Surface Transforms Share Discussion Threads

[pinkfoot2] 01/10/2023 09:29

AMT

I think the numbers forecast are deliberately soft-there are no prizes for over performing in this market but you get crucified for missing them

[guitarsolo] 01/10/2023 09:23

I would just like to say thank you to Pinkfoot for your contribution here. As someone who owns c.1.5% of the company and is a client of the house broker I don't mind that you are invited to calls that smaller investors aren't. But I do appreciate you sharing what you are (or feel you are) allowed to share with us. Thank you.

[pinkfoot2] 01/10/2023 09:11

hxxps://hardmanandco.com/research/corporate-research/interim-results/

[amt] 01/10/2023 08:11

Thanks for the update Pink-foot
My only quibble is that if production issues are behind us why has revenue forecast reduced. They should be banging out over 2m in turnover per month but only seem to be heading for 10m in H2.
Plus first 6 months turnover of 3m seems to be at odds with production issues being resolved by April. They should have been at 2m per month in May and June alone. The numbers aren't being reflected in what they are saying. I will give them the benefit of the doubt but they should explain it more clearly.

[fft] 01/10/2023 02:47

It is fairly standard practice for clients of the brokers to have a meeting with companies. Before IMC came along it was quite rare for non clients to have access like this. Companies like SRT being an exception. The downside of IMC is that no verbal questions are allowed - so no chance of a conversation with the board. On one occasion (different company) there were only 2 people on the call and that was a very interesting conversation for 30 minutes.I was in an SCE one earlier this year and missed Friday's because I was organising a local golf tournament :-). If you a HNW or decent shareholder then it is probably worthwhile chatting to finncap/Cavendish. I personally think SCE has turned round. The large director buys in the summer were a good sign - but maybe slightly premature.

[bdaonion] 30/9/2023 22:24

Totally understand your position not to circulate, but the company needs to be transparent with all shareholders. Do they say somewhere only certain shareholders will receive certain information? What about shareholders who own more shares than the Chairman for example? Shareholders who have supported the company for over 18 years?
Very disappointing, to be polite. Totally unacceptable and despicable to be honest. Should I contact the company? Tried that many years ago several times, still waiting for a response.
Thank goodness we have people like you who can give shareholders information the company won't .

[pinkfoot2] 30/9/2023 21:30

I think it’s restricted to clients of Zeus and Finncap/Cavendish-of which I’m one

I will make the point again to the Bod that a regular webinar is required-already mentioned on the call.

The Presentation specifically says not to circulate without consent-so I’m not doing it.To be honest, all salient points have been covered in my summary other than the environmental stuff which is clearly something we are good at

[bdaonion] 30/9/2023 20:51

Thanks pf2 but like others have indicated, the company needs to be much better at communication to all shareholders. If larger shareholders (what is the minimum number of shares which gets you in by the way?) can get the sort of information you have posted, why can't the presentation be put on the website?

[jerarnie1] 30/9/2023 18:55

Excellent - Thanks a lot PF

[pinkfoot2] 30/9/2023 18:22

It’s perfectly normal to present numbers to your larger shareholders.I was going to post the presentation on here but there is some wording which prohibits

I would say that I made the point to Kevin and the FD that the company really needs to spend time providing more info about the company to the entire shareholder base via regular webinar style calls.I hope they will

Anyway, my summary in no particular order

-cost reduction plan going well
-production challenges behind us
-margin being maintained at 60pc plus
-3 contracts in production,2 more this year, likely 2/3 next year, taking us to 8
-company trying to get ahead of the demand curve.£50m capacity next year, £75m 2025, £150m 2026
-£2bn pa addressable market with high entry barriers
-at least one more OEM will sign up this year
-FD calm, no hand grenades in the books.Very confident lady

Chairman not on call-has been unwell following a holiday I believe

All in all, this is a company which looks on the cusp of greatness.It’s been a tough first half and I reckon it’s cost £2.5m in lost revenue/equipment resolution-but it’s sorted.With the extra capacity coming on stream, any glitches should be easy to ride out.

