Surface Transformations jumps after contract win

25th Sep 2014 10:09

Shares in Surface Transformation leapt by around a third on Thursday morning after the group revealed that it has signed a pre-production contract with an international aerospace system supplier.Under the rolling three-year agreement, which is set to have a "modest" impact on revenue, Surface will supply a US military aircraft with its carbon ceramic brake discs."The contract will have a modest positive revenue impact in each of Surface Transforms' 2014/15 and 2015/16 financial years with production sales projected to commence in the subsequent 2016/17 financial year subject to final qualification and flight testing," the group said.Sales at contract maturity are expected to exceed £1.3m per year.Surface will also continue to work with the customer on a separate programme to develop a generic carbon ceramic brake system for application both in civil and military aviation.Chairman David Bundred said: "This is a significant announcement for the company following many years of technical development [and] provides an important reference point for other customers considering adopting the Surface Transforms technology."The group added that it had continued to make progress with automotive customers on other "game changer" contracts and expects to make further announcements on these.Shares in the company were up 35.4% to 10.49p at 11:00 on Thursday.