Surface Transforms
Discussion
Surface Transforms (AIM: SCE) manufacturers of carbon fibre reinforced ceramic automotive brake discs, announces the following major customer update.
Major customer update - Loss of contract
The Company has been informed by General Motors ("GM") that it is re-sourcing its supply of brake disks with effect from 31st March 2026. GM is the Company's most significant customer and in FY 2025 formed £15.3m (84%) of revenues and 85% of discs sold and was under contract until 2030. Additionally, since November 2024 GM has provided the Company with operational support and financial assistance including advance payments of £14.4m.
Outlook
The Company has not yet had the opportunity to speak directly with GM about the termination, but the loss of this contract has a material impact on the Company's ability to trade and as a result the Directors intend to immediately engage corporate restructuring advisers to protect stakeholder's interests. Further information will be provided as appropriate.
Major customer update - Loss of contract
The Company has been informed by General Motors ("GM") that it is re-sourcing its supply of brake disks with effect from 31st March 2026. GM is the Company's most significant customer and in FY 2025 formed £15.3m (84%) of revenues and 85% of discs sold and was under contract until 2030. Additionally, since November 2024 GM has provided the Company with operational support and financial assistance including advance payments of £14.4m.
Outlook
The Company has not yet had the opportunity to speak directly with GM about the termination, but the loss of this contract has a material impact on the Company's ability to trade and as a result the Directors intend to immediately engage corporate restructuring advisers to protect stakeholder's interests. Further information will be provided as appropriate.
Yeah - just seeing that news filtering through.
I imagine that could be curtains now? It's just too expensive to make this kind of manufacturing working in the UK I guess.
There are quite a few other CCM vendors popping up out of China foundry's now - so even if the product isn't quite the same - the costs and availability will outweigh the performance.
The best ability is availability!
I imagine that could be curtains now? It's just too expensive to make this kind of manufacturing working in the UK I guess.
There are quite a few other CCM vendors popping up out of China foundry's now - so even if the product isn't quite the same - the costs and availability will outweigh the performance.
The best ability is availability!
gtsralph said:
Surface Transforms (AIM: SCE) manufacturers of carbon fibre reinforced ceramic automotive brake discs, announces the following major customer update.
Major customer update - Loss of contract
The Company has been informed by General Motors ("GM") that it is re-sourcing its supply of brake disks with effect from 31st March 2026. GM is the Company's most significant customer and in FY 2025 formed £15.3m (84%) of revenues and 85% of discs sold and was under contract until 2030. Additionally, since November 2024 GM has provided the Company with operational support and financial assistance including advance payments of £14.4m.
Outlook
The Company has not yet had the opportunity to speak directly with GM about the termination, but the loss of this contract has a material impact on the Company's ability to trade and as a result the Directors intend to immediately engage corporate restructuring advisers to protect stakeholder's interests. Further information will be provided as appropriate.
What could possibly go wrong ...Major customer update - Loss of contract
The Company has been informed by General Motors ("GM") that it is re-sourcing its supply of brake disks with effect from 31st March 2026. GM is the Company's most significant customer and in FY 2025 formed £15.3m (84%) of revenues and 85% of discs sold and was under contract until 2030. Additionally, since November 2024 GM has provided the Company with operational support and financial assistance including advance payments of £14.4m.
Outlook
The Company has not yet had the opportunity to speak directly with GM about the termination, but the loss of this contract has a material impact on the Company's ability to trade and as a result the Directors intend to immediately engage corporate restructuring advisers to protect stakeholder's interests. Further information will be provided as appropriate.
March 30, Liverpool Echo:
Around 70 workers have been laid off at a Merseyside company that was given a £13m loan by the Liverpool City Region - as the firm teeters on the brink of administration following the loss of a major contract.
Workers at supercar parts manufacturers Surface Transforms told the ECHO they were laid off by email an hour before their shift started. Others said they were turned away by management as they arrived at work.
Update today:
A third Notice of Intention to appoint administrators has been filed by Knowsley-based Surface Transforms. The move buys the manufacturer of carbon fibre reinforced ceramic automotive brake discs more time to try and rescue the stricken business. The NOI protects the company against any creditor enforcement action for a further period of 10 working days. Surface Transforms had previously published NOIs on March 12 and March 25, 2026.
Around 70 workers have been laid off at a Merseyside company that was given a £13m loan by the Liverpool City Region - as the firm teeters on the brink of administration following the loss of a major contract.
Workers at supercar parts manufacturers Surface Transforms told the ECHO they were laid off by email an hour before their shift started. Others said they were turned away by management as they arrived at work.
Update today:
A third Notice of Intention to appoint administrators has been filed by Knowsley-based Surface Transforms. The move buys the manufacturer of carbon fibre reinforced ceramic automotive brake discs more time to try and rescue the stricken business. The NOI protects the company against any creditor enforcement action for a further period of 10 working days. Surface Transforms had previously published NOIs on March 12 and March 25, 2026.
