (Broker)

Mark Dickenson, Sindre Ottesen

0207 426 9000

The update was exactly where I expected them to be in all effect, 2006 should see "a" or "some" smaller OEM sign ups for System ST as standard, followed by more in 2007, with 2008 seeing car braking becoming big, just as Rocket components and Aircraft braking projects kick in. Still all in the three year plan to significant change, and good news that some very significant progress is now being made on the car braking systems, a lot of the failures would appear down to a lack of understanding in the past on the full tuning of brake systems for cars (all components), a problem which is now overcome as was noted at the recent AGM prior to todays update.



www.systemst.com

Track Testing News

13th December 2005

Another Successful Track Day.............On car development of System ST ceramic discs continues with further track testing at the Ty Croes circuit on Anglesey. The circuit is relatively short and very demanding on the brakes of any car negotiating the circuit, making it an ideal location for brake evaluation. Yesterday we saw a back to back comparison between two identical cars, the only difference being the installation of System ST on one of the cars. Three experienced test drivers all reported that the ceramic brake
option showed its full benefit on the track, providing a consistent brake throughout the period on the track, showing no signs of fade as seen with the cast iron discs. The brake was much more positive and hence the test drivers could brake that bit much later on approaching a bend "The ceramic brakes are much better than the cast iron" said Gavin Beach. Technical Director of TVR Engineering. "There was no fade in the brakes as they got warm and I had more time to think about gear changes on approaching a bend, due to the additional confidence in the capability of the brakes."
SystemST ceramic brakes are unique in their suitability for both road and track use.
Surface Transforms Plc offers ceramic discs and upgrade kits for a variety of high performance cars including several Ferrari, Porsche and BMW models. If you are interested in getting SystemST lightweight ceramic brakes on your car, and more performance into your braking, contact Antoni Sznerch at as@surface-transforms.com

Added another load at 20.5p this morning, cheap as chips for those willing to hold for 2 or 3 years :) Merry Christmas all !

Major shareholder information in the header updated now.

For shorter term revenue increases, the last words by the TVR Tech Director from November (and given another good test result in December too with TVR) sounds good for an early 2006 deal with TVR, which once they start should be followed by some other smaller OEM deal in 2006, and as I keep saying, once you get a few smaller OEM's using it, then the big boys finally will take notice. This improvement and start of revenues from car brakes is reflected in the T&G next years figures with reduction in loss down to 450K for 06/07 from the expected 600K from this financial year 05/06. If they can get more than just TVR signed up, there could be some upside in those 06/07 figures, and the potential to get much nearer to breakeven. Any one of the big OEM's coming in early, although not expected before 07/08 financial year, would give some serious surprise upside, as would going into stage 3 tests for the aircraft braking deal, and also release of the confidential info about who the deal is with and what it is for, but again that will most likely be 07/08 year. Although SCE remains like other blue sky tech stocks, it is not priced like them, and is trading at near to cash in bank levels, with no value given for the enterprise itself. This to me is what gives SCE a good chance for a small re-rating when a deal like TVR is signed and announced.



Surface Transforms Plc held a track day at the Ty Croes racing circuit on the North Wales island of Anglesey on the 16th of November, 2005.
System ST ceramic brakes were fitted to the amazing new TVR Sagaris

http://www.tvreng.co.uk/intro.html#tamint3

The following quote was given by: Gavin Beach, Technical
Director of TVR Engineering Ltd.

The SystemST ceramic brakes installed on our new TVR Sagaris behaved extremely well on the Anglesey track on November 16th, and from an efficacy and performance viewpoint they met or exceeded our expectations. In terms of performance the stopping distance is equivalent to the best high performance steel disc we use, and performance appears unaffected by the more extreme temperatures encountered on the race track. In addition, four ceramic brake discs reduce the critical unsprung weight of our cars by 12 kg. We shall continue to test and evaluate SystemST with a view to using these ceramic brake systems on our cars in the near future.

The cross trade (X) today explains things, I think P Holland has agreed to pass the small amount left of his stock on to someone else (Faria took some at full price, someone else wants them cheaper I think and that is why we are down since the update in Dec).

Nice to see it return blue now year end is gone ;)

Don't you love the MM's, slam the price down for year end sells getting as much as you can on the cheap, and then lift it back up again, blue again today as was yesterday :)

Someone purchased 50K at 22p this morning (delayed reporting).

A director buy ?

Copied a few posts over from another BB, as some good points raised and discussed I think.


Gelp - 7 Jan'06 - 00:42 - 103 of 106
The latest porche boxster price list/book has the ceramic brakes listed as optional extra at 4550. I assume they are from ST - any others?
It's a pretty expensive optional extra - though the way my wife drives could be worth it!
Its good to see exposure of the product.
I do not know if listed on the other (faster) Porche price lists.
Dilema:What is better investment new Boxster (and keep the 5 year old, 20k miles one) or more shares?


PapalPower - 7 Jan'06 - 01:08 - 104 of 106
Gelp, Porsche have their own system, called PCCB and so do Ferrari and others. The trouble is they have had a bad reputation, the OEM systems have been very very expensive, not lasting a fraction of the 300,000M they are supposed too and other things too.

SCE is providing a system which is less than half the price (much less than half in most circumstances and sometimes way even below that), for improved performance and longer life. This is why I think the company focus is presently on aftermarket sales, while they offer a much cheaper and better upgrade for users who did not opt for Cermaic brakes from the off, and as an alternate cheaper replacement for those not happy with the OEM system, and want the benefits but not the high cost of maintaining the OEM system. This is the immediate target for sales, whilst they pursue OEM's who might not have the money to waste like Porsche and Ferrari on making their own system, and also pursue these larger OEM's who might have plans or already be producing a ceramic braking system, but who cannot produce the goods OR who can produce the goods but at horrific expensive prices.

This is where it snowballs for SCE, or should, as once some people start offering the Ceramic brake option at lets say 2000, its a bad sales pitch for others offering the system at 5000 or 10,000, and either they have to reduce their price, or also adopt the SCE system.

SCE have been working as a major goal of reducing the price to manufacture and improving the performance, which is what they have now, a low priced product that we are led to belive now outperforms the highly expensive systems of Porsche and Ferrari. They have also patented those processes, as was reported recently, so they are in lead position now with the ability to produce these at decent cost effective pricing, patented.

PapalPower - 7 Jan'06 - 01:50 - 105 of 106
The main benefits with the ceramic system I think are ;

1/ Weight reduction (benefiting performance and fuel efficiency). Quite dramatic weight reduction is possible using cermaic brakes over standard steel ones. (Put a bag of cement in the back of your car, see how it runs with it, and when its removed, the effects are larger than you think)

2/ Long life, longer than the life of the car.

3/ Improved performance under certain operating conditions.

4/ Large reduction in dust generation.


Now although initially the targets are high performance cars, the benefits would also be great on your smaller models (less weight, improved fuel efficiency, less maintenance), but that needs someone to be able to produce the technology at cheaper and cheaper prices.

Now did SCE recently get a grant to investigate further reductions in cost of manufacture of cermaic brake disks ? Do you see a plan in action ?

To me finally, I am seeing light at the end of the tunnel, a plan being executed, and once we get some small OEM's signed up, like TVR, then things look very exciting.


(Oh, and all these benefits in manufacturing costs, should be rolled on to aircraft braking systems. Apart from the big commercial ones, there was interest in military applications, but the trouble there is, the military budgets are always being cut, but now if someone can supply the technology cheaper, these options start to open up again)

Advanced ceramics is not just about performance, its about costs as well, if you can have excellent performance and low cost, then you win. As can be seen from Porsche and Ferrari OEM systems, the performance is (now after a lot of work) potentially there, but these OEM's cannot provide that performance at decent low cost. Half or quarter the price of the ceramic brake option, and watch its request for use go up and up, it could even become standard due to performance and weight benefits.

Gelp - 9 Jan'06 - 01:47 - 106 of 106
Ty 4 very very helpful post. I did see an announcement of the 200k announcement for a grant to develop low cost methods of manufacture - whether received yet I do not know.
The 4550 cost plus Vat makes the present option by far the most expensive optional extra - priced NOT to sell perhaps - so sure the possibility of better quality at lower (sensible) cost is great.
I met Kevin d'Silva a few years ago when he was with Ferraris (FER)- not the cars - during the growth years and I was impressed - one of the reasons I bought a few shares (SCE) in the first place -
Thanks again for the posts.

Should be the last sells of any left over RHPS holders today who are not going to hold any longer. This is good, as it now sets us up nicely for when news comes, hopefully on the TVR deal and hopefully in Q1. Will be adding yet again in the coming weeks.

http://www.systemst.com/downloads/news/Autosport-Show06.pdf

SystemST at Autosport International Exhibition

12th & 13th January 2006


Surface Transforms Plc exhibits its SystemST carbon-ceramic brakes at Autosport - The Racing Car Show, NEC Birmingham, 12th & 13th January 2006
Autosport Engineering is the fastest-growing international motorsport technology show in the world and provides a forum for those involved in the industry to meet suppliers and find out about the best new products and services on offer. Last years show in January saw over 25,000 trade visitors from around the world visiting over 380 stands.

The exhibition covers every part of the motorsport industry ranging from braking systems and electronics to metal-testing and lubricants. Surface Transforms plc (ST) is taking this opportunity to promote and exhibit its SystemST Carbon-Ceramic brakes for road and track use. ST will be located in Hall 20, stand E630 at the show.

SystemST carbon-ceramic brake discs utilise ST proprietary technology, producing a 70% lighter disc, increased friction levels, reduced brake fade, extended lifetime and higher integrity compared to steel.

Installing SystemST carbon-ceramic brake discs dramatically improves a cars
performance through improved handling, increased stopping power, reduced stopping distances, no corrosion, no disc wear and nominal fade.

SystemST carbon-ceramic brake discs are suitable for both road and track applications and Surface Transforms Plc offers ceramic discs and upgrade kits for a variety of high performance cars including several Ferrari, Porsche and BMW models. If you are interested in getting SystemST lightweight ceramic brakes on your car, and experiencing the benefits of this cutting edge technology, contact Antoni Sznerch at as@surfacetransforms.com

Interesting write up on the Ferrari conversion;

http://www.systemst.com/downloads/information-packs/F48-Information-Pack.pdf

And a good presentation on the benefits of carbon ceramic brake systems. Takes a some time to load before the show begins.

http://www.systemst.com/flash/Steel-vs-Ceramic.swf

Nice to see a little movement today, so many things going on in the background ;)

A photo of the new Aston Martin Rapide, no idea on the brakes though.





But they do look ceramic do they not, now the question is who else are Surface Transforms working with ? We know about TVR.........but there are a number of other OEM's also working with Surface Transforms, just no details released about who they are.

Something must be up, either a T trade buy to come through, or some news will be released in the coming weeks.

I now have some informal and indicative pricing information on Ceramic Braking Systems (prices for reference only) , which shows the present advantages of SystemST over OEM :


To convert an existing Porsche with standard braking to ceramic braking ;

Official Porsche Kit (EXCluding fitting) 11,415 (inc VAT / inc calipers etc.)

System ST Kit 4 disc (INCluding fitting) 8,132 (inc VAT / inc calipers etc.)

Therefore if you add the labour prices (and they are not cheap per hour) to fit the offical Porsche Kit, you could well be looking at the Porsche kit being at least 50% more expensive, maybe morem than the System ST Kit.


Taking this down to a base level cost for the ceramic disc only, then ;

Replacement Porsche Disc approx 3,000 (inc VAT)

System ST disc approx 1,469 (inc VAT)

Very well played by Surface Transforms, we know from the trading statement what is the state of play, we know its going to be around a 650K loss, we have been through that already, so the pending results hold no negative surprises, which is good :)


Surface Transforms plc
('Surface Transforms' or 'the Company')
Notice of results

Surface Transforms plc, manufacturer of high technology carbon ceramic
materials for braking systems, will announce its interim results for the six
months ended 30 November 2005 on Tuesday, 28 February 2006. A trading statement on the first six months of the 2005/6 financial year was released on 14
December 2005 and can be viewed on the Company's website

For those wanting to buy into the story and preparted to hold for a couple of years, a good buying opportunity should be coming, and that is results day, 28th Feb. We all know in advance what they contain in terms of losses (650K approx) so if the MM's drop the price on results, will be a decent buying op I think.
SCE remains a buy and hold for 2008/9 for me.

http://www.companyannouncements.net/cgi-bin/articles/20060228070000P6B76.html

The results reads fine, all good going forward, and the plans remain in place with progress going towards the goals.

With some smaller OEM's due to sign up in 2006, time to buy some more now in April for me.

I think they are slowely getting there, and this is what I expected, 07/08/09 will be, as I said in 05, the big years, each one bigger than the last is my opinion.

Latest update at www.armshare.com


"The interim results to November 2005 showed sales of 68,000 (2004: 208,000) and pre-tax loss of 479,000 (2004: 239,000) - the explanation for these results was given in the December 2005 announcement (see above). The company reported that it maintains brake development programmes with three global suppliers of aircraft brakes, two European and one US - there has been extensive development work with the latter, with Phase 1 (measurement of wear and friction) nearing completion and the expectation that development work will continue for the next year; regarding automotive, a Swedish supercar fitted with SystemST is on display at the 2006 Geneva Motor Show - sales via METEK into the German aftermarket have been disappointing, resulting in the arrangement being terminated and a replacement being sought - in the short to medium term the board expects the first commercial success to come from one of the smaller high performance car OEMs; cash at November 2005 was 2.1 million (representing c15p per share).
Research Standing
The market invariably canes a company's share price where there is a setback such as occurred in Autumn 2004 on the aircraft brake project with Dunlop. This provides opportunities for the more dispassionate and longer term investor. ArmShare is an advocate of constructing portfolios comprising at least 80% invested in established businesses combining growth and value and up to 20% in a portfolio of earlier stage higher risk businesses considered to have the potential to develop into the former - Surface Transforms is an obvious candidate for the '20%' category of such a portfolio.

Whilst the financial results to November 2005 scarcely hit the radar screen, they mask the fact that the company has made very significant progress in strengthening its position for negotiating with channel partners, particularly in automotive. Until it started to fully understand and be able to control the entire process for delivering merchantable brakes, it was very difficult to hold serious discussions with OEMs because it could not deliver a turnkey solution - automotive OEMs are different from aicraft brake OEMs because the latter already use the processes which accompany ST's core process - this position will be enhanced by the significant cost reduction which ST expects to derive from the new plant due to be completed in the course of 2006.

With cash at bank at November 2005 equivalent to 15p per share, a share price of 17p at 28th February, a team which has strengthened considerably over the last two years and much greater knowledge/control re the delivery of merchantable solutions, ST is now a very attractively valued concept stock."

Papal Power, you may be right about a buying op - with the cash supporting the sp (does it still?) - I hold from higher prices.
But the problem I have with this business is that their selling-prices are so very high. Compared with the Porche price, it's a bargain, but unless your car is fairly new this level of investment is likely to raise the value of the car.
Furthermore, I suspect it will increase your insurance "risk" and premium and dissapating extra heat will lower your MPG. For most drivers it adds little benefit at huge cost.
/
In practical terms it wold be better applied to 4x4's where weight stores much energy to be dissapated (esp at Motorway speeds) and therefore there could be a safety benefit......so that 4x4's could brake in about the same distance as saloons.
I'm sure the same goes for Lorries......
/
So SCE needs to address cost, hold-back on racing, ...look at the wider market. Since they are making both disc and caliper, it should be possible to have a smaller range of discs to suit more vehicles....since any up-grade will be a safety bonus.
/
I don't believe safety issues really affect Porches, since at normal UK-speeds their brakes are superb. I accept the New Plant may address these issues, but there needs to be a sea-change by management, looking at less-glam sectors and I don't get that impression from what is becomming a very silent company.
Regards

Koenigsegg Automotive of Sweden are showing their new model the CCX, which is fitted with SystemST brakes at the Geneva Motor Show March 2nd to 12th 2006

http://www.koenigsegg.com/thecars/ccx.asp?ccx=2

Picking up on the comments, it fits in with everything, especially the initial production facilities, 2000 brakes is break even, 3000 would be a profit, and of course any large OEM deal would be them making the brakes, not SCE making them, with SCE getting royalties for the technology.



Mr D'Silva said: "Despite the lower sales and financial performance in the period under review, the board believes it has made material progress in both reducing the business risk in the company and in improving the capability of successfully implementing its business strategy.
"This is already reflected in the quality of discussions we are having with potentially important commercial partners."
In November, the company announced it had received a 200,000 grant from the Northwest Development Agency (NWDA) towards a new production facility.
The new plant will have the capacity to produce up to 3,000 discs a year, significantly reducing costs.
In the UK, the firm's SystemST brake product has initially targeted owners of Ferraris and Porsches.
It has also received orders from Weber Sportcars, in Switzerland, which is building a new 300,000-plus supercar for launch later in the year.

http://iccheshireonline.icnetwork.co.uk

Surface Transforms plc

('Surface Transforms' or 'the Company')

Supply Agreement with Koenigsegg Automotive AB

Surface Transforms plc, the manufacturer of carbon fibre reinforced ceramic
(CFRC) materials, is pleased to announce the signing of an agreement to supply
high performance, carbon ceramic automotive brake discs and components to
Koenigsegg Automotive AB ('Koenigsegg') of Sweden.

Based in Angelholm, Koenigsegg is an established European manufacturer with a
ten year history of producing high performance supercars. Koenigsegg has a
number of models in its product range with the most recent being the CCX, which
it launched at the 2006 Geneva Motor Show earlier this month. The list prices
of the cars are high, with the CCX typically selling for over 450,000 each -
the unique Koenigsegg engine produces over 800bhp with a 0-100 kph acceleration
of 3.2 seconds. The CCX can be fitted with SystemST ceramic brakes as an option
but Koenigsegg are of the view that most of its buyers will choose the new
ceramic brake system.

This supply agreement is for an initial term of 12 months with a 3 month notice
clause, and it has an annual value of up to 131,000. Ceramic brakes are also
being offered as an upgrade option to all pre-CCX model owners of Koenigsegg's
cars.

The Company's strategy is to be a pre eminent supplier of carbon ceramic disc
brakes to the leading manufacturers of high performance cars. SystemST has been
under development for over five years and the technical results show that these
ceramic carbon brakes have superior braking, wear and surface corrosion
characteristics when compared to `old' cast iron technology. SystemST typically
reduces the unsprung weight of car by approximately 20 kgs when compared to its
iron equivalent. This can lead to an improvement in fuel economy and a life
span five times longer than iron disc brakes.

Technical data and car case histories are available and user enquiries managed
on www.systemST.co.uk.

Dr.Kevin Johnson, Managing Director of Surface Transforms plc, said:

'This agreement represents a very welcome certification of SystemST carbon
ceramic brakes from a formidable designer and manufacturer of some of Europe's
most exciting supercars.'

Christian Koenigsegg, founder and Managing Director of Koenigsegg AB, said:

`We have worked closely with the Surface Transforms` teams to produce an
exceptional ceramic brake system which further enhances our car's performance.'

For enquiries, please contact:

Surface Transforms plc 0151 3737130

Dr. Kevin Johnson

Mr. Antoni Sznerch

John East & Partners Ltd (Nomad) 0207 628 2200

Simon Clements, Johnny Townsend

Teather & Greenwood (Broker) 0207 426 9000

Mark Dickenson, Sindre Ottesen

Details of the Company's business and financial performance and its share price
can be found on www.armshare.com, which is accessed from the Armshare icon on
www.surface-transforms.com. A webcast of the 2005 results is also available on
www.surface-transforms.com/Investor and Media relations.

New armshare update : www.armshare.com


The interim results to November 2005 showed sales of 68,000 (2004: 208,000) and pre-tax loss of 479,000 (2004: 239,000) - the explanation for these results was given in the December 2005 announcement (see above). The company reported that it maintains brake development programmes with three global suppliers of aircraft brakes, two European and one US - there has been extensive development work with the latter, with Phase 1 (measurement of wear and friction) nearing completion and the expectation that development work will continue for the next year; regarding automotive, a Swedish supercar fitted with SystemST is on display at the 2006 Geneva Motor Show - sales via METEK into the German aftermarket have been disappointing, resulting in the arrangement being terminated and a replacement being sought - in the short to medium term the board expects the first commercial success to come from one of the smaller high performance car OEMs; cash at November 2005 was 2.1 million (representing c15p per share).

