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Draft:Surface Transforms

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Surface Transforms plc
Company typePublic Limited Company
LSE: SCE
IndustryAutomotive, Aerospace
Founded1992
FounderDr. Steve Bingley
HeadquartersKnowsley Industrial Park, Merseyside, United Kingdom
Area served
Wordwide
Key people
Kevin Johnson (CEO)
Andrew Kitchingham (Chairman)
Steven Harrison (Interim CFO)
ProductsCarbon-ceramic brake discs
Revenue£8.2 million (2024)
Number of employees
Approx. 80 (2024)
Websitewww.surfacetransforms.com

Surface Transforms plc is a UK-based engineering company that develops and manufactures carbon fibre reinforced ceramic (CFRC) brake discs for automotive and aerospace applications.[1] It is the United Kingdom’s only manufacturer of carbon-ceramic discs and one of only two major global producers, competing with Brembo-SGL Carbon.[2] The company is listed on AIM of the London Stock Exchange under the ticker symbol SCE.[3]

History

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Surface Transforms was established in 1992 by Dr. Steve Bingley as a spin-out from ICI Advanced Materials. It focused on the development of carbon-ceramic composite materials and listed on the AIM market in 2002. The company’s proprietary technology, based on Continuous Fibre Ceramic (CFC), transforms carbon-carbon into Carbon-Silicon Carbide (CSiC), enabling superior brake disc performance.

Initial commercial success came in 2009 with Koenigsegg, which adopted the technology for its CCX hypercar. From 2010 onward, the company supplied low-volume manufacturers and aftermarket clients, with annual revenues averaging £1–2 million.

As of mid-2024, the company transitioned to high volume production with its newly installed facility which aims to expand annual revenues to £50million per year initially. However, it has faced issues with the new production line, leading to a severe restriction in sales until the issues are resolved.[4]

Products and Technology

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Surface Transforms produces brake discs using continuous carbon fibre woven into a 3D matrix, a key difference from chopped-fibre competitors.[5] This construction results in:

  • Improved thermal conductivity (up to 3× better)
  • Weight savings up to 70% over cast iron
  • Longer lifespan (12,000–15,000 track miles)
  • Greater resistance to fade and corrosion
  • Refurbishability up to three times

These discs are for high-performance and electric vehicles due to their low weight and high endurance[6]. The company also manufactures for motorsport and aerospace sectors.

Clients and OEM Contracts

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Surface Transforms supplies brake systems to:

Major lifetime contract wins include:

  • OEM 1 - British Performance Manufacturer
  • OEM 3 - German Performance Manufacturer
  • OEM 5 - British Performance Manufacturer
  • OEM 6 - £8million deal (Koenigsegg)[11]
  • OEM 7 - Unknown
  • OEM 8 – £27.5 million deal[12] (Global Manufacturer)
  • OEM 9 - Unknown
  • OEM 10 – £100 million deal[13] (US Manufacturer)
  • Future OEMs - Several car manufacturers

As of 2025, the awarded lifetime contract value exceeds £390 million[14], with a pipeline estimated at £700 million.

Manufacturing and Expansion

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The company operates from Knowsley, Merseyside, where it scaled from a £17 million capacity (2017) to an anticipated £50 million in 2024 and £75 million in 2025. A £13.2 million Urban Development Fund loan and prior £19.1 million capital raise support future scale-up to £150 million capacity by 2027.[15]

Production Model and Operational Issues

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Originally operating under a cell-based batch model enabling low volume production, Surface Transforms transitioned to a continuous single-line production method to boost throughput for high volume production. This introduced:

  • Single points of failure (e.g., furnace downtime halted entire line)
  • High initial scrap rates due to stricter quality demands
  • A steeper-than-expected learning curve for personnel
  • Lower early output vs expectations

These issues led to widened 2023 losses (£20.7m)[16] despite growing revenues and output, requiring further equity raises.[17] Operational issues continue to restrict sales capacity and OEMs are working with Surface Transforms to continue production.

