StockMarketWire.com - Surface Transforms warns that its losses in 2016-17 are expected to be higher than the prior year, but within the range of market expectations.

The company added that trading was in line with management views.

Surface said, as it issued its H1 results, that sales for the 2016-17 were seen comparable with the prior year, like-for-like, allowing for the sales catch up, which in turn was offset by improved percentage gross margin.

"Development spend will, at least, be maintained at the current higher levels, and indeed the current high cost of off site dynamometer testing and contractors to complete the VDA 6.3 work is putting that budget under strain," the company said.

"Consequently, losses in 2016-17 are expected to be higher than the prior year but within the range of current market expectations," it added.

For the six months to Nov. 30, Surface more than doubled its H1 pretax loss to £976,000, from £430,000, with turnover more than halved to £327,000, from £782,000.






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