In March 2006, Swedish supercar manufacturer, Koenigsegg Automotive AB, placed a brake supply supply agreement for an initial term of 12 months with a 3 month notice clause, with an annual value of up to 131,000. Koenigsegg has just launched the CCX model (the Geneva Motor Show model referred to in the above para), selling for over 450,000 each and capable of 0-100 kph acceleration in 3.2 seconds - more details can be seen by clicking on Company Website above. The CCX can be fitted with SystemST ceramic brakes as an option but Koenigsegg are of the view that most of its buyers will choose the new ceramic brake system - they will also offer it as an upgrade option to all pre-CCX model owners of Koenigsegg cars.
Research Standing
The market invariably canes a company's share price where there is a setback such as occurred in Autumn 2004 on the aircraft brake project with Dunlop. This provides opportunities for the more dispassionate and longer term investor. ArmShare is an advocate of constructing portfolios comprising at least 80% invested in established businesses combining growth and value and up to 20% in a portfolio of earlier stage higher risk businesses considered to have the potential to develop into the former - Surface Transforms is an obvious candidate for the '20%' category of such a portfolio.

Whilst the financial results to November 2005 scarcely hit the radar screen, they mask the fact that the company has made very significant progress in strengthening its position for negotiating with channel partners, particularly in automotive. Until it started both to fully understand and also take control of the entire process for delivering merchantable brakes, it was very difficult to hold serious discussions with automotive OEMs because the company could not deliver a turnkey solution - automotive OEMs are different from aicraft brake OEMs because the latter already use the processes which accompany ST's core process - this negotiating position will be enhanced by the significant cost reduction which ST expects to derive from the new plant scheduled to be completed in the course of 2006.

The March 2006 supply agreement with specialist automotive OEM Koenigsegg is a seminal event because an answer can now be given to the all important question when negotiating with other OEMs "who else is using the system?".

With cash at bank at November 2005 equivalent to 15p per share, a share price of 16.5p at 16th March, a team which has strengthened considerably over the last two years and much greater knowledge/control re the delivery of merchantable solutions, ST has become an increasingly attractively valued concept stock.

From uk-analyst.com

"Surface Transforms shares rose 0.5p to 17p after it announced an interesting new deal with a supercar manufacturer. Surface Transforms manufactures carbon-fibre reinforced ceramic materials and will supply high performance, carbon ceramic automotive brake discs and components to Swiss group Koenigsegg, an established European manufacturer with a 10-year history of producing high performance supercars. This supply agreement is for an initial term of 12 months with a 3-month notice clause, and it has an annual value of up to 131,000 pounds."

Some front page Yahoo Finance coverage for the Koenigsegg CCX, the worlds fastest car (and one using SystemST braking :) )


http://biz.yahoo.com/weekend/fastest_1.html

Should mark the end of the small sells on SCE now, it was an obvious candidate for many to write off against profits for the year, and now we should start, slowely, the recovery of the price into more good news on deals as the months go by.

The next deal should mark a reversal in trend, so come on SCE, time to deliver the second commercial deal :)

A director buy, small, but a buy all the same :)

PapalPower, I hold these also; but am concerned that the sp graph is falling month-on-month.
The orders are quite small I guess and so the Q has to be: - will the business make money, or are we looking at a cash-call?
The Market is pricing-in something, eh?
I've averaged down a while ago but history is repeating itself and each time it gets lower - I'm sure this is a great technology - but IS the present Management up to the task, .......your thoughts.
PS Do you go to their agm's?
Thanks.

hangon, no have not been been to the AGM, although in contact with them all. Cash call ? Why............they have been clear on the fact they do not need it, and also clear that progress is being made, and the coming (now 4 years) looks fine. They are beginning to generate revenues, this is a process that will take time, and over the coming 18 to 24 months that process should slowley continue. On the car braking front they can break even easily, profit generation requires a major breakthrough (a major or similar to adopt the SCE technique). Aircraft braking is on schedule and things going to plan, but no major details I would say until 24 to 36 months.

All things can happen quicker, who knows, all that is happening with the SP is its being marked down on minimal volume as there is an overhang.......simple supply and demand. If anyone was to buy 100K of SCE today, the price would soon return to nearer the 20p mid price levels I think.

Its a long term and speculative buy, but come late 08 or 09 these could come good, so I am happy to keep holding and building up a larger holding.

Seems to have woken up today for some reason..........

And continues to make a bit of progress here and there :)

Presently on the car braking side, after getting the deal with Koenigsegg (which is going very well according to rumour) they are well underway with trials at 6 other smaller car makers, and news might come along of another deal or two in the second half.

This analyst has been reasonably accurate so far since this report came out in March 05 as to events that followed and also the figures.

Here's to hoping that the accuracy continues, especially with the financial forecasts as we go into 2010 :)

Link below - PDF file.

http://www.armshare.com/assets/contributordocs/Surface%20Transforms%20310305P8.pdf

Surface Transforms PLC - Notice of Results
7 August 2006

Surface Transforms plc

('Surface Transforms' or 'the Company')

Notice of results

Surface Transforms plc, manufacturer of high technology carbon ceramic
materials for braking systems, will announce its preliminary results for the
year ended 31 May 2006 on Thursday, 17 August 2006.

For enquiries:

Surface Transforms plc

Kevin Johnson 0151 373 7130

John East & Partners Limited

Simon Clements 020 7628 2200



END

As I expected, in fact, a little better than I was expecting given performance since the period of reporting end. Nice to see cautiously positive outlooks and goals :)

The next commercial deal on car braking is the key event then, lets hope its before year end, that would be good news.


http://www.investegate.co.uk/Article.aspx?id=20060817070000PB2B8

Latest update from http://www.armshare.com


..........The final results to May 2006 showed sales of 155,000 (2005: 258,000) and pre-tax loss of 923,000 (2005: (675,000)) - for the key explanations underlying these results, see December 2005 above - sales comprise H1 of 68,000 and H2 of 87,000. The company reported that the new production process being developed (see October and November 2005 above) is expected to reduce the unit cost of disc brakes by 50%; in Automotive Brakes, in addition to Koenigsegg (see March 2006), the company continues to work with 3 small UK based automotive OEMs which build high performance cars, and with Weber Sportcars in Switzerland; 3 patent applications were made to supplement the existing patent portfolio; the 2 key commercial targets for 2006/7 are to win another Automotive Brake customer and to complete the development of the new production process; it is intended to recruit further application relevant NEDs to facilitate market entry; year end cash was 1.75 million.


Research Standing

The market invariably canes a company's share price where there is a setback such as occurred in Autumn 2004 on the aircraft brake project with Dunlop. This provides opportunities for the more dispassionate and longer term investor. ArmShare is an advocate of constructing portfolios comprising at least 80% invested in established businesses combining growth and value and up to 20% in a portfolio of earlier stage higher risk businesses considered to have the potential to develop into the former - Surface Transforms is an obvious candidate for the '20%' category of such a portfolio.

Whilst the financial results to May 2006 scarcely hit the radar screen, they mask the fact that the company has made very significant progress in strengthening its position for negotiating with channel partners, particularly in automotive. Until it started both to fully understand and also take control of the entire process for delivering merchantable brakes, it was very difficult to hold serious discussions with automotive OEMs because the company could not deliver a turnkey solution - automotive OEMs are different from aicraft brake OEMs because the latter already use the processes which accompany ST's core process and therefore do not require a turnkey solution - this negotiating position will be enhanced by the significant cost reduction which ST expects to derive from the new plant scheduled to be completed in the course of 2006/7.

The March 2006 supply agreement with specialist automotive OEM Koenigsegg is a seminal event because an answer can now be given to the all important question when negotiating with other OEMs "who else is using the system?".

With cash at bank at May 2006 equivalent to 12.4p per share, a share price of 12.5p at 17th August, a team which has strengthened considerably over the last two years and much greater knowledge/control re the delivery of merchantable solutions, ST is an attractively valued concept stock.

Thanks - I like to hear I'm considered an attractive concept! ST


PS - "The March 2006 supply agreement with specialist automotive OEM Koenigsegg is a seminal event because an answer can now be given to the all important question when negotiating with other OEMs "who else is using the system?"

This may well be correct. Jeremy Clarkson raved over the Koenigsegg CCX when he tested it earlier this year for the Sunday Times. And he pointed out that in view of its terrifyingly quick performance it needed decent brakes. If SCE has succeeded in providing these, there must be something to the product.

ST, yes, all of the CCX so far have been supplied with System ST from SCE.

Thats a good advert, a very good one.

To get the Koenigsegg CCX in proper context: it is one of the fastest, lightest, most powerful (at least in terms of power-to-weight ratio) production cars ever to be made. (I am quoting from memory from Clarkson's article - Sunday Times Online subsribers may be able to locate it and confirm or post the relevant juicy bits).

The Koenigsegg CCX was designed and built by an utter performance car obsessive who, not finding the high-performance car of his dreams on the market, decided to make his own. That means that all the parts, Surface Transforms brakes included, have been hand-sourced by a designer who really wanted the best.

Jeremy Clarkson was terrified by the amount of power available, and the on-the-edge, raw driving experience, and this is a man who has test-driven everything, including F-15 jets! His words: "Get it wrong in a Porsche Carrera, and you can correct it; get it wrong in this (the Koenigsegg CCX) and it'll kill you."

What one thing stands between the driver and the consequences of his driving? The brakes.

There can be no doubt that the Surface Transforms braking system is up to the job - the issue is how many units will sell.

This is where the next step is key, they really want another small OEM on the books by year end, and then things should naturally progress.

I would take a guess that by the time they have 3 small OEM's under contract they will be approaching break even, and thats just the car braking side of the business, there are other things too, but those are a couple of years away (rocket propulsion systems application presently under trial, as well as the airplane braking systems presently under trial).

PapalPower is esp. keen on this stock; but where's the evidence that these scientists can make a commercial product? Sure they have "interest" and some aero-deals (although I believe they missed-out on the new euro-jumbo- forget its name but doing well against Boing,).
Sure they have some deals with performance cars - but somehow stopping isn't quite as exciting as getting faster, is it?

A new device that improves mpg and gets 20% more power from your engine would sell like Hot Cakes...but here is a product that enables you to get closer to "the edge" and still walk away.
I have invested in this business since just after it went round the mini-investment exhibitions - well, those times are over and the sp is no-longer being fed by hype or greed (IMHO_). So it depends on retail sales - there's the difficulty - you can't just go out and fit this gear to your Ford - it's possible (I understand) with some exotic cars - but Costly and might require some changes to suspension (since these bits are lighter).
Yes it's a great technology and has many advantages in Aero - cold-braking in particular......but I have some doubts that they can grow the sales enough...with all the regulation inherent in such devices.
I understood there were some sales in the rocket-market (high-temp discharge bits)...but there again these sales will be fairly small.
I suspect that concentrating on performance issues means that the Management expect the Market to come to them - whereas in truth, SCE has to find a market and exploit it - brakes/clutches is such a diverse market I can't see them surviving on Exotic cars alone....maybe they need to look elsewhere, even develop another product using their research expertise - The Unbreakable Vase (who knows?)...


Has anyone talked to management about getting some regular bread and butter lines runniing? Regular Turnover is certainly nice to see on the balance-sheet......and sadly the Market doesn't like promises exotic car sales, only facts.
So, I'm a disapointed investor, =peaked too soon, huh?

Hangon, I think that those are very valuable points and I see this disadvantage as being inherent in many niche companies.

I'm not in this, so can afford to play devil's advocate, but at the end of the day it is top-line sales that are going to determine bottom-line profits, and without the sales the shares will go nowhere.

Some of these companies have the problem that they are run by engineers who are so fascinated with developing the products that they neglect to develop the business. Whether SCE is one I'll leave to others to decide. Sometimes I just enjoy contributing info to a thread without necessarily implying that it should be the Next Big Thing for my portfolio, and I'm probably not the only one.

As far as investing in new technology tiddlers goes, my money's better off in QTI, where I believe I can see where the upside will come from!

Hangon, fair points, but you have to understand they are going to the market, not waiting for the market to come to them.

Presently there are ongoing trials with 6 companies, these trials are 6 months in.

The deal they have already for the CCX came after 7 months of trials. So they are now at the stage where in the coming months there may be more commercial deals coming through. The CCX decision at 7 months is not a timescale either, some may want to trial 12 months, but the fact is that trials are happening.

They are acutely aware of the need for revenue, and working hard on acheiving increase in it. The next interims will show an increase in revenue over H1 2005, and lets hope that builds up more.

The key will be the next deals they make and when news of those comes.

Certainly is a risky one, but its valuation is not hyped up, like Stanleco or the many other companies with great plans but no revenue to back up their massive market cap when compared to cash levels.

What must really be a downer for Dunlop and SCE is that had the idiots at Airbus not tried to win "political points" and announced the speeding up of the project (which killed the Dunlop braking deal due to reduced time), then they could have launched as planned originally and Dunlop/SCE could have finished that project, which is now near enough the new "speeded up and now delayed back" time.

Never mind at least SCE is now working with 3 other "unknown" companies on the task of developing and qualifying their braking systems for planes in future.



Airbus replaces head of A380 program

Move is CEO Christian Streiff's first major appointment since he joined the troubled plane maker in July.

September 4 2006: 8:45 AM EDT


PARIS (Reuters) -- Plane maker Airbus replaced the head of its A380 superjumbo program Monday, two months after a crisis over production delays led to the resignation of the company's chief executive and the co-head of parent EADS.

Airbus said Frenchman Charles Champion had been replaced by Mario Heinen, 50, who until now has been in charge of the plane maker's chief cash engine, its single-aisle range.

The A380, the world's largest airliner, is due to be delivered to its first customer Singapore Airlines by the end of the year.

The move is CEO Christian Streiff's first major appointment since he was drafted in from outside the aviation industry to replace Gustav Humbert as the head of Airbus in July.

Airbus announced the move on the day of its first long-distance A380 test flight with hundreds of passengers on board, drawn from Airbus staff and cabin design specialists.

The A380, the world's largest airliner, is due to be delivered to its first customer Singapore Airlines by the end of the year after two sets of delays totaling a year.

Interesting little snippet below and it appears all CCX so far have had SCE ceramic brake systems fitted :


http://www.koenigsegg.com/thecars/ccx.asp?ccx=2

"Wheels / Brakes

The optional ceramic 382 mm front discs are coupled to 8 piston callipers and in the rear the 362 mm size is retained with 6 piston callipers. The optional industry first carbon fibre wheels save another 3 kg per wheel compared to the already lightweight magnesium wheels that come as standard. The ceramic discs save another 2 kg per wheel, giving the Koenigsegg CCX lower unsprung weight than any other super car.

Koenigsegg now also offers the ceramic discs and carbon wheel upgrade to all previous Koenigsegg models. "

I'd say thats good news today, and might be leading somewhere soon in the future, obviously something is a sparkle in someones eye now........

5 September 2006
Surface Transforms plc
(the "Company")
Directorate Change

The Company is pleased to announce the appointment of Mr Ken Baker, OBE, M.Sc,
C. Eng, aged 71, as a non-executive director with immediate effect.

Mr Baker is currently the Chairman of Avingtrans plc, an AIM listed precision
engineering technology group serving the aerospace, medical and machinery
industries. Prior to this appointment he was chairman of Ferraris Group plc
("Ferraris") between 1993-2002 during which time the market capitalisation of
Ferraris increased significantly.

Mr Baker has enjoyed a long and successful industrial career during which he
has been chief executive officer of a number of industrial groups both in the
public and private sector including a number of European subsidiaries of Lear
Siegler Inc, Durr Limited and Silvermines plc.

He is also currently a director of Falcon Investment Trust plc, part of the
Unicorn Group, the East German Investment Trust plc, the German British Chamber
of Industry and Commerce, K.M. Baker Associates Limited, Dalehouse Farm
Limited, Dalehouse Properties Limited and K&S Computers Limited.

He received his OBE in 1988 in recognition of the services provided to UK
industry whilst serving as Chairman of The Advanced Manufacturing and
technology Research Association and a member of the Advanced Manufacturing and
Technology Committee of the Department of Trade and Industry.

Mr Baker has confirmed that there is no further information required to be
disclosed under paragraph 17 of the AIM Rules.

For enquiries, please contact:

Surface Transforms plc
Kevin Johnson 0151 472 3733
Kevin D'Silva 07802 306956

John East & Partners Limited (Nominated Adviser)
David Worlidge 020 7628 2200

Teather & Greenwood Limited (Broker)
Mark Dickenson 020 7426 9000
Sindre Ottesen 020 7426 9000

Really good news, this is a major advance :)


http://www.investegate.co.uk/Article.aspx?id=20060915070000P60E6


14 September 2006

Surface Transforms plc

(the "Company")

Aircraft Brake Development Contract

The Company is pleased to announce a development agreement with a major global
supplier of carbon-carbon aircraft brake systems. Surface Transforms is now in
active collaboration with three out of a total of six such major global
suppliers. The objective of the development contract is to produce a low wear
longer-life silicon carbide carbon-ceramic brake based specifically on the
client's incumbent carbon-carbon precursor.

Successful tests at the client's site on sub-scale aircraft disc brakes were
completed in May 2006 and the agreement will now extend that work programme to
include full-scale aircraft discs which will be developed by Surface Transforms
for testing by the client.

Under the terms of the agreement the global brake supplier will fund all costs
relating to the work programme. Development work on the programme is scheduled
for completion and review in the fourth quarter of the Company's current
financial year. If the development work is successful the Board expects to
enter into discussions regarding a more extensive programme of work.

For enquiries, please contact:

Surface Transforms plc
Dr Kevin Johnson 0151 472 3733
Dr Geoff Gould 0151 472 3733

John East & Partners Limited (Nominated Adviser)
Simon Clements 020 7628 2200
David Worlidge 020 7628 2200

Teather & Greenwood Limited (Broker)
Mark Dickenson 020 7426 9000
Sindre Ottesen 020 7426 9000

Development work complete in early 2007, if it moves forward then it would have a very major impact on 2007 financial year in terms of revenues.

Should also trim this years loss down a little bit.

Before this contract I was expecting the loss to be around 450K for this 2006 financial year, maybe that can be trimmed a little.

If we get another car braking agreement in place in the coming 6 months, then things will seriously be looking up.

All of these things are good in themselves, but it doesn't add up to much to excite the Market....Surface needs a volume pproduct - something that will help keep the overheads from becomming a burden.......maybe they should turn their minds to solving some other local problem?

Car brakes are unlikely to become mainstram until they slash the cost - for the likes of a Ford Mondeo even at a tenth of the current price it will be rarely purchased by the 1st owner who is unlikely to want to race their street car too close to the limit.
Having yellow wheel-gear might be good for Surface, but only a v.few techno-petrolheads will understand the benefit. The majority of folk wouldn't notice.

I'd like to see a small parallel business in "materials" perhaps, which could start to cover the overheads, salaries etc. The aircraft brakes may be little futuristic, although useful for aircraft returning to an aircraft carrier.

Hangon, "The aircraft brakes may be little futuristic, although useful for aircraft returning to an aircraft carrier."

Haven't you seen "Top Gun" ??!!

Aircraft landing on carriers don't use brakes - if they did then carriers would have to be a mile and a half long. They use hooks and arrestor wires to stop them within a few metres.

I believe that the argument for using the brakes on airframes is to save weight and increase braking efficiency - but it won't be so efficient that it means they can do away with arrestor hooks on carriers.

I know this is a 60-year-old photo of an early Seafire executing a carrier landing, but trust me, they use exactly the same gear today on F-14's.

Aircraft brakes would be a god send for airlines.

1/ Lower weight, much lower due to no need for the cooling blocks of carbon/carbon systems, saving a lot of fuel

2/ Much reduced maintenance (brake maintenance is high cost and a headache)

3/ Faster turnaround due to no requirement to wait for brake cooling.

The list goes on and on, and it would have a very quick ROI for any airlines using it.

Car brakes, your missing the point, the more they do, the cheaper they get, once you get to high volume, the SCE patents and patented manufacturing process will make them at least 50% cheaper than whats on the market today, maybe more.

The thing is this development contract will help them cover overheads this year, so the loss for the year should now be below 400K for 2006 financial year.

If this airplane development goes past this phase, and we will know in 6 months, it could turn SCE into profit in 2007 financial year, and then on to the billion dollar potential market to exploit.

Any deal that goes past phase 2 is a company maker, this is now phase 2 :)

PP, I'm inclined to believe that the aircraft application would be more likely than the car brakes to generate the volume sales needed to turn out a decent profit - I could see a faster take-up, especially with the large number of orders pending at Boeing/Airbus, etc., not to mention upgrading existing airframes.

Exactly ST, this contract is for existing as a retrofit, and new :)

Massive market. Roll on phase 2 completion and good news.

Have stuck this back on my watchlist pending the results of trials. Could be very good for the SP if the major mfrs get on board.

I notice SCE are very cleverly working with the mfrs to develop their product for existing braking systems. Seems obvious in a certain light, but what it means is that SCE won't have an uphill struggle trying to inflict their product on an unwilling market.

Exactly ST, they will not even make the discs, the plan has always been in the aircraft market that their technology would be developed for the majors, and then the majors can license the technology and manufacturing process and make the discs themselves.

