In this edition of Hardman Talks we are joined by the senior management of Surface Transforms, the carbon ceramics brake manufacturer. The company has just announced the completion of a placing and subscription to raise £16m and is now making an Open Offer to qualifying shareholders for another £3m of new shares.
Management talks about how the proceeds of these fundraisings are necessary to build capacity to meet the accelerating demand from the world’s leading car manufacturers for the company’s product. The company has made substantial progress with OEMs on new orders. It already has sufficient orders to fully utilise the extra capacity provided by phase 2 of the expansion of the current Knowlsey factory, but no spare capacity to meet additional orders. The proceeds of the fundraising will be used to boost the potential output of the current factory by 50%, provide the working capital that further orders will entail and start work on the second factory.
The company is one of only two carbon ceramic brake manufacturers in the world. The shares offer an opportunity to participate in a UK growth story in the manufacturing sector with good green credentials to boot.
The presentation used in the event is available here.
Surface Transforms is an expert in the development and production of carbon-ceramic materials and the UK’s only manufacturer of carbon-ceramic brakes for automotive use. The company utilises its proprietary next-generation carbon-ceramic material – CCST – to create lightweight brake discs for high-performance applications, including automotive and aircraft brakes. The company has won a number of contracts with leading OEMs in the car industry.