StockMarketWire.com - Surface Transforms said its revenue for the year to May 31 is in line with expectations of £1.4m, from £1.1m.

"Margins and costs are also expected to be in line with expectations but income from R&D and investment grants and credits was about £100k below plan," the company said.

"The increase in sales was primarily driven by an increase of 25% in sales to retrofit customers in 2016 of £384k (2015: £306k), a 55% increase in sales to near OEM customers of £174k (2015: £112k) and a one-off increase of approximately £142k in aerospace development revenues.

"All other customer sales were approximately in line with the previous year.

"The cash position as at 31 May 2016 was £4.8m (2015: £0.8m), while the Board anticipates receiving an R&D tax credit in excess of £250k (2015: £306k) in the next four months in addition to previously announced £500k in grants and interest free loans from local authorities in support of our capital investment."

PREMISES UPDATE:

"The Company has now formally signed the lease on its new Knowsley premises and ordered equipment (including the payment of deposits) for the new factory with a total investment cost of £3.1m.

"The actual order value of the equipment is in line with budget. The Company will begin disassembling the equipment in the existing Ellesmere Port factory in August for reassembly in Knowsley, with full vacation of the existing site planned for February 2017 in line with management expectations."






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