- Surface Transforms warned its annual earnings could be hit by delays to a key customer contract.

Revenue for the six months through February fell to £509k, down from £524k on-year, the company said.

The start of production from a UK customer contract, dubbed by the company as OEM6, has been forecast for the final quarter of the current financial year.

'The board is increasingly concerned of a possible, but not yet certain, three to six months delay to the start of production,' Surface Transformers said.

'The delay, if it happens, would likely reduce 2019 financial year sales by £500k.'

'As a precaution, the company has modelled the working capital impact of this as well as a stress test of sales simply repeating last year's sales.'

'In both instances the company has adequate cash headroom.'

'Nonetheless, in the light of this, and as a matter of prudence, the company has revised its 2019 financial year projections based on a delayed scenario of the British OEM 6 limited edition track car, such revenues being deferred to subsequent periods.'

At 9:59am: [LON:SCE] Surface Transforms PLC share price was -1.75p at 13p

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