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Surface Transforms PLC (GB:SCE)
LSE:SCE

Surface Transforms (SCE) AI Stock Analysis

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GB:SCE

Surface Transforms

(LSE:SCE)

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Neutral 47 (OpenAI - 5.2)
Rating:47Neutral
Price Target:
1.50 p
▼(-9.09% Downside)
Action:UpgradedDate:12/07/25
Surface Transforms' overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. While technical indicators suggest a bearish trend, recent corporate events and strategic initiatives provide a positive outlook. The company's valuation remains unattractive due to its negative P/E ratio. The most significant factors are the financial performance and technical analysis, which weigh heavily on the overall score.
Positive Factors
Revenue Growth
Sustained top-line growth (reported ~34.9%) reflects increasing OEM and aftermarket adoption. Over 2-6 months this expanding revenue base supports scale economies, strengthens supplier/customer leverage, and provides runway to improve margins if cost control and mix improvements follow.
Negative Factors
Negative Profitability
Persistent negative net income and EBIT margins show revenue growth has not translated into profitable operations. Continued losses erode equity and require either sustained margin recovery or external funding to reach durable profitability, constraining long-term shareholder value creation.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line growth (reported ~34.9%) reflects increasing OEM and aftermarket adoption. Over 2-6 months this expanding revenue base supports scale economies, strengthens supplier/customer leverage, and provides runway to improve margins if cost control and mix improvements follow.
Read all positive factors

Surface Transforms (SCE) vs. iShares MSCI United Kingdom ETF (EWC)

Surface Transforms Business Overview & Revenue Model

Company Description
Surface Transforms Plc, together with its subsidiaries, researches, designs, develops, manufactures, and sells carbon ceramic products for the brakes market in the United Kingdom, Germany, Sweden, rest of Europe, the United States, and internation...
How the Company Makes Money
Surface Transforms generates revenue through the sale of its carbon-ceramic brake discs and associated products primarily to automakers and aftermarket suppliers. The company's revenue model is based on direct contracts with OEMs (Original Equipme...

Surface Transforms Financial Statement Overview

Summary
Surface Transforms is experiencing revenue growth, but profitability and cash flow generation remain significant hurdles. The company's increasing reliance on debt financing and poor cash flow metrics indicate potential financial risk. While revenue growth is a positive sign, the company's high operational costs and negative profitability metrics highlight ongoing challenges that need addressing for sustainable growth.
Income Statement
40
Negative
Balance Sheet
35
Negative
Cash Flow
30
Negative
BreakdownTTMDec 2024Dec 2023Mar 2023Dec 2021Dec 2020
Income Statement
Total Revenue11.71M8.24M7.31M4.04M2.37M1.95M
Gross Profit6.68M4.11M4.17M3.08M1.55M1.31M
EBITDA-19.03M-21.12M-19.28M-4.90M-3.77M-2.31M
Net Income-20.40M-22.35M-19.56M-4.78M-3.95M-2.30M
Balance Sheet
Total Assets35.59M25.45M31.95M40.17M26.37M8.77M
Cash, Cash Equivalents and Short-Term Investments1.25M462.00K7.41M14.92M12.97M1.06M
Total Debt10.97M7.45M2.40M2.73M3.29M1.82M
Total Liabilities30.07M15.13M8.22M6.62M5.48M3.10M
Stockholders Equity5.37M10.32M23.73M32.81M20.89M5.68M
Cash Flow
Free Cash Flow-8.21M-18.34M-18.31M-14.81M-7.67M-1.66M
Operating Cash Flow-4.40M-14.03M-10.26M-6.46M-3.73M-1.01M
Investing Cash Flow-3.88M-4.15M-8.05M-5.34M-3.95M-643.00K
Financing Cash Flow4.55M12.61M9.50M16.42M19.61M1.96M

Surface Transforms Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.65
Price Trends
50DMA
0.96
Negative
100DMA
1.37
Negative
200DMA
1.57
Negative
Market Momentum
MACD
-0.24
Negative
RSI
17.13
Positive
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SCE, the sentiment is Negative. The current price of 1.65 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.96, and above the 200-day MA of 1.57, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 17.13 is Positive, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SCE.

Surface Transforms Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
£17.30M4.3630.82%-18.51%-13.40%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
51
Neutral
£14.18M-12.393.78%47.46%
49
Neutral
£33.81M29.31-17.36%-7.27%
47
Neutral
£1.50M-0.62-131.18%34.87%77.15%
46
Neutral
£4.37M-2.08-11.38%-15.55%-25.85%
42
Neutral
£3.74M-2.08-139.52%-11.86%-16.21%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SCE
Surface Transforms
0.12
-0.14
-54.00%
GB:AUTG
Autins Group plc
8.00
1.00
14.29%
GB:CAR
Carclo plc
46.05
23.15
101.09%
GB:SYM
Symphony Environmental Technologies
6.00
3.25
118.18%
GB:CTA
CT Automotive Group Plc
23.50
1.00
4.44%
GB:STG
Strip Tinning Holdings plc
20.50
-3.50
-14.58%

Surface Transforms Corporate Events

Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Surface Transforms Doubles Revenue as Production Ramp Narrows Losses
Positive
Jan 19, 2026
Surface Transforms reported a transformative year for 2025, with revenue rising about 120% to £18.0m and operating losses before interest and tax narrowing to roughly £8.7m, supported by record second-half sales and continued capital inv...
Business Operations and StrategyPrivate Placements and Financing
Surface Transforms Awards Share Options to Drive Growth
Positive
Nov 27, 2025
Surface Transforms plc has announced the award of 89,250,000 share options under its long-term incentive plan to its Executive and Senior Management Team. This move is aimed at stabilizing the company and driving profitable growth, with the option...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 07, 2025