Surface Transforms recently was over-subscribed on their offering - the potential for the products seems good, progress is good and the market for the products is big business. Any comments on the possible transformation of this potential shining surface ?

Teather & Greenwood 14-02-05 BUY

Latest broker info on 14th Feb 2005.

Expecting into profit in 2006.

Any news from now on should see this one go from strength to strength. Now is the time to keeping adding more and more, and watch them gradually keep moving up as the time for profit appears on the horizon. One big contract will see this leap as well, so there is always the fun of the RNS :)

Surface Transforms PLC
23 February 2005


23 February 2005


Interim results for the six months ended 30 November 2004

Surface Transforms plc, manufacturers of carbon fibre reinforced ceramic (CFRC)
materials, announces its interim results for the six months ended 30 November
2004.


Financial and business highlights:

Turnover increased to 208,422 (30 November 2003: 175,481)

Increased investment in CFRC technology, management and technical
infrastructure of the Company contributed to increased operating losses of
301,147(30 November 2003: 161,742)

New development agreement signed with leading US-based aircraft brake
systems supplier

Strengthened management team

Strong cash position, 3,035,932 at 30 November 2004


Kevin D'Silva, Chairman of Surface Transforms, comments:

'The strategy to develop a Company with world class technical, product and
business development capabilities remains unchanged despite the short term
revenue loss associated with the wide-bodied aircraft brake contract.

'Revenues are expected to reduce in the second half of the financial year ending
May 2005, reflecting the loss of income from the Dunlop partnership. However,
the Company is developing new business revenue streams in the automotive and
aircraft brake markets, and is maintaining its increased investment in operating
and development activities.'


For enquiries, please contact:

Surface Transforms plc Gresham PR Ltd.
Julio Faria 01928 735 498 Neil Boom 020 7404 9000
Kevin D'Silva 07802 306956

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



Chairman's Statement

The Company has made further progress in its principal markets since I last
reported financial results to shareholders. This includes starting development
work with a second global aircraft brake partner.

In January we announced the disappointing news that the materials we have been
jointly developing with Dunlop Aerospace for a new wide-bodied commercial
airliner would not be available in time for 2006. Despite this short-term
setback, the prospects in the automotive brakes market and in our other aircraft
brake partnership have enabled us to maintain the positive momentum developed in
2003/4.

Following the share placing that raised 2.7 million, the Company has increased
research and development expenditure relating to its proprietary new generation
carbon fibre ceramics, and appointed experienced executives and technical
personnel across the management and staff teams.

Financial Review

Turnover for the six-months ending 30 November, 2004 increased to 208,422 (
2003: 175,481), while operating losses on ordinary activities were higher at
301,147 (2003: 161,742).

The increased operating losses were largely due to a substantial increase in
development costs relating to the board's decision to accelerate investment in
carbon fibre reinforced ceramic technology, in the management team and in
technical personnel.

Losses after tax were higher at 180,277 (2003: 39,424) reflecting lower
research and development tax credits and grants of 58,562 (2003: 119,685).

The Company's cash and working capital position remains healthy demonstrating
the strong financial disciplines of the business despite continued investment in
the development of the CFRC technology. At 30 November 2004, the Company held
cash and deposits of 3,035,932 (May 2004: 2,707,839) representing in excess of
21 pence per share. Surface Transforms continues to have no bank borrowings.

The strong cash position will allow the board to continue its strategy of
developing and commercialising its technology across its chosen market
applications, notably automotive and aircraft brakes and aerospace components.

Management

As previously announced Dr Kevin Johnson, Operations Director, and Antoni
Sznerch, Business Development Director, have joined Julio Faria, Dr Geoff Gould
and Johannah Stretton as executive officers. To meet the challenging targets in
aircraft and automotive brake business development, together with goals in
operations and technology, non-executive director Peter Holland has agreed to
co-ordinate management activities for a six-month period to June 2005. Peter has
a 25-year record of successful management in an industrial chemical company,
which he sold in 2002.

Science and Technology Group

The Company has re-organised internally, to form a new Science and Technology
Group, headed by Julio Faria. This group will focus on maintaining the Company's
lead in CFRC technology and continues to draw on the scientific expertise of n
on-executive director, Professor David Clark. In September 2004, the board
initiated investment in a next generation CFRC siliconisation plant to replace
the Company's existing process technology. The new plant is expected to be
commissioned at the end of 2005 and it should substantially improve the
operating characteristics of the CFRC technology.

Operating Activities

Automotive Brake Systems

Surface Transforms has invested heavily in the past six months in the automotive
brake market, specifically the high-performance road car segment. The
co-operation agreement with METEK was signed in May 2004 and orders were taken
for the 'System ST' brake & pad, which was successfully launched in November
2004 at a major automotive aftermarket trade show in Essen.

A number of European car manufacturers who produce high-performance, low volume
cars, have shown interest in evaluating 'System ST'. Shareholders will be
updated once material progress has been made.

The High Performance Road Car market offers significant commercial opportunities
for carbon ceramic brakes and the Company's strategy for European market entry
has recently been revised. It involves using System ST products for:

entry into the automotive aftermarket for brake system upgrades

entry into the automotive Original Equipment Manufacture (OEM) market for
high volume, peformance car models

entry into the automotive OEM market for low volume, performance car
models

The high volume OEM market is substantial and the time for material evaluation
and qualification for a new brake is necessarily long. The Company is
cooperating with METEK in this field.