The only manufacturing of discs SCE will do is for car systems, and that being for non-major OEM's.

Major OEM's, if interested, could if they so desire, adopt a system similar to that planned by the aircraft systems.

Of course, the expectation is once proven then SCE would be snapped up for mega bucks by one of the major braking systems people, to then exploit the technology.

Getting past this next phase is the key, for if they go there then its very significant, as is the fact that they can get good overhead recovery now from this latest contract, if nothing else short term :)

Recovering overheads cuts cash burn.

Comment from uk-analyst.com :

"Success has been difficult to come by for AIM traded Surface Transforms. The company, which once attracted a premium rating, has seen its status among investors seriously damaged in recent years as a result of minimal revenues and an absence of significant contract wins. However, it was a different story in the final session of the week, as Surface announced news of a development agreement with a major global supplier of carbon-carbon aircraft brake systems, sending its shares 2p better to 14.5p. The company is now in active collaboration with three out of a total of six such major global suppliers. The objective of this latest development contract is to produce a low wear longer-life silicon carbide carbon-ceramic brake based specifically on the client's incumbent carbon-carbon precursor. Development work is expected to be completed by the fourth quarter of the current year and will be entirely funded by the brake systems supplier. Could th is finally be the turning point for Surface? Only time will tell."

New update at http://www.armshare.com (Free to register and use) - Extract below based on the AGM statement today :


.................In September, a funded development agreement was entered into with a major global supplier of carbon-carbon aircraft brake systems - this means that ST is now collaborating with 3 of the 6 major global suppliers of such systems. The objective is to produce a low wear longer-life silicon carbide carbon-ceramic brake - successful tests on sub-scale aircraft disc brakes were completed in May 2006 and the agreement will now extend that work programme to include full-scale aircraft discs for testing. Development work on the programme is scheduled for completion and review in Q4 2006/7 - if it is successful, the board expects to enter into discussions regarding a more extensive programme of work.

The October AGM update reported that installation of the carbon densification process has begun, with completion scheduled for Q4 2006/7 - the cost net of a 95,000 grant will be c.155,000 - the expected benefits are faster process times and lower manufacturing costs; since May 2006, deliveries to Koenigsegg (see March 2006) have been running at c. 2 car sets per month; a small order has recently been taken from a US automotive brake system supplier which will have a system on display at the SEMA convention in Las Vegas later in October.

Research Standing

The market invariably canes a company's share price where there is a setback such as occurred in Autumn 2004 on the aircraft brake project with Dunlop. This provides opportunities for the more dispassionate and longer term investor. ArmShare is an advocate of constructing portfolios comprising at least 80% invested in established businesses combining growth and value and up to 20% in a portfolio of earlier stage higher risk businesses considered to have the potential to develop into the former - Surface Transforms is an obvious candidate for the '20%' category of such a portfolio.

Whilst the financial results to May 2006 scarcely hit the radar screen, they mask the fact that the company has made very significant progress in strengthening its position for negotiating with channel partners, particularly in automotive. Until it started both to fully understand and also take control of the entire process for delivering merchantable brakes, it was very difficult to hold serious discussions with automotive OEMs because the company could not deliver a turnkey solution - automotive OEMs are different from aicraft brake OEMs because the latter already use the processes which accompany ST's core process and therefore do not require a turnkey solution - this negotiating position will be enhanced by the significant cost reduction which ST expects to derive from the new plant scheduled to be completed in the course of 2006/7.

The March 2006 supply agreement with specialist automotive OEM Koenigsegg is a seminal event because an answer can now be given to the all important question when negotiating with other OEMs "who else is using the system?".

With cash at bank at May 2006 equivalent to 12.4p per share, a share price of 14.5p at 15th September, a team which has strengthened considerably over the last two years and much greater knowledge/control re the delivery of merchantable solutions, ST is an attractively valued concept stock.

COMPANY MEETING

On 19th October 2006, ArmShare attended the AGM - a copy of the presentation made at the AGM can be accessed by clicking on Company Website above (on the http://www.armshare.com website) , Investor & Media Relations and Results. Further information emerging from the Q&A was:

a) at the beginning of 2006, product development in the automotive division resulted in significantly improved wear characteristics. This development also applies to aircraft braking systems. It is likely to assist in developing attractive value propositions for both markets - see b).

b) feedback from Koenigsegg customers and the test driver is that SystemST improves the controllability of these very powerful cars. Data is being collected re stopping distances, wear rates and the benefits of reduced unsprung weight in order to develop a quantified value proposition - it seems likely that this will be based on reduced life time cost.

c) for the aircraft market, the development projects are expected to take 3 to 4 years, with revenues to ST being modest to start with and growing significantly in the later stages of the programme. ST is c.18 months into its leading aicraft brake programme.

For immediate release 24 October 2006

SURFACE TRANSFORMS PLC

("the Company")

Director Shareholding

The Company has today been notified that Ken Baker, Non-Executive Director,
purchased 40,000 ordinary shares on 20 October 2006 at 14.5 pence, equivalent
to 0.29 per cent. of the issued share capital of the Company. This is Mr
Baker's entire holding.

Showing some confidence, happy to acquire the shares at 27.5p !!!!


To be embargoed until
Monday 30 October 2006

SURFACE TRANSFORMS PLC
("the Company")
Director Shareholding

The Company has been notified that Julio Faria, Executive Director, has today
acquired 100,000 ordinary shares of 1p each at 27.5p per share, equivalent to
0.7 per cent. of the entire issued share capital of the Company, from a former
director of the Company.

Mr Faria has also notified the Company that these shares have been transferred
to Mr Faria's adult son and, consequently, Mr Faria's beneficial holding of
2,326,845 Ordinary Shares, equivalent to 16.58 per cent. of the entire issued
share capital of the Company, remains unchanged.

That is quite a premium!

It is. And a very strong "I am confident" signal.

Expect some more contract news in the coming 2 or 3 months I think.

I hold tis stock but am not convinced by events these last two days:
Yesterday a director bought shares off an ex-director at 27p (nearly twice market) and gave them to his son. (see RNS).......that sent the sp up 15% I think......yet as far as I can see this wasn't a trade in the market as such.....AND today we have Sells 10x Buys (very thin trade)....... whilst the MM's have upped the price 6%. This looks like shaking the tree/ stirring the pot -

This is close to a flash in the pan, IMHO - although welcome, I am not convinced the price will hold, esp as the Market trading is quite small.........yes, I know this can make prices fluctuate, but we mustn't buy everything that spikes, otherwise you have precious little safety-margin for the weeks ahead.

Hangon, I haven't looked into this as closely as you did, but I think your instinct is correct about not panic-buying this stock. Small caps like this are likely to lie low for so long due to their tiny market cap and limited interest from larger investors.

However, the director purchase is a good show of confidence. I have a feeling that are good reasons why it didn't go over the market; something tells me they managed a transfer behind the scenes but don't ask me quite how . . .

hangon, SCE remains an investment stock, simply because the timescales of success are unknown and cannot be charted out, therefore it might take a 6 months, it might take 3 more years. There is no point in trading it, and therefore its all about adding at the most opportune moment.

I would envisage either small OEM car braking news, or aircraft deal moving to the next stage news, sometime in the months ahead, this would and could be why the directors have shown their "confidence".

So, with timescales impossible to call, its just one to keep building your holding in, as and when you can, if you so wish.

With CVIST going ahead I would expect therefore losses for the year to be around 700K then.

Considering the weakness of the SP, and a 50K sell would be like 10p paid for it, it would appear someone purchased 150K today so far. The initial 50K buy being under the mid price, which given weakness is not a surprise.

50K at 15p
50K at 16p
50K at 16.15p

Interesting.

The problem I have with this technology stock is "What will send it back(up)?"
Airbus has continued to disappoint and isn't ready to specify our high-performance brakes, although there are other aero-buyers - this is news that we could do without.
The Sports-car market is fairly minor, although welcome it is hardly likely to be a major profit centre due to the high cost/performance ratio. Therefore I am still waiting for the company to find alternative uses for their products (please not rocket-cowls; this is a very minor application already).
All companies need a simple "bread and butter" product-line, which pays the wages and keeps the factory profitable even if not exciting. I don't see that here and I don't see any diversification, rather my perception is that they are hoping for something to turn up (by way of orders for existing product areas). Unfortunately, if their customers don't order soon, there is no alternative but closing the operation. The sp is not just tracking the Lack of Orders - it could be tracking the probabliity of a cash-call, or failure. Either way existing shareholders will feel some pain.
This company needs to use it brains to develop some profitable products and from where I sit, it may be that these should not use their core-technology.
Can anyone really argue the Market has it wrong?..........er, based on what that "we " don't know?

What we do know is that, over the last 12 months, shareholders have lost half their investment......just what is about to change this trend?......no, I don't see it...

24 November 2006
SURFACE TRANSFORMS PLC
('the Company')
Director's shareholding

The Company has been notified that Kevin Johnson, Managing Director, yesterday
acquired 22,500 ordinary shares of 1p each at 14.5p per share, equivalent to
0.16 per cent. of the entire issued share capital of the Company. Mr Johnson
now beneficially holds 79,750 ordinary shares, equivalent to 0.57 per cent. of
the entire issued share capital of the Company.

3 January 2007

Surface Transforms plc

("Surface Transforms" or "the Group")

Holding in Company

The Company was notified earlier today that Advance AIM Value Realisation
Company Limited has acquired 595,000 ordinary shares in Surface Transforms,
equivalent to 4.24 per cent. of the issued share capital of the Company.

The Company has also been notified that the shares are registered in the name
of Nortrust Nominees Limited.

Seems stronger of late, I wonder if some news is possibly in the pipeline ?

Well its soon to be interim reporting on the 8th of Feb.

I would guess at around a 350K to 400K loss for the first half (as CVIST is being done now) and around 600K to 650K in the bank at the interim stage.

A lot has changed since the original prospectus, and at least they are now focussed with finite objectives.

Historic figures are always going to look bad at the moment and this year (being 06/07) is going to be the worst of the coming five for SCE I would guess.

They should end it with around 300K in the bank, but with enough deals in place and potential deals to happen, that 07/08 (next financial year) they can break even.

08/09 and 09/10, all being well, will see major contributions from Roxel and Aircraft braking, so the focus is all on car braking for the moment, they need to complete this financial year and have around 300K left in the bank but with CVIST in place and operational, this positions them for a break even year 07/08 with increasing levels of car braking contracts/sales.

Key news will be progress on deals and dvelopment contracts. Provided all is progressing well with Roxel and also Aircraft systems (all four of them) that will be good. Car braking well we know there are ongoing tests and trials with around 3 or 4 companies, and these do take time, but an update would be good to say all is progressing well.

All guesswork and IMO.

Why are they walking the price up ?

L2 now 2 v 1 @ 16/19

Are they suspecting some good news in the results ? or are they walking it up to then drop it back hard on results day and flush out some sells ? All very strange.

And even stranger.....

Lets see whats in the results statement then tomorrow morning, must be something exciting contained within to justify the walk up in the price this week...................

Much better than I thought they would be, in all ways, and perhaps some light at the end of the tunnel. Looking forward to further progress and news !!!

http://www.investegate.co.uk/Article.aspx?id=20070208070000P1202

.

Some interesting banter on the AFN thread, which I'll copy here for anyone interested.



PapalPower - 8 Feb'07 - 07:06 - 286 of 329
Much better than I thought they would be, in all ways, and perhaps some light at the end of the tunnel. Looking forward to further progress and news !!!
http://www.investegate.co.uk/Article.aspx?id=20070208070000P1202


mjcrockett - 8 Feb'07 - 07:16 - 287 of 329 (premium)
Excellent RNS. I had expected a retrace today, but we could just see a nice move up.
MJ


stu31 - 8 Feb'07 - 07:26 - 288 of 329
They actually cut their admin expenses (on the 6 months from 2005). Well done to them for that. No placing, bit of a pleasant shock!



PapalPower - 8 Feb'07 - 07:36 - 289 of 329
With around 1.5m in cash, and with car braking revenues increasing there should be no need for a placing as it stands.
Aircraft development contract revenues should now increase in 07 and more so 08, leading to the bigger payments 09 onwards.
09 should also see the Roxel rocket agreement putting considerable revenue on to the bottom line for the first time.
Therefore, provided the car braking progress continues and more revenue is generated, with the associated fall in cash burn, things are looking much much better that they should not need to raise any more funds.
And with CVIST done, and the lower production costs, and with SGL Carbon presently struggling to please Audi with lower production costs (SGL having nothing like CVIST, they are trying to reduce cost by simply having continuos production runs), never say never to a major OEM at some stage coming in in the years ahead, especially if CVIST does deliver the benefits it should do.
SCE also have MIST up the sleeves after CVIST, although MIST will only be introduced should orders for braking systems get higher and higher, its a lot of money to put in place, however MIST would also deliver more benefits, just like CVIST should do.


Gelp - 8 Feb'07 - 09:39 - 293 of 329
blimee - Xmas has come early! very tidy.
Far better visible prospects than we could have dreamed about today - attractive to larger predator?


PapalPower - 8 Feb'07 - 10:13 - 295 of 329
jimbo, if all goes to plan then by 2009 or 2010 the SP should be around 200p to 300p levels, maybe a lot more than that if aircraft brakes comes in commercially.
However, its early days, and so at this time the SP will react to news, as news comes.
They need to be selling around 2000 discs a year (car braking alone) to break even, although I do not know how many they need to sell to break even when taking into account the other revenues they have from development contracts.
If they sign up a larger one of the smaller OEM's, then certainly 50p would be an easy short term target.
However, this is one to tuck away imo, keep a decent holding for 3 years, and you might be very pleased, or not.
With only 14m shares in issue, if SCE does get good success, you'll see the SP fly upwards, but that is later perhaps, and not just yet.



yump - 8 Feb'07 - 10:20 - 299 of 329
As I'm heavily involved in motorsport I have had a passing interest in this company for a while.
Can someone explain to me why its suddenly so exciting when turnover has been doubling and halving again for the last x years. Also according to the evidence of actual sales, you can count the number of customers on one hand. The value of sales is actually at a level where I don't understand why its listed at all.
So presumably these ceramic products have a multitude of research reports by different independent bodies on their effectiveness; you know - best of breed and such like. Passed various aircraft builders tests etc. etc. ?
Plus they still seem to be working on improving production.
Is this yet another company where investors are funding research ?


PapalPower - 8 Feb'07 - 10:46 - 300 of 329
It has been in the past yump, but now they are turning things around and this the first time they have got the hang of sales. Your reference to past revenues is pure reference to development contracts and never to actual sales. So therefore, this is the first time they are generating sales, and it falls into line with the plan.
There are going to be a lot of grumpy ex-holders around, who sold out at less than 20p, some even selling at 12p.........but thats life. Those with the patience to hold on, should, in the end, get rewarded for it.
Let me point you to the http://www.armshare.com write up, the last one being from Nov 2006........and a new one should be due soon, which when it is done I will post up.
Nov 2006
"The October AGM update reported that installation of the carbon densification process has begun, with completion scheduled for Q4 2006/7 - the cost, net of a 95,000 grant, will be c.155,000 - the expected benefits are faster process times and lower manufacturing costs; since May 2006, deliveries to Koenigsegg (see March 2006) have been running at c. 2 car sets per month; a small order has recently been taken from a US automotive brake system supplier which will have a system on display at the SEMA convention in Las Vegas later in October.
On 23rd November, the CEO purchased 22,500 shares at 14.5p per share, taking his holding to 0.57% of the issued share capital.
Research Standing
The market invariably canes a company's share price where there is a setback such as occurred in Autumn 2004 on the aircraft brake project with Dunlop. This provides opportunities for the more dispassionate and longer term investor. ArmShare is an advocate of constructing portfolios comprising at least 80% invested in established businesses combining growth and value and up to 20% in a portfolio of earlier stage higher risk businesses considered to have the potential to develop into the former - Surface Transforms is an obvious candidate for the '20%' category of such a portfolio.
Whilst the financial results to May 2006 scarcely hit the radar screen, they mask the fact that the company has made very significant progress in strengthening its position for negotiating with channel partners, particularly in automotive. Until it started both to fully understand and also take control of the entire process for delivering merchantable brakes, it was very difficult to hold serious discussions with automotive OEMs because the company could not deliver a turnkey solution - automotive OEMs are different from aicraft brake OEMs because the latter already use the processes which accompany ST's core process and therefore do not require a turnkey solution - this negotiating position will be enhanced by the significant cost reduction which ST expects to derive from the new plant scheduled to be completed in the course of 2006/7.
The March 2006 supply agreement with specialist automotive OEM Koenigsegg is a seminal event because an answer can now be given to the all important question when negotiating with other OEMs "who else is using the system?".
With cash at bank at May 2006 equivalent to 12.4p per share, a share price of 14.5p at 15th September, a team which has strengthened considerably over the last two years and much greater knowledge/control re the delivery of merchantable solutions, ST is an attractively valued concept stock.
COMPANY MEETING
On 19th October 2006, ArmShare attended the AGM - a copy of the presentation made at the AGM can be accessed by clicking on Company Website above, Investor & Media Relations and Investor Presentations. Further information emerging from the Q&A was:
a) at the beginning of 2006, product development in the automotive division resulted in significantly improved wear characteristics. This development also applies to aircraft braking systems. It is likely to assist in developing attractive value propositions for both markets - see b).
b) feedback from Koenigsegg customers and the test driver is that SystemST improves the controllability of these very powerful cars. Data is being collected re stopping distances, wear rates and the benefits of reduced unsprung weight in order to develop a quantified value proposition - it seems likely that this will be based on reduced life time cost.
c) for the aircraft market, the development projects are expected to take 3 to 4 years, with revenues to ST being modest to start with and growing significantly in the later stages of the programme. ST is c.18 months into its leading aircraft brake programme.


KeyserSoze - 8 Feb'07 - 13:19 - 304 of 329
Excellent news !!! Nice to see our patience and faith in ST rewarded.


Madmonkflin - 8 Feb'07 - 17:21 - 306 of 329
thank god for the R&D tax credits!


yump - 8 Feb'07 - 17:41 - 307 of 329
PP
My gut feeling says generate shorter-term revenue from automotive, while the development contracts are sought with the airlines. Is that the gist of the strategy ?
Is there a USP for these brakes for the volume vehicle market ?
Again longer term, but is that an aim in any way ?
Getting sales to performance / motorsport isn't the easiest thing to do - its a bit of a closed market ("we already know how to get the best braking from our cars thank you" say the technical guys). However, if they crack it, there's a distinct sheep mentality that can work in favour of any manufacturer.
Any tests been done by the motorsport market that are in the public domain.
I know I'm being a bit lazy - don't have much time, but might be able to sniff out some information in due course.
btw my initial rather critical post was a bit of reaction to the 'share only going in one direction brigade' ;-)


mjcrockett - 8 Feb'07 - 22:44 - 308 of 329

The main news in the RNS was Ascari and Stoptech. There are many AIM companies who would have put out 3 RNS's in these circumstances i.e. Interim results and 2 New Contract announcements. But SCE, are not like that thankfully.
The Stoptech arrangement is most interesting. They say they are forecasting 50 to 100 sets this year. So that's up to 4 times bigger than the Koenigsegg contract, which must be responsible for over half of the turnover in the last year.
With the deals in place today and the liklihood of other OEM's, it seems to me that the risk of SCE being a complete dud is fast receding.
After today's rise SCE is valued at 3.1m. There is 1.4m in cash. So the business - Cars, Aircraft and Rockets is valued at under 2m. This seems a gross undervaluation to me, but when will this change?
MJ


PapalPower - 8 Feb'07 - 23:11 - 309 of 329
yump, yes, there was a setback with the aircraft braking, the original deal with Dunlop for the A380 systems was cancelled after Airbus "bought forward" the delivery of the A380 by 24 months (and we all know now that was a political decision and the delivery has now gone back 24 months - eg back to the original plan).
This setback caused the big sell off in SCE.
Now, they presently have developement contracts with 4 of the worlds largest aircraft braking companies, and so things progress on that route (we are now 24 months into the main one, and these generally have 48 month cycles). Revenue in the first half tend to be small, but when these development contracts move to phase 2, they generate much bigger revenues. The use of the aircraft braking systems this time is not tied to a new aircraft launch, but is for future, and also to retrofit to older aircraft.
So in the interim SCE focussed on 3 shorter term projects in the main.
1/ Car braking.
2/ Rocket components
3/ Military (bullet proofing and armour)
1/ Is ongoing, there are many USP's for the carbon-ceramic systems, however the downside is cost. This is why SCE are working on CVIST. If they can reduce the cost then the uptake on volume production cars will happen.
They need to do 2000 discs a year on car braking along to break even, and as you see this US deal on its could generate 100 x 4 = 400 brake discs....thats exciting.
The USP's are well known, as in disc life, pad life, reduced stopping distance, no fade when hot etc.....
2/ Rockets, this is ongoing with Roxel, and should, all being well, generate decent revenues for SCE come 2009 onwards.
3/ The military have no money to spend, and so the bullet proof vests and armour for tanks and military vehicles which could be saving lives in Iraq etc.... never happened as although the ceramic systems are better, they cost more and the government does not want to spend the money it seems.
There is more than this, but these are the main things. They are also now looking into further uses of their cermaic compounds on aircraft, which should tie in with the now further delayed A350 airbus project.


stu31 - 8 Feb'07 - 23:27 - 310 of 329
only 3 aircraft brake contracts pp
AIRCRAFT BRAKE SYSTEMSRevenues from the aircraft brake systems market sector are principally from paid development contracts. The Company is engaged with three of the six global suppliers of aircraft brake systems and development work from these contracts has shown encouraging data on reduced wear and improved friction.


