Surface Transforms (AIM:SCE) shares eased lower despite stating it is getting a grip on the production problems that dogged its expansion plans late in 2023.
The carbon fibre ceramic brake discs manufacturer reiterated sales guidance of £23 million for the year just started (2024), adding it expects to report revenue of £8.3 million for 2023, a rise of 63%.
Gross cash at 31 December 2023 was £6.1 million, including the cash received from the December 2023 equity fundraising, while a £13.2 million capital equipment loan has yet to be drawn down.
No new technical problems have arisen in recent months, said the statement, and the company expected to complete installation of £50 million per annum sales capacity by mid-year 2024 and £75 million a year sales capacity by the end of 2025.
Kevin Johnson, chief executive, said: "After a very difficult 18 months, and whilst the need to build our resilience continues, we now believe that the worst of our growing pains are behind us.
“This view is shared by our customers who have agreed their schedules for 2024 which match our assessments of production capability and capacity.
"We continue to be capacity-constrained not demand-constrained, so our factory expansion remains a crucial task in positioning the company for the future. It is therefore pleasing that the recent debt facility provides the foundation for the programme to continue apace.”
Shares eased 2% to 11.2p.