Surface Transforms Share Discussion Threads

[albert_einstein] 29/9/2022 08:21

Very disappointing placing price given the progress over the lsat year or so and the prospects going forward.

Feels like the City has fleeced long term shareholders, as per usual.

[alan00] 29/9/2022 08:03

Update on Surface Transforms Plc fundraising announced yesterday - highlights strong revenue expectations & nicely developing return on capex, but price not ideal. See full update in post:
www.upsidedownsidecapital.com/p/surface-transforms-plc-fundraising

[bagpuss67] 29/9/2022 07:30

Sorry to be lazy but assuming no excess on the open offer for simplicity how many shares do you need to get per 100k of holding to maintain your overall % holding? Thanks

[graham1ty] 29/9/2022 07:25

The last Open Offer was 477% subscribed, so almost five times.

Anyone thinking of selling in the market today, and then buying back at 40p in the Open Offer might get caught with their pants down.

I wonder also if those funds who put in firm orders at say 47p or 48p when the Placing was first proposed, will now be buying in the market up to that level ?

Mind you, have never understood a thing about the price reactions to SCE announcements. This company is transformed beyond recognition since the last Placing.

[pinkfoot2] 28/9/2022 19:02

I bought again in the Placing-great presentation and excellent Board.Price a bit disappointing given I’m a big holder already but it answers all the lingering capacity doubts for me.No glass ceiling now-race to the top

[longshanks] 28/9/2022 18:14

I didn’t take part in the placing myself (though invited to). I will though be buying in the Open Offer.

I would recommend all to attend the presentation on Monday and/or review the slides that will be published afterwards.

[jerarnie1] 28/9/2022 18:03

The Company will provide a live presentation to investors and any other interested parties via Hardman & Co's platform at 10.15 a.m. on Monday 3 October 2022.
Interested parties can register for the presentation at
hxxps://us06web.zoom.us/webinar/register/WN_i_3DuhFcQtaQ-IKBOiGs_Q

[graham1ty] 28/9/2022 18:03

FinnCap target price lifted to 120p ( if only Placees thought that…..)

Phase 3.1 full capacity from the existing plant might generate £19m of net profit.

Full capacity (including a new factory of £150m) might generate £49m of net profit !!

Those might be a few years off, but it shows the potential.

The current order book, plus the prospective contract pipeline adds up to £590m and, as the RNS points out, with an average five year contract life, that equates to £118m or potential annualised revenue. So, not pie in the sky

[graham1ty] 28/9/2022 17:50

Well, hopefully that will lift the lid on the share price, which does appear, from market moves over the last week, to have been under a little……selling pressure.

This answers much ( but not all) of the question as to how they find the increase in capacity up to £150m. It is blue sky, but exciting stuff, as at £150m revenue, this is unbelievably profitable.

The RNS also says they expect to get another contract this year…..

As David says “these are exciting times for Surface Transforms”

[mr macgregor] 28/9/2022 17:27

Price rise then drop into placing. Anyone seen that before?

[toffeeman] 28/9/2022 17:24

So how will we apply for the open offer shares? - Can't see the mechanism in the RNS.

It does explain the recent share price performance!

(my shares are with AJ Bell)

[pinkfoot2] 28/9/2022 17:18

Well that’s the Placing done and away-to create additional manufacturing capacity.Price a bit disappointing given recent highs but an achievement in this market.

The future very bright

[fillspectre] 16/9/2022 13:25

What we need is a Q3 update early October reporting month on month profit in H2 2022. I don't think an RNS of a new contract award will make any impact presently even though one would be very welcome. Fils

[regandharry5] 16/9/2022 08:54

Looks like we're back to a drip drip stage.

[fillspectre] 15/9/2022 10:30

Thanks Toffeeman realised my error (yet again) and changed my post. At least they are not selling at 55p. Are we going to drift down again. Fils.

[toffeeman] 15/9/2022 09:55

>> fills

I would say some one or some Insti moving a holding (or part of a holding)

[fillspectre] 15/9/2022 09:28

Have all the roadshow presentations concluded now? Fils

[rivaldo] 14/9/2022 09:34

Handy transcript of DB's interview with Directors Talk - there's an unusually palpable sense of bullishness and certainty:



"As I said in the Chairman’s statement, these are exciting times for Surface Transforms, perhaps exciting doesn’t do it justice."

[amt] 14/9/2022 07:21

If the banks are doing a decent job they should be able to finance it.
If not what's the point of them in relation to business finance.

[longshanks] 13/9/2022 22:41

They are now cash flow positive and look set to comfortably operate at up to GBP 50m turnover (once the second continuous operating line is in place). Working capital at that level might be tight for a year or two, but they could certainly ‘make it’ without tapping shareholders if push came to shove.

However, as has been reported, GBP 50m capacity will be inadequate within two years and indeed a full site capacity looks to be inadequate within three years. With the PCP they have - turnover could well exceed GBP 120m within five years.

Increases in capacity of that scale over such a short period cannot be easily financed so I would say the odds of ST raising further capital are very high.

That said though, there are no shortage of investors wanting the kind of stable and growing quality earnings that ST is now in a position to advertise.

It comes down to a matter of what placing price can be reached in an auction following a beauty parade. If there are far more bidders than product available, the price will be higher; and vice-versa if there are no takers. If the price doesn’t reach a minimum target set in the head, say of our tenacious Chairman, the auction may indeed be called off and the company may just return to making-do with GBP 50m turnover for a few more years.

Given the price has lifted from mid-40’s to mid-50’s a week after posting interims, I would say that positions are being set that expect a placing higher than the current share price. To all intents it would seem that ST’s radiant beauty has come under some close scrutiny recently and picked up some rather keen admirers.

Will they raise cash? Most probably. Would a placing be oversubscribed? Definitely.

[supernumerary] 13/9/2022 19:19

What do you reckon are the odds that they'll be able to make it without coming back for more cash? That remains the only real doubt in my mind.

[pinkfoot2] 13/9/2022 17:58

I’m very confident-and pleased this board isn’t infested with the usual ramp brigade

[cheese666] 13/9/2022 17:32

I listened again to the D Bundred and Hardman interviews and both are, within the usual bounds of SCE, incredibly buoyant and confident. As mentioned already D Bundred looks confident and assured and speaks more openly than usual about how well things are going. The usual cautiousness is mostly absent. The Hardman interview is similarly confident and speaks of a company passing through stages to a new and more mature level. We've seen SCE be confident in their technical abilities, and that of the product, and in their overall approach to managing and overcoming certain obstacles along the way. I don't recall this attitude being applied to the whole venture and, most importantly, the future.

It doesn't take much buying to push the share price up. Whether this rise is sustained or not is almost irrelevant. Soon enough the cold bottom line figures will come to fruition and the share price will take care of itself.

[fillspectre] 13/9/2022 17:09

Well I reckon we are almost at a year to date high. Fils.