A Merseyside company making brake discs for supercars has landed a "game-changing" £27m deal.
Surface Transforms announced on Monday that it has been selected as a tier-one supplier of a carbon ceramic brake disc on a car made by an unnamed "global vehicle manufacturer".
The contract will begin in summer next year, and the Knowsley firm said it is estimated to be worth £27.5m - potentially running until 2024.
The contract means the firm will increase its headcount by recruiting staff - investing £500,000 this year and £1.3m and £2m in 2021 and 2022 respectively. The statement to the markets on Monday said the move will provide the "necessary support infrastructure for all contracted sales and further prospective - but as yet uncontracted - sales pipeline".
The company said it expects to make further contract award announcements over the next six months.
Kevin Johnson, CEO, said: "This, truly game changing, award builds upon the recent trend of significant contract wins with mainstream automotive manufacturers. The award, which on its own, doubles previous revenue projections for FY22 and accelerates Surface Transforms' transition into profitability and operational cash generation.
"The board is delighted with this award and want to particularly thank both our employees and the customer for their considerable efforts in concluding the work needed for nomination against the background of the Covid-19 pandemic and lockdown.
"This is a very good day for Surface Transforms and we look forward to further extending our relationship with this major new customer and making further contract announcements with both [the unnamed equipment manufacturer] and other, existing and new, customers."
The firm also released a trading update on Monday, which said sales have continued to grow this year, despite Covid-19.
The firm said it anticipates current financial year 2020 revenues will be around £400,000 higher than market expectations, with group revenue for the year expected to increase to approximately £2m.
The increased revenue will mitigate the working capital impact of additional overhead in 2020 following the board's decision to invest in the company's headcount, the statement said.
