REG - CAP-XX Limited - Pre-close Trading Update and Notice of Results

CAP XXAnnouncement

02/08/2023 07:00

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RNS Number : 9772H  CAP-XX Limited  02 August 2023

Dissemination of a Regulatory Announcement that contains inside information
for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit)
Regulations 2019/310.

 

2 August 2023

CAP-XX Limited

("CAP-XX" or "the Company")

 

Pre-close Trading Update and Notice of results

 

CAP-XX Limited, a world leader in the design and manufacture of thin,
prismatic supercapacitors and energy management systems, announces a pre-close
trading update in respect of the financial year ended 30 June 2023.

Revenue is expected to be A$4m and adjusted EBITDA* is expected to be (A$1.2m)
after excluding A$2.2m in exceptional items relating to legal expenses and
provisions for patent protection litigation, and executive severance charges.
 Year-end cash reserves were A$2.6m including the proceeds of the capital
raise which took place in May 2023. Revenue for the second half of FY2023 was
impacted by some orders anticipated to be shipped in June 2023 being delayed
to Q1 of FY2024.

Quarterly sales improved throughout the financial year but at a level slightly
lower than originally expected. An increased focus on strengthening the
relationship and focus on the customer is expected to see revenue and sales
opportunities continue to grow into FY2024.

The sales pipeline reporting is being reviewed to improve the accuracy,
reliability and insight of known opportunities. This new approach is being
supported by a modest investment in sales reporting software. The ongoing aim
is to establish an updated sales structure which will increase the CAP-XX
footprint in the majority of global regions. This will include servicing
emerging markets such as India and Southern Africa, whilst increasing coverage
in the known markets of Europe and the USA. CAP-XX is also increasing its
interaction with the electronic component distributor Digikey which will give
CAP-XX an improved interface with new customers.

Before the end of the current calendar year, CAP-XX will present its new
product roadmap which includes the 3V version, DMH as well as a surface
mountable device (SMD) version. Furthermore, CAP-XX is developing evaluation
boards which will assist customers and internal sales during the design-in
phase.

Although the market remains relatively volatile, with ongoing geo-political
impacts coupled with economic headwinds such as inflation and the energy
crisis, the Board looks forward to the 2023/24 financial year with confidence.
This expectation is supported by a broadly based increase in orders across the
product portfolio and a notable strengthening of the book-to-bill ratio in the
past three months.

CAP-XX Chief Executive Officer, Lars Stegmann said "The implementation of our
new sales strategy is already raising our local geographic footprint in key
markets, improving our customer service levels and project management.  I am
encouraged that this tailored approach will see a further strengthening of our
distribution partner base in the short term and support our objective to
profitably build the CAP-XX revenue base in the near term."

The above results are subject to clearance by CAP-XX's independent auditors
with the Company's results for the year ended 30 June 2023 expected to be
released on 29 September 2023.

* Adjusted  EBITDA excludes legal expenses associated with patent
infringement and licensing actions and the severance payments and placement
fees for the ex/new CEO.

 

For further information contact:

 CAP-XX Limited                                               +61 (0) 2 9428 0139

 Pat Elliott (Chairman)

 Lars Stegmann (CEO)

 Kreab (Financial PR)                                         +44 (0) 20 7074 1800

 Robert Speed

 Allenby Capital (Nominated Adviser and Joint Broker)         +44 (0) 20 3328 5656

 David Hart / Piers Shimwell (Corporate Finance)

 Tony Quirke/Stefano Aquilino (Sales and Corporate Broking)

 Cenkos Securities plc (Joint Broker)                         +44 (0) 13 1220 6939

 Neil McDonald / Pearl Kellie

 

More information is available at www.cap-xx.com (http://www.cap-xx.com)

 

Notes to Editors:

 

CAP-XX (LSE:CPX) is a world leader in the design and manufacture of ultra-thin
prismatic and compact cylindrical supercapacitors. Its prismatic
supercapacitors are manufactured in Australia and Malaysia and its cylindrical
supercapacitors are manufactured in China. The company's strong intellectual
property (IP) portfolio includes 11 patent families. CAP-XX's ultra-thin
prismatic supercapacitors are ideal for space-constrained electronics
applications where small energy storage device size and thickness are
important. The unique feature of CAP-XX supercapacitors is their very
high-power density and high-energy storage capacity in space-efficient thin
prismatic and compact cylindrical packages. For more information, visit
https://www.cap-xx.com/ (https://www.cap-xx.com/) or email sales@cap-xx.com.

 

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