Surface Transforms, the Knowsley-based maker of disc brakes for supercars, ratcheted down expectations for the rest of the year as it continues to struggle with capacity and manufacturing. 

“While we are delivering new highs in terms of output and revenues in 2024, the pace of growth is significantly behind plan. Revenues in Q3 are expected to be significantly down on plan and we have revised our output and revenue plans for Q4 materially downwards,” the company said. 

“As a result, revenues for the full year are now expected to be circa £11m which is significantly lower than current market expectations of £17.5m.”

The company, which makes carbon-reinforced ceramic brakes used in many high end sports cars, said revenue increased by 58% to £4.7 million in the first half of the year, helped by growth in OEM customer sales. 

It said its operating loss widened to £7.4 million, primarily reflecting increased R&D spending to enhance manufacturing processes and improve yield. The company has struggled recently to maintain high quality as it ramps up production to meet demand.

“2024 continues to be a year with contradictory positions. Real progress on scaling up and delivering growth is being made, however the pace of growth is not as we had anticipated,” the company said. 

“Output and revenue have improved post period end, with volumes having more than doubled during Q3 compared to Q2. The key drivers for achieving this growth have been the delivery of capacity upgrade projects and process/equipment refinements which are leading to increases in overall manufacturing yield.”

“The rate of growth in output and revenue growth is however slower than we had planned. H2 revenues are expected to be circa 40% down on plan, excluding engineering revenues. The key drivers that are resulting in a slower pace of growth are delays to enhancing capacity and also yield improvement projects.”