Surface Transforms (AIM:SCE), the carbon brake disc manufacturer, dipped 6% on Tuesday after it confirmed more production disruptions due to surging demand.
Due to a shortage of overall capacity, the disruptions cannot be recovered in the current quarter, the group said in a statement ahead of its AGM.
Recovery of these losses is not expected to be realised until next year, the British manufacturer added.
Installation of additional capacity to accommodate the demand is underway and the group hopes it will be completed by the fourth quarter of the 2023 financial year.
“Thereafter, the company will be adding further capacity to meet the next step change in demand as OEM 10 starts production towards the end of 2024,” the statement said.
Sales for the six months to June 30, 2023, are forecast to reach £3.3mln a 14% increase on £2.9mln the year before.
Production in the same period improved year-on-year by around 80%.
Shares in Surface Transforms (AIM:SCE) opened at just over 30p on Tuesday.