Financial Performance and Forecasts

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  • 2023 revenue: £7.3 million
  • Capacity goals: £50 million/year mid-2024, £75 million/year by 2025, and then £150million/year from then onwards.[18]
  • Gross cash at 2023 year-end: £6.1 million

The company's gross cash fell to £0.5million by December 2024.[19] It continues to work on resolving the issues it faces with its production line to serve its clients. Clients have helped Surface Transforms by paying for products up front in order to keep the company afloat. As of May 2025, insider trading activity has picked up.[20]

Environmental and Regulatory Position

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Surface Transforms holds the LSE Green Economy Mark, recognising that over 50% of its revenues support environmental goals. The discs reduce brake dust and vehicle emissions, aligning with incoming EU Euro 7 regulations.[21]

Governance

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  • CEO: Kevin Johnson
  • Interim CFO: Steven Harrison (replacing Isabelle Maddock)
  • Chairman: Andrew Kitchingham (following David Bundred)

Recognition

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  • Green Economy Mark (LSE)
  • AS9100C (Aerospace) and IATF 16949 (Automotive) certified[22]
  • Backed by the Liverpool City Region’s Urban Development Fund
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References

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  1. ^ "HERITAGE". Surface Transforms. May 14, 2025.
  2. ^ Foster, Mike (May 9, 2023). "A major quantum production ramp up now secured". Hardman and Co.
  3. ^ Writer, Agency (July 13, 2017). "Surface Transforms: Riding the carbon ceramic brake revolution" (PDF). Hardman and Co.
  4. ^ Taylor, Michael (January 8, 2024). "Resilient Surface Transforms is over last year's growing pains". The Business Desk.
  5. ^ Watson-Mitchell, Mark (October 25, 2023). "Surface Transforms – Definitely Not To Be Stopped". Master Investor.
  6. ^ Haill, Oliver (June 8, 2020). "Surface Transforms to make brake discs for Koenigsegg hybrid hypercar". Proactive Investor.
  7. ^ Writer, Agency (2024). "Surface Transforms Brakes". Suspension Secrets.
  8. ^ Writer, Agency (August 15, 2023). "TESLA MODEL S PLAID CARBON CERAMIC BRAKE KIT". The Driveway (TDW).
  9. ^ Foster, Mike (March 15, 2021). "Everything has come together". Hardman and Co.
  10. ^ Foster, Mike (December 15, 2022). "Major OEM 10 order, OEM 8 delay resolved". Hardman and Co.
  11. ^ Houghton, Tom (July 2, 2019). "Firm making brake discs for supercars lands contract for new Koenigsegg 300mph car". Business Live.
  12. ^ Writer, Alan (September 5, 2022). "The Transformation of Surface Transforms Plc". Upside Downside Capital.
  13. ^ Bird, Alice (October 16, 2023). "Brake disc manufacturer wins £100m contract". Insider media.
  14. ^ Kilgannon, Laurence (December 12, 2023). "Surface Transforms inks £13.2m loan agreement". Insider Media.
  15. ^ Bird, Alice (January 8, 2024). "Surface Transforms optimistic following "difficult" 18 months". Insider Media.
  16. ^ Bird, Alice (June 28, 2024). "Surface Transforms on "learning curve" after difficult year". Insider Media.
  17. ^ Cameron, Hugh (April 9, 2024). "News Surface Transforms sinks 30% on production issues and delayed results". Morning Star.
  18. ^ Foster, Mike (September 5, 2019). "Rapid acceleration – "game-change" announcements". Hardman and Co.
  19. ^ McDonough, Tony (March 6, 2025). "Surface Transforms announces departure of CFO". Liverpool Business News.
  20. ^ Stone, Amilia (May 12, 2025). "Insider confidence accelerates Surface Transforms' momentum". Directors Talk Interviews.
  21. ^ Writer, Agency (December 11, 2023). "Mayor accelerates growth of high-tech brake manufacturer with £13.2m investment". Liverpool City Region.
  22. ^ Stone, Amilia (November 8, 2023). "The future of carbon-ceramic brakes is bright for electric vehicles". Directors Talk Interviews.
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