Zeus acted as Nominated Adviser and Joint Bookrunner to Surface Transforms to raise c.£6.5 million

Zeus have acted as Nominated Adviser and Joint Bookrunner to Surface Transforms plc, to raise c.£6.5 million by way of an equity placing and subscription together with an open offer to raise up to a further £2 million.

Surface Transforms are manufacturers of carbon fibre reinforced ceramic automotive brake discs. The Company has made continual progress in the past 24 months, building a contracted order book of c.£390 million and a prospective revenue pipeline of a further c.£300 million.

The net proceeds of the fundraising will be used for working capital purposes to support the Company’s programme of revenue ramp up alongside the Company’s UK site development increasing its revenue capacity to £75 million p.a., and then to £150 million p.a..

David Bundred

Chairman of Surface Transforms

“This was a difficult fundraise against an 18 month background of historic operational problems with very future high sales growth potential. It was not an easy sell. We are appreciative of the efforts made by the Zeus team to secure the funds and thereby enable us to accelerate our growth.”

David Foreman

Director, Investment Banking at Zeus

“Surface Transforms has a highly compelling story – a rapidly increasing and substantial contracted order book and pipeline, allied with a capex programme to transform current manufacturing capacity.

The manufacturing process is both novel and complex, neither of which are ordinarily conducive to such an aggressive expansion plan. Resultant scale-up and other challenges resulted in a working capital need.

Despite frustrations, the fundraise was well supported by many of its existing shareholders, but pleasingly, also by a number of new institutional investors.

With the Company’s working capital need now addressed, we look forward to plenty of positive news flow by the Company with management now unshackled to focus on operational matters.”

Zeus Team

Members of the Zeus team included: David Foreman, James Edis and Ed Beddows (Investment Banking); Dominic King (Corporate Broking); and Robin Byde (Research).

Contact

If you would like further information, please get in touch with our team.

David Foreman Director, Investment Banking+44 7825 884 5000+44 7927 672 610 Scan with your phone camera to add to contacts Download vCard

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