Earnings release
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Surface Transforms plc("Surface Transforms" or the "Company") Trading and operations update Surface Transforms (AIM: SCE) manufacturers of carbon fibre reinforced ceramic automotive brake discs, announces thefollowing unaudited trading and operations update for the year ended 31 December 2025 ("FY25"). Trading update · Revenue - increased circa 120% to £18.0m (FY24: £8.2m) representing further ongoing improvement with a record second half revenue of £9.9m, up from £8.1m in the first half of 2025. · Operating loss before interest and tax- reduced nearly threefold to approximately £8.7m (FY24: £23.4m), with second-half losses improving significantly to £3.5m (H1-25: £5.2m loss). · Gross cash - £1.0m1 as at year end (FY24: £0.5m) which continues to be actively managed. · Capital expenditure - increased to £8.6m (FY24: £6.1m) with the £13.2m ERDF loan now fully utilised for capital investment in line with management expectations. · Outlook - revenue expectations of approximately £27.0m for FY26. · Customer prepayments - £13.3m at the year end, marginally higher than the £12.9m as at 30 June 2025. 1 Includes £0.2m restricted for capital expenditure Operations update The Company has continued integrating new equipment, automation, and process improvements during Q4 25. As expected, this temporarily impacted yield, which was 77% in Q4, up from 70% in Q3 and a marked improvement from 49% in Q1. This was below management's internal 80% target which remains for Q1 2026. The range of weekly yield performance continued to improve during the second half, indicating that the transformation and experience applied to the issue is taking effect. Except for additional furnace capacity, all major improvement programs are now nearing completion, and no further significant changes are planned in the near term. Installation and commissioning of the new furnace is well advanced, and it is expected to be operational by the end of Q2 2026, supporting increased revenue and production output thereafter. Summary and outlook FY25 has been a transformative year, marked by substantial progress in scaling production and improving processes. The businesshas moved meaningfully closer to substantial and profitable operations, with materially higher output and revenues. Demand forour product remains strong. While challenges persist, customers are encouraged by the improvements underway. Cash remainstight but manageable. The business is well positioned for growth in 2026, and management expects to deliver FY26 revenue of approximately £27.0mwith an EBITDA breakeven. For enquiries, please contact: Surface Transforms plc +44 151 356 2141 Kevin Johnson, CEO Steve Harrison, CFO Zeus (Nominated Adviser and Broker) +44 203 829 5000 David Foreman / James Edis / Ed Beddows (Investment Banking) Dominic King (Corporate Broking) About Surface Transforms Surface Transforms plc. (AIM:SCE) develops and produces carbon-ceramic material automotive brake discs. The Company is the UK's only manufacturer of carbon-ceramic brake discs, and only one of two mainstream carbon ceramic brake disc companies in the world, serving customers that include major OEMs in the global automotive markets. The Company utilises its proprietary next generation Carbon Ceramic Technology to create lightweight brake discs for high-performance road and track applications for both internal combustion engine cars and electric vehicles. While competitor carbon-ceramic brake discs use discontinuous chopped carbon fibre, Surface Transforms interweaves
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continuous carbon fibre to form a 3D matrix, producing a stronger and more durable product with improved heat conductivity compared to competitor products; this reduces the brake system operating temperature, resulting in lighter and longer life components with superior brake performance. These benefits are in addition to the benefits of all carbon-ceramic brake discs vs. iron brake discs: weight savings of up to 70%, longer product life, consistent performance, reduced brake pad dust and corrosion free. The Company holds the London Stock Exchange's Green Economy Mark. For additional information please visit www.surfacetransforms.com