18:27 16/08/2011	LCF Research-Patience required!
Surface Transforms Patience required http://t.co/vJYOp7r via @Stockopedia Surface Transforms - Patience required! Tuesday, Aug 16 2011 by LCF Research Last Friday I had a meeting with the chairman and the CEO of Surface Transforms (a company in which I am an investor), the developer of carbon fibre reinforced ceramic products. Their principal products are brakes for high performance cars and aircraft, the key features of which are light weight (reducing unsprung weight improves performance) and that they are hard wearing (which reduces life time cost). Although commercial progress has been slow, which may frustrate some investors, Surface Transforms is a good illustration of: the patience required by both the executive team and investors to develop game changing businesses. the benefits for an investor of running an 80/20 portfolio, with >80% invested in established businesses and <20% invested in early stage businesses. Investors need to develop their own definition of what they regard as 'established' , in my case I only invest in companies conforming to the LCFR investment template and my definition of established means companies making a pre-tax profit >£1 million. The reason why it takes so long to develop a company such as Surface Transforms is that significant profitability will only be achieved if the technology is taken up by major OEMs. However, the latter are risk averse and the indications over the last few years across a number of sectors are that this attitude has been increasing. In addition, even when an OEM has decided to adopt the technology (after a lengthy trialling period), it is most likely to be incorporated into a new model, which in turn involves a development period of years rather than months - then combine this naturally slow pace with the recession over the last three years! The pace at which life moves can be illustrated by work being undertaken on the braking system for a next generation of US military transport vehicle. A development contract was won in 2009, which generated sales of c. £300,000 in the year to May 2010 and the overall project then involves testing through to the end of 2012. Surface Transforms had expected some sales on this project in the year to May 2011 to replace parts which had failed the testing programme but none have been required and the feedback has been very positive. What appeals to me about this project are the benefits which Surface Transforms' brakes bring to this application, namely the ability to carry a larger payload (due to the lightness of the brakes) and the ability to spend longer in the battlefield (due to the longer life of the brakes). I also regard this project as a great test ament to Surface Transforms' technology because a US manufacturer would usually seek to avoid using a small UK supplier for a mission critical component. Surface Transforms is already selling product for use in vehicles, it is an option on the Koenigsegg (one of the most expensive supercars), and a retrofit braking system for the Nissan GTR has been developed in conjunction with Alcon. However, more importantly for the company's commercial future, it has a number of similar development programmes to the one outlined above at various stages of maturity with respected OEMs. It will take patience for these to work their way through to commercial production, but I am confident that out of these programmes a number will do so. Aligned with this, the company has taken steps to improve efficiency, so that it can achieve breakeven on sales of c.£1.5 million. Based on sales in the year to May 2011 of £863,000 and current supply and development contracts, I believe that there is a realistic probability of achieving this in the year to May 2013. Holding a company like Surface Transforms within the 20% section of an 80/20 portfolio allows me not to worry about the slow pace of development. Indeed the slow pace merely increases the barriers to entry! Furthermore, By SpikeyDT
11:09 16/06/2011	Stockeye
Market Watch 16/06/2011 http://bit.ly/kn19S3 http://bit.ly/ipdtns By SpikeyDT
11:04 03/03/2011	GCI comment on Mov deal
http://www.growthcompany.co.uk/news/1607453/surface-movs-its-share-price.thtml By petrit
0:48 28/01/2011	Share Competition
I have entered a competition on a Share Ideas Board, the winner being the share with the largest % gain from the first to the last trading day of 2011.... One of the rules are that you have to post a write-up on your choice of company. This is the link to my entry for Surface Transforms. http://boards.fool.co.uk/nfsc-write-up-surface-transforms-sce-12162141.aspx By grandmasterfudge
15:03 05/12/2010	DEC AIMZINE SNIPPET
Each month the Aimzine Snippet column highlights an announcement or situation which we believe is worthy of further investigation Each month we trawl through hundreds of RNS statements from AIM companies. In this column we highlight an exceptional company announcement, particularly where we feel the market may not have taken full account of recent news. Background In this month’s snippet article I am highlighting the position at Surface Transforms (SCE). Surface Transforms manufactures carbon fibre reinforced ceramic composite materials (CRFC’s) which have particular properties useful for a number of transport applications. To date Surface’s main success has been in providing its material to be used in the brakes of high performance cars. The CRFC material exhibits good friction properties and weighs a lot less than traditional braking materials. Surface has also had some success in using its material in rocket motor components where strength at high temperatures is important. Back in 2004 Surface Transforms shares were riding high; reaching