Aston Martin supplier Surface Transforms delays results again amid share price woes
Surface Transforms, a specialist brakes manufacturer for the likes of Aston Martin and Lamborghini, has announced further delays to the publication of its full-year results.
The Knowlsey-based firm said it anticipates full-year results for 2023 will finally be published in late June, having previously been expected in mid-April.
It comes after a turbulent two years for the group, which has seen shares fall over 80 per cent this year to date. Production issues have plagued its Liverpool site, primarily relating to high levels of scrap in its processes.
Surface Transforms cited two “particular areas” that have contributed to the extended results timeline. These include impairments to the “carrying value” of some of its tangible and intagible assets and revenue recognition.
None of these would matters would impact cash, it added.
In a statement to markets, Surface Transforms explained it had applied a “significantly higher” discount rate in its assessment of its intangible assets and whether there is “any indication of impairment.”
The board estimates that £6.2m of non-cash impairments to intangible assets will be recognised in full-year 2023.
Regarding tangible assets, the company said it had identified a particular furnace which was not performing to its contracted specification.
It insisted the poor performance of the furnace would not impact current output due to “better than planned output from a complementary furnace together with some outsourcing.”
The issues with revenue recognition concern revenue generated from engineering, testing and tooling services provided to its customers during the early stages of a contract.
Surface Transforms said it had re-assessed its revenue recognition policy in this area, together with “development revenues,” following discussions with auditors.
“This change will not impact cash, and whilst not yet agreed is expected to transfer approximately £2m in total from FY23 and prior periods into future years.”