The low volume OEM market is attractive as there are a number of car producers
considering carbon ceramic brakes to improve the braking power, performance and
attraction of their cars.

The performance car aftermarket

The automotive aftermarket for brake discs is large and there is increasing
interest in carbon ceramic brakes. Surface Transforms is seeking opportunities
to supply the performance car aftermarket within Europe and will inform
shareholders of developments at the appropriate time.

Aircraft Brakes

The Company has separate development programmes for carbon ceramic aircraft
brake discs with two global suppliers of aircraft braking systems. Dunlop
Aerospace is the European supplier and development work commenced some three
years ago, accelerating when a Master Licence agreement was signed in November
2003. As already stated, the Company's CFRC brake materials will not be included
on a new, wide-bodied European aircraft being certified for flight in 2006. The
performance evaluation period required to fully evaluate, qualify and
manufacture brake discs for this aircraft model exceeded the aircraft's launch
timetable.

This will reduce expected 2005 revenues by approximately 150,000 and will
cancel projected licence income scheduled to start in 2008. The Company
continues to work with Dunlop under the Master Licence Agreement.

In January 2005, Surface Transforms signed a materials development programme
with a leading US-based aircraft brake systems supplier. The programme is at an
early stage and the risks that relate to a high-performance technology project
are always an important consideration. Nevertheless, the goals of both parties
are to qualify carbon ceramic brake discs for use on selected, new and existing
aircraft models.

Aerospace Components and Anti Ballistic Materials

Roxel UK and Roxel France are the principal customers for Surface Transforms'
non-friction materials for use in rocket motors. Co-operation between the two
companies continues to expand.

The 12-month development contract with the US Airforce Research Laboratory
(AFRL) was completed during the period under review. The feedback from AFRL is
that material testing has been very successful. The Company has submitted
proposals for a substantial expansion to the development programme but award is
subject to the AFRL's budget constraints.

The contract with the UK Ministry of Defence to develop and evaluate anti
ballistic materials continues to progress and results should be available in the
next six months.

Outlook

The strategy to develop a company with world class technical, product and
business development capabilities remains unchanged despite the short term
revenue loss associated with the wide-bodied aircraft brake contract.

Revenues are expected to reduce in the second half of the financial year ending
May 2005, reflecting the loss of income from the Dunlop partnership. However,
the Company is developing new business revenue streams in the automotive and
aircraft brake markets, and is maintaining its increased investment in operating
and development activities.

The new business contract awarded to the Company during the period
under review reflects the hard work and dedication of all employees. I would
like to express my thanks to them and again extend a warm welcome to those new
colleagues who have joined us recently.

Kevin D'Silva
Chairman
22 February 2005

Surface Transforms PLC
09 March 2005



RNS Release

9 March 2005

Surface Transforms signs second contract with METEK

Surface Transforms plc, makers of high-technology carbon fibre reinforced
ceramic (CFRC) materials for the aerospace and high end automotive markets, has
signed a further contract with METEK (Metallverarbeitung GmbH), a leading
European supplier of braking systems to the automotive industry. The new METEK
contract is in addition to the one Surface Transforms announced on 28 June 2004.

Under the terms of the new two-year contract, METEK will act as a distributor of
SystemST brake sets to the automotive tuning aftermarkets in France, Germany,
Austria and Switzerland. Surface Transforms expect to generate at least
Euro 200,000 of sales in the first two years. The principal market for these
specialist brake sets are high-performance vehicles, for which their owners are
seeking significantly enhanced braking performance.

METEK believes that the annual automotive tuning aftermarket in Germany, which
is the largest in Europe, is estimated to consume approximately 4.4 million
steel discs per annum. Surface Transforms estimates that the target market for
carbon ceramic brake discs would be approximately 5% of the steel disc market,
equivalent to around 200,000 ceramic discs per year with potential revenue in
the order of Euro 200 million p.a.

Julio Faria, Managing Director of Surface Transforms, said:

'Based on the level of orders and enquiries received at the launch of our
SystemST automotive brakes in Essen late last year, there is strong appetite
among performance car owners for carbon ceramic brakes. People are increasingly
aware that carbon ceramic brakes provide the most efficient stopping performance
available, while enhancing vehicle handling characteristics and acceleration, by
virtue of being some 70% lighter than traditional steel brake discs. We are
delighted to have signed this latest contract with METEK and we are continuing
to seek and develop additional partners and contracts for the rest of the
European automotive aftermarket.'

For enquiries, please contact:

Surface Transforms plc Gresham PR Ltd.
Julio Faria 01928 735 498 Neil Boom 020 7404 9000
Kevin D'Silva 07802 306956

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

LONDON (AFX) - Surface Transforms said chairman Kevin D'Silva bought 5,500
shares in the company at 39 pence each. Following the purchase, D'Silva now holds 156,986 shares or a 1.12 pct stake in Surface Transforms. 5th April 2005.


New report (link below 31/03/2005) on SCE stating what is known, this has potential for 6 times its present price as is now, and all going well with Metek and the high performance car braking systems alone much much more.

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