Surface Transforms agrees £1m Merseyside growth loan

Carbon fibre-reinforced ceramic brake technology company Surface Transforms has agreed to a £1m Flexible Growth Fund loan from the Liverpool City Region Combined Authority (LCRCA), it announced on Wednesday.

The AIM-traded firm said the loan, administered by the Merseyside Special Investment Fund, was tied to capital expenditure and would be drawn down between 29 March and 29 September.

It said the loan carried interest at 2% over the Bank of England base rate, and would be repayable over five years in equal monthly instalments following a three-month repayment holiday.

The company said it had covenanted certain continuing employment levels as a part of the agreement.

“We would like to thank LCRCA and the Merseyside Special Investment Fund for their contribution to our investment and employment plans,” said chairman David Bundred.

“In combination with the excellent support we are receiving from Knowsley Borough Council on other issues it is symptomatic of their collective wish to help.

“Liverpool City Region is, indeed, 'open for business'.”

At 1251 GMT, shares in Surface Transforms were down 0.25% at 75.31p.