PapalPower - 8 Feb'07 - 23:33 - 311 of 329 edit
Sorry, should say 3 of the big 6 plus 1 other, being a total of 4.


yump - 8 Feb'07 - 23:49 - 312 of 329
Thanks for the details guys.
Is their usp to do with the fibre nature of ceramic in the discs, together with the heat control design ? (If I've read that right).
Only you can already buy ceramic based discs from several manufacturers, so the use of ceramics itself isn't novel.
I noticed that they offered shareholders discounted upgrades to their cars and the aftermarket is interesting in that it offers potentially a far quicker return than the other markets. Saving 22kg is very interesting compared to trad. discs, although I've been looking for a comparison between ST and other ceramic based discs as well.


PapalPower - 9 Feb'07 - 00:01 - 313 of 329
These 2 offer some details :
This is "Carbon Cermaic" versus Steel
http://www.systemst.com/flash/Steel-vs-Ceramic.swf
And this one is "Carbon Ceramic" versus Carbon (like F1)
http://www.systemst.com/flash/Carbon-Carbon-vs-Ceramic.swf


PapalPower - 9 Feb'07 - 08:23 - 315 of 329
IJ, given the potential for 100 cars in the US a year from this new contact, and that means 400 discs, and SCE breaks even on just 2000 discs a year (excluding everything else), then certainly the coming year is exciting. I am holding fast and will add on weakness, and will not be selling before 2010, at which time, with luck on the aircraft side, we should be 10 times higher than we are now imo, at least.


PapalPower - 9 Feb'07 - 08:29 - 316 of 329
And if anyone thinks 10 times higher by 2010 is out of the question, simply look at the shares in issue (being just 14 million) and how many are held by directors and institutions.
Now add in car braking covering all overheads and giving break even, then add in Roxel and Aircraft systems (which from 2009 onwards should be generating lots of revenue) and you have a nice equation.
Its not going to happen overnight, but with reference to the thread header, for those with a speculative punt on their mind, its all about building a stake, and then with a bit of luck, that stake being very valuable later.


yump - 9 Feb'07 - 08:39 - 318 of 329
I was asking what the difference is between System ST which is carbon-ceramic and the other manufacturers carbon-ceramic discs. eg. Alcon.
Have also found companies like SAB WABCO in an article from 2001 who were working on carbon ceramic discs for trains.
Its big market, but it appears there are already reasonable sized players in there and have been for quite a while.
So is this one just a play on the company being small and therefore might grow, or is there a unique part to their business that competitors haven't got ?


Investorjon - 9 Feb'07 - 08:45 - 320 of 329
yump Basically they make a better product, even NASA link.


PapalPower - 9 Feb'07 - 08:50 - 321 of 329
Yump, it terms of performance I cannot say, however if you want you can email to the man at SCE, and cc it to the Chairman, they are very happy to hear from investors and will help as best they can with your questions :
Antoni Sznerch as(at)surface-transforms.com for the car brake side.
Kevin DSilva kadsilva(at)kdsassociates.com he is the Chairman.
I've removed the @ so the BOTS do not pick up the email addressed.
Now, whats the big benefits of SCE system. Well, they have lots of patents, and those include patents for the processing, which will make it quicker and cheaper. Quick to Make and Cheap is key to getting more people using these braking systems, and presently SGL are working with Audi to try and get costs down (by moving to continuous production). However, they lack the CVIST and MIST and other patents that SCE has, which are key to why they could become the leader here. Once CVIST is done, you'll see SCE seriously undercutting the prices of the others, whilst offering the same, if not better, performance. And in the car braking market, everyone knows how good the systems are, its price thats preventing more and more adaption, however, this is where the CVIST and other things SCE are doing, could come up trumps.


PapalPower - 9 Feb'07 - 08:59 - 322 of 329
I have added the link to the 2006 AGM presentation in the header, for anyone wanting some reference info.
http://www.surface-transforms.com/reports/AGM%2006%20Company%20Presentation.pdf


yump - 9 Feb'07 - 09:23 - 325 of 329
PP
Thanks for the links and summary etc.
Off to do a bit of digging and to have a beer with some of my motorsport contacts over the half-term.


tunturiflyer - 9 Feb'07 - 11:49 - 326 of 329
PP,
Impressed by your knowledge. Originally when I floated, I thought the F1 and other motorsport was the obvious initial target market. - they don't really care about cost, and the performance benefits were clear. How come the F1 teams didn't buy this system???


PapalPower - 9 Feb'07 - 11:54 - 327 of 329
They went for Carbon (and not Carbon/Ceramic from SCE).
The all carbon systems offer the best performance (in braking terms), but need to run red hot and burn out very quickly, so not any use for road cars, which is the big market.
As you can see, F1 cars run a single race and the brakes are finished (sometimes even before they finish), thats the downside of all Carbon.
SCE does carbon/ceramic, which offers good performance (much better than steel) , but can work at any temperature and also gives extended life over steel , and is far ligher than steel etc..
Carbon/Ceramic cannot compete with all Carbon (ala F1) in terms of braking performance.


PapalPower - 9 Feb'07 - 11:58 - 328 of 329
I know the company pretty well, and I have a large speculative stake here. The reason its large is I feel, in time, this has the potential to succeed, and if it does then perhaps in 2010 this will be over 200p and not just over 20p.
It remains risky yes, never forget that, and its illiquid..........but its worth it imo.


PapalPower - 9 Feb'07 - 13:29 - 329 of 329
What I would like to see now, in order to really underline where we are, is some decent director buys either this month or next.
That would for sure give out the signal that things are very positive and the turn of fortune is perhaps arriving, albeit slowely :) at first..... ;)

Armshare update for 8th Feb 2007. For the full text and commentary on Surface Transforms please visit :

http://www.armshare.com its free to register and free to use !!


....................In September, a funded development agreement was entered into with a major global supplier of carbon-carbon aircraft brake systems - this means that ST is now collaborating with 3 of the 6 major global suppliers of such systems. The objective is to produce a low wear longer-life silicon carbide carbon-ceramic brake - successful tests on sub-scale aircraft disc brakes were completed in May 2006 and the agreement will now extend that work programme to include full-scale aircraft discs for testing. Development work on the programme is scheduled for completion and review in Q4 2006/7 - if it is successful, the board expects to enter into discussions regarding a more extensive programme of work.

The October AGM update reported that installation of the carbon densification process has begun, with completion scheduled for Q4 2006/7 - the cost, net of a 95,000 grant, will be c.155,000 - the expected benefits are faster process times and lower manufacturing costs; since May 2006, deliveries to Koenigsegg (see March 2006) have been running at c. 2 car sets per month; a small order has recently been taken from a US automotive brake system supplier which will have a system on display at the SEMA convention in Las Vegas later in October.

On 23rd November, the CEO purchased 22,500 shares at 14.5p per share, taking his holding to 0.57% of the issued share capital.

The interim results to November 2006 showed sales of 116,000 (2005: 68,000) and pre-tax loss of 428,000 (2005: 496,000). The company reported that auto sales had risen to over 50% of total sales vs minimal auto sales in H1 2004/5 - Koenigsegg is taking 2 car sets per month - StopTech, a California based leader in Balanced Brake Upgrades for production cars and production-based racecars, has placed its first production order, which is expected to lead to sales of at least 50 car sets in the first year - SystemST has been selected for the new Ascari A10 supercar which retails for 350,000; a key element of the production process (CVIST) (see October and November 2005, and the 2005/6 final results) is being brought in house at a net cost after grants of 25,000 and is due to be operational in Q3 calendar 2007; ST is moving to larger premises in February 2007 (6 miles from the present location), enabling efficiencies to be generated from all processes being housed together; period end cash was 1.5 million.

Research Standing

Whilst scarcely visible financially, the company has made very good commercial progress over the last 3 years - further key data for assisting commercialisation should become available during 2007 (see Company Meeting on 8th February 2007 below). ArmShare is an advocate of constructing portfolios comprising at least 80% invested in established businesses combining growth and value and up to 20% in a portfolio of earlier stage higher risk businesses considered to have the potential to develop into the former - Surface Transforms is an obvious candidate for the '20%' category of such a portfolio.

The company's broker note dated 8th February is projecting 2006/7 sales of 300,000 (2005: 155,000).


COMPANY MEETINGS

i) Meeting with Chairman and CEO on 8th February 2007

On 7th February 2007, there was widespread media coverage of the EU's intention to introduce legislation calling for the reduction of car emissions to 130 gms per kilometre - luxury car/supercar emissions are very significantly in excess of this figure. Reducing unsprung weight is considered to be able to make a meaningful contribution to assisting manufacturers towards achieving this target - System ST makes a meaningful contribution to reducing unsprung weight as well as improved braking. The company has a programme under way which is intended to measure a) the impact of reducing unsprung weight on reducing emissions and b) the impact of using System ST on lifetime costs of vehicle ownership - the results are expected to be available by the end of 2007.


ii) Attendance at AGM on 19th October 2006

A copy of the presentation made at the AGM can be accessed by clicking on Company Website above, Investor & Media Relations and Investor Presentations. Further information emerging from the Q&A was:

a) at the beginning of 2006, product development in the automotive division resulted in significantly improved wear characteristics. This development also applies to aircraft braking systems. It is likely to assist in developing attractive value propositions for both markets - see b).

b) feedback from Koenigsegg customers and the test driver is that SystemST improves the controllability of these very powerful cars. Data is being collected re stopping distances, wear rates and the benefits of reduced unsprung weight in order to develop a quantified value proposition - it seems likely that this will be based on reduced life time cost.

c) for the aircraft market, the development projects are expected to take 3 to 4 years, with revenues to ST being modest to start with and growing significantly in the later stages of the programme. ST is c.18 months into its leading aircraft brake programme.

PapalPower - 10 Feb'07 - 05:12 - 333 of 334

Interesting comments on the weight reduction on cars and the savings on emmissions from the interview with the Chairman and CEO yesterday.

We know that the weight saving is a major factor in the consideration for aircrafts, as there is no longer any need for the massive heat dispersion packs. Saying that, there is a saving of quite a few kilo's on a car when using carbon/ceramic over standard systems, I have seen some figures of around 40kg savings. That will obviously help to reduce emissions and increase mpg figures.



"i) Meeting with Chairman and CEO on 8th February 2007

On 7th February 2007, there was widespread media coverage of the EU's intention to introduce legislation calling for the reduction of car emissions to 130 gms per kilometre - luxury car/supercar emissions are very significantly in excess of this figure. Reducing unsprung weight is considered to be able to make a meaningful contribution to assisting manufacturers towards achieving this target - System ST makes a meaningful contribution to reducing unsprung weight as well as improved braking. The company has a programme under way which is intended to measure a) the impact of reducing unsprung weight on reducing emissions and b) the impact of using System ST on lifetime costs of vehicle ownership - the results are expected to be available by the end of 2007. "



PapalPower - 10 Feb'07 - 14:29 - 334 of 334

We all know that a reduction in weight obviously helps with increasing mpg, improving acceleration etc....... but what is special about "unsprung weight"...well here is an idea :


UNSPRUNG WEIGHT

An important concept is "unsprung weight." This is weight that is not supported by the suspension of the car. This usually includes the the weight of the wheels and tires as well as a percentage of the weight of the suspension itself, including control arms, anti-roll bars, shocks, and struts. Reducing unsprung weight is the key to improving handling. The lower the unsprung weight, the less work the shocks and springs have to do to keep the tires in contact with the road over bumpy surfaces. An easy way to reduce unsprung weight and improve traction is to replace stock wheels and tires with special lightweight wheels. Note that as the wheel diameter or width increases, the weight of the overall wheel and tire package increases, thereby increasing unsprung weight

Good posts, PP. You have done well on this share, especally if you topped up at the recent lows.

FWIF see my AXE thread (apologies if I've pumped it enough already!). I feel that this co also has a lot of potential - it will see exponential revenue growth if its big customer, Modec, is successful in attaining its target sales of electric vehicles.

Thanks ST, I'll take a look at AXE.

http://www.autoweek.com/apps/pbcs.dll/article?AID=/20061221/FREE/61218009/1024/rss01&rssfeed=rss01



Carbon-ceramic brakes could become affordable for enthusiasts

By TONY LEWIN | AUTOMOTIVE NEWS

AutoWeek | Updated: 12/18/06, 10:53 am et

Carbon-ceramic brakes built a glamorous reputation in Formula One racing, creating vivid images of discs glowing red during hard braking at the end of long straightaways.

Their high cost limited them to exotic performance cars. But carbon-ceramic brakes are now available on cars priced as low as 60,000 euros (about $80,000 at current exchange rates). And a new manufacturing process could make them affordable for even budget-minded enthusiasts.

The technology has been slow to spread to production vehicles since it was introduced in racing 15 years ago. Porsche first offered a carbon-ceramic brake option on the 911 GT2 in the late 1990s, followed by the more mainstream 911 Turbo in 2000.

Today, carbon-ceramic brakes are optional on all Ferraris, most Lamborghinis and Porsches and the Bentley Continental GT Diamond. These cars are priced above $133,000.

The percentage of buyers choosing this option ranges from more than half for Ferrari models to 6 percent for the Audi RS 4.

For enthusiasts, the performance-driving benefits -- less weight, better handling because of reduced unsprung weight (the mass of the body and components not supported by the suspension), durability and fade resistance -- make the high price worthwhile. But if the price falls dramatically, carbon-ceramic brakes also could appeal to more thrifty buyers.

Carbon-ceramic brake discs last four times longer than conventional steel discs, so owners are unlikely to replace carbon-ceramic discs. Brake pads last longer on the carbon-ceramic systems, too. But at $15 to $20 a disc for steel discs and $665 to $2,660 a disc for carbon-ceramic, owners cannot recoup their cost on the more durable system.

The big step

SGL Carbon AG, of Wiesbaden, Germany, and Audi AG are trying to reduce manufacturing costs for carbon discs by moving from batch production to a continuous process.

Since last year, Audi and SGL have been working to establish automated production, reported the German daily newspaper Frankfurter Rundschau.

"The cost of a disc will come down to 350 euros (about $465) with the new process," says SGL Carbon CEO Robert Koehler. He would not disclose details of the technique.

Audi declined to comment on the technology.

Antonio Ferreira, manager of European component forecasts at CSM Worldwide in London, is skeptical of carbon's broader market potential, even with reduced costs.

"You would need huge volumes to get the price down," he says. "Suppliers would have to come to a two-digit price (per disc). Nothing else is feasible when a complete braking system is not even into three figures."

At Italy's Brembo, which has a 60 percent market share in top-end sports- and luxury-car brakes, carbon-ceramic is still in a "quasi-prototype" phase, said Roberto Vavassori, business development director.

Light and durable

But Vavassori is optimistic, saying the technology's lower weight and long life could become as important as its extreme performance.

"We haven't seen the full potential for carbon brakes yet," he told Automotive News Europe. "They can save 40 kilograms (88 pounds) on an extreme car where mass is important. And in the future, we may see wider adoption in other segments, too."

SGL is working with Porsche and Audi to develop ready-made auto components.

The key to lowering costs is simplifying production.

"It's not mechanical but chemical," said Brembo's Vavassori. "We start from powders and end up with a lightweight disc, but an expensive one."

Antoni Sznerch, business development director of United Kingdom-based Surface Transforms, says versions of the carbon brakes for cars must be even more sophisticated than those on airplanes or race cars.

"The process is similar to how nature creates coal and extremely hard substances like diamonds," says Sznerch, whose company makes SystemST carbon brakes. "Some processes are lengthy, demanding three weeks in the chamber to go through a thermal cycle."

How it works

Carbon-ceramic brakes use the same principle as ordinary disc brakes. Stationary twin calipers clamp onto both sides of a disc rotating next to each wheel of a car, slowing it by friction.

The energy of the car's momentum is transformed into heat at the point of the friction, so brakes can get extremely hot. Carbon-ceramic brakes use carbon fiber and ceramic materials that are stable at temperatures that would make steel discs bendable. Performance doesn't diminish, leading to fade, with repeated use.

Carbon-ceramic brakes also typically use larger calipers to spread the clamping force over a wider area, improving braking performance.

Race-car brakes must be warmed before they work properly. For passenger cars, carbon-ceramic brakes must be fully effective immediately. The discs and brake pads are more sophisticated, with carbon fibers arranged to strengthen the disc and conduct heat away from the surface.

Bentley: Demanding case

Weighing 5,258 pounds and capable of 198 mph, the front-engine Bentley Continental GT has "almost certainly the most demanding braking task of any production car," says Brian Guash, Bentley's director of chassis, powertrain and motor sports.

Midengine cars such as the Bugatti Veyron have it easier, Guash says. Their weight distribution means that all four wheels can share more of the braking effort. On the Continental, the front brakes do most of the work.

The Continental GT already had the biggest brake discs in the industry at 16.2 inches. "Now we've broken our own record, with a 420-millimeter (16.8-inch) carbon-ceramic disc, which is half the weight and gives us lower unsprung and rotating masses," Guash says.

The ceramic brakes also have superior fade resistance and improve steering precision, he says. Pad life has tripled, and discs should last the life of the car.

Unsprung weight (UW), - what Papal power says is correct, but other factors also apply;
For example it seems that expensive cars now have Low-Profile tyres, not to reduce UW but to look cool...that they give you a harsh ride is not mentioned, although IMHO, most people would prefer the more comfortable version esp with speed humps. If you drive a lot at speed in Germany it may make sense, but for most it is a pure cosmetic issue.
There is an advantage in having ceramic brakes and brake-parts - you stop before you run out of road. Motorway drivers can sense this effect if they come across a patch of fog/roadworks where the traffic is stationary. No amount of unsprung weight or other GPS gismo's will stop you when brakes fade. The advantage of Ceramic is you can put more energy into the brakes before they fade. I don't know how much, but let's assume about 30% more - the effect is "saving" a few metres - which can be the difference between stopping safely and being an accident-case / writing-off your motor (if you survive).
With Aeroplanes there is another issue: Wheels are stored within the skin of the plane but are not heated*, so on landing the discs are cold and brake-effort reduced. (*it would not surprise me that the tyres are given a blast of hot air prior to lowering the undercarriage, to aid flexibility on impact, but I don't know-so).
If you can stop-shorter on existing runways, then you could carry more cargo - more cargo for notionally the same fuel - so ceramic brakes could save money (for aircraft).

As far as consumer-motorists are concerned I suspect it will never become an option at present road-speeds. Performance cars, yes; but the only case IMHO is 4x4's where their ability to stop is questionable due to their weight. At motorway speeds I suspect stopping is an issue that dare not speak its name. Certainly for any 4x4 that is carrying a full-load and if towing....there is a case to suggest ceramic brakes would be a definate safety issue....this is something for SCE to discuss with Insurance companies, particularly if they can interest ABI in investing in their company.
Lorries, trains etc are also candidates for Ceramic brakes where UW is really not an issue.
As PapalPower says, with larger wheels, even alloys are heavier than the bog-standard steel wheel+tyre, as fitted to the base model.
I talked to a new focus owner and admired his 18k motor, with climate control - but noticed it retains drum-brakes on the rear - well, let's hope he's never fully loaded and the motorway comes to an abrupt halt.

Of course, if Ford would pay for the mould, it would be an easy matter to improve a mass-market car's brakes by fitting ceramic discs to the front only, (with a change in brake-pad etc.). This might improve the brake performance 20-30% but the advantages of UW are unlikely to be recognised by most of us.

However, the reality is that folk with money will be more-likely to pay and I understand it currently cost about 1k5 per wheel, so this means it's not likely to be factory-fitted on anything under 60k and in all probability something over 100k is more like it.

These costs will come down, but the real benefits of this technology are in Aero, where the returns exceed the cost. However, UW is not the real driver IMHO. If ceramic "Added-weight", that would be an minus-point, but the weight-reduction is fairly small maybe a kg per wheel I'm guessing. The difference between a new/worn tyre will be somewhat similar difference.

