Surface Transforms Plc announced that the Company has been awarded a contract with a lifetime value in excess of £100million as a tier one supplier of a carbon ceramic brake disc to an automotive company - previously described by Surface Transforms as "OEM 10" - which is the single contract awarded to date, but crucially sees Surface Transform discs replacing those historically provided by its main competitor. This new contract is the second contract with this customer and Surface Transforms will be the standard fit, sole supplier of the carbon ceramic brake disc on two model variants covering front and rear axles. The lifetime revenue on this contract is estimated to be in excess of£100m over 6 years.

The customer is currently estimating a start of production ("SOP") date in 2024. For prudence, the Company anticipates series production revenues will commence in the first half of 2025. Sales from this contract award are expected to be approximately £20 million p.a., tailing off in the later years.

The contract is priced in GBP. The current variant of this contracted model is already fitted with carbon ceramic discs provided by a competitor. The customer's decision to replace the incumbent with Surface Transform's discs followed a searching technical evaluation.

The contract award raises the Company's lifetime contract value to £290m, across 11 contracted models, with an average contract life of 5 yrs.