BRAKE manufacturer Surface Transforms has narrowed first-half losses thanks to new contract wins and a cost-cutting exercise starting last summer.
The company last week posted a pre-tax loss of £432,706 for the six months to 30 November 2011, compared with a loss of £558,191 for the same period in 2010. Turnover increased 17.8% to £339,880 for the same reporting periods.
Surface Transforms said overheads have been reduced by £60,000 mainly through reduced research and development costs. But it added that there has been no reduction in core R&D capacity and the work is “consistent with the company’s ambitions”.
The business said its order book is lower than last year, but it expects to meet its sales and operating targets for the current financial year to 31 May 2012. It anticipates cash breakeven will occur at £1.7m and operating profit break-even at £2.2m of revenue.
