REG - CAP-XX Limited - Trading Update

CAP XXAnnouncement

06/06/2019 09:05

RNS Number : 3746B
CAP-XX Limited
06 June 2019
 


Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).
6 June 2019
 
CAP-XX Limited
("CAP-XX" or the "Company")
Trading Update
CAP-XX Limited, a world leader in the design and manufacture of thin, prismatic supercapacitors and energy management systems, today announces a trading update in respect of the financial year ending 30 June 2019 and its recent activities.
 
Following the trading update announced on 16 April 2019, the Company is pleased to announce that EBIT and EBITDA for the year ending 30 June 2019 are expected to be in line with market expectations.
 
Revenue for the year has been impacted by the rate of conversion of new business opportunities into sales, which has not been sufficient to overcome the shortfall in new orders from Spire, which as noted in the announcement of 16 April 2019, has been impacted by trade tariffs into the US. As a consequence, revenue for the year will be below current market expectations.
 
Legal expenses associated with licencing activities and the defence of the Company's intellectual property have been greater than expected, although this has been offset by a combination of the continuing improvement in gross margin from sales of CAP-XX's own manufactured supercapacitors and the continuing strong growth in sales by our licencee Murata.  As at 31 May 2019, the Company's cash position was approximately A$2.6 million.
 
Further to the Company's announcement of 16 April 2019, CAP-XX continues to receive record interest in its expanded range of supercapacitors and the Company remains in active discussions with a small group of potential further licensees in addition to a similar number of discussions which are at a less advanced stage.  The Board continues to believe that further progress will be made on licencing during this calendar year.  The development of the 3V product remains on track for release later in 2019.  CAP-XX continues to take steps to vigorously defend its intellectual property (IP), which includes two litigation processes with counterparties in the United States, which are ongoing. 
 
The rising level of sales enquiries, when considered together with our previously announced product development initiatives, gives the Board increasing confidence for the outlook for the next financial year and beyond.
 
 
For further information contact:
 
CAP-XX Limited
Anthony Kongats (Chief Executive Officer)                                 +61 (0) 2 9428 0139
 
Kreab (Financial PR)
Robert Speed                                                                           +44 (0) 20 7074 1800
 
Allenby Capital (Nominated Adviser and Broker
David Hart / Alex Brearley                                                          +44 (0) 20 3328 5656
 
 
More information is available at www.cap-xx.com
 
Notes to Editors:
 
CAP-XX (LSE: CPX) is a world leader in the design and manufacture of thin, prismatic supercapacitors and energy management systems used in portable and small-scale electronic devices, and to an increasing extent, in larger applications such as automotive and renewable energy. The unique feature of CAP-XX supercapacitors is their very high power density and high energy storage capacity in a space-efficient prismatic package. These attributes are essential in power-hungry consumer and industrial electronics, and deliver similar benefits in automotive and other transportation applications. For more information about CAP-XX, visit www.cap-xx.com
 




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