Surface Transforms PLC Conclusion of GBP13.2m Loan agreement (3635W)
11 Diciembre 2023 - 5:34AM
UK Regulatory
TIDMSCE
RNS Number : 3635W
Surface Transforms PLC
11 December 2023
11 December 2023
Surface Transforms plc
("Surface Transforms" or "the Company")
Conclusion of GBP13.2m Loan agreement
Surface Transforms plc (AIM:SCE) manufacturer of carbon fibre
reinforced ceramic automotive brake discs is pleased to announce
that it has signed a GBP13.2m loan agreement with the Liverpool
City Region Urban Development Fund which is part funded by the
European Regional Development Fund (ERDF). The loan will contribute
to the Company's forthcoming GBP44m investment programme.
The investment is supporting capital expenditure that will see
the production capacity available in the Knowsley site rise from
GBP50m sales capacity per year in 2024 to GBP150m sales capacity
per year in 2027. The capacity increase is required to support the
forecast substantial sales increase underpinned by the Company's
current GBP390m* lifetime contract value and GBP300m prospective
contract pipeline. The remainder of the GBP44m capital investment
programme will be funded from free cash flow as the Company moves
into profit, still expected during 2024.
The terms of the loan remain unchanged from those outlined
during the fundraising. The loan facility is available for drawdown
over an initial two-year period and will be progressively deployed
exclusively for capital expenditure purposes. Quarterly capital
repayments will commence in the first quarter following the
completion of the availability period. Completion of this loan
agreement was a condition precedent to the second phase of the
recent equity placing. This condition has now been satisfied. The
passing of the necessary resolutions is expected at the forthcoming
General Meeting on Monday 18 December 2023.
Kevin Johnson CEO said : " We are delighted to have secured this
capital expenditure loan, that will enable us to execute our
strategic growth plans and further strengthen our position as a
leader in carbon fibre reinforced ceramic automotive brake discs.
We want to thank our partners in the Liverpool City Region Combined
Authority and Knowsley District Council for their support in
securing this loan. We are now looking forward to concluding the
recent equity placing and Open Offer and accelerating our programme
of increased capacity installation paving the way for a swift
acceleration of our expansion plans."
*This is based on the directors' expectations, their
understanding of the relevant OEMs production plans and estimated
demand for discs and it takes into account the expected lifetime
revenue
For enquiries, please contact:
Surface Transforms plc +44 151 356 2141
David Bundred, Chairman
Kevin Johnson CEO
Isabelle Maddock CFO
Zeus (Nominated Adviser and Joint Broker) +44 203 829 5000
David Foreman / Dan Bate / James Edis (Investment
Banking)
Dominic King (Corporate Broking)
Cavendish Capital Markets Ltd (Joint Broker) +44 20 7220 0500
Ed Frisby / Abigail Kelly (Corporate Finance)
Andrew Burdis / Harriet Ward (ECM)
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 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
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END
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December 11, 2023 06:34 ET (11:34 GMT)
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