BREAKING: Surface Transforms – hopefully warnings here were heeded as it’s now “notice of intention to appoint administrators” and shares suspension…

Last week I wrote on a “Major Customer Update: Loss of Contract” announcement from Surface Transforms (SCE), ‘shareholder wipeout ahoy’ concluding, as the shares crashed towards 0.15p, that hopefully prior warnings here were heeded and natch still a sell. The shares most recently closed at 0.115p, and what of, at 12:35pm today, a “Contract update, suspension of trading and NOIA”-titled announcement?

BREAKING: Surface Transforms – hopefully my prior warning was heeded as it’s now “Major Customer Update: Loss of Contract”… and shareholder wipeout ahoy!

Most recently, last year, on automotive brake discs company Surface Transforms (SCE) I wrote ‘what about an increased massive loss and reliance on “customer support” makes its results “pleased to announce”?!’ with the shares falling back below 1p. The shares most recently closed at 1.95p, but what about now an intra-day (uh oh!) “Major Customer Update: Loss of Contract” announcement?

Surface Transforms (#SCE) – Steven Harrison appointed CFO having been interim in the role since March

Surface Transforms (#SCE) – argues “a pivotal change in manufacturing yield and output”, notes “cash advances” of £12.9m “remains in negotiations regarding the settlement of”

Surface Transforms – what about an increased massive loss and reliance on “customer support” makes its results “pleased to announce”?!

Although relative to an above 70p price reached in 2021, shares in “manufacturers of carbon fibre reinforced ceramic automotive brake discs” (well, commercially trying to be!) Surface Transforms plc (SCE) had in recent months risen back above 1p having been below 0.25p. However, what about the shares currently falling back below 1p despite the company stating it “is pleased to announce its audited results for the twelve months ended 31 December 2024”?

Surface Transforms (#SCE) – 2024 loss £22.3m, on cash flow states “positive discussions with key customers regarding further support remain ongoing”

Surface Transforms – argues key customers discussions “at an advanced stage… regarding longer-term arrangements”, but from currently a cash constraints limited ability to operate!

“Manufacturers of carbon fibre reinforced ceramic automotive brake discs” (well, commercially trying to be!), Surface Transforms (SCE) has issued a “Financing, trading and operations update” commencing that “Key customers continue to be highly supportive”. How’s that translating financially then, with the shares currently further down at 0.275p, a now below £4 million market cap, on the announcement?

Surface Transforms (#SCE) – “numerous challenges persist to grow output and revenue at the pace required”, argues on financing “remain optimistic”

Surface Transforms – “priorities remain on operational improvements and tight management of cash”. Er, it is clear why!…

Most recently on automotive brake discs manufacturer Surface Transforms (SCE), in November I wrote “Directorate Change”, why ANOTHER share price slump? concluding including that “strategic opportunities” ahead of again cash crunch ahoy are likely somewhat limited. What of now an intra-day (uh oh!), 2:15pm, “Financing, trading and operations update”?

Surface Transforms – “Directorate Change”, why ANOTHER share price slump?…

There’s a “Directorate Change”-titled announcement today from automotive brake discs manufacturer Surface Transforms (SCE) and the shares are currently 28% lower at 0.18p. So what’s the news?

Surface Transforms – interims, “significantly behind plan” and having to ‘evaluate all available cash options’ AGAIN!

Previously writing on specialist automotive brake discs company Surface Transforms (SCE), in July with the shares up towards 2p I concluded ‘latest announcement detail suggests to me that risk is high – and follows I previously noting, with operational non-delivery, after arguing sufficient funding on a fundraising last year, less than six months later it was a further equity raise which it states was ‘needed’. That raised a gross £9.5 million and with it already “cash as at 30 June 2024 was £5.0m” and the amount of shares ‘confetti’ already in issue meaning a market cap of approx. £25 million, still currently avoid/sell’. The shares most recently closed at 1.45p… and now half-year results, and what about a currently crashing below 0.50p share price?

Surface Transforms – “achieving record daily and weekly production levels”, but further significant improvements still required

Specialist automotive brake discs company Surface Transforms (SCE) has issued a “trading and operational update” commencing that “sales guidance for 2024 remains in line with market estimates - £17.5m”. So what of a current more than 50% higher share price response towards 2p?

Surface Transforms – “pleased to announce its audited results”. Er, what’s ‘pleasing’ about them then?!

Automotive brake discs manufacturer Surface Transforms (SCE) states that it “is pleased to announce its audited results for the twelve months ended 31 December 2023” and the announcement includes “sales have grown in each quarter, we were awarded a significant carry over contract in the year, but”…

Surface Transforms: an accountant explains the imprudence of its management

In yesterday’s bearcast I discussed how the belated recognition of the management of Surface Transforms (SCE) to write down goodwill as at December 31 2023 on AFTER getting away yet another bailout placing this spring did not wash. A top accountant has dropped me a note going further:

Surface Transforms (#SCE) – expands open offer, raising £3m at 1p per share

Surface Transforms – “pleased to announce” result of a massively discounted fundraising, I wonder why!…

Previously on carbon fibre-reinforced ceramic automotive brake discs company Surface Transforms (SCE), two weeks ago I wrote “2024 Sales Outlook” down from just last week! And what about the balance sheet position that dare not speak its name again? concluding, at a further down to 3.5p share price, it looking again like liquidity crunch ahoy, at what price any further bailout now? Still avoid/sell. The company now states it is “pleased to announce… has conditionally raised gross proceeds of £6.5 million”, but what of a share price currently more than 64% further lower in response towards 1p!?

Surface Transforms – “2024 Sales Outlook” down from just last week! And what about the balance sheet position that dare not speak its name again?

Manufacturer of carbon fibre reinforced ceramic disc brake materials Surface Transforms (SCE) has issued a “2024 Sales Outlook” announcement, including “sales are anticipated to grow by a minimum of 111% in 2024 and up to 165% compared to FY 2023 sales of £8.3m, resulting in a projected FY 2024 range of £17.5m to £22m sales” and that it is “providing this range of outcomes for the year, in response to shareholder request for "worst case scenarios". We remain committed to achieving the higher end of this range”. So why a share price currently further down to 3.5p in response?

Surface Transforms – after another discounted equity fundraise as recently as November, surely it’s not liquidity crunch ahoy again?…

Manufacturer of carbon fibre reinforced ceramic disc brake materials Surface Transforms (SCE) commences a “Q1 2024 sales and operations update”-titled announcement with that it “reconfirms unchanged sales guidance of £23m for the 2024 financial year”. So why a current share price response to below 7p, down more than 27%?

Surface Transforms (#SCE) – notes “continuously improving operations” and revenue growth outlook, what about the bottom-line?

Surface Transforms – following “trading update” noting further technical problems, as predicted here it’s another discounted equity fundraise!

Previously writing on carbon‐ceramic material automotive brake discs company Surface Transforms (SCE), early this month with the shares down to 16p I concluded ‘forget the working capital of sales increase over the next few years then, how’s the balance sheet liquidity now?! At this juncture, avoid/sell’. What then now of a placing and open offer announcement and the shares at 10.75p?