SCE-Investors should not forget there are other applicaions: eg Rocket parts. Whilst these may appear far-off, it is an area where conventional materials can be replaced and provide a whole new capability. However, SCE's management has to keep the company afloat and seems to be managing reasonably well. The loss of Formula1 was a PR blow, but for the reasons suggested it was never going to be more than a useful wage-payer. I believe the company has sufficient strings now that they should continue, albeit somewhat slower as the name is receiving less exposure.
.Regards.

The big benfit in the Aero application is that the presently required, massive and extremely heavy "heat dissaption pack" can be eliminated.

Airplanes have to have this heat pack, otherwise they would get halfway down the runway on landing and the brakes would fade to nothing.

With ceramics this is eliminated, saving a massive weight which saves fuel, but also you can turn around the planes quicker, due to no requirement for the heat pack to cool down between landing and take off, or aborted take off to next take off. (Obviously you cannot take off with a hot heat pack, just in case you need to brake and abort the take off).

Present strength suggests that the MM's have level books on SCE now. Which will make this illiquid stock very erratic on any demand.

Its also going to limit my stake building, as presently no chance of any lumps a silly cheap prices....

One for a LTBH risk/reward punt, has been, still is and still looking forward to the coming 3 years.

Ticking up again, 2 MM's up since open, now 2 v 1 @26/30.

Hello hello.......this is getting a bit serious now.......bid coming perhaps ?

Not that I would want that, someone could walk away with some serious IP, for a cheap price.........

Given SGL and Audi are looking to cut costs, and SCE has CVIST and MIST and other IP for reducing cost.......you never know.

We are off again, they have shaken some weak holders out for cheap prices, so lets see what the coming weeks brings. News, imo, of some sort, is coming, its due really on the contract/deal front.

http://www.investegate.co.uk/Article.aspx?id=20070305070000P3E1E

5th March 2007

Surface Transforms plc
("Surface Transforms" or "the Company")

Award to a 1.34 million Collaborative R&D Project by the UK Department of Trade and Industry ("DTI")

Surface Transforms is pleased to announce the grant award for a three year, 1.34 million collaborative research and development project. The DTI led Technology Programme has funded a grant of 600,000 to a consortium of companies led by Surface Transforms.

The purpose of the project is to develop new technology and products allowing innovative recycling of carbon waste material for the production of carbon ceramic brake systems for cars and longer wearing carbon brake friction products for use on aircraft.

The Company's partners in this collaborative project are:-

* Milled Carbon Limited (regenerated carbon waste )
* AP Racing Limited (brake systems for high performance cars)
* Dunlop Aerospace Braking Systems Limited (aircraft brake systems)
* Federal-Mogul Friction Products Limited (brake pads)
* The Witchita Company Ltd (industrial brake & clutch products )
* University of Loughborough ( specifications, analysis, testing)

Loughborough University's contribution is funded by the Engineering and
Physical Sciences Research Council "EPSRC".

Airbus UK, whilst not a collaborative partner, will support the project both technically and with the free supply of waste carbon products to serve as raw materials.

Surface Transforms is the lead company and project co-ordinator and will be supplying the proprietary technology relating to the manufacture of carbon ceramic brake discs. The other industrial partners are all technology leaders in their respective fields of innovative friction material technology for use in the transport market and a number of them are already trading partners of Surface Transforms.

The project commenced on 1 March 2007 and the financial impact of the grant award, in terms of a reimbursement of overheads and in cash terms, is expected to be significant. The Directors estimate that in each of the three years of the project, Surface Transforms will benefit by way of a contribution to overheads and improved cash flow of approximately 140,000 per annum.

The project is designed to have an improved economic and environmental impact on the use of friction materials in transport. The levels of waste carbon fibre are increasing rapidly on a global scale as a result of increasing carbon fibre material usage in the design of civil engineering industrial structures,
aircraft and automobiles. Innovative recycling of waste carbon and its
conversion into more cost effective carbon friction products can have very positive financial and environmental benefits especially for the car industry.

At 28 February 2007 the Company's cash resources were 1.22 million equivalent to 9 pence per share and it has no borrowings.

Welcoming the new partnership, Science and Innovation Minister, Malcolm Wicks said:

"The UK has a proud history of innovation in science and technology. We believe that we must work with industry to develop the marketable products and services of tomorrow, so that we can maintain our position as a leading global economy.

"That's why we're supporting this project, which could revolutionise the
recycling of carbon waste material, helping to benefit our environment. It provides a great opportunity to harness the UK's world-class expertise."

Kevin D'Silva, Surface Transform's Chairman, commented: "This is another
material endorsement of the Company's technology and it will have a significant impact on the Company's financial performance and cash flow. We are pleased that the DTI has approved the Company as co-ordinator for this project."

For enquiries, please contact:
Surface Transforms plc 0151 356 2141
Dr. Kevin Johnson
Dr. Geoff Gould
John East & Partners Ltd (Nomad) 0207 628 2200
Simon Clements, David Worlidge
Teather & Greenwood (Broker) 0207 426 9000
Sindre Ottesen

Details of the Company's business and financial performance and its share price can be found on the Armshare icon on www.surface-transforms.com. A presentation of the 2006/7 interim results is also available on www.surface-transforms.com/
Investor and Media relations.

Notes to Editors
About the Technology Programme
The Technology Programme provides funding using two of the DTI's business support products: Collaborative Research & Development and Knowledge Transfer Networks. Over the period 2005-2008, 320 million in funding is being made available from DTI to businesses to support research and development in technology areas identified by the Government's Technology Strategy Board. This funding is increased by contributions from other Government Departments such as Defra (30m), Regional Development Agencies and Devolved Administrations (30m) and Research Councils (26m).

The Programme is investing directly in new and emerging technologies and has been designed to help businesses work collaboratively with each other or with academic partners to develop technologies that will underpin products and services of the future.

In November 2006, DTI announced that, building on its success to date, the Technology Strategy Board would in 2007 become an Executive Non Departmental Public Body taking over responsibility for the delivery of the Technology Programme.

Since 2004, the Technology Programme has supported over 600 projects across 40 technology areas with a combined business and Government investment worth over 900m. 22 Knowledge Transfer Networks (KTNs) have also been established with funding of around 40m over 3 years. For further information: http://www.dti.gov.uk/innovation/technologystrategy.

Other websites:
Surface Transforms plc: www.surface-transforms.com
Dunlop Aerospace Braking Systems: www.dunlop-aerospace.com/braking
Federal Mogul Friction Products Ltd: www.federal-mogul.com/en/OurCompany/
AP Racing Ltd: www.apracing.com
Milled Carbon Ltd.: www.milledcarbon.com
The Wichita Company Ltd.: www.wichita.co.uk
Loughborough University : www.lboro.ac.uk/departments/iptme

Not a good day for news really, however I am sure this will be digested over the coming days and weeks, for it really is signficant in reducing cash burn, and moving SCE ever closer to break even and then profit. All we need now is some more car braking deals to be announced.....

For info on line limits are :

Buy 10K @ 27p

Sell 25K @ 24.5p

So ignore the visual little drop, looks to be false under market weakness and also WINS have disappeared off of L2.


But, pretty darn good news imo ;)

This adds a new element in the cost reduction cycle, to actually use recycled carbon.................very interesting, and the application of this technology if successful will have far reaching consequences in the car industry, and far reaching consequences on the market share and profits of SCE ;) also gives SCE a "green" tinge now, becoming more enviromentally friendly :)

New update from : http://www.armshare.com

Extract below :


.......The interim results to November 2006 showed sales of 116,000 (2005: 68,000) and pre-tax loss of 428,000 (2005: 496,000). The company reported that auto sales had risen to over 50% of total sales vs minimal auto sales in H1 2004/5 - Koenigsegg is taking 2 car sets per month - StopTech, a California based leader in Balanced Brake Upgrades for production cars and production-based racecars, has placed its first production order, which is expected to lead to sales of at least 50 car sets in the first year - SystemST has been selected for the new Ascari A10 supercar which retails for 350,000; a key element of the production process (CVIST) (see October and November 2005, and the 2005/6 final results) is being brought in house at a net cost after grants of 25,000 and is due to be operational in Q3 calendar 2007; ST is moving to larger premises in February 2007 (6 miles from the present location), enabling efficiencies to be generated from all processes being housed together; period end cash was 1.5 million.

A March 2007 update reported the award by the DTI of 600,000 to a 1.34 million 3 year collaborative R&D project lead by ST - the purpose is to develop technology and products allowing innovative recycling of carbon waste material for the production of carbon ceramic brake systems for cars and longer wearing carbon brakes for aircraft - the other 6 partners in the project include AP Racing, Dunlop Aerospace Braking Systems, Federal-Mogul Friction Products and University of Loughborough - whilst not being a formal partner, Airbus UK will support the project both technically and with the free supply of waste carbon products to serve as raw materials. The need for the project arises due to the levels of waste carbon increasing rapidly globally because of increasing carbon fibre material usage in the design of civil engineering industrial structures, aircraft and automobiles - successful recycling of waste carbon and its conversion into more cost effective carbon friction products will have very positive financial and environmental benefits especially for the car industry. The board estimates that the P&L/cashflow benefit of the project to ST will be c140,000 pa over the 3 year programme.

Research Standing

Whilst scarcely visible financially, the company has made very good commercial progress over the last 3 years - further key data for assisting commercialisation should become available during 2007 (see Company Meeting on 8th February 2007 below). ArmShare is an advocate of constructing portfolios comprising at least 80% invested in established businesses combining growth and value and up to 20% in a portfolio of earlier stage higher risk businesses considered to have the potential to develop into the former - Surface Transforms is an obvious candidate for the '20%' category of such a portfolio.

The company's broker note dated 8th February is projecting 2006/7 sales of 300,000 (2005: 155,000).

COMPANY MEETINGS

i) Meeting with Chairman and CEO on 8th February 2007

On 7th February 2007, there was widespread media coverage of the EU's intention to introduce legislation calling for the reduction of car emissions to 130 gms per kilometre - luxury car/supercar emissions are very significantly in excess of this figure. Reducing unsprung weight is considered to be able to make a meaningful contribution to assisting manufacturers towards achieving this target - System ST makes a meaningful contribution to reducing unsprung weight as well as improved braking. The company has a programme under way which is intended to measure a) the impact of reducing unsprung weight on reducing emissions and b) the impact of using System ST on lifetime costs of vehicle ownership - the results are expected to be available by the end of 2007.

ii) Attendance at AGM on 19th October 2006

A copy of the presentation made at the AGM can be accessed by clicking on Company Website above, Investor & Media Relations and Investor Presentations. Further information emerging from the Q&A was:

a) at the beginning of 2006, product development in the automotive division resulted in significantly improved wear characteristics. This development also applies to aircraft braking systems. It is likely to assist in developing attractive value propositions for both markets - see b).

b) feedback from Koenigsegg customers and the test driver is that SystemST improves the controllability of these very powerful cars. Data is being collected re stopping distances, wear rates and the benefits of reduced unsprung weight in order to develop a quantified value proposition - it seems likely that this will be based on reduced life time cost.

c) for the aircraft market, the development projects are expected to take 3 to 4 years, with revenues to ST being modest to start with and growing significantly in the later stages of the programme. ST is c.18 months into its leading aircraft brake programme. "

For those interested I have created an Information Folder, which is available at :

http://www.esnips.com/web/SurfaceTransformsInfo


Anything new that comes my way, I will add to that folder. I have been forwarded, with thanks to another, with some nice photo's of some of the cars at the Geneva motor show, which is ongoing now, fitted with System ST braking from Surface Transforms. You'll find this in the folder above under "Geneva 2007.PDF".

http://www.investegate.co.uk/Article.aspx?id=20070411070000P2B33

11 April 2007 Surface Transforms plc
("Surface Transforms" or "the Company")
Appointment of secondary Broker

The Company announces that Redmayne-Bentley Stockbrokers ("Redmayne-Bentley"),
one of the UK's largest regional stockbrokers, has been appointed broker to the
Company with immediate effect.

Redmayne-Bentley, headquartered in Leeds, have 32 regional offices and will act
as the secondary broker to Surface Transforms serving our private client
investors. Teather and Greenwood continues as the Company's main broker serving
our institutional investors.

Kevin D'Silva, Chairman, commented:

`We are very pleased with this appointment because we take our investor
relations obligations seriously. Redmayne-Bentley's role is to provide research
aimed at private client stockbrokers and this will raise our profile with
private investors as they will now have access to additional analysis and
coverage on the Company.'

For enquiries, please contact:
Surface Transforms plc 0151 356 2141
Dr. Kevin Johnson
Mr. Geoff Hall

Redmayne-Bentley 01943 886 600
Lucy Clapham
Simon Flather

Teather & Greenwood (Broker) 0207 426 9000
Sindre Ottesen

John East & Partners Limited (Nominated Adviser) 0207 628 2200
Simon Clements

Details of the Company's business and financial performance and its share price
can be found on the Armshare icon on http://www.surface-transforms.com. A presentation of the 2006/7 interim results is also available on http://www.surface-transforms.com/ Investor and Media relations.

Archive Folder Updated with a new item :


http://www.esnips.com/web/SurfaceTransformsInfo/





SCE article is written up on this link :

http://www.autofieldguide.com:80/columns/0407euro.html

High-Tech Brakes April 2007

This British firm produces materials that are used in aircraft and exotic vehicle applications. But that may be just the start of it.

By William Kimberley, Editor

Automotive Engineer, London, England

Surface Transforms (www.surface-transforms.com; Ellesmere Port, Cheshire) is one of the UKs leading manufacturers of next-generation carbon fiber reinforced ceramic composite materials (CRFCs). They are designed to replace traditional carbon-carbon products on aircraft by offering an improved product lifetime, thereby increasing the number of landings that can be performed between maintenance schedules. Its products can be found on rocket propulsion systems and as a replacement for conventional technical ceramics for use in body and vehicle armor. They can also be found on high-performance cars. Formed in 1992, Surface Transforms originated out of the Advanced Materials group of ICI when four former employees bought the intellectual property rights to the materials technology. Initially, and for quite a lengthy period of time afterwards, it served as a research and development company. Initial projects were funded programs that looked at various applications including aerospace and railway carriage braking. It even started to become involved in Formula One. However, the timing was unfortunate because the company initiated the project just at the time when the FIA, the sports governing body, was in the process of banning carbon ceramics on Grand Prix cars. Surface Transforms duly refocused its efforts on fitting its brakes to high-performance road cars.
As a result, Surface Transforms System ST brakes can now be found on the Koenigsegg supercar as an option on the CCX, which was launched at last years Geneva Show and on the CCGT that was launched at this years show, the $600,00 Ascari A10, and a new supercar from Weber Sportcars. Altogether, System ST is now fitted to more than 15 different car platforms. Surface Transforms is also working in partnership with StopTech, a California based leader in balanced brake upgrades for production cars and production-based racecars, to promote the adoption of carbon ceramic brakes on high-performance cars in the U.S. market. An annual supply contract has not yet been signed, yet both companies forecast that in the aftermarket between 50 and 100 car sets will be required in the next 12 months. StopTech has placed the first production order and will soon be offering the System ST ceramic brake disc on selected vehicle offerings.

Continuous carbon fiber is said to be advantageous in brake applications.
Carbon ceramic brake technology was really brought to the market by three cars that were launched, utilizing the technology at a similar timethe Ferrari Enzo, Porsche Carrera GT and the Mercedes McLaren SLRand Surface Transforms had the appropriate technology, says Antoni Sznerch, Surface Transforms business development director. Unlike carbon-carbon brakes, carbon ceramics do not need to be hot to work, they work optimally from cold while offering significant weight saving over traditional iron rotors. They also have negligible wear in normal use. The fundamental difference between the brake discs that are fitted to these three cars and Surface Transforms technology is that they are manufactured using discontinuous carbon fiber, where our discs are made of continuous carbon fiber. This means that their mechanical integrity should be superior because the strength of carbon lies in the direction and length of the fiber.

Surface Transforms manufactures and supplies 3D multi-directional carbon fiber and oxidized PAN (polyacrylonitrile) preforms to suit a variety of engineering applications. Carbon fiber preforms are mats of interwoven multi-directional carbon fibers and are the basic materials that Surface Transforms converts into ceramic brakes and discs using its patented technology. By developing our discs and pads from our pad partner, we provide a balanced and high-performance complete friction couple, says Sznerch. We use what could be called a traditional nought/90 fiber orientation. However, our raw material is carbon fiber precursor which has 30% elongation in the fiber before it will break whereas carbon fiber only has 2%. This 30% elongation allows us to needle the fibers together so that we not only have the nought/90 orientation but also have the fiber in the Z direction through the material bundle and that is what binds the fibers together. It would be physically impossible to do this with traditional carbon and can only be done at the precursor stage. We convert the precursor to carbon fiber then we crack methane and convert the carbon to carbon-carbon.

The final stage of manufacture is to convert the carbon-carbon to carbon silicon carbide. The carbon that we crack from methane infills around the fiber that is then converted to silicon carbide. In this way we end up with a carbon silicon carbide disc with good mechanical integrity. Because we machine our discs to shape as opposed to shaping them in a mould we have great flexibility in the design and dimensions of the disc.

We are now going through the phase of transforming an R&D company into a more commercial manufacturing one, says Sznerch. We are a materials technology company looking for commercial applications. The company philosophy and strategy is twofold. One is that we dont see ourselves as a large volume manufacturer of automotive brake discs and are looking for licensed manufacturers for the long term. Aircraft brakes, currently, in the main are carbon-carbonmetal brakes are now less common on new aircraftand we are looking to license our technology to carbon-carbon manufacturers. This has a good strategic fit because our siliconization process can be added onto the tail end of their existing process. A licensed automotive manufacturer will be a little bit different because it would need a more complete manufacturing package. However, we have intellectual property rights for the main core of three critical processes, starting with the raw material, how its put together, then the carbonization stage followed by the siliconization process.

The companys research capabilities are recognized by the UK government with the announcement in March that it had won a multi-million dollar grant as the lead company and project coordinator in a collaborative R&D program to develop new technology and products allowing innovative recycling of carbon waste. The levels of waste carbon fiber are increasing rapidly on a global scale as a result of increasing carbon fiber material usage in the design of civil engineering industrial structures, aircraft, and automobiles. The project is designed to have an improved economic and environmental impact on the use of friction materials in transport through the innovative recycling of waste carbon and its conversion into more cost-effective carbon friction products which can have very positive financial and environmental benefits especially for the car industry.

Details of cars in April 07 Monaco Supercar show with System ST brakes on :


http://www.systemst.com/downloads/news/TopMarques2007.pdf



.

Also, if anyone is attending the UK Shareholders Association meeting thats ongoing in Banbury, then a write up of the Surface Transforms presentation would be good (as they are one a few companies doing a presentation at the event).

Event details : http://www.uksa.org.uk/InvestFest.htm

Surface Transforms PLC 15 May 2007


Surface Transforms Plc
('Surface Transforms')
Race Tech Article

Set out below is a summary of an article written and recently published by
William Kimberley, the editor of Race Tech - the UK's principal motor sports
engineering magazine.

Surface Transforms, a leader in carbon ceramic composite technology, is changing from an R&D company into a commercial manufacturing organisation.

SURFACE TRANSFORMS is one of the UK's leading manufacturers of 'next-generation' carbon fibre reinforced ceramic composite materials (CRFCs).

Its SystemST brakes can now be found on the Koenigsegg supercar - as an option
on the CCX, which was launched at last year's Geneva Show, and on the CCGT
launched at this year's show. They are also on the Ascari A10 and a new supercar from Weber Sportcars. Altogether, SystemST is now fitted to more than 15 different car platforms.

Surface Transforms is also working in partnership with StopTech, a California
based U.Sleader in balanced brake upgrades for production cars and
production-based racecars, to promote the adoption of carbon ceramic brakes on
high-performance cars in the US market. An annual supply contract has not yet
been signed yet both companies forecast that in the aftermarket between 50 and
100 car sets will be required in the next 12 months. StopTech has placed the
first production order and will soon be offering the SystemST ceramic brake disc on selected vehicles.

The full article can be found on the home page of www.surface-transforms.com

Surface Transforms plc

Antoni Sznerch Tel: 0151 356 2141 as@surface-transforms.com

Redmayne Bentley note added to the Web Folder :

http://www.esnips.com/web/SurfaceTransformsInfo/


.

Papal Power, it's obvious you are v.keen on this co, but the Market sees some distinct flaws in the SCE business plan - indeed as soon as any good news is released the shares spike up then fall down lower...currently 17p-ish
I wonder how much longer they can survive on one brake kit per week....surely we have to be seeing volume soon?
Only then will there be a chance of profit and further development, which would reduce their exposure to Aero (very much All or Nothing) and prestige Cars which amounts to (nearly) nothing in turnover/profits.
SCE has some Military exposure, but this is low-key and we know the MOD never spends money.
My original holding was in 2002 and I don't think I shall ever see that sp again.

hangon, military is nothing.

