Surface Transforms Share Discussion Threads

[briangeeee] 04/4/2022 09:01

OEM3 - sounds good. Presumably means that they have managed to match Brembo durability?

[pinkfoot2] 04/4/2022 08:44

Excellent update today-company maturing fast and the margins look fantastic

[longshanks] 04/4/2022 08:20

Jam this year microscope. And the kind of well protected, high-margin jam that will be in strong demand.The current price factors in a strong PEG rate for the next few years, but that is what guidance and news flow is indicating. Execution risk is the biggest concern as they move from £2m to £75m revenue, but the company has shown it is up to the task so far.

[microscope] 04/4/2022 08:06

Still real jam a long way off. Valuation of over 100 million will have to come down to reality at some point imho, whether now, or in months to come.

[longshanks] 04/4/2022 07:56

As ever DB has given a candid, clear picture of how things stand.The news on OEM3 is welcome but one is drawn to the breadth and quality of their existing and other potential OEM clients. They are now on a second program of efficiencies to further reduce manufacturing costs and with a fixed gas price through to May 2023 dem well protected

[graham1ty] 04/4/2022 07:29

FinnCap lists target price to 80p. Zeus valuation based on a DCF goes up to 110p

[graham1ty] 04/4/2022 07:22

OEM 3: This customer (who is part of a group of OEMs based in Germany) has been tasked with the development of a second source carbon ceramic disc supplier. The customer has a unique and destructive environmental test that has challenged the Company for the last 5 years. It is encouraging to report that, in the year the Company believes it has now designed a suitable product which meets all OEM 3's requirements. The test results have been supplied to the customer for review and confirmation of product suitability. With this work complete no further testing is planned. We now bring OEM 3 in line with the Company policy of capacity planning and sales guidance based solely on firm programme sourcing activities and/or nominations. Currently we have no programmes incorporated in our capacity planning models for OEM 3 and will work with the customer to understand their future sourcing activities.

Snap, Rivaldo. Let us hope for an order from the OEM3 group

[rivaldo] 04/4/2022 07:20

Results are out. Historic financials are largely irrelevant as SCE transitions to profitability, except to confirm that SCE retains a very satisfactory cash pile sufficient for its growth plans.

Great to see everything else now progressing nicely, but the news that's pleased me the most is the progress at last with OEM3's environmental test:

"The customer has a unique and destructive environmental test that has challenged the Company for the last 5 years. It is encouraging to report that, in the year the Company believes it has now designed a suitable product which meets all OEM 3's requirements. The test results have been supplied to the customer for review and confirmation of product suitability. With this work complete no further testing is planned."

Assumong the test results pass muster, progress here would be huge.

[fillspectre] 01/4/2022 13:37

Belated interest after last week's RNS?
Fils

[toffeeman] 01/4/2022 12:58

Because it's not rocket science :)

[supernumerary] 01/4/2022 12:10

Well why does the man whose name must be masked want it? He's never wanted that before - quite the reverse. You put the best brakes in the world on your new flagship car and want to keep quiet about it? Why?

[regandharry5] 01/4/2022 11:55

Well masked.

[cheese666] 01/4/2022 11:34

I like the look of Lotus's new SUV, the Eletra. Their plans for this seem significant and genuine (there's a state of the art factory under construction in Wuhan for it and its smaller derivative, so lots of money is being invested). A lot of the architecture for the Eletra is unique and bespoke and not shared with other Geely group electric cars. Lotus also have a mission to use British suppliers where possible.
It has the option of cc brakes. Has anyone heard if these are ours?

[toffeeman] 01/4/2022 11:04

They just want to musk - I mean mask the name of the OEM

[supernumerary] 01/4/2022 10:47

At what point in the sales cycle is SCE going to be able to say who OEM8 is? I assume that since they have updated sales figures/estimates they must be telling their customers about the car. What do they say when it comes to brakes? The secrecy seems counter-productive for all concerned.

[jerarnie1] 01/4/2022 10:37

A raft of recent ST career opportunities advertised, some linked to the rapid acceleration in production as per the last RNS.
This caught my eye for the alternative revenue streams;
'Due to considerable growth plans, we have a newly created Junior Business Development Manager role, joining the expanding Sales team, reporting into the Aftermarket Business Development Manager. The role is to promote and sell, Surface Transforms brake discs, into the retrofit market.'
hxxps://careers.surfacetransforms.com/job/258620

[knownowt] 31/3/2022 11:33

Very droll, Toffeeman!

[toffeeman] 31/3/2022 10:46

They can't have too many at a time - makes it easier to spot the Brembo interloper.

