REG - Strip Tinning Hldgs - Contract Update

Strip Tinning HoldingsAnnouncement

19/08/2022 07:00

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RNS Number : 5536W  Strip Tinning Holdings PLC  19 August 2022

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR. Upon the publication of this announcement via a Regulatory Information
Service, this inside information is now considered in the public domain.

19th August 2022

 

Strip Tinning Holdings plc

("STH" or the "Company")

Contract update

 

Strip Tinning Holdings plc (AIM: STG), a leading supplier of specialist
connectors to the automotive sector, announces that its wholly owned
subsidiary, Strip Tinning Limited ("STL") has received notice purporting to
terminate its contract with a Croatian electric vehicle (EV) technology
innovator for the supply of cell management systems to a leading German OEM,
with effect from 1(st) October 2022. The contract was signed in December 2021
following an extended period of design and development work with the customer.

The supply agreement, for a term of 5 years, is worth €2m per annum to STL
at peak volumes, with production ramp up starting in H2 2023.  Whilst the
loss of the contract would have no material impact on market expectations for
the current financial year, the customer had recently indicated that volumes
were likely to be increased by 33% over the life of the project and STL had
adjusted plans with capital equipment suppliers to accommodate this.

STL is in dialogue with the customer to better understand the rationale and
legal basis of their decision as all STL milestone deliverables within the
framework of the contract have been met to date, including the incorporation
of substantial engineering changes at the request of the customer, which have
been subject to re-pricing negotiations to ensure the contract remains
profitable.

STL preference would be to continue working with the customer and is in early
discussions about the possibility of working together in the future whilst
fully reserving its legal position.

Based on continued demand for its EV cell management system technology, STG
will continue to invest in scaling up its production capability for this
product line to meet firm customer orders.

A further update will be made in due course.

The person responsible for arranging the release of this information on behalf
of the Company is Adam Le Van, Group Chief Financial Officer.

Enquiries:

Strip Tinning Holdings
plc
Via Alma PR

Richard Barton, Chief Executive
Officer

Adam Le Van, Chief Financial Officer

 

Singer Capital Markets (Nominated Adviser and Sole
Broker)                      +44 (0) 20 7496 3000

Rick Thompson

Will Goode

Alex Bond

James Fischer

 

Alma PR (Financial PR)
 
  striptinning@almapr.co.uk

Josh
Royston
                                                       +44
(0) 20 3405 0205

Joe
Pederzolli

 

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