Hardman & Co Research on Surface Transforms: Pre-close Trading, AGM, and Prospects

Surface Transforms (SCE) is executing its £390m order book but still faces challenges. Despite the delays, output has been strong since late June. This progress, although slower than expected, shows resilience in overcoming obstacles. As a result, the 2024 sales estimate remains unchanged, but forward profit estimates have been lowered.

A £2m gross cash outflow is anticipated for the second half of 2024. Stability is expected in 2025, followed by an increase in the second half of 2025 and beyond. The company has now implemented duplicate pieces of equipment at each stage of the production process. Delivery rates have nearly doubled each year, despite disappointments in acceleration rates.