Brakes should gradually increase, they need 2000 disks a year to break even on just car brakes........thats 500 cars worth. They are doing trials, and these will continue, it all takes time.

Roxel rocket parts should add greatly to the bottom line in the 2009 financial year and onwards from that.

Aero brakes should again come in more and more as we go through 2009 to 2010.

Therefore, this year should be another large loss, next year has the potential for a small loss or perhaps even break even should they get a deal with a smaller OEM.

2009 should see a profit.

Case of waiting and seeing what happens.

From the small free float, you can be sure that should a large contract come in, or brakes on cars, or rocket parts or the Aero brakes goes forward more, you WILL see that SP and even higher, so keep those fingers crossed and be patient for another 18 to 24 months, if not before.

Nice news, more revenues.....all good stuff.


http://www.investegate.co.uk/Article.aspx?id=20070625070000PED48



.

Nice to see a placing at FULL offer price :

http://www.investegate.co.uk/Article.aspx?id=20070731070500P881E

31 July 2007

Surface Transforms Plc

("Surface Transforms" or "the Company")

Proposed placing of 5,000,000 new ordinary shares of 1p each at 20p per share

The Company announces that John East & Partners Limited ("John East &
Partners"), on behalf of the Company, has placed 5,000,000 new ordinary shares
("the Placing Shares") at 20p per Placing Shares with institutional and other
investors ("the Placing"). The Placing is conditional, inter alia,........................


******************************************************************

Also, very positive talking results :

http://www.investegate.co.uk/Article.aspx?id=20070731070000P5A64

...............CHAIRMAN'S STATEMENT

In the 12 months to 31 May 2007, two principal challenges were addressed by the
Company's management and I am pleased to report that significant financial and
operational progress has been made in meeting them. The challenges were:

* to gain at least one other significant automotive brake contract to operate
alongside the supply contract with Koenigsegg Automotive of Sweden; and

* to improve the production efficiency of ceramic brake discs and lower their
unit cost.

The Company starts the 2007/8 financial year with a greater degree of financial
security; a record order bank and three automotive clients who are purchasing
ceramic brake discs on a regular basis. In summary the key achievements in the
period under review were:

* two new aftermarket automotive clients: StopTech Inc and Mov` it Gmbh now
purchase discs regularly alongside Koenigsegg Automotive;

* the factory relocation was completed in April 2007 and as a result
operating efficiency has improved;

* ceramic brake disc costs are now 25 per cent. below the levels of 2006/7
and further reductions will arise when the proprietary carbon densification
process, CVIST, comes on stream, which is expected to be in the third
quarter of 2007;

* the award by the DTI of a three year 1.34 million Collaborative R&D
Project. The award represents a contribution to overheads and an improved
cash flow of 140,000 per annum over three years;

* a paid development agreement with a European aircraft brake system
supplier; and

* paid development work from two new rocket component clients (Rolls-Royce
PLC and MBDA).

Latest update on http://www.armshare.com


......................sales during the first 2 years of the contract, equivalent to approximately 25 cars pa - Movit has already placed orders worth c.31,000, most of which will be delivered over the next 30 days.

The final results to May 2007 showed sales of 268,000 (2006: 155,000) and pre-tax loss of 782,000 (2006: (982,000)). The company reported that automotive brakes accounted for over 50% of sales - improved purchasing of materials has already reduced the direct cost of an automotive brake disc by 25% compared to 2006/7 and the completion of the CVIST plant (due for commissioning in Q3 2007) is expected to reduce costs further, with an overall 50% reduction being targeted compared with 2006/7 - the plant will cost c.225,000, of which c.200,000 is covered by grants; re rocket components, in addition to Roxel, both Rolls-Royce and MBDA Missile Systems have commissioned paid development work; year end cash was 879,000.

In July, 1.0 million was raised via a placing at 20p per share, subject shareholder approval - the purpose is to fund the necessary capital investments to continue and accelerate product development and provide additional working capital.


Research Standing

Whilst scarcely visible financially, the company has made very good commercial progress over the last 3 years - further key data for assisting commercialisation should become available during 2007 (see Company Meeting on 8th February 2007 below). ArmShare is an advocate of constructing portfolios comprising at least 80% invested in established businesses combining growth and value and up to 20% in a portfolio of earlier stage higher risk businesses considered to have the potential to develop into the former - Surface Transforms is an obvious candidate for the '20%' category of such a portfolio.

An updated broker note is being obtained.



COMPANY MEETINGS

i) Meeting with Chairman and CEO on 8th February 2007

On 7th February 2007, there was widespread media coverage of the EU's intention to introduce legislation calling for the reduction of car emissions to 130 gms per kilometre - luxury car/supercar emissions are very significantly in excess of this figure. Reducing unsprung weight is considered to be able to make a meaningful contribution to assisting manufacturers towards achieving this target - System ST makes a meaningful contribution to reducing unsprung weight as well as improved braking. The company has a programme under way which is intended to measure a) the impact of reducing unsprung weight on reducing emissions and b) the impact of using System ST on lifetime costs of vehicle ownership - the results are expected to be available by the end of 2007.

ii) Attendance at AGM on 19th October 2006

A copy of the presentation made at the AGM can be accessed by clicking on Company Website above, Investor & Media Relations and Investor Presentations. Further information emerging from the Q&A was:

a) at the beginning of 2006, product development in the automotive division resulted in significantly improved wear characteristics. This development also applies to aircraft braking systems. It is likely to assist in developing attractive value propositions for both markets - see b).

b) feedback from Koenigsegg customers and the test driver is that SystemST improves the controllability of these very powerful cars. Data is being collected re stopping distances, wear rates and the benefits of reduced unsprung weight in order to develop a quantified value proposition - it seems likely that this will be based on reduced life time cost.

c) for the aircraft market, the development projects are expected to take 3 to 4 years, with revenues to ST being modest to start with and growing significantly in the later stages of the programme. ST is c.18 months into its leading aircraft brake programme.

July 31 Placing at 20p raised nearly 900 grand after expenses....at some dilution to ordinary folk - wow, this has been a long slide.
The money will be used to Accelerate the business - ho! ho!

hangon, what was the offer price ? 20p........so not that bad raising money at full market offer price.

Those investing must have been happy with the business plan, as they took stock at full market offer price, when the bid price was 14p.

So either they are happy to lose 6p a share for "ho ho ho".......or things are about to turn.

My target remains 200p by 2010........lets see.

Well, certainly there must be a buyer in the market, so someone liked the recent news of progress and funding.


On line limits are looking strong, which is most unusual for SCE.

BUY 5K @ 23.25p

SELL 15K @ 22.5p

Good news from todays EGM :


Surface Transforms Plc

("Surface Transforms" or "the Company")
Extraordinary general meeting statement

At the extraordinary general meeting of Surface Transforms to be held at 12 noon today the Chairman will make the following statement:

"I would like to provide the shareholders of the Company with an update of trading during the first two months of the 2007/2008 financial year. Both turnover and operating margins have exceeded budgeted expectations and the Company's order bank as of 22 August 2007, defined as received orders scheduled for delivery prior to 31 May 2008, was 211,000 (31 May 2007: 126,000)."

Never read this one before, but a nice summary of SCE.


http://simindia.org/articles/2007/06


High-tech brakes: this British firm produces materials that are used in aircraft and exotic vehicle applications. But that may be just the start of it

Categories: Aircraft

Posted on Thursday, June 28, 2007 by Simindia Admin

Surface Transforms (www.surface-transforms.com; Ellesmere Port, Cheshire) is one of the UKs leading manufacturers of next-generation carbon fiber reinforced ceramic composite materials (CRFCs). They are designed to replace traditional carbon-carbon products on aircraft by offering an improved product lifetime, thereby increasing the number of landings that can be performed between maintenance schedules. Its products can be found on rocket propulsion systems and as a replacement for conventional technical ceramics for use in body and vehicle armor. They can also be found on high-performance cars. Formed in 1992, Surface Transforms originated out of the Advanced Materials group of ICI when four former employees bought the intellectual property rights to the materials technology. Initially, and for quite a lengthy period of time afterwards, it served as a research and development company. Initial projects were funded programs that looked at various applications including aerospace and railway carriage braking. It even started to become involved in Formula One. However, the timing was unfortunate because the company initiated the project just at the time when the FIA, the sports governing body, was in the process of banning carbon ceramics on Grand Prix cars. Surface Transforms duly refocused its efforts on fitting its brakes to high-performance road cars.

As a result, Surface Transforms System ST brakes can now be found on the Koenigsegg supercar as an option on the CCX, which was launched at last years Geneva Show and on the CCGT that was launched at this years show, the $600,00 Ascari A10, and a new supercar from Weber Sportcars. Altogether, System ST is now fitted to more than 15 different car platforms. Surface Transforms is also working in partnership with StopTech, a California based leader in balanced brake upgrades for production cars and production-based racecars, to promote the adoption of carbon ceramic brakes on high-performance cars in the U.S. market. An annual supply contract has not yet been signed, yet both companies forecast that in the aftermarket between 50 and 100 car sets will be required in the next 12 months. StopTech has placed the first production order and will soon be offering the System ST ceramic brake disc on selected vehicle offerings.

Carbon ceramic brake technology was really brought to the market by three cars that were launched, utilizing the technology at a similar timethe Ferrari Enzo, Porsche Carrera GT and the Mercedes McLaren SLRand Surface Transforms had the appropriate technology, says Antoni Sznerch, Surface Transforms business development director. Unlike carbon-carbon brakes, carbon ceramics do not need to be hot to work, they work optimally from cold while offering significant weight saving over traditional iron rotors. They also have negligible wear in normal use. The fundamental difference between the brake discs that are fitted to these three cars and Surface Transforms technology is that they are manufactured using discontinuous carbon fiber, where our discs are made of continuous carbon fiber. This means that their mechanical integrity should be superior because the strength of carbon lies in the direction and length of the fiber.

Surface Transforms manufactures and supplies 3D multi-directional carbon fiber and oxidized PAN (polyacrylonitrile) preforms to suit a variety of engineering applications. Carbon fiber preforms are mats of interwoven multi-directional carbon fibers and are the basic materials that Surface Transforms converts into ceramic brakes and discs using its patented technology. By developing our discs and pads from our pad partner, we provide a balanced and high-performance complete friction couple, says Sznerch. We use what could be called a traditional nought/90 fiber orientation. However, our raw material is carbon fiber precursor which has 30% elongation in the fiber before it will break whereas carbon fiber only has 2%. This 30% elongation allows us to needle the fibers together so that we not only have the nought/90 orientation but also have the fiber in the Z direction through the material bundle and that is what binds the fibers together. It would be physically impossible to do this with traditional carbon and can only be done at the precursor stage. We convert the precursor to carbon fiber then we crack methane and convert the carbon to carbon-carbon.

The final stage of manufacture is to convert the carbon-carbon to carbon silicon carbide. The carbon that we crack from methane infills around the fiber that is then converted to silicon carbide. In this way we end up with a carbon silicon carbide disc with good mechanical integrity. Because we machine our discs to shape as opposed to shaping them in a mould we have great flexibility in the design and dimensions of the disc.

We are now going through the phase of transforming an R&D company into a more commercial manufacturing one, says Sznerch. We are a materials technology company looking for commercial applications. The company philosophy and strategy is twofold. One is that we dont see ourselves as a large volume manufacturer of automotive brake discs and are looking for licensed manufacturers for the long term. Aircraft brakes, currently, in the main are carbon-carbonmetal brakes are now less common on new aircraftand we are looking to license our technology to carbon-carbon manufacturers. This has a good strategic fit because our siliconization process can be added onto the tail end of their existing process. A licensed automotive manufacturer will be a little bit different because it would need a more complete manufacturing package. However, we have intellectual property rights for the main core of three critical processes, starting with the raw material, how its put together, then the carbonization stage followed by the siliconization process.

Someone in for 22.5K at 22p this morning. Which is strange as there should not be that many spare on the MM books, so they must have sold themselves short and hope to square their books with some weak holders ?


On Line Limits are :

BUY 100 @ 21.5 (yes just 100 shares)

SELL 25K @ 19p



Which tends to confirm that view.

Well thats one of the new institutional holders (and 1.675m of the new shares accounted for).

Not forgetting that the shares were placed at 20p (when the actual price for bid and offer were lower - not often you get placings on AIM that are over the offer price, most struggle to even match the bid price)


28 August 2007

Surface Transforms Plc

("Surface Transforms" or "the Company")

Holdings in Company

The Company has been notified that as at 28 August 2007, following the recent
placing, Gartmore Investment Limited holds 1,675,000 ordinary shares,
equivalent to 8.80 per cent. of the issued voting share capital of the Company.
The shares are registered in the name of Gartmore Growth Opportunities plc.

PP
I can't see any point in trying to spend time looking to buy as the turnover is so dismal and the spread is massive. Liquidity is so trivial that not only can't you buy but you would be stuffed trying to sell(which to me is more to the point)

coeliac1, its an investment, not a trade. For those wishing too, like me, buy a stake and hold for the future, it offers potential.

For those looking to buy and sell in 3m or 6m........then unless major news comes (which it could) then its a bit too illiquid,

The StopTech CCBS is of course System ST from Surface Transforms, under their agreement.


http://www.duemotori.com/news/auto_accessories/16403_StopTech_Carbon_Ceramic_Brake_System_makes_its_supercar_debut_on_Callaway_C16_Speedster.php

StopTech Carbon Ceramic Brake System makes its supercar debut on Callaway C16 Speedster

StopTech has been working in conjunction with Callaway to develop the ultimate brake system for Callaway's most exclusive vehicle.................................................

An interesting article, well it would be if the link to it was working. Can only get the header info, but the article is 1st October 2007. Anyone seen the full article, and also the implications of its content ?

I am wondering if its to do with the "study" on fuel consumption + carbon emissions and the reduction in weight (rolling and total too) associated with utilising carbon ceramics. If it is then this is good news, as a confirmed report will enable SCE to push the "green" side of reducing carbon emissions, alongside the performance improvement aspects :


http://www.koenigsegg.com/news/articles.asp?news=189&type=written

Koenigsegg goes green together with Surface Transforms plc.

Read the interesting article how exotic super cars and Formula 1-cars can help to improve the environment.

RNS today:

Surface Transforms Plc
Trading Statement and Update

The Company announces that trading in the six months ended 30 November 2007 was
in line with management's expectations.

Turnover for the period was significantly higher than the corresponding period
last year and cash balances at the period end were 1.6 million (2006: 1.47
million) equating to 8.4 pence per share. Sales of automotive discs to the high
performance and race car markets represent the majority of the turnover
generated in the period.

The Company has a strong forward order book and expects to report the interim
results for the six months ended 30 November 2007 in early February 2008.

Yep, all seems to be going to plan ok.

Early this year, lets hope for something encouraging, like moving a lot closer to break even.



25 January 2008

Surface Transforms plc

Notice of interim results

The Company announces that it will be releasing its interim results for the six
months ending 30 November 2007 on 31 January 2008.

ENQUIRIES:

Surface Transforms plc Tel: 0151 356 2141
Kevin Johnson Tel: 07802 306956
Kevin D'Silva

John East & Partners Limited (Nomad and Broker) Tel: 020 7628 2200
Simon Clements
David Worlidge

Redmayne Bentley (Private client broker) Tel: 01943 886600
Lucy Clapham
Simon Flather

Another new sports car with the SCE System ST braking system as optional, all good news, the more that use it, the more popular and more well known it becomes.

Report is below from 10th Jan 2008 :

http://www.surface-transforms.com/resource.php?id=92


*****************************************************

With regards to the coming results, everyone knows they will make another loss, the key here will be, hopefully, a much reduced loss. Obviously everyone is going to be looking for increasing sales volume.

I will be looking for any mention of the "MIST" process, which was being implemented, this was due to offer cost reductions, and that at the end of the day is the key to mass volume, bringing the price levels down. So any mention of that will be welcomed. They do have another process "CVIST" or something, but as far as I can remember that one is more expensive to implement.

Mention of progress on the aircraft brake testing programme would be nice, lots of irons in the fire, but these things take many years and the bigger money is in the final periods, so at present most are still early to mid stage, and so not contributing much to revenue.

They were also doing tests on whether the change to carbon ceramic discs would reduce carbon emissions, therefore gaining the "green" badge and also this being another useful "sales point" for the adoption of carbon cermaic systems across a broader range of top end vehicles, so potential for some news on that perhaps.

Personally I think that the results being a month earlier than normal tends to suggest the figures will be good, certainly not near breakeven, but should be a lot closer than they were last time around.

Not too much info in the results.

Rocket propulsion systems will start to have a major effect on the bottom line in 2009, and growing annually then.

It would appear that yes the slow sales to the USA is a drag.

Shame no mention of MIST or anything else, will have to wait for the prelims then.

All in all, all is going well.

As per my postings for some time now, like years, Rocket systems signficant sales should come on line 2009 onwards, with aircraft braking having a considerable influence from 2010 onwards.

Provided they keep growing the car braking systems, I'd expect them to break even 2009, and then onwards and upwards for profits.

There is a Webcast (Webcon) that people can take part in, its on the 6th of March. To register to get the instructions on how to take part, go to the Armshare.com web site.


If you go to http://www.armshare.com/index.php

Then go to "Content Update" you can register there.


Upcoming Webcons

Surface Transforms (SCE) Thursday 6th of March 2008 1:00 PM

Nice to see, and as I said earlier, from 2009 onwards the rocket systems side should be delivering decent revenues. This small contract is all part of the process, and we should see more of these deals as we move onwards.



http://www.investegate.co.uk/Article.aspx?id=20080218070000P1123

18 February 2008

Surface Transforms plc

("Surface Transforms" or "the Company")

New Contract

Surface Transforms (AIM:SCE) is pleased to announce the award of a 3 year
contract with a value of 150,000 from MBDA, which is owned jointly by BAE
Systems, EADS and Finmeccanica and is one of the largest missile manufacturers
in Europe.

The contract with MBDA is linked to the development of a novel attitude control
system applicable to a range of future European missiles. The work will
characterise material design properties of carbon-ceramics in missile
components including at very high temperatures and develop alternate low-cost
manufacturing routes culminating in the manufacture of test component
demonstrators.

The work will be supported jointly by the UK and French Ministries of Defence
as part of the Innovation and Technology Partnership ("ITP") on Materials and
Components for Missiles.

Commenting, Kevin Johnson, Chief Executive of Surface Transforms, said:

"Earlier work with MBDA over the past two years has shown that carbon-ceramic
is now a strategic material which gives significant performance advantages over
carbon-carbon and huge weight savings over advanced metal alloys. We can
deliver distinct cost benefits with improved performance using our proprietary
technology."

The Directors believe Surface Transforms is the only UK supplier of this
strategic material. The material is derived from the Company's core business in
automotive ceramic brakes. The desire for lower cost high quality products has
led the Company to invest significant time and money in its technology in order
to improve the manufacturing process while reducing the material production
cost. The IPR for the Company's carbon-ceramic products relates to the
combination of three key process stages: carbon fibre pre-forms, carbon matrix
CVI, and silicon melt infiltration. The Directors believe whilst there are two
European competitors in automotive ceramic brakes neither use this high
mechanical integrity 3-stage route developed by Surface Transforms.

From Armshare Website. A good forum for anyone wishing to ask questions about braking systems, for cars and planes, rocket solutions, nuclear reactor potentials etc.... 6th March 2008.

"Dear ArmShare reader,

I am contacting you in my capacity as editor of ArmShare because you have elected to receive email alerts re Surface Transforms. The latter is hosting a webcon on 6th March at 13.00 to discuss the half year results and provide a trading update - essentially this is the equivalent of an institutional investor presentation delivered via a conference phone call whilst the powerpoint presentation is displayed on your computer screen, with the pages being turned by the presenting company. You can register on http://www.armshare.com to join the webcon by going to the Content Update page - you will see an Upcoming Webcons section near the top of the page, where you click on Register alongside Surface Transforms, and then complete and submit the resulting page - a few days before the webcon, you will be emailed instructions on how to join the webcon.

In my opinion, webcons are the best use of computing and telephony to date to make a major and straightforward contribution to levelling the playing field between private and institutional investors. I am therefore very keen to help private investors use this interactive communication tool - if you have any queries arising from the above or encounter any difficulties with registering, do contact me.

Regards

Charles Breese

Editor of ArmShare

T: 01280 703482"

Post from AFN :

longshanks - 6 Mar'08 - 15:22 - 598 of 608

Must say it was a very good web conference. Quite illuminating. Pity that only 9 people (other than directors) listened in.

Anyone else take part?

Answered quite alot of my questions.

