Shares in Surface Transforms (AIM:SCE) dropped 18% in early trading on Wednesday after the carbon-ceramic brake disc maker warned of ongoing operational and cash flow issues.
The company said that despite support from customers, including more than £8 million in cash advances and help funding external manufacturing expertise, production challenges continued to weigh on performance in the first quarter of 2025.
Surface Transforms reported that constrained cash flow and supplier issues had further disrupted its operations, resulting in a wide variation in manufacturing yield. Weekly yield rates fluctuated between 41% and 83%, well below its target of above 85%.
Cash on hand at the end of March stood at just over £1.2 million. The company said it is in advanced talks with key customers about potential longer-term strategic agreements and expects to provide further updates “in due course.”
In early trading, the stock was off 0.058p at 0.25p.