Surface Transforms (SCE) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 rose 72% year-over-year to £8.1m, driven by OEM customer sales and improved production output.

• Gross margin improved to 64% from 56% in H1 2024, reflecting higher pricing, better yield, and lower unit costs.

• Operating loss narrowed to £5.2m from £7.4m in H1 2024, with only a modest 3.5% increase in operating expenses.

• Cash at 30 June 2025 was £1.2m, supported by £11.3m in customer prepayments during H1.

• Key capacity expansion projects are on track, with a new furnace installation expected to support 2026 growth.

Financial highlights

• H1 2025 revenue: £8.1m (H1 2024: £4.7m); gross profit: £5.2m (H1 2024: £2.6m).

• Gross margin: 64% (H1 2024: 56%).

• Operating loss: £5.2m (H1 2024: £7.4m); loss before tax: £5.6m (H1 2024: £7.6m).

• Loss per share: (0.39)p (H1 2024: (1.28)p).

• Cash at period end: £1.2m (31 Dec 2024: £0.5m).

Outlook and guidance

• Full year 2025 revenue now expected to be c.£20m, about 10% above previous guidance.

• Q3 revenue expected at c.£5.5m; yield temporarily impacted by new equipment but targeted to exceed 80% in Q4.

• EBITDA expected to be broadly neutral in H2 2025; gross cash at year-end forecast at c.£1.0m.

• Capacity improvements in H2 2025 to support further growth in 2026.