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.

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