Hardman & Co Research Suspends Estimates for Surface Transforms

Hardman & Co Research has temporarily suspended estimates for Surface Transforms (SCE). The interim results published on September 30 revealed a 58% increase in revenue. However, the loss before tax expanded to £7.6 million from £5.6 million in the first half of 2023. Although the company is ramping up production, both the rate and improvement in yields are below expectations. Additionally, ongoing issues persist in the downstream process.

For the fourth quarter of 2024, the company projects revenues of £3.5 million, demonstrating growth from the first half of the year but falling 40% short of initial plans. Given these challenges, operational cash outflow continues, prompting a review of funding options. Surface Transforms remains one of only two significant players in this global market.