There is a new note due out from their Private Client Stockbroker but salient points for me were:

1. Looking to break-even in 18 months time

2. Cash burn currently 50K/month

3. They have started selling carbon-fibre preforms (December 2007)

4. They expect to announce a new automotive OEM customer imminently for a batch of 400 special edition cars [I think we know which ones]

5. Aircraft brakes still progressing but at pace of system suppliers. ST is currently uniquely qualified to provide Carbon-Ceramic materials due to requirements for physical integrity. First flight using these type of brakes is still a way off though - probably 2011 at earliest.

6. When they do fit brakes to aircraft the income to ST will be 300K per plane per year!!

7. They are very open to anyone interested in making an offer as they see this as a clear exit strategy for the business. However they will only consider offers that reflect their perceived future prospects which - from the presentation - were MASSIVE.

(sp 9p today - Grief!)

Massive, huh?
Well the Market Cap has lost 25% today - presumably some can't wait for the Jam Tomorrow.
This business has been a serial disapointer and the sp says it all . . . what is management thinking of, suggesting a Sale? - Let's see some trading profits and dividends before you sell us down the river - please.
/
If current Management isn't up to the job ( maybe that's it?), then step aside and let someone else move the business on. There was too much reliance on Racing (which stopped(!) when the F1-rules changed), and thoughts of Aircraft, whose design-time is in decades - so where were the potential sales?
Ah yes . . . .that's it; they were quite few and Small.

Presumably a Sale would trigger Exec Bonuses? - Grr!

hangon, someone sold for the tax year end loss I think, 135K @ 7p.

SCE is going nowhere until 2010, that was my original timing plan, and remains so.

2009 financial year will see the rocket side contribute a decent size, and build for 2010.

No one for short termers..........thats for sure.

2 Holdings RNS's.

First Gresham House buying in.

Second we have C.Gledhill Ltd taking Gartmores holding.


C.Gledhill is interesting as it leads to Gledco.

http://www.usggledco.co.uk/

.

From a post on III. Perhaps we have someone wanting to take a larger stake in the company.


News Soon?

22 May 2008, 21:19:00

By bdaonion: Following the recent announcements regarding holdings, on line limits are 2,500 to buy and 100,000 to sell. Normally you are lucky to sell 10,000 which seems to indicate someone wants to add to their holdings, or a new buyer is out there. Either way looks like some positive action is ahead.

Couple of posts on AFN :


longshanks - 8 Jun'08 - 22:05 - 675 of 676
Interesting article that I came across, written by Paul Markillie, innovation editor of The Economist.

http://www.moreintelligentlife.com/story/screech

Bit that got my attention was:

As cars have got more powerful, their braking performance has had to improve. Carbon-ceramic brakes will slowly make the journey, from super cars to luxury cars and, eventually, all the way down to the Renault Clio. This is because not only do they excel at the main job of stopping a car, they also help in other ways too.



PapalPower - 9 Jun'08 - 04:01 - 676 of 676
Longshanks, high oil is a mixed blessing. Short term its not good for SCE as demand for super cars declines a bit.

Longer term it is the driver needed to get carbon ceramic brakes on to cars, and also airplanes.

Apart from the obvious braking enhancement, a major upside is reduced weight. Reduced weight = higher fuel efficiency = cheaper running costs.

Therefore, the higher the oil price goes, the quicker the ROI for carbon ceramic brakes is, and so the more likely thats its adoption becomes more widespread.

The weight savings on airplanes is much more than cars, as the massive heat sinks on normal brakes are no longer needed on carbon-ceramic. Therefore, as aviation fuel price rises, the ROI on conversion to carbon-ceramic becomes more quick, and there is a case for conversion of old, as well of course as for brand new places.

Hopefully, in the shorter interim period the sales of rocket propulsion system components can fill what might be a downturn for brakes in cars (and its due to be significant for the first time in 2009 onwards), and then we can see more widespread car brake sales as oil prices cut harder, and the first signs of aircraft orders.

A nice article to read :

http://www.surface-transforms.com/resource.php?id=116


.

From a post on AFN commenting on a article in Sundays Mail, it looks like SCE will be announcing some news this week.


"distill - 29 Jun'08 - 23:42 - 687 of 690

no links as in paper but the jist

F1 deal could be the big break for disc firm

Supercar componant supplier Surface Transform will this week announce a deal to provide a major manufacturer of high performance braking systems to F1 GP2 and Le-mans racing teams
The aim listed company will announce the deal with the as yet unnamed firm which is a supplyer of the ferrari formular 1 team among others......................................ST produce carbon ceramic brakes discs under the System ST brand these can withstand the extreme temparatures created by performance cars..........already supplies Koenigssegg and brtish 2seater sports car maker Avocet...........

No names but 300K to 400K a year.

SCE only need circa 1m a year to break even, so that, on top of other braking sales, development contracts and also we hope, rocket system sales coming on stream in 2009 - well, looking very good imo.


And as ever, in the auto industry, more deals and higher profile leads to.........more deals........the snowball effect.


http://www.investegate.co.uk/Article.aspx?id=20080630070000P1C63


30 June 2008
Surface Transforms plc

("Surface Transforms" or the "Company")

Four year agreement to supply a leading global automotive brake system supplier

Surface Transforms (AIM: SCE) is pleased to announce the signing of a four year
sales agreement with a leading global automotive brake system supplier for the
supply of carbon fibre preform discs.

The directors believe, based on forecasts prepared by the brakes system
supplier, that this contract could generate additional revenues of
approximately 300,000 - 400,000 per annum over the life of the agreement and
the Company has sufficient manufacturing capacity to meet this demand.

The Company has delivered its first order under the terms of this agreement in
the second quarter of 2008.

Commenting, Dr Kevin Johnson, Chief Executive of Surface Transforms, said:

"This agreement demonstrates that Surface Transforms has the expertise in
advanced carbon fibres, and industrial fabrics which can provide a competitive
edge in composite brake technology and takes our leading-edge products into the
forefront of the international automotive performance brake market. The
expected revenue from this agreement is significantly greater than the total
revenue reported in the Company's audited accounts for the previous financial
year and represents a significant endorsement of the Company's technology".

Some news on F1?...but this co needs volume - not 1-offs. I note that Execs have adjusted their Options - do I get the impression they have done very nicely, whilst the sp is almost a disaster?
If this comes good, I shall be surprised.

Doesn't surprise me this is one of pps favourites, which boiler room does he live in?

hangon, time will tell here. This one is a real LTBH speculative punt. Its impossible to buy or sell a large holding in a short period of time. Those who wish to be exposed to the potential have to build holdings over time.

I have nearly 250K now. Taken a long time to gradually build that up.

As for the stock, nothing major will happen until later in the 2009 financial year, and from then on we will see if it comes good or not.

Its potentially one for 2010, which is what I have named some of the threads, and until that time - its just a speculative high risk stock.

If it comes right, it will make me a million, if not, so be it.

Few posts off of AFN :


PapalPower - 10 Jul'08 - 11:44 - 708 of 710

If timing is good, SCE should be making their first profit just as AIM stocks come out of the doldrums, in 2010.
Could be perfect timing and make SCE very attractive at that time, fingers crossed, this might all go swimmingly to plan.

quemaster - 10 Jul'08 - 15:40 - 709 of 710
I had to sell a few of these about a month ago due to shortage of cash and it was to easy and above bid price..... This week we have had 36,000 shares sold above bid and 1,800 buys at offer.
In the past this sort of trading would take 15% off the SP. I get the feeling we may well see a further rise in the near future.


PapalPower - 11 Jul'08 - 00:43 - 710 of 710
quemaster, yes, it would appear someone has standing orders to take all sells.
Todays sells were at 19.05p, well above the advertised 18p bid.
And yes, in the past sells of that level would knock 15% off the SP by being well below it, so is nice to see sells at near mid price.
It is nicely poised and hopefully we will see the 2010 results move into profit.
I still think that someone will make a bid for the company before it turns profitable. At the present time they could pick this up for say 70p to 100p a share imv, the longer they wait and the nearer SCE get to profitability and also nearer to the contributions from aircraft, the more expensive it will get to buy.

.

http://www.ldpbusiness.co.uk/liverpool-news/liverpool-business-news/2008/07/11/hi-tech-automotive-brakes-firm-cuts-annual-losses-96026-21322054/

Hi-tech automotive brakes firm cuts annual losses

Jul 11 2008 by Tony McDonough, Liverpool Daily Post

HI-TECH automotive brake manufacturer Surface Transforms has cut its annual losses to just under 600,000 and has seen turnover increase by 90%.

The Ellesmere Port firm has signed an agreement with a leading global automotive brake system supplier for the supply of carbon fibre preform discs.

It estimated the deal could be worth between 300,000 and 400,000 over the four-year life of the agreement.

For the year to May 31 Surface Transforms has reported a 90% increase in turnover to 508,112.

However the company still sustained losses of 594,000 which is 8% lower than last years loss of 646,422.

The cash position of the firm has increased to more than 1.1m, up from 878,971 last year, which is equivalent to approximately 5p per share.

Its order book has also increased by 137.91% from 126,097 as at May 31, 2007, to approximately 300,000 as of May 31 this year.

Earlier this year Surface was chosen to provide its carbon ceramic technology for the Avocet, a two seater British-built sports car that powers to 60mph in less than five seconds.

The braking system helps shave 2.5kg of weight off every corner the already superlightweight vehicle takes.

MM Industries, which now owns the former Strathcarron sports car business, is producing the car which will use selected Ford standard and performance parts, giving it components that are fully tested and proven in the market.

MMI has placed an order for a limited initial production run of the car, which now features a significantly restyled moulded bodyshell and incorporates some of the latest lightweight composite materials.

Chairman Kevin D'Silva said: The board is pleased with the progress in the year to May 31 and believes further significant progress will be made in the forthcoming financial year and is particularly encouraged by the automotive brake contract announced on June 30, 2008.

.

New Vacancy - Sales Manager

Looking to expand the Rocket Side, Aircraft and 3D Preforms it seems, which would say they are happy with progress and set up on the Car Braking side.

Nice to see them confident too..........profitability in 18 months...... :) Lets hope so and keep those fingers crossed.......it would go with my own time scale of years back which said moving into profitability in the 2009 financial year and 2010 being a great move onwards for SCE.




http://www.netcomposites.com/vacancy.asp?id=952

NEW VACANCY

SALES MANAGER

Surface Transforms

Ellesmere Port, Cheshire

Aerospace, Defence, 3D Carbon Fibre Preforms

The Company

Surface Transforms plc is an AIM listed company, with a market capitalisation of around 4million. The company is the UKs leading manufacturer of carbon fibre reinforced ceramic composite materials. These are used commercially in braking systems for high performance cars and in development for aircraft brakes and non-friction defence applications, such as rocket nozzles, control systems and heat shields.

Three years ago, under new leadership the company focused on developing its products, gaining market acceptance and achieving financial returns. The results from this strategy are now being seen with rapid growth and an exciting future. In line with its strategy the business is looking to recruit a Sales Manager for the Aerospace, Defence and 3D carbon fibre preforms markets.

As a growing high technology business the company is well financed and anticipates reaching profitability within the next 18 months.
For more information on the company, visit http://www.surface-transforms.com/
For financial information and research on the business, click on the armshare icon on the Surface Transforms home page.

The business is based in the M56 corridor between Manchester and Chester and the plant is located in Ellesmere Port.

The Role

Surface Transforms is looking to appoint a Sales Manager Aerospace, Defence, 3D CF preforms to join the senior management team and play a key role in the strategic management and development of the business.

In operational terms the successful candidate will focus on the aircraft, rocket and 3D preform activities, building relationships with existing and prospective customers, working with the customer to understand their needs and utilising the companys resources to provide a suitable solution.

The candidate will be a dynamic leader, have several years key account management experience and an excellent track record of international business development. Experience in the automotive, aerospace or defence sector would be ideal, as would some knowledge of the fibre reinforced composites industry, and the ability to learn and understand technical issues is essential. The role involves a close liaison with our Design & Development and Operational teams.

Key attributes and skills


Resource investigator and natural networker

Results orientated
Strategic thinker
Analytical thinker
Proactive and able to work as part of a team
Willing to travel

Reporting directly to the CEO, the successful candidate will control their own destiny as part of a senior team running the business. Remuneration will be based on an attractive base salary, with bonus against company and personal targets. The candidate will also have the opportunity to receive potentially high return share options. If you wish to be considered for this position please apply in writing, enclosing a full CV to:

Kevin Johnson
Managing Director
Surface Transforms plc
Unit 4
Olympic Park
Poole Hall Road
Ellesmere Port
Cheshire
CH66 1ST

Alternatively email to: kj@surface-transforms.com

Despite the sp excitement, results are not that much better, although turnover is improving. Trouble is with airlines in decline and folk taking fewer holidays, the only growth area is motoring - and there the move is to reduce speeds and go electric in town ( stop-start). That's not a good sales prospect, working against the tide.
Maybe wait a while/buy on weakness, but July/ August08 was NOT the time to be buying . . . . these were 75p once and have scraped the bottom far too long - it's a niche product and very expensive at that.
+I suspect they need to broaden their wares, to widen their portfolio - that would make it easier to get a suitable Salesman - (who would want to be selling the (almost) impossible, with shareholders shouting at every opportunity?).
They need to go back to the lab and check their Notes - there is bound to be some other product near completion and that "might" broaden the company.
IDEAS?
How can I know, but things that improve surfaces would be a place to start - maybe nano-technology to improve the shine on paintwork, glass etc. (these would still be within the company remit = Surface-transforms!) and would help open doors with any sales-pitch.
This is where management is not working, IMHO.
-If you have a product that sells itself, it's not an issue, but here we have a product that NEEDS to be sold, since "alternatives" work perfectly well and are fully understood by all. Indeed it's not so much a "niche" product as a thin wedge....IMHO.
Papal Power, I accept you believe in a long time-scale, like 2010; but in these times this business really needs to have a wider "stall" . There is a small risk that "better brakes" will never become essential as automotive braking becomes electric and aircraft building reduces - that's my take, FWIW.
EDIT(8Dec08), Results look OK with a small amount of Cash and increased sales - but no obvious "profits" - still, in these times . . . .

11 December 2008

Surface Transforms Plc

("Surface Transforms" or "the Company")

New Orders in the Defence Sector

Surface Transforms (AIM:SCE) is pleased to announce three further orders from
MBDA with a combined value in excess of 150,000, all of which will be
delivered and invoiced within the current financial year. The orders are for
the continued development of new material technologies for attitude control
systems applicable to a range of European guided weapons. MBDA is owned jointly
by BAE Systems, EADS and Finmeccanica and is the largest missile manufacturer
in Europe. The Directors are hopeful that the Company will receive further
business from MBDA.

These new orders are in addition to, and in parallel with a three year fixed
term contract announced in February 2008 from MBDA to the value of 150,000,
which is financially supported by the UK and French Ministries of Defence as
part of the Innovation and Technology Partnership ("ITP") on Materials and
Components for Missiles.

The ITP contract concentrates on the generation of dedicated design data for
Surface Transforms' range of carbon-ceramic composite materials, whereas work
under the new orders focuses more on component design, fabrication and test
performance, and looks towards possible future qualification and
commercialisation.

Commenting, Kevin Johnson, Chief Executive of Surface Transforms, said:

"We are particularly pleased to receive these orders which represent a further
endorsement of MBDA's commitment to Surface Transforms' technology and
products. Earlier work with MBDA over the past three years has shown that
carbon-ceramic is now a strategic material which gives significant performance
advantages over carbon-carbon and huge weight savings over advanced metal
alloys. We can deliver distinct cost benefits with improved performance using
our proprietary technology. The new accelerated work programme with MBDA also
extends the reach of our technology and products from the automotive and
aircraft markets, to the defence sector."

Surface Transforms is the only UK supplier of this strategic material. This is
derived from the Company's core business in automotive ceramic brakes where
high quality at affordable cost has driven the technology to quicker
manufacturing processes with reduced costs. The IPR for the Company's
carbon-ceramic products is held in the combination of the three key process
stages: carbon fibre pre-forms, carbon matrix CVI, and silicon melt
infiltration.

For further Company details visit

www.surface-transforms.com

Just posted this on SC :

"On a business level they are doing what they said they would.

As it stands now the crashing pound will help them, as most sales on car brakes are export. The rising Euro will also disadvantage the competition, so in 2009 there could be some good car braking upside in spite of the credit crisis.

With rockets, which is what todays news was about, it was envisaged that 2009 would see the first "real" volume sales and so contribution to profits, and this really coming on stream in 2010.

So today we have talk of potential "production versions".......so all is potentially on track for a little 2009 contribution from the rocket side as planned.

All in all, doing well, and lets hope they continue to do so.

Also note the other Engineering company keeps buying shares (last holdings notices) - someone is keeping an eye on events, potential here is enormous, if the plans go "as planned" "

Gledhill still buying and building their stake in SCE.

Gledhill of course leads to http://www.usggledco.co.uk/

They must see the potential, and must be happy to pick up stock at these levels, makes any future bid for the whole company, and therefore the IP, much cheaper to them the more they get down at these levels.

Going to be very interesting what the weak pound can do for Surface Transforms. After having to warn some time ago about falling sterling values on their US dollar based sales (when it was 2 dollars to 1 pound), the rapidly falling pound must now be making their dollar based sales very much more profitable in sterling terms, especially as its done through distributers, so no US dollar based overheads.

What is of course more interesting is how sales pick up, given the pound is now so low that SCE's products are so much cheaper for anyone outside the UK. What was slowing opportunies due to 2 dollar exchange rate, should now be rapidly increasing opportunites.

On top of this the most obvious competitors are Euro based ones, and so, the pound collapsing just makes SCE more attractive again.

Will any effects of the global slow down be more than compensated by the dollar based sales and increasing opportunities ?

One would guess a supplier can see in advance of anyone else the potential of their customer :

http://www.thebusinessdesk.com/northwest/news/7727-share-watch-supplier-builds-surface-transforms-stake-barclays-sells-torotrack-and-more....html

Share Watch: Supplier builds stake in Surface Transforms;

8th January 2009

By James Graham - Business Correspondent

LEEDS-based auto-parts supplier C Gledhill has increased its holding in Surface Transforms, the Merseyside business that makes high performance braking systems.

C Gledhill, which supplies the Ellesmere Port firm, bought an 8.8% stake in the business from the fund manager Gartmore back in May.

In the latest trade C Gledhill acquired 100,000 ordinary shares on January 6 when they were worth 12p. It now holds 1.85 million shares, or 9.72% of the company.

Put this post on TMF yesterday :


Surface Transforms

EPIC : SCE

Web Site : http://www.surface-transforms.com/

Surface Transforms plc is the UK’s leading manufacturer of ‘next-generation’ carbon fibre reinforced ceramic composite materials (CRFCs). The company’s high-performance products are being commercialised with major industry partners, for an expanding range of innovative global applications – using cutting-edge technology developed by the company.

Applications

• Automotive and motorsport brakes and clutches
• Rocket motor systems
• Rail brakes
• Aircraft brakes and aerospace components
• Ballistics



Results out yesterday : http://www.investegate.co.uk/Article.aspx?id=20090211070000P031D


Nothing unexpected, they have been hit by the worldwide downturn and therefore the reduced purchasing of high performance cars. That is probably a bit of a blow to their plans in all reality.

I had it down as :

2008 Increasing car braking system sales.
2009 Increasing car braking sales + first real revenues from rocket system starting.
2010 Rocket systems really starts to bump up the bottom line

And at any time the aerospace development contracts could go to their next phases, which means higher and higher levels of revenues for SCE.

This should have had them turning their first profits in 2010, and its why I have had 2010 as a turning point year marked down for SCE. As it stands now they are looking at “break even” for 2010 given the downturn in car braking systems, with of course the chance that aerospace could come up trumps any time.

They have done their homework and put in place decent IP protection, and their processes are said to be ahead of most, which is resulting in “quicker and cheaper” to produce.

This is a highly illiquid share, it’s a tech blue sky one, however there is a potential “predator” out there.

Over the past months one of SCE’s suppliers, C.Gledhill Ltd, has been building up a stake, now at near 10%.

Bit of media coverage : http://www.thebusinessdesk.com/northwest/news/7727-share-watch-supplier-builds-surface-transforms-stake-barclays-sells-torotrack-and-more....html

Why are one of the suppliers happily building a stake in their customer ? One assumes they see the potential here.

C.Gledhill Ltd leads me to http://www.usggledco.co.uk/

Armshare does a regular commentary on SCE, http://www.armshare.com

Like I said, its highly illiquid, it’s a very speculative punt, car braking systems are presently being hit due to recession, but rocket systems should be coming through this year and contributing much more in 2010, and aerospace can pop its nose it at any time.

I would take a guess that Gledhill might be making a bid for the company at some stage………and so I remain interested in the short and mid term.

