Surface Transforms, the troubled Knowsley-based maker of disc brakes for supercars, said its working capital is becoming “increasingly constrained.”
The firm published a financing, trading and operations update for the year to December 31, 2024.
The company’s shares fell 97% during the past year as it continued to struggle with capacity constraints and manufacturing. Its stock market market has fallen to just £4 million.
“The company is pleased to advise that key customers remain highly supportive and engaged in improving the company’s manufacturing yield, output and financial stability,” said Surface Transforms in its update.
“As set out in the company’s interim results released on 30 September 2024, the company has been in discussions with key customers and suppliers to optimise payment terms.
“Furthermore, backing from customers has included increased pricing, funded manufacturing expertise and cash advances of over £4m in 2025 to support the company’s working capital requirements.
“Discussions with key customers continue and any further updates will be made as appropriate in due course.”
The firm said that subject to audit, revenue for FY24 was £8.2 million (2023: £7.3m).
“Gross cash at 31 December 2024 was £0.5m with working capital (as noted above) becoming increasingly constrained,” the company said.
“These working capital constraints significantly impacted both revenue as well as yield in Q4 and trading results will remain challenged until current constraints are resolved.
“Despite the above, capital expenditure of approximately £5.5m continued during FY24. The company has a £13.2m loan agreement solely for use against capital expenditure of which £4.9m had been drawn down at the year end, with further drawdowns having been made in 2025 (for the majority of the difference) …
“The company’s priorities remain on operational improvements and tight management of cash. Cash constraints and supplier restrictions during Q4 impacted the efficiency of operations, resulting in yield being more inconsistent than of recent prior periods with a weekly range of 52% to 78% against the average yield target of 86% for Q4.”
Surface Transforms CEO Kevin Johnson said: “There remain numerous challenges to grow output and revenue at the pace required. The company alongside customer support is working through each of these difficulties not least those posed by the cash constraints which has limited our ability to operate.
“Frustratingly our efforts have not yielded the results we expect of ourselves or at the levels of demand our customers require. As the company navigates these difficult times the support of our customers remains steadfast and their desire to see the Company succeed is highly encouraging and welcome.
“These Q4 results are not typical and do not reflect the progress achieved during 2024 as a whole. We remain optimistic that we can firstly, find a solution to current working capital constraints and thereafter, achieve the necessary operational volumes and targets.”