Surface Transforms (SCE) AGM 2025 & H1 2025 TU earnings summary

Executive summary

• Half-year revenues reached £8.1m, representing 72–75% growth compared to H124 and matching full-year 2024 revenues.

• Operational focus shifted to improving cash flow, manufacturing yield, and output, with Q2 2025 yield rising to 77% from 49% in Q1 2025.

• Customer support remained strong, with technical resources and manufacturing specialists embedded and customer cash advances totaling £12.9m by 30 June 2025.

• Senior leadership team strengthened with new Chair, interim CFO, and COO appointments, including Gareth Laker as COO from 1 August 2025.

Financial highlights

• H1 2025 revenues of £8.1m, nearly equal to FY2024, with Q1 2025 revenues flat and Q2 2025 showing strong growth.

• Gross cash at 30 June 2025 was £1.2m, with year-end cash expected to be £1m.

• Customer prepayments/advances totaled £12.9m at H1 2025, with repayments to begin in H2 2025 and anticipated to reduce by 20% by year-end.

• EBITDA expected to be positive in H2 2025 if current operational performance is sustained.

• £9.8m of the £13.2m capex/ERDF loan drawn by 30 June 2025.

Outlook and guidance

• H2 2025 guidance anticipates continued strong revenue growth, with a 20% increase forecast over H1 2025.

• Repayment of customer prepayments to commence, with no equity conversion expected.

• Expects £2.5m in VAT receipts and R&D tax credits in H2 2025.

• Capex investment loan of £13.2m expected to be fully drawn by year-end 2025.