StockMarketWire.com - Brake-disc manufacturer Surface Transforms posted a deeper first-half loss after expenses more than offset a rise in sales.

Pre-tax losses for the six months through June amounted to £1.9 million, compared to year-on-year losses of £1.2 million.

Revenue rose 34% to £1.2 million and gross profit rose 27% at £0.7 million.

Administrative expenses, however, rose by 35% to £2.9 million, owing to increased customer testing costs, headcount and depreciation in anticipation of the commissioning of Production Cell One.

'The company now expects to enter a period of high growth, partially, but not solely based on a lifetime value OEM order book of circa £70 million,' Surface Transforms said.

However, it added that uncertainty over customer start-of-production dates were impacting its outlook for 2021.

'In contrast to these short-term uncertainties, the forecast for 2022 has become more robust,' it added, while reiterating that it still expected to be profitable in 2022.




Story provided by StockMarketWire.com