Shares in Surface Transforms (AIM:SCE) fell 6% in what looked like a bout of profit-taking after the maker of brake discs reported strong first-half revenues and narrower losses.
Revenue rose 72% year on year to £8.1 million, with gross margin improving to 64% from 56%.
Operating losses narrowed to £5.2 million compared with £7.4 million a year earlier, while loss before tax reduced to £5.6 million.
Cash at 30 June was £1.2 million, up from £0.5 million at the end of 2024.
The company said full-year revenue is now expected to be around £20 million, about 10% ahead of previous expectations, with EBITDA expected to be broadly neutral in the second half.
Chair David Bundred said: "The continued focus on operational improvement and cash management has underpinned the recovery we have delivered in the first half of 2025. There is still much to improve on; however we are confident that we will slightly exceed previous 2025 expectations."
He said capacity improvements from the extensive investment program occurring in the second half "should provide a suitable platform for further growth in 2026 and beyond".
Shares in the company, having sunk from over 60p in 2021 to below 0.5p last September, had bounced back to 2.4p by Monday. Following the publication of results, they dropped fell to 2.26p in early trading.