I will make the point again to the guys that regular webinar calls would be very useful.SRT do it and it goes down well

[swiss paul] 30/9/2023 17:51

oh and are they going to send out minutes about this special meeting? As I thought all shareholders had to have the same information? or is that incorrect?

[pinkfoot2] 30/9/2023 15:55

No-just usual larger ones.

It was very upbeat-cash is fine and there are lots of angles for debt if they need any

I’m very confident-all the operational stuff sorted and FD is on it

[swiss paul] 30/9/2023 14:30

Pinkfoot this meeting was it open to all shareholders?

[knownowt] 30/9/2023 09:20

Why would the company wish to raise money now when, as Fevertree says so succinctly above about shareholders paying 'for all the hard yards'?. The balance sheet shows net assets of £28.8m and the Chairman is stating :'Productivity efficiencies and capacity improvements are expected to continue through 2023, a target break-even in the second half of the year, with profitability in Q4'.

Banks are there to provide a service. (Believe it, or not!)

[amt] 30/9/2023 06:45

I suppose they could raise say 3m at 27p just to keep the pressure off without much effort and minimal 5% dilution.

[geko5trade] 29/9/2023 18:47

Many thanks pinkfoot.

[amt] 29/9/2023 17:57

It would be nice to know the turnover so far in Q3. It should have been about 6m but perhaps more like 4m ?

[fevertreeman] 29/9/2023 15:26

totally agree...but that certainly doesn't preclude s/o else swooping after we the shareholders have paid up for all the hard yards over the last 5-10 years.

[quemaster] 29/9/2023 14:20

Thank you pinkfoot look forward to your summary later.

Sorry I can't add to your list fevertreeman but I think a Brembo takeover would be highly unlikely as the OEMs have stated their opposition to this as they want more than one supplier, the fact that there was only Brembo in the past held back adoption so they would be shooting themselves in the foot if they took the market back to a monopoly.

[bdaonion] 29/9/2023 14:16

Thanks pinkfoot2. Will the presentation be put on the website? It should be for the benefit of all shareholders.

[pinkfoot2] 29/9/2023 14:07

Attended the presentation this morning

It was very positive-I will provide a summary later on but suffice to say, the company is in a very good place with capacity ramping from £50m 2024 to £75m 2025 then £150m 2026.

There are 3 customers in production, rising to 5 very shortly, then 7/8 in 2024.The main point is the company is pushing to get ahead of the production cycles.They expect further contract wins this year.

Impressed with the new FD-she’s upbeat and certainly gets it

[fevertreeman] 29/9/2023 12:56

Just for fun: sooner or later s/o out there will come sniffing around the company given that the share price doggedly refuses to respond positively and we have had a string of poor news. FWIW who do we think in the quoted sector would be interested (am excluding PE and Brembo obv. I will chuck in 3 names:

1. Melrose (UK listed)
3. Continental (German listed)
2. Morgan Advanced Materials (UK listed)

[fevertreeman] 28/9/2023 15:42

Echoes my feelings. Share price chart looks dreadful - has been heading inexorably south last 3 years, despite growing order book etc. I know its tough out there for listed small caps, what with brexit, covid, energy crunch, supply chains, and inflation, but SEC has also endured a catalogue of missteps: profit warnings; unexpected capital raise; poor communications; ramp-up issues; management stretch; diminishing cash etc...Seems we have been firefighting continually for last 3 years, so whilst I think that objectively share price should be far higher (as per the analysts), subjectively Mr Market is in no mood to believe the equity story.

[geko5trade] 28/9/2023 10:51

Pretty much how I feel but clearly there are quite a few who are selling rather than waiting. I hope it isn’t forward selling but the leakiness of the company feeds that narrative.

[supernumerary] 28/9/2023 10:35

pf - triumph of hope over experience :¬(

I'm happier to wait and see than to put more into this and I don't think I'm alone in that.