Surface Transforms Share Discussion Threads

[balcony] 13/9/2021 12:35

We might end up blue by the end of the day.

[longshanks] 13/9/2021 12:35

I am sure that some will view this as a profits warning and there is some logic to this given the company are warning that income from OEM8 in Q4 could be delayed.

What I like though, is the clarity with which the process of navigating SOP through to mature volumes on a contract and the unfortunate uncertainties that arise is spelled out in the RNS.

The bigger news is that they are planning for £50m turnover within 2 years. Jam tomorrow certainly, but increasingly jammier jam and from what I read, turnover next year could significantly exceed current market expectations.

[charlie9038] 13/9/2021 12:06

Not the best report on Stockopedia :(

[jerarnie1] 13/9/2021 09:33

It's interesting, and encouraging, that there is mention of Euro 7 emission standards within the RNS. The focus from regulators, OEM's and consumers will undoubtedly progress to include a vehicle's brake and tyre particle emissions.

[donald pond] 13/9/2021 09:29

Yes, feels like a few PIs leaving while some bigger players step up. That's often the case with results.

[ps56] 13/9/2021 09:27

Action this morning would suggest to me that a buy order is being filled. Any thoughts?

[longshanks] 13/9/2021 08:53

I'm thinking mid-cap funds rather than small-cap

[donald pond] 13/9/2021 08:43

I'm not sure what today will bring but I've got no doubt a lot of small cap funds will be looking at these results and thinking the next few years should be great. I'll add on any dips but don't expect any once the early trades are cleared

[longshanks] 13/9/2021 08:38

Good to see you here Donald.Agree the anticipated growth rates are more akin to a pharmaceutical business. Add in that gross margins should be maintained and this becomes very interesting.

[toffeeman] 13/9/2021 08:32

Key line for me is:

we reiterate our previous statements, that we expect to be profitable in 2022.

Nice for those with VCTs holding SCE!

[donald pond] 13/9/2021 08:32

£1.2m Rev in H1, anticipating needing £75m capacity by 2024. That's some growth

[pinkfoot2] 13/9/2021 08:20

Hi Fils

I think it’s an invitation only from Finncap tomorrow

Good RNS today-very robust and momentum building

[graham1ty] 13/9/2021 07:51

Have now seen Zeus and FinnCap notes. No change to 2022 or 2023 revenue forecasts until contracts signed. So, nothing more included for any new ( or at least upgraded) OEM8 contract.

ORM8 was already in the forecasts for £8m. What is “greatly exceeded” ? Or “significantly higher capacity” ? Let us hope the discussions on the performance pack and the new capacity commitments do not take too long. Presumably OEM8 wants to be able to start delivering the performance pack to customers as soon as it can ? So, it should be weeks rather than months ?

I hope that later this year we get more concrete guidance on 2022 volumes for OEM8 on the back of a new contract that SCE can announce

[longshanks] 13/9/2021 07:43

Not surprised that OEM8 is experiencing higher sales than forecast. I saw this recently about a similar situation playing out with the Porsche Taycan: hTTps://carbuzz.com/news/porsche-taycan-demand-higher-than-anyone-expectedI note too that OEM8 appear to be now looking to offer CC brakes for all customers of this model as a performance pack.

[ps56] 13/9/2021 07:43

"whilst we are delighted that we continue to win contracts on internal combustion engine ("ICE") vehicles it is likely that by 2025 this EV segment will dominate our sales because it is currently dominating our project activity."

[rivaldo] 13/9/2021 07:38

I also like "Good progress on both commercial discussions and ongoing successful product testing with several other new and existing customers". And SCW are "working on a significant number of unannounced projects".

Schedules in the short term for the OEM8 model may slip a little - and OEM9 has delayed SOP by a year - but this is hugely outweighed by "the customer's (OEM8's) higher than originally forecast order book".

Hopefully lots more news flow still to come this year.

[longshanks] 13/9/2021 07:26

Fair point G1TY: explains the recent decision to change the manufacturing process to bring on greater capacity sooner.Wonder just how big the needs of OEM8 might prove if they need £50m capacity by 2023

[graham1ty] 13/9/2021 07:19

Meant to say: no wonder the last RNS talking of a need to streamline production, and bring it on stream faster. We now know a bit more of why.

[graham1ty] 13/9/2021 07:17

Wowee, look at the comments on OEM8. Demand has “greatly exceeded expectations” leading to “higher volumes for SCE”.....̶1;significantly higher capacity commitments”.

OEM8 was already an enormous contract (£27.5m) and down for £8m per annum once up and running. How much bigger might “greatly exceeded” be ???? ( all subject to contract !!).

It all fits together now with that last RNS: SCE expecting to fill the factory by 2024 a year early. If ( big if, or getting a much smaller if) they get to £75m revenue in just three years time........wowee !!!

[fillspectre] 12/9/2021 18:52

pinkfoot2 is there a platform PIs can hear that on? Fils

[pinkfoot2] 12/9/2021 11:56

Investor call on Tuesday-I’m hoping to hear about momentum

[ps56] 12/9/2021 11:39

I wonder, with all the recent good news and possibly some more - collated together with financial results tomorrow, will we see another re-rating of the sp?

[cheese666] 10/9/2021 09:26

"Next will be modified Plaid with added aero surfaces, Carbon Brakes and track tires (all things that can be done without Tesla being in the loop)"

This is the full text from Elon which includes this part in brackets "(all things that can be done without Tesla being in the loop)"

I'm not sure exactly what he would have meant by this? If it means people can retro fit the package I don't understand why Tesla wouldn't be in the loop as assumedly you buy the package from Tesla?

[longshanks] 10/9/2021 08:42

Let's hope he means carbon ceramic rather than carbon.For racing carbon is best, but for road use (and longevity) carbon ceramic is best whilst working pretty damn well on the race track

[jollygreengiant] 10/9/2021 07:49

Elon Musk at 1104pm last night “Next will be modified Plaid with added aero surfaces, Carbon Brakes and track tires!!!! Could it be!? We shall see!