Surface Transforms (AIM:SCE) shares surged over 70% after the ceramic disc brake manufacturer revealed manufacturing improvements and revenue, helped by advanced payments by customers.
Revenue rose 72% to £8.1 million in the first half of 2025, driven by improved manufacturing yields and higher output.
The shares rose 73% to 1.6p, the highest since last September, when the group had revealed that it was looking at funding options following slower progress than hoped.
Today, the AIM-listed firm said yield rose to 77% in the second quarter, up from 49% in the first, with capacity now sufficient to meet customer demand, improving its path to financial sustainability.
Gross cash was £1.2 million at 30 June, thanks to customer advances totalling £12.9 million.
"Key customers have and continue to be highly supportive of the company, and we remain hugely appreciative [...] The company remains in negotiations regarding the settlement of these advances, with repayments expected to commence in H2 2025."
Surface Transforms also continued drawing from its £13.2 million European Regional Development Fund loan, with £9.8 million drawn by mid-year.
CEO Kevin Johnson said: “Since November 2024, the board has been focused solely on operational improvement and cash management."
He said the board is "cautiously confident" that the improvements in output, yield and quality in the past quarter will be maintained in the second half of the year and beyond.
He said second-half revenues are expected to rise 20% from the first, supported by expected receipts from VAT and R&D credits.
Stephen Easton will step down as COO on 1 August 2025 and will be succeeded by Gareth Laker, who has been with the company for two years.