Surface Transforms Investors - SCE

Surface Transforms Investors - SCE

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Stock Name Stock Symbol Market Stock Type
Surface Transforms Plc SCE London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 43.00 08:00:00
Open Price Low Price High Price Close Price Previous Close
43.00 43.00 43.00 43.00 43.00
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albert_einstein: I think two of the main issues facing us in the coming months and years are our ability to scale up production quickly without too many bumps along the way and the ability of our customers to keep to their original timescales without major delays to the start of production (SOP). We've already seen delays to the SOP on some of our contracts and history and the current environment suggests they won't be the last. We are in talks with numerous people regarding potential new contracts and the possible expansion of existing ones to include new models etc so hopefully we should see some newsflow along the way but I think investors will be focusing on the ramping up of production and any issues that ensue either inhouse or from customer SOP delays.
bomber13: I was fortunate enough to go on the Surface Transforms capital markets day last Wednesday , where , along with at least 30 other interested parties , we were presented to by the full board ( bar the most recent NED appointment ) , and shown around their Knowsley factory near Liverpool . The previous day they had done the same thing with at least 30 institutional investors , and , because of unsatisfied demand , there will be a further capital markets day on 7th July . This level of interest on its own tells you that there is a very interesting story slowly but surely being disseminated . We were all reminded at the start of proceedings that Surface Transforms is extremely sensitive not only about its customer base but also its processes and technology , and we were asked to be respectful of that . With that in mind , I will restrict the comments below to my own interpretation of what was said , what was on show , and what is already known - 1) ST is the much smaller of only two global suppliers of carbon ceramic brake discs , the main player being Brembo SGL , part of Brembo GMBH , with some 95% of the current market . OEM auto manufacturers do not like to have sole suppliers of components , and , until ST arrived on the scene as a serious player , this factor will have restricted the global uptake of carbon ceramic discs , now estimated at US$350m pa , but with a highly visible path to US$2.2bn pa , which would still represent only 2% of new car sales volume . 2) The advantages of carbon ceramic brakes are well known , but worth repeating . They are corrosion free , they are up to 70% lighter than iron discs , so aiding fuel efficiency and air quality , they are far more durable , they have an extended life expectancy , and , since they produce far less brake dust , they are a perfect ESG component , particularly lending themselves to the growth in EV's . ST's carbon ceramic disc is not only competitively priced versus Brembo's , but claims to be a more superior product because of its better heat dissipation , the unique technological know-how behind it , and its complex manufacturing process . Moreover , this latter point has been validated independently . 3) With ST's growing acceptance as a tier 1 OEM supplier has come a growing visibility to its order book . From barely £2m at the end of 2018 , the order book now stands at £180m , over 10X the assumed £14.5m outcome for the December 2022 year . ST's brokers have around £20m pencilled in for 2023's turnover , and £30m for 2024 with OEM 8 , a large global car manufacturer , taking the lion's share . This latter customer increased its original September , 2020 order worth £27.5m to £100m in March , 2022 for the same vehicle because of greater forecast volumes and a longer model life . ST also made the point that OEM 3 ( incorporating OEM's 2 & 4 ) , a German sports car manufacturer , no longer merits special attention , whilst still retaining the potential to be a large market opportunity for ST eventually . Overall pipeline discussions typically take place 2 or 3 years before production , and , if anything , lead times are shortening somewhat . 4) The Knowsley plant covers 55/- sq ft , and , in line with the new manufacturing strategy announced in September , 2021 , manufacturing is being changed from a batch driven cellular model to a plant-wide single production line project . This new system will offer several advantages over the previous plant layout including improved labour utilisation , mechanical synergies , much improved energy efficiency , and a faster pathway to £50m of turnover capability by the end of 2023 on a 2 shift basis . This latter capability can be achieved without further financing , and full utilisation of Knowsley's footprint could eventually accommodate £75m of turnover . For the moment , although ST would not be drawn on average selling prices , the immediate target is to achieve production volume of 100 discs per day . 5) Substantial progress has already been made with the new plant layout , and the arrival of a brand new 20 meter long continuous flow carbonisation furnace at the end of this year will further galvanise operating procedures . ST also plans to add another carbon fibre weaving machine , and another CVI machine ( chemical vapour infiltration ) . We were shown all 10 intricate stages of ST's unique manufacturing processes in some detail , and these are listed here in this link from their website - . I would particularly pick out 4 of these stages where ST adds huge differentiated value , and where the IP is not just in the patent but in the know how behind the process . These are stage 1 , the weaving of the carbon fibre , stage 3 , chemical vapour infiltration , stage 6 , melt infiltration of silicon carbide , and stage 8 , anti-oxidant coating . This latter process is owned by ST , and the IP was bought very reasonably from a private Californian company . 6) When asked about capacity requirements beyond Knowsley , ST said that it would take a minimum of 2 years to plan and execute , and longer if overseas . Given the rates of growth expected in the next few years , it would seem highly likely that preliminary discussions are already taking place . The Chairman inferred that there could be more capacity available in and around Knowsley , if need be . Knowsley should provide enough capacity until 2025 , and , ahead of the start of the big OEM 8 contract this Spring , ST has been actively recruiting , and will continue to recruit through to next year . In conclusion , an impressive belt and braces capital markets day . ST operates in a duopoly with huge barriers to entry , its marketplace has huge growth potential , its processes are unique , its product is best in class , its machinery is both high tech and bespoke , and the management has huge depth of experience . Whilst there are some short-term risks in the change of manufacturing practices , and in the dominance of the OEM 8 contract , this little company has all the hallmarks of being a Great British gem for many many years to come .
