Surface Transforms Share Discussion Threads

[bagpuss67] 15/8/2024 07:15

Albert. I think the NEDs genuinely see him as the key person to this whole operation and that it would not be possible to go forward without him. Hence they won't bring in a CEO and move him and also give him this options package

[joe say] 15/8/2024 07:09

Pigs in the trough

Debunks this whole "we must reward talent" argument

[albert_einstein] 15/8/2024 07:07

Why has Kevin Johnson been given a shed load of options when his mismanagement has been one of the reasons why so many faithful shareholders have been wiped out.

[joe say] 15/8/2024 07:05

Not confusing to me (this time!)

He simply defines each element and its relevant weighting and implies that to achieve the target EBITDA then that would naturally have a direct link to the sales capacity etc

However, its time the old boy left - what a blunderer he is

[bagpuss67] 15/8/2024 07:01

Amt. Agreed. I guess that Bundred writes the rnss. There is a long history of confusing and imprecise language. Along side saying one thing one day and another the next.

[bagpuss67] 15/8/2024 06:59

I would like to ask IM to run the cash forecasts with no improvement in yields and assuming output increases as planned and tell me if/when they breach covenants and run out of cash (pre and post credible mitigating actions).

I'd like to see what they need to do with yields/ actions from here to avoid that scenario of covenant breach and running out of money (if it occurs) and maintain a £2m cash headroom.

[amt] 15/8/2024 06:55

"The vesting criteria are independent of each other, albeit clearly linked if the separate criteria are to be achieved."
What does that mean exactly. So if any one of the criteria are met they get the award ?
Why can't they write in clear English.
Namely if any one criteria is met they will receive the award.
Encouraging that output is increasing and June wasn't a fluke. I should think this is de-risking quickly now. So we can begin to feel confident that mass production is possible although maybe there will be more bumps along the road.

[bagpuss67] 15/8/2024 06:24

Yes. It wouldnt have taken much to tag on something like "and there are initial signs of a further improvement in yield towards our target."

It's omission suggests there hasn't been which is not good news and begs the question of whether they are capable of improving the yield beyond 75%.

[ben gibbons] 15/8/2024 06:16

Yes I noticed this as well.Good news.2.5p today easily.

[bagpuss67] 15/8/2024 06:15

Good news. No mention of yield though.

[thiopia] 15/8/2024 06:13

Snuck in a 'trading update' into the LTIP announcement

"To this end it is encouraging that the increase in output, reported in the 19 July trading update, has been maintained at the end of July and early August."

[latentvalue] 14/8/2024 15:15

Fevertreeman, the market has been efficient in discounting the management failures and their ability to shock and surprise. As you say the share price reflects that.

I see the appointment of a new Chairman as the opportunity to reset investor relations and, after a honeymoon period with the executive team, someone who can challenge the exec team and restore trust in any trading outlook statement!

This forthcoming 'sentiment event', is one of the reasons I have added to my holding recently. I have a list of these events that might one day take me to 3%, based on strict criteria.

I just hope that's the incoming Chairman is not an existing NED. We need a fresh pair of eyes from a scale up expert, not involved in the day to day (current Chairman takes salary as well as fees so clearly is a shadow executive), so he can challenge the Executives, removed from close working relationship. It's such an important role.

Rechecking my notes, I did write down 'siege mentality' re the BOD and I do think this needs to be broken with the new appointment.

I asked the Chairman if he was happy with his team, including the new appointments and he confirmed he was very happy. I then asked whether he was happy that his CFO only subscribed a small amount in the May placing and it was made very clear to me that it was none of my business (although obviously it's a question any investor would have so it had to be asked)! He's clearly fiercely loyal and ultra protective.

We'll hopefully find out by early Sep who it is. You never know the individual might be the other buyer in the market currently, taking advantage before they officially get appointed and subject to close periods!