Digga said:
From both a patriotic POV and also selfish (I have a set of their discs on my car) perspective, I hope the company can be saved. It does seem to be the sort of tech that a UK based manufacturer can and should be able to carve out a niche in.
When I spoke to their (then) Chairman almost 20 years ago at Spa, one of the things that surprised me was their significant lack of patents and IP.That may have been a consequence of the process and technology not enabling such protection, or the competition found a simple way to circumvent the patents, but it's no surprise that other comanies in the far east have replicated (and improved) their product and manufacturing process at higher scale and lower price.
They could never get sufficient volume to make the business credible, the only way would have been re-locating manufacturing to low cost countries and scaled up, which is what their competitors have done.
I would expect GM have already moved with one of the alternatives. Sad as you say for the employees, suppliers and a UK company, but was only ever a matter of time IMO.
Edited by 993rsr on Friday 10th April 13:23
993rsr said:
Digga said:
From both a patriotic POV and also selfish (I have a set of their discs on my car) perspective, I hope the company can be saved. It does seem to be the sort of tech that a UK based manufacturer can and should be able to carve out a niche in.
When I spoke to their (then) Chairman almost 20 years ago at Spa, one of the things that surprised me was their significant lack of patents and IP.That may have been a consequence of the process and technology not enabling such protection, or the competition found a simple way to circumvent the patents, but it's no surprise that other comanies in the far east have replicated (and improved) their product and manufacturing process at higher scale and lower price.
They could never get sufficient volume to make the business credible, the only way would have been re-locating manufacturing to low cost countries and scaled up, which is what their competitors have done.
I would expect GM have already moved with one of the alternatives. Sad as you say for the employees, suppliers and a UK company, but was only ever a matter of time IMO.
Given the amount of motorsport based in the UK, let alone automotive, it is a shame they never found any volume.
All that said if, in theory, Far Eastern product is usable and cheap enough, it moves the goalposts closer to that of steel in terms of single use.
From today's Times:
The government last year launched its Drive35 ambition to decarbonise the automotive industry within a decade. Ministers claim it will create 50,000 jobs and unlock £7.5 billion in private investment.
Outside of the big well-known manufacturers, winners of government support to get businesses toward commercial readiness include HyProMag, based in Birmingham, producing magnets from rare earth minerals in motors in electric vehicles; Maeving, an electric motorbike manufacturer based in Coventry; and Elm Mobility of Banbury in Oxfordshire, producing final-stage delivery vehicles.
among those due to receive scale-up funding from the department are Surface Transforms, a specialist carbon-ceramic brake discs business in Liverpool, which last month had its listing on Aim, London’s junior stock market, cancelled after it appointed administrators with a view to selling the business. A departmental official said the company has “been successful in the application process but has not yet undergone the financial checks and due diligence required to receive the funding”.
The government last year launched its Drive35 ambition to decarbonise the automotive industry within a decade. Ministers claim it will create 50,000 jobs and unlock £7.5 billion in private investment.
Outside of the big well-known manufacturers, winners of government support to get businesses toward commercial readiness include HyProMag, based in Birmingham, producing magnets from rare earth minerals in motors in electric vehicles; Maeving, an electric motorbike manufacturer based in Coventry; and Elm Mobility of Banbury in Oxfordshire, producing final-stage delivery vehicles.
among those due to receive scale-up funding from the department are Surface Transforms, a specialist carbon-ceramic brake discs business in Liverpool, which last month had its listing on Aim, London’s junior stock market, cancelled after it appointed administrators with a view to selling the business. A departmental official said the company has “been successful in the application process but has not yet undergone the financial checks and due diligence required to receive the funding”.
Guyr said:
Their accounts have been terrible forever.
Last two years they made £4m Gross Profit on sales of about £8m, but spent £24-£27m on Admin and R&D.
I’d heard this. I can imagine the R&D bit to be extremely, eyewateringly costly, but I haven’t seen split with basic management costs.Last two years they made £4m Gross Profit on sales of about £8m, but spent £24-£27m on Admin and R&D.
My understanding is that the discs can be put in a lathe & re-surfaced 2-3 times. They are of a fundamentally different construction to PCCBs which are a thin layer laid on top of a carbon ceramic matrix.
I will add that (10 years ago) ST were extremely difficult to deal with - the main problems being a total lack of communication and somewhat optimistic timelines. One order I remember took the best part of a year to materialize & then the bells had been incorrectly manufactured. All the while having embarrassing conversations with the customer. That was the last order we put in...
I will add that (10 years ago) ST were extremely difficult to deal with - the main problems being a total lack of communication and somewhat optimistic timelines. One order I remember took the best part of a year to materialize & then the bells had been incorrectly manufactured. All the while having embarrassing conversations with the customer. That was the last order we put in...
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