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Surface Transforms PLC on Tuesday posted a narrowed loss during the first half of 2025, and said it expects full-year revenue to more than double. The Liverpool-based producer of carbon-ceramic automotive brake discs reported pretax loss of £5.6 million for the six months that ended June 30, narrowed from £7.6 million the year before. Revenue jumped 72% to £8.1 million from £4.7 million, due to growth in original equipment manufacturer customer sales. Total administrative expenses increased 3.0% to £10.3 million from £10.0 million. Gross margin improved to 64% from 56% a year earlier, as a result of higher pricing and increased yield, particularly in the second quarter, together with reductions in the unit cost of manufacture. Looking ahead, Surface Transforms anticipates full-year revenue of around £20 million, which would be more than doubled from £8.2 million in 2024. The firm guided for broadly neutral earnings before interest, tax, depreciation and amortisation in the second half, and continues to expect gross cash of around £1.0 million at December 31. ‘The business has a clear roadmap to profitable growth, anchored in awarded contracts. H1 2025 saw the business operating scale production with resultant improved revenues, particularly in the second quarter,’ said Chief Executive Officer ‘The strategic objectives of building further capacity and improving yield remain crucial, but cautious steps forward are taking the business into a more robust state. Demand for our product remains strong and our customers are supportive. Cash management remains critical, but the advent of positive Ebitda enables self-funding to become attainable.’ Shares in Surface Transforms were up 2.0% at 2.45 pence in London on Tuesday afternoon. The stock has risen 65% over the past year. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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