Surface Transforms, a supplier to the likes of Aston Martin and Lamborghini, has set out its growth expectations for the year after a shareholder requested it revealed its “worst case scenarios”.
The Knowlsey-based specialist brakes manufacturer, in an update to the London Stock Exchange, said its sales are anticipated to grow by a minimum of 111 per cent in 2024 and up to 165 per cent.
In its prior financial year, the company’s sales totalled £8.3m. If its projections are correct, Surface Transforms’s turnover for 2024 would be between £17.5m and £22m.
The update comes after the business told the markets earlier this month that it was looking at sales of £23m this year despite ongoing challenges relating to “high levels of scrap.”
In a statement to the London Stock Exchange, Surface Transforms said: “With the majority of the year still to come, 2024 sales outlook is dependent on the amount of progress made on reducing scrap, building capacity and delivering to customers.
“Sales were constrained in Q1 due primarily to scrap and constrained manufacturing capacity. Significant progress has been made on reducing scrap and this is expected to continue through 2024.
“Similarly progress on expanding our capacity during 2024 is advancing. As capacity increases from these operational activities it also creates the opportunity to deliver a more favourable product mix with customers. These three activities are all boosting sales and are driving our rapid growth during the year.
“We have detailed plans in place to continue to drive all three areas with the pace of progress determining a current spread in 2024 sales of approximately 20 per cent.
“As we advance operational activities and deliver to customers we expect the sales range to narrow, and we therefore will provide updates on progress throughout the year.”
Chief executive Kevin Johnson said that Surface Transforms was providing the range of outcomes for the year in response to shareholder request for “worst case scenarios”.
He added that the company” remains committed to achieving the higher end of this range”.