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.

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