Surface Transforms Share Discussion Threads

[amt] 13/11/2023 14:08

The valuation of the co is below net asset price.
So after 20 years developing the product, 400m of orders, 2 billion per annum market and apparently this is valued at well below net asset value

[geko5trade] 13/11/2023 13:55

amt, disagree this is partial management success, partial failure. Great product, good deals negotiated, some good fund raisings some bad, v poor management of expansion issues. You can get success with fledglings but you need good boffins and good corporate management skills and that is a rare combination. I made a mistake I thought they were on top of things a year ago and they clearly weren't..

[fevertreeman] 13/11/2023 13:51

Can anyone answer the question when was the last time Johnson the CEO actually backed the company and aligned himself with s/holders by actually buying stock? He hasnt +ved a single share in last year (unlike poor Kerry and the NEDs....).

[amt] 13/11/2023 13:20

In March 2003 the share price was 13p, by September of that year it was 85p.
If this nonsense continues it basically signals that there is no point in investing in a new technology in the UK market. AIM is dying, are the Government looking at ways to boost the market, I doubt it.

[fevertreeman] 13/11/2023 12:47

Totally agree with you Amt. Given the abject failure to make their own deadlines, and the fact that Easton has only recently climbed onboard, raising £ for working capital which is then pee'd against the wall again to solve yet more manufacturing problems would be the final nail in the coffin. The question is how much working capital is needed? I honestly dont think at this stage they know....hence Easton & Maddock in the hot seats.

Meantime they could actually get on and show they mean business by firing the chairman

[amt] 13/11/2023 12:05

It would make sense to have a small placing, if the can get sales of 2m plus per month by March, sentiment will change significantly so a further placing won't be so dilutive.
The worst thing would be to have a large fundraising now while sentiment is absolutely dire and implies complete failure as a possibility, which surely it isn't.

[amt] 13/11/2023 12:01

3m because they should break even in say March 2024 with sales of 2m plus per month, So funding of half a million per month until then should be plenty.
Then cap ex to take capacity from current level to 75m of 13m by way of loan ?

[longshanks] 13/11/2023 11:34

I believe those are the office hours, not the factory itself.

[swiss paul] 13/11/2023 10:21

Knowing the leakiness of this company and the continuing slide in the price I can only conclude the ship is far from stabilised.

[quemaster] 13/11/2023 10:20

My guess is a 10p fundraising, Pinkfoot keeping quiet and the share price seems to point to something like this.

[bagpuss67] 13/11/2023 10:15

Sorry super. Where does the £3m number come from? Surely if they raise they need some headroom for further possible production hiccups..

[supernumerary] 13/11/2023 10:12

The irony is that if it's really only £3M that would be small change to many buyers of cars using their brakes. So if they had a list of owners, and they were all members of an SCE brake club, the problem might be solved by a few phone calls...

[amt] 13/11/2023 09:43

Look at the hours on the job vacancies website and they imply something different.

[amt] 13/11/2023 09:41

It sounded to me like machines were breaking down and taking time to fix. They implied they needed to maintain the machines better and perhaps not stress them so much that they don't break down.
I am confident enough that they can mass produce but they need better longterm solutions. I suppose ultimately more automation and Robotics but that's probably sometime away and would need a lot of investment.
In some ways these difficulties imply its got even higher barriers to entry than we thought.

[bagpuss67] 13/11/2023 09:12

Pinkfoot? Anything you are prepared to share about last week's management meetings and the current situation?

[bagpuss67] 13/11/2023 09:11

Brembo must be looking on going wft...we were worried about these guys who could have been genuine competition but the UK system and other failings have meant they have imploded. How does the next sales pitch go.. Great tech but can you rely on them..

[amt] 13/11/2023 09:06

Yes, only a couple of months ago a billion market cap was possible in 2027 if targets were met and now its 27m.
I don't know how much they spent in the last ten years developing the product but multiples of 27m I should think.
Yes a cracking product that the car companies are very keen to get on their vehicles.

[amanitaangelicus] 13/11/2023 07:33

Somebody could snaffle this -somebody with a bit of spare cash,savvy. Clearly a cracking product. What a mess though. Now a recovery play. Hope Nov has been good so far...

[amt] 11/11/2023 22:11

I would think they need about 3 million to see themselves through to net cash inflow.

[bagpuss67] 11/11/2023 16:47

Clutching at straws but what about Uk export finance?? Specifically the export working finance scheme...

[bagpuss67] 11/11/2023 16:10

Thanks bones.

They will need to avoid a going concern qualification as well.

So can see how a raise in the short term can be avoided.

Perhaps they could get an ID line to cut a bit of the raise but they still have to be able to service that debt and the draw on the capex loan.

Pinkfoot gone quiet...maybe inside on a raise.....

Going to be painful....

[bones] 11/11/2023 15:28

Bagpuss, yes, guidance out of date as soon as published. Can’t happen any more.

See my post 8318 for a thought to your concerns.

[bagpuss67] 11/11/2023 15:20

Am I correct to say that sales guidance went from 16m to 13.3m to 8.6m and the year end cash estimate of £1.4m was when they thought they were going to do 13.3m?

So where might they be won cash at y/e now?

Maybe some w/c cash outflow saving as sales haven't ramped but lost contribution from those sales and also incurred additional costs rectifying new production issues.

I don't think they have an RCF or o/d? So will they have had to cut capex and institute other cash management measures to get through? I think the new CFO will likely have had to put together an STCF as well as het other tasks trying to obtain some rescue and w/c finance....