Surface Transforms has increased its revenue by 34 per cent to £679,284 following a number of significant contract wins for its carbon fibre reinforced ceramic composite materials (CRFCs).
The Cheshire-based manufacturer’s improved revenue was backed by an order book that has grown from £166,370 since the end of May to £308,108 at the start of this month.
However, the company’s cash position was £404,275 compared with £1.1m a year earlier and losses after taxation were at £840,740, which the group attributed to a sustained reduction of output within the automotive industry.
Sales to automotive customers this year have represented 65 per cent of total group turnover compared to 84 per cent in 2008. As a result, the company said in February that its revenue for the full year would fall short of market expectations because of weakening orders.
Since then, the company has met its revised orders. Its performance was helped by group sales in the defence and aerospace markets, which increased by 182 per cent to £236,279 following a £100,000 order from European missile supplier MBDA.
A further multi-year contract with Mov’it, a German brake systems supplier, is expected to generate revenues for the group of around £300,000 to £400,000 in the coming years.
Kevin D’Silva, chairman, said: ‘The group is focused on achieving new business wins in the aerospace and defence markets, while it recognises that business from the automotive brake sector will remain subdued until well into the second half of 2010.
‘While forecasting accurately can be difficult in these economic conditions, the board is cautiously optimistic that it can increase business revenues and reduce losses in the 2010 financial year ending 31 May 2010 and work towards breaking even in cash terms,’ he added.