over 80 pence. At that time the Company was expecting to provide its braking materials for a large passenger aircraft that was under development. However, surface’s product was unable to comply with the launch timetable and the deal fell away – as did the shares. More recently Surface Transforms has also been affected by the downturn in the car market which has particularly impacted the performance car market. Early in 2010 SCE’s shares were trading at just 8 pence, under 10% of its value 6 years earlier. in 2004 Surface Transforms shares were riding high Improvements Matters have, however, shown some improvement in 2010. Although the Company has still reported losses in 2010, these have been below those of 2009. Furthermore, the Company reported in the summer that most motor manufacturers are starting to invest in new models. In October 2010 Surface announced a ‘New Development Agreement’ with a major USA based aircraft brake manufacturer. The Company reported that: ‘The Agreement relates to the manufacture of carbon ceramic disc brakes for the customer's target aircraft markets, with a current emphasis on the military aircraft sector.’ And further that ‘The directors of Surface Transforms believe the current development work in the pre-qualification phase is nearing completion, following which formal qualification testing work would take place during the next 12 months.’ So, potentially, Surface could finally be realising its ambitions to become a significant supplier of aircraft brakes. We were further encouraged by News in November that Surface Transforms had raised £1.2 million in a Placing and Open Offer (to all shareholders). These funds will be used to increase the Company’s in-house production facilities At the time of announcing the fund raising, the Company explained to its shareholders the reasons for its need for expansion: ‘The Company currently has a number of significant commercial opportunities in two of its four primary markets, namely (1) automotive brakes and clutches; and (2) aircraft brakes; and it is in various, advanced stages of negotiating development and supply agreements with major companies who operate in both of these markets. Within the automotive market, there are three global brake system suppliers who currently purchase the Company's ceramic brake and clutch discs and they have each commenced negotiations with Surface Transforms to increase supply volumes for the forthcoming year.’ ‘As announced on 4 October 2010, the Company has entered into a development agreement, which may lead to a supply agreement, with a major USA based manufacturer of aircraft wheels and brakes which represents a significant landmark in the development work that Surface Transforms has performed over the past two years.’ A Brake Through? Surface Transforms is a small AIM company with a By carlsmillie
11:14 06/10/2010	New Development Agreement
Surface Transforms plc signs Development Agreement with major USA based manufacturer of Aircraft Wheels and Brakes Division http://www.investegate.co.uk/article.aspx?id=201010050700068271T&fe=1 By raininspain
11:05 03/09/2010	possibilities
As mentioned over on the advfn board and on your link things are inproving and any good news and it will be hard to hold back. Noticed that someone has been picking up the shares in 10000 lots in the last couple of days.Its always a hold lots harder to get any amount if good news surfaces. By granpasimpson
20:37 02/09/2010	Mentioned on stockopedia
Surface Transforms preliminary results - sales up 18.5% not sure if this link will work: http://www.stockopedia.co.uk/content/surface-transforms-preliminary-results-sales-up-185-46693/?utm_source=sendgrid.com&utm_medium=email&utm_campaign=Site%20Features By frusset
15:49 09/07/2010	Re: no subject
I agree something is going on. Don't know what it is but trading patterns are most bizarre. By shortshanks
15:05 02/07/2010	Re: no subject
Thanks F, i'll keep my eye on things. By theprior
8:25 01/07/2010
News( good) expected over the next two months , it could transform the company if they get the deals they are hoping for. But as you know things can always go wrong. By freddyflint
17:49 30/06/2010	rising
I know this board is v quiet but I have a look now and then. seems only pro has contributed recently (march). despite this we have seen a steady rise in the sp including a significant rise today. But is there any more news? I noted the order book was up but there must be something else around to warrant this rise. Anyone any ideas? By theprior
12:03 10/03/2010	Re: Yet more director buying
Still rising. 20p soon? By Pro_S2009
10:20 09/03/2010	Yet more director buying
More director buying yesterday. http://www.investegate.co.uk/article.aspx?id=201003090700142549I 09 March 2010 SURFACE TRANSFORMS PLC ('the Company') Directors shareholdings The Company has been notified that Mrs Heather D'Silva, wife of Mr Kevin D'Silva, Chairman, today acquired 30,000 ordinary shares of 1p each at 13p per share, equivalent to 0.14 per cent. of the entire issued share capital of the Company. Mrs D'Silva now beneficially holds 30,000 ordinary shares, equivalent to 0.14 per cent. of the entire issued share capital of the Company. Mr D'Silva beneficially holds 281,986 ordinary shares, equivalent to 1.16 per cent. of the entire issued share capital of the Company. By Pro_S2009
13:11 08/03/2010	Re: ?
Half Year results seem to have been received ok. http://www.investegate.co.uk/Article.aspx?id=201002240700065676H That was followed by some director buying and its certainly perking the price up, presently can sell, if you want, over 120K at mid price, never been like that for years, so I guess someone wants to buy some volume, which is why the price is ticking up past days. By Pro_S2009