Cash burn is the worry, but is that not always the case with these blue sky tech tiddlers, and will Gledhill provide cash, for a larger slice of the pie ? Certainly a tiddler to watch imv, given the blue sky potential of aerospace, mixed in with more basic mundane revenue generation from car braking systems and rocket systems.

Notice that Gledhill recently increased their stake even further, taking out a seller who had started to crash the price a bit as they sold.

Cannot be too far in the future when a takeover will play out surely.

http://www.investegate.co.uk/Article.aspx?id=20090409150511P41C4



Back on to the Surface Transforms as I was looking for any news, come across this positive write up from a Porsche user, which can only help justify the product for car braking, shame about the present enviroment, but the big thing for late 2009 onwards is Rocket systems growing, so hopefully that will fill the drop off in car systems due to the credit crisis. And for those not into the talk, PCCB is the Porsche own Carbon Ceramic Braking, said to be very expensive and not very long life, which is why things could be very positive for SCE going forward. The SCE system is said to have the longest life, and lowest cost of all CCB systems.


http://www.pistonheads.com/gassing/topic.asp?h=0&t=675872&d=10695.80001&nmt=

Post at 18:46

993rsr
1,236 posts
69 months

Yesterday (18:46)

I have just come back from a visit to the porsche garage and noticed a couple of carrera gts in there i spoke to one of the mechanics and he told me new pads and disks all around would be 27,000.00 you dont want to many bills like that and thats without an oil change.

993rsr will know better than me but i think fearnsport do a steel conversion to avoid such sillyness.


The steels worked well enough but the additional weight was too much of an issue in affecting the handling and feel of the car.

I'm now 1000 miles and two track days into using a set of Surface Transforms Carbon Ceramic rotors. The whole rotor is friction material unlike the laminated PCCB's which will eventually (as mine did) start to de-laminate with extended track use.

The Surface Transforms rotors also have a different fibre length and orientation that increases their durability. They even advocate taking the discs from car to car they last so long!

http://www.surface-transforms.com/

They are now performing as well as the PCCB's and are not fully bedded in yet. At circa 60% of the cost of replacement PCCB's and offering superior lifespan and performance they are an alternative well worth considering.................

1.7m trade at mid price.

Yet more Gledhill buying ? There must come a time when they will launch a bid if its them again adding yet more.

Well the confirmation came in.

26th May 09 http://www.investegate.co.uk/Article.aspx?id=20090526153150P95AD

It was Gledhill again and now they are up to 24.7% holding of the total issued amount of shares.


Comment in the media at the link below :

http://www.thebusinessdesk.com/yorkshire/news/12248-c-gledhill-ups-stake.html



Someone mentioned Julio was associated with Gledhill, if this is so then it makes it even more apparent that a takeover bid is coming before too long, thats if the continued buying and stake raising was not enough of a heads up.


Interesting that Seymour Pierce have just been appointed as Nomad and Broker :

28th May 09 http://www.investegate.co.uk/Article.aspx?id=200905281208459505S


Looks like its just a case of waiting to see how much more Gledhill can mop up on the cheap before the formal offer comes in. It would be very good timing by Gledhill, with Rocket Propulsion system sales due to start "taking off" as such in 2009 and contributing greatly in 2010 onwards then it would be wise for them to get an offer in before that becomes apparent. I would imagine the next release of results will be the worst of any future ones, as sales increase later, so some time before, or after the next results might see the final bid come in.

Expectations, well certainly over 20p a share IMO, it should be well over 30p or more but we will have to wait and see.

Nice contract news out on RNS.

http://www.investegate.co.uk/article.aspx?id=200907300700035004W


Still remain hopeful this high risk blue sky tech stocks will be one that will come good, fingers crossed of course.

http://www.moneyam.com/InvestorsRoom/posts.php?tid=14307&from=1&to=500

Rather than polluting unrelated threads with you ramping - why not play here.

Got their placing done 12th August.

http://www.investegate.co.uk/Article.aspx?id=200908121316493325X


It now boils down to deliverance or not. Rocket systems should contribute H2 of this year and significantly in 2010. Car braking systems will obviously as we know be hit with the credit crisis and therefore reduction in the sales of high performance cars however SCE are pushing to become the best value by reducing costs, which should benefit when things turn around.

According to the background of the placing ( http://www.investegate.co.uk/Article.aspx?id=200907200700129044V ) the money is to pursue a niche opportunity "wishes to accelerate the adoption of the carbon ceramic brake technology in an active niche aircraft programme opportunity.",

One would and should expect this to be a short term fill in for the lack of car braking sales. My expectations prior credit crisis were along the lines of first profits in 2010 financial year, given the set back and if they can get a niche opportunity they may move back to being break even for 2010 (next financial year).

Rocket systems is a bread and butter going forward as should have been car braking systems. The jam for tomorrow has always been mainstream application of their aircraft braking and that continues, so it will be interesting to see what this additional "niche" opportunity is. Those who like the dream would always wish for adoption of their systems on the 787 or A350 for new aircraft, or retrofit kits for older model planes (and a short and simple summary of why carbon ceramics its due to large reductions in weight (and so fuel saving) as you do not need the brake heat sinks. An additonal benefit for planes is the very quick turnaround possible as you are not waiting for overheated standard brakes to cool back down).

So SCE remains a high risk tech stock, one that hopefully is on the verge of finally (within 18 months) getting to break even or a small profit and with plenty of jam tomorrow blue sky potential should one of the big ones drop.

http://www.investegate.co.uk/Article.aspx?id=200908171159405497X

Gledhill now at 29% holding......

Proselenes said:- "...Rocket systems is a bread and butter going forward as should have been car braking systems. The jam for tomorrow has always been mainstream application of their aircraft braking and that continues, so it will be interesting to see what this additional "niche" opportunity is. Those who like the dream would always wish for adoption of their systems on the 787 or A350 for new aircraft, or retrofit kits for older model planes (and a short and simple summary of why carbon ceramics its due to large reductions in weight (and so fuel saving) as you do not need the brake heat sinks. An additonal benefit for planes is the very quick turnaround possible as you are not waiting for overheated standard brakes to cool back down).

So SCE remains a high risk tech stock, one that hopefully is on the verge of finally (within 18 months) getting to break even or a small profit and with plenty of jam tomorrow blue sky potential..."

FWIW, my understanding is that "weight-saving" is fairly small - the undercarriage is enormously heavy, so any "saving" is quite small. I understand the main benefit is that these brakes act more quickly, since they provide "grip" at lower temperatures - this significantly reduces braking-distance while the air-speed is quite high, hence their cooling is "better" albeit briefly. I'm not sure what you mean about not having to wait for the brake to cooldown, since the heat is a result of the energy dissapated; if this is greater (so we understand) then the cooling time will be proportionally longer, under similar conditions. Also the tyres may need inspection sooner... The other advantage is that these discs will withstand greater temperatures without "fade" - and combined with earlier braking the aircraft can use a shorter runway - OR - the aircraft can carry a greater load, etc. . . . . this aspect should be promoted, since this is a direct advantage to the operator.....maybe even making a longer-trip possible by eliminating a "stopover"...

Their car-application is really for high-end customers, since it is enormously expensive and in reality hardly improves your "image" - esp. if the guy behind you doesn't stop as quickly. Ouch.

It does need to get on with it.

Bit of media coverage following the results.


http://www.smallcapnews.co.uk/article/Manufacturers_still_gripped_by_recession_but_positive_signs_are_emerging/8286.aspx

.

RNS Number : 6207A
Surface Transforms PLC
13 October 2009

The commencement of 2.1 million Collaborative R&D Project part funded by grants from the UK Technology Strategy Board ("TSB")

Surface Transforms is pleased to announce the start of a three year, 2.1 million collaborative research and development project. The Technology Strategy Board has agreed to fund the project with a grant of 1.12 million to a consortium of companies led by Surface Transforms.

The aim of this R&D project, with the acronym "Sμrface", is to develop an innovative ceramic disk, using both waste carbon and contemporary manufacturing processes. The objectives are improved friction characteristics and substantially reduced wear with the development of a method that will allow worn ceramic disks to be resurfaced for re-use.

Success in the Sμrface project will enable a much greater flexibility and tolerance in the structure of the core material used in the disc, which will impact directly on reducing cost and increasing performance.

The Company's partners in this collaborative project are:-

* Faiveley Transport Ltd (manufacturer of train braking systems)

* Alcon Components Ltd (brake systems for high performance cars)

* Bentley Motors Ltd (OEM high performance car manufacturer)

* Federal-Mogul Friction Products Ltd (brake pads)

* Loughborough University (specifications, analysis, testing)

Surface Transforms is the lead company and project co-ordinator and will be supplying the proprietary technology relating to the manufacture of carbon ceramic brake discs. The other industrial partners are all technology leaders in their respective fields of innovative friction material technology for use in the transport market.

The project commenced on 1st September 2009 with the contribution from the Technology Strategy Board grant to Surface Transforms estimated at 470,000 over the next three years.

Kevin D'Silva, Surface Transform's Chairman, commented: "This is the second time that the company has been successful in accessing Technology Strategy Board investment finding. We are pleased that the Technology Strategy Board has approved the Company as co-ordinator for this project."

Looks like a Seymour Pierce note is coming out soon, according to this update from Armshare following the news yesterday. That might drive some interest.


http://www.armshare.com


...............The October update reported the start of a 3 year, 2.1 million collaborative R&D project - the Technology Strategy Board is providing a grant of 1.12 million to a consortium of 6 companies led by Surface Transforms - the purpose of the project is to develop an innovative ceramic disk, using both waste carbon and contemporary manufacturing processes, with the objectives of improving friction characteristics and substantially reducing wear - the consortium includes Bentley Motors, Faively Transport (manufacturer of train braking systems), Federal-Mogul and Loughborough University (specifications, analysis, testing) - Surface Transforms is likely to receive 470,000 of the grant over the next 3 years.

Research Standing

Whilst scarcely visible financially, the company has made very good commercial progress over the last 4 years. ArmShare is an advocate of constructing portfolios comprising at least 80% invested in established businesses combining growth and value and up to 20% in a portfolio of earlier stage higher risk businesses considered to have the potential to develop into the former - Surface Transforms is an obvious candidate for the '20%' category of such a portfolio.

The company's recently appointed broker was as 13th October expecting to issue a research note fairly imminently.

The news of the placing yesterday in which Directors and Management took part makes the cynic in me think that indeed in 2010 we shall see a takeover come into effect.

6 to 9 months time ???


http://www.investegate.co.uk/Article.aspx?id=200912080700287036D


.

http://www.prlog.org/10475702-successful-research-programme-allows-high-performance-brake-discs-to-be-manufactured-at-lower-cost.html


PR Log (Press Release) – Jan 05, 2010 –

Carbon composite brake discs provide substantial improvements in both performance and weight compared with traditional iron discs, but the cost of such systems has so far made them largely unaffordable in the majority of applications (including commercial vehicles, trains, industrial equipment and all but the most exotic cars) where their performance characteristics could bring substantial benefits. A UK-based consortium of specialist companies is addressing this challenge by developing new techniques that will allow carbon discs to be made from manufacturing scrap, providing a lower cost, more environmentally friendly solution to very high braking performance.

“Potential applications are wide ranging,” says Federal-Mogul technical manager David Holme, based at the company’s Friction Technology Centre nearDerby in the UK. “As well as demand for reduced weight to cut CO2 emissions in the automotive industry, there is a need for lighter weight, higher performance braking systems in the rail industry and for brakes offering greater consistency across a range of process industries. If we can match or exceed the performance of today’s best systems, but at a much lower cost, the benefits will be substantial.”

The project, called Rebrake, covers the development of brake discs made from recycled carbon and the development by Federal-Mogul of compatible pad materials. It is supported by investment from the government-backed Technology Strategy Board. “The programme has recently passed a major gateway by successfully manufacturing small disc samples that prove the concept, so we are already moving on to the manufacture and testing of full-scale prototypes,” says Holme. “These will be tested on dynamometers and cars using the pad formulations developed by Federal-Mogul. Following further refinement, the new system will be benchmarked against current best-in-class products early in 2010."

Other partners in the project are Surface Transforms (a manufacturer of advanced ceramic discs); AP Racing (a specialist in very high performance disc brake systems); Faiveley Transport (a rail industry brake technology specialist); Wichita Clutch (industrial applications brake and clutch specialist); Advanced Composites Group (the main advisor and provider of carbon scrap) and Meggitt Aircraft Braking Systems (bringing substantial experience in carbon applications for aircraft braking). The academic partner is Loughborough University, which is responsible for much of the early development work.

Applications outside the automotive industry

Rail is typical of many industries in which conventional iron rotor discs are reaching the limit of their performance. There are also weight issues, because the unsprung mass of the bogie assembly is a source of loading which is approaching the design limit, even of specially laid tracks, leading to damage to the tracks and restrictions in speed and payload. Changing to ceramic composite brakes can save 260 kg per bogie, allowing trains to run faster on a given track for the same load, with savings in fuel consumption and CO2 emissions per tonne carried.

Paper converting machinery is one of several industrial applications that place unusual demands on braking systems, often making consistent friction properties difficult to achieve with conventional technologies. In a paper mill, disc brakes are used to help achieve uniform paper tension under the highly variable inertia conditions between full and empty paper rolls. Unlike vehicle brakes which are normally ‘off’, industrial machinery brakes are normally ‘on’ and thus constantly wearing and more liable to overheat, making their friction properties inconsistent. Carbon brakes will provide greater consistency and greater torque capability, allowing improved process control and the potential for efficiency improvement.

About Federal-Mogul
Federal-Mogul Corporation is an innovative and diversified $6.9 billion global supplier of quality products, trusted brands and creative solutions to manufacturers of automotive, light commercial, heavy-duty and off-highway vehicles, as well as to the power generation, aerospace, marine, rail and industrial sectors. It is recognised as a premier global innovator in the areas of powertrain, sealing, safety and protection and a leading source of advanced technologies that help increase vehicle performance, improve fuel efficiency and reduce engine emissions for a cleaner world. Federal-Mogul employs nearly 40,000 people located in 36 countries.

A stream of buys coming in, which for SCE is very unusual.

Something afoot ?

News coming ?

Bit of Director buying it was :

http://www.investegate.co.uk/Article.aspx?id=201003020700209013H


SURFACE TRANSFORMS PLC
('the Company')

Directors' shareholdings

The Company was notified on 1 March 2010 that on 1 March 2010 Mr Kevin Johnson, Managing Director, acquired 19,250 ordinary shares of 1p each at 9p per share, equivalent to 0.08 per cent. of the entire issued share capital of the Company. Mr Johnson now beneficially holds 124,000 ordinary shares, equivalent to 0.51 per cent. of the entire issued share capital of the Company.

The Company was further notified on 1 March 2010 that on 1 March 2010, Mr Ken Baker, Director, acquired 60,000 ordinary shares of 1p each at 9p per share, equivalent to 0.25 per cent. of the entire issued share capital of the Company. Mr Baker now beneficially holds 275,000 ordinary shares, equivalent to 1.13 per cent. of the entire issued share capital of the Company.

The Company was finally notified on 1 March 2010 that on 1 March 2010 Mr Geoffrey Hall, Company Secretary, acquired 6,400 ordinary shares of 1p each at 9p per share, equivalent to 0.03 per cent. of the entire issued share capital of the Company. Mr Hall now beneficially holds 28,420 ordinary shares, equivalent to 0.12 per cent. of the entire issued share capital of the Company.

Half Year results seem to have been received ok.

http://www.investegate.co.uk/Article.aspx?id=201002240700065676H


That was followed by some director buying and its certainly perking the price up, presently can sell, if you want, over 120K at mid price, never been like that for years, so I guess someone wants to buy some volume, which is why the price is ticking up past days.

More director buying yesterday.

http://www.investegate.co.uk/article.aspx?id=201003090700142549I


09 March 2010

SURFACE TRANSFORMS PLC

('the Company')

Directors shareholdings


The Company has been notified that Mrs Heather D'Silva, wife of Mr Kevin D'Silva, Chairman, today acquired 30,000 ordinary shares of 1p each at 13p per share, equivalent to 0.14 per cent. of the entire issued share capital of the Company. Mrs D'Silva now beneficially holds 30,000 ordinary shares, equivalent to 0.14 per cent. of the entire issued share capital of the Company.

Mr D'Silva beneficially holds 281,986 ordinary shares, equivalent to 1.16 per cent. of the entire issued share capital of the Company.

Still rising.

And more :)

Perking up.



http://www.investegate.co.uk/Article.aspx?id=201006030700109590M

RNS Number : 9590M
Surface Transforms PLC
03 June 2010


Surface Transforms Plc

DRAFT PRE CLOSE TRADING STATEMENT

The Board of Surface Transforms plc, one of the world's two manufacturers of ceramic brake discs for the aircraft and automotive industries, is pleased to provide a trading update for the financial year ending 31 May 2010.

The Company's results for the year will be above market expectations. Turnover is expected to be in excess of 800,000 and 17% above last year (2009 679,284). Net losses will be significantly lower than the prior year and both losses and cash are expected to be better than brokers' forecasts. Cash balances at 31 May 2010 were 414,513 (31 May 2009 404,275)

The slow but general improvement in the world markets after the severe downturn in 2008/9 is reflected in the Company's trading and particularly in automotive markets where most manufacturers are starting to invest in new models with improved fuel efficiency and reduced weight. The order book at 31 May 2010 was 312% higher than the same period last year at 519,670 (31 May 2009 166,370).

The Board expects further improvement in the Company's performance over the next 12 months and will update shareholders further when the audited accounts are published.

Why repeat an RNS ?
...there is already a place for these.
Repeating it adds very little and could be a source of errors.
EDIT -(30/6/2010)-up again to 20p; yet, no new news...

Going well this year so far, I though 2010 would be the year of delivery..... said that back in 2006.... ;)

Thanks for that Proselenes,
- yet I fail to understand the Co's belief that things are getting better, it's a bit like one of those failing businesses on TV - the Management continues in the same groove. I think they need to develop a parallel "material" business - not the same ceramic, but something that isn't commonplace (so there is added value), their current production is solely about these ceramic discs (etc.). which is a very niche market and - unlikely to represent added-value for shareholders.
(That's what the Market is saying).
These were nearly �1 and time shows maybe 30p is about right - unless they can
develop a parallel business.
EDIT(Dec10)- Recent Rights (17p DYOR) looks like it has become the norm, down there again today...Aren't shorters having Xmas?
EDIT (26Jan2012)- big fall after International Sales agreement is ann, probably ("Sell on the Fact!), as sp rose recently (from 8.5p!) as high as 17p, now 12p today. I don't think this will encourage "more sales" as the distributer was already selling the brake discs - this is just confirming a done-deal. Maybe insiders thought otherwise...?
Anyone that bought Rights 2010 is down quite a bit....Oh deary.
EDIT(20Feb2013)-Begging bowl again, at 8p - oh doubly-deary!
EDIT(26Sept2014): SP up 40% on little more ns than there's an AGM soon...I suspect this is MM's - as little has really changed....and that Contract ( which may not affect profits for 2-3yrs is very restrictive. Of course it is the product sales that will determine if SCE really does have a valuable tech. Note that [SCE] was 75p in 2005.
EDIT (7Oct2014)- Seems AGM went well - the sp spike was due to some Media Interview which spotlighted SCE .... and then they granted Snr Mgnt Options dated just prior to this spike. Oh deary, can't say I like that. Suggests Execs don't think it was real.
EDIT (22Dec2014)- recent Open Offer at 13p, and now it's 11.75 - - - Ooops!
EDIT ( 21Sept2015)-- risen to 17p but for how long?
EDIT (2Nov2015)-- Did I read their Furnace died? + SP 18p and AGM soon.
Edit (16Jan2016):- 20p
March2016 - Open offer to raise £5m at 16p=== oh dear.
EDIT (14July2016)-sp 21 up on gd Ns re German car brakes - possibly BMW (?) where "performance" may be key . . . but don't expect sales too soon - earliest 2018 DYOR. I expect this to slide.
EDIT (Nov2017)-AGM tomorrow - can't be bothered to go when it's so cold - Newsflow looks like sp=14p maybe longer, too.
EDIT (6Dec2018)-Dir buying RNS ignore- they also said "Limited number Track-Car" =UK #6 was delayed. sp ~13p Grief!

Still going strong......

And still strong...... looking solid here, some good news and it could rerate upwards even more given the lack of any spare stock on the market.

Are you still in Papal..?

Surface Transforms’ Chairman reported that “he was encouraged to report continuing progress in line with guidance issued in November”. However, one popular investment website described these results on Twitter as “DIRE” highlighting increased losses and cash “almost gone”. So, who’s right? Are the results dire or encouraging? - See more at: http://www.investorschampion.com/blog/ or http://tinyurl.com/pp2cfzl