Surface Transforms selected as tier-one brake disc supplier to 'major' US auto firm

Brake discs manufacturer Surface Transforms said on Tuesday that it has been selected as a tier-one supplier to "a major mainstream US automotive company".

Surface Transforms stated that all terms and conditions of the deal had been agreed, with the company set to be the sole supplier of carbon ceramic brake discs as standard fit on both axles of a new edition to an existing internal combustion engine car.

The AIM-listed group anticipates the lifetime revenue on the specific contract will be approximately £20.0m, commencing in mid-2024, while annual revenue was estimated to be roughly £5.0m per year from 2025 to 2027 inclusive, with approximately half that sum in 2024 and 2028.

Chief executive Kevin Johnson said: "This is a very significant win for Surface Transforms. The customer is one of the most respected names in the industry and provides a further key reference point for other OEMs.

"The contract win was one of those anticipated in the recent fundraise, and thus remains within our previously stated capacity requirements. We look forward to further extending our relationship with this new customer."

As of 0915 BST, Surface Transforms shares were up 9.68% at 68.0p.