[fillspectre] 31/3/2022 08:24

Well at least there is a healthy interest in attending the CMD and the factory visit. Fils

[fillspectre] 28/3/2022 23:10

No problem Tole. Glad to have you posting on the board. Cheese666 I think you have summed up all that I am thinking..... Perplexed Fils.

[tole] 28/3/2022 21:11

Thanks.. hadn't spotted that.. I had only just read the masterinvestor article earlier this evening.

[fillspectre] 28/3/2022 20:47

Tole - SCE investor posted the exact same text at 10:30. They beat you to it by a full eight hours! Fils

[tole] 28/3/2022 18:25

https://masterinvestor.co.uk/equities/taking-a-bullish-small-cap-look-at-sce-iof-and-ted/Surface Transforms (LON:SCE) – ready to accelerate awayWhen I first profiled this company, with its shares then at just 17p, I stressed that readers must take on board that they would be an extreme speculation, even so I stated that I felt a real buzz about the company.Since then, we have seen the shares break way above my first price aim and also that of the second profile objective fourteen months later.Now I would suggest that the shares are beginning to look substantially less speculative, and that they may well have another run upwards due soon.The group – the 'home of carbon ceramic brakes' – has been significantly innovative in creating its now patented materials technology for the process of producing advanced brakes.On your car you will generally have carbon ceramic discs which are produced using chopped carbon fibre. However, Surface Transforms interweaves continuous carbon fibre to form a 3D multi-directional matrix.This process creates a much stronger and very durable product that enables it to conduct three times the heat of standard production components, which keeps down the temperature of the brake system while maintaining the consistency of the performance of the brakes.The company's unique patented carbon ceramic technology helps to create the ultimate braking performance for road and track. It saves up to 70% less weight than iron brakes, improves performance in both wet and dry conditions and it is corrosion free. Their technology improves handling and driveability, gives less noise, vibration and harshness, and furthermore even from cold it gives outstanding performance.That is what excites advanced car makers to contemplate such products for their own superior special vehicles, then for their mass production line models.This group, which is the UK's only manufacturer of carbon-ceramic brake discs, there being only one other maker world-wide, is still at an early stage in its development, but very much further ahead now than when I first 'profiled' the company.Makers of racing cars, high performance cars and even mega-powered trucks are early-stage users, but also this new product can be used in rail brakes, aircraft brakes, rocket motor systems and even aerospace components and ballistics. Its potential is massive.Last Thursday the company announced that it had signed a major new contract with one of its existing customers, replacing a previous £27.5m deal declared in September 2020. The new deal is for a value of some £100m and has been extended up to 2027.This group is just beginning to run a lot faster and its potential is starting to show through, cooling down the 'speculative' flavour and replacing it with investment appeal.Analysts Raymond Greaves and Michael Clifton, at brokers finnCap, estimate sales increasing from £2.4m to £14.5m for the current year to end December 2022, with a massive reduction in losses from -£4.4m to only £0.2m down.For the next two years they see £19.9m and then £30.0m sales, with £1.1m profit in 2023 and £5.7m in 2024, worth 0.9p then 2.6p per share in earnings.They have a price objective of 69p for the shares, which closed at 55.5p on Friday night.I consider that the shares, which have been up to 80.95p, really do have very good appeal at this level, especially ahead of the announcement early next month of the 2021 final results.My view is that the shares will rise strongly over the next year, leaving the broker's estimates well behind.For anyone who might be interested the group will be holding a Capital Markets Day at their Knowsley, Liverpool premises on Wednesday 27 April.

[cheese666] 28/3/2022 15:48

Fillspectre - I think my mood has reflected the relatively flat response that we've seen on the board since the announcement.
The contract is clearly fantastic and, as ever, it's the hinted at options on other, larger scale models, which really excites me.
The share price raise was good but it wasn't great considering the £40m announcement in December and the current low share price I remain very bullish about SCE but have concerns about why we haven't moved further up. Even a doubling of the share price from Thursday would have only gotten us back to levels seen before (albeit before the 50p raising).

This is all very short term but, the share price is again drifting down and it doesn't feel like an optimum place to have your money outside of contract announcements.

The world is in a very difficult place and our sector has clearly been profoundly affected by this however, there is also unprecedented demand for high end vehicles in new and existing markets.

I'm quite realistic about the markets and don't expect all of my investments to be winners and for every bit of news to make a difference but on this occasion I feel more is deserved and I'm left wondering why this didn't happen.

[regandharry5] 28/3/2022 11:13

Surely we can't drop back into the 40's after Thursdays RNS. For me it was one of the best for a long time.