jerarnie1: Hardman Talks Video Event | Surface Transforms Management Presentation and Q&A We are delighted to announce Surface Transforms will be presenting a live webinar on Hardman Talks at 2:00pm on Thursday 28 April 2022. The company is holding a Capital Markets Day at its factory in Knowsley on 27 April. This has proved so popular that it has not been possible to accommodate all those who would like to attend. The webinar will provide the opportunity to view the management presentation given at the site visit. This presentation will be followed by a question and answer session with the management team. This webinar represents a key communication channel for investors to keep up to date with the company's strategy and progress. All investors, whether existing shareholders or not, are invited to watch the presentation and take part in the Q&A session afterwards. There is no charge for attending. Investors are encouraged to submit their questions when registering or during the event. A recording of the webinar will be available on the Hardman & Co website shortly after the event for those cannot attend the live presentation.
microscope: Depends what you mean by jam longshanks. I do like the company in many ways, and the OEM 8 and 10 contracts have excellent potential. I held a few in Ofex days, so I have always had an eye on it.That said, my concern is more with valuation than anything. They will continue their 'journey towards profitability in 2022'. Suitably ambiguous and it's clear that in 2021 that journey took a bump on the way with losses of 2p per share, up from 1.5p - despite a big increase in shares in issue.They raised 19 million and have 10 million (plus a non funding related irrevocable 3 million). So they're burning through it at pace. And with an additional 2.5 million spend referenced for 2022 that is going to put additional pressure on return of sales to deliver targets as soon as possible.With a medium term outlook for 20pc per annum revenue growth, that road to profitability against a market cap of 100 million plus is taking a chunk on trust.There's lots to like as broker targets indicate, but for me they've rather glossed over some of the reality.For longer term investors I think this is a great growth story, but short term feel significant financial challenges remain.
fillspectre: Tole - SCE investor posted the exact same text at 10:30. They beat you to it by a full eight hours! Fils
rivaldo: I'm not a subscriber (not at £495 per annum!), but am on the circulation lists for Regency Capital, which owns AIM Investor. They've just sent me an email headlined "The Little Known Penny Share Set to Surge". Yep, it's SCE. You get a four page report enthusing very hard about SCE. If you want a free copy of their report then sign up here: Https:// Personally I give a false phone number so I don't get plagued by nuisance calls, but they don't seem to send out too many emails and are relatively "kosher" imo. Hopefully it'll attract a little more attention here.
graham1ty: SCE Investor, either you have been told inside information (naughty) Or you are making it up (naughty) This has always been a ramp free Board, and would be good if it remained that way.....
tole: Transforms (LON:SCE) – letting the price brakes offCarbon ceramic brake discs may sound very boring to a lot of private investors.However, this near £100m company is making solid in-roads into the supply of its specialised products.The end of this month could see it losing some £4.2m, compared to its near miniscule revenue of just £2.7m.But next year will mark a significant change in the company's fortunes.Analysts Raymond Greaves and Michael Clifton at brokers finnCap estimate sales in 2022 of £14.3m helping to turn it around into a healthy £2.4m pre-tax profit, worth 1.6p per share in earnings.Yesterday morning the group announced that it had been selected as a tier one supplier for the launch of three cars from an existing customer, known as OEM 6.The group's discs will be fitted as standard to both axles on all three cars. That win could be worth over £45m to Surface Transforms, taking its current order book up to over £115m.More contract wins are anticipated in the next year.The group's shares have been up to 81p each, peaking in March this year. Now at 54p they could well be able to reclaim that price level as more orders are revealed in 2022.Hold tight.
graham1ty: Nothing really has changed. We knew that revenue in 4Q was affected. We are still promised further contract news in “the near future”, and a new contract/volumes from OEM8 in the New Year. Delays annoying, but we have waited ten years to get to this position, and a few months should be neither here nor there for long term investors
jerarnie1: Now even getting a mention in The MailOnline "Elsewhere, Surface Transforms, a maker of carbon-fibre reinforced ceramic brake discs, saw its shares accelerate 4.6 per cent, or 3p to 68.5p as investors backed a new manufacturing strategy at its factory in Knowsley, Merseyside."
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