Surface Transforms (LSE:SCE) reported a step-change in performance during 2025, with revenue increasing by around 120% to approximately £18.0 million as higher production volumes and stronger second-half deliveries drove growth. The production ramp-up also helped narrow operating losses before interest and tax to about £8.7 million, compared with the prior year.
The company said the year was characterised by continued investment in capacity expansion and automation, supported in part by the full drawdown of a £13.2 million ERDF loan. Manufacturing efficiency improved materially, with production yields rising from 49% in the first quarter to 77% by the fourth quarter, reflecting better process control and learning curve benefits.
Surface Transforms expects further progress in 2026, with a new furnace scheduled to come online by the end of the second quarter. This additional capacity underpins management’s forecast of around £27.0 million in revenue next year and a move toward EBITDA breakeven. While acknowledging that cash headroom remains tight, the company said liquidity is manageable as it approaches a more sustainable operating scale.
From a market perspective, the outlook continues to be shaped by financial challenges, including ongoing losses and cash outflows. Technical indicators suggest a broadly bearish trend in the shares, and valuation remains constrained by negative earnings. However, recent operational milestones, improving production metrics and strategic investment in capacity are viewed as constructive steps toward longer-term profitability.
More about Surface Transforms
Surface Transforms plc is a UK-based manufacturer of carbon fibre reinforced carbon-ceramic brake discs for high-performance automotive applications. The company supplies major global OEM customers across internal combustion and electric vehicle platforms and differentiates itself through proprietary continuous-fibre carbon-ceramic technology that delivers lighter weight, longer life and superior heat management compared with traditional braking systems.
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