[crystalballs2] 14/8/2024 14:06

Apologies.. document would not load 🤷🏼‍♂️

[crystalballs2] 14/8/2024 11:25

The technicals are not really my territory, but this looks interesting: 👇

[fevertreeman] 14/8/2024 11:00

LV,

Been following your input with considerable interest. You mentioned scar tissue...the sudden, almost overnight, collapse of the business(CFO/COO officially joined last Sept)has profoundly shaken confidence in (1) Bundred (2) The Board (3) Johnson. All of the issues boil down to management. Did you discuss with Bundred the trust deficit with management? It's clear to many of us that Johnson is not the right person to be CEO: he lacks the skill sets, or temperament, and until there is an acknowledgement of the severity of management failure here, the company is unlikely to experience any sustained share price recovery. Your views welcome - by the way, Bundred is hugely responsible as he effectively shielded Johnson from proper scrutiny.

[latentvalue] 14/8/2024 08:24

This is world first process manufacturing for this best in class product. There is no manual, there is certainly no expertise around the world to come in and wave a magic wand (I understand the UK universities have no useful expertise on this and the only ones that have been of marginal help have been German). They solve it by trial and error and record lots of data. This is real know-how being created daily and is very valuable IMO and partly one of the reasons why I invested as IF they can get to a yield of 86%-90% at critical mass volumes, then the know-how alone would be mega millions. You certainly can't reverse engineer these disks, so another barrier to entry. Just need to keep the handcuffs on the COO and his team!

Slowly but surely they are solving the puzzle (and the underlying 83% if resurfacable delaminated discs are taken into the equation as per my earlier post, gives me confidence of the progress being made, albeit slower than hoped for).

The problem for them is they can tweak a process (eg gas flow rate) and it can take a number of days for the product to go through the process and see if the remedial action worked.

Any issues re the machining aspects of the process appear to easier to resolve.

[major courtenay] 14/8/2024 07:36

Latent, thank you for your excellent report. One key standout for me was the issue whereby solving one of the many upstream problem can create unforeseen downstream problems. Does this not suggest we face (or will continue to face) problems of an order of magnitude greater than many of us realised?

If every time / many times a problem is solved, another is created, then how on earth do they ever get to the end of it?

I over egg, but you get my point. I guess they get there eventually, but should we be prepared for scale up to take longer than anticipated?

[bones698] 14/8/2024 06:33

For me the cash position has to be above 4m come September as a minimum otherwise to me at least they are still haemorrhaging cash too fast amd drifting further away from the targets they set . Less than that figure and it's alarm bells so for me it's one of many things to look out for . All the other numbers might look ok or be somewhat converted as is normal with sce but that is my base marker here .

I do think these next TU will be make or break almost and we will see if it's the brave buying now that benefit or those that are waiting that made the better choice . Quite a binary bet I think at this point. Gl

[washingmachine] 14/8/2024 05:36

Any one considered the impact of the EV market which currently has collapsed ?

[amt] 14/8/2024 05:31

Just hoping that by September there will be enough data to prove that they can mass produce the product at a reasonable margin.

[crystalballs2] 14/8/2024 05:27

Update should be 24th Sept..

[latentvalue] 13/8/2024 21:06

Thank you. Let's hope we have some news to debate soon re the new Chairman!One thing I forgot to ask in my meeting was whether the LTIPs for the executives have been rebased in light of the recent placing. I believe the exercise price was 10p a share and based around FY26 KPIs. Does anyone know, please?

[supernumerary] 13/8/2024 20:56

'as I take the foot gradually off the gas' - I wouldn't have said 1% already -> 1.5% quickly was that gradual but I guess it all depends on your frame of reference.

But it's good you're here - without you and the other buyer you're competing with, I dread to think where the share price would be now...

[latentvalue] 13/8/2024 20:25

No - just starting to get into investing as I move gradually from the 'B quadrant' to the 'I quadrant', as I take the foot gradually off the gas.You were once a new poster...We have to start somewhere!