- Surface Transforms said higher overheads, reflecting additional costs of the new larger site, and R&D costs are expected to mean that losses will be higher than the prior year, but within the range of broker expectations.

It added that it expects FY sales and gross margin percentages will be broadly similar on the year.

Revenue for the period was £327k (2015: £782k) and whilst less than the corresponding period last year, is in line with management expectations and guidance provided in the Outlook section of the Company's 2015-16 financial statements.

The overall sales comparison masks significant changes in underlying mix. Sales to near OEM customers increased by £67k to £163k (2015: £96k), whereas sales to retrofit customers fell by £46k to £164k (2015: £210k) partially reflecting a one off sales catch up last year in H1 2015 following a previous furnace break down.

However the biggest change was the absence of any sales into the race car customer in the six months to November 2016 (2015: £337k).

There were also no aerospace development revenues in this half-year (2015: £111k), as the Company's military aircraft development activity has now concluded, in anticipation of series production from early 2018.

At 9:41am: [LON:SCE] Surface Transforms PLC share price was -2p at 21.75p

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