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

CAP-XXAnnouncement

05/09/2024 07:00

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RNS Number : 9702C  CAP-XX Limited  05 September 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018) ("UK MAR").

 

5 September 2024

CAP-XX Limited

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

Trading Update and Notice of Results

The Board of CAP-XX Limited, a world leader in the design and manufacture of
thin, prismatic supercapacitors and energy management systems, announces an
unaudited trading update in respect of the financial year ended 30 June 2024
("FY2024").

·      Revenue is expected to be A$4.6m up 26.7% versus the prior
financial year

·      Backlog at the end of June 2024 was USD 1.12m

·      Book/bill ratio of 1.07 as at 30 June 2024

·      R&D tax credit of approximately A$1.25m is estimated to be
received in November 2024

·      Year-end cash reserves were A$2.0m

·      The Company is debt free

·      Strong new relationship with SCHURTER AG

·      Strong progress with the global distribution network

·      Global supercapacitor market is currently experiencing
significant growth

The financial information highlighted above has not been audited, the process
of which is currently ongoing. The Company's audited results for FY2024 are
expected to be released on 29 October 2024.

Agreement with SCHURTER AG ("SCHURTER")

As announced on 16 July 2024, CAP-XX and SCHURTER signed a memorandum of
understanding ("MoU") in July to work closely together on technology
development and the development of supercapacitor products under a common
brand name. The MoU marks the beginning of a strategic alliance that the
companies believe will bring substantial benefits for both sides and create
real added value for their customers and stakeholders. By combining their
extensive knowledge and capabilities, CAP-XX and SCHURTER will develop
innovative, competitive products and new application-specific solutions,
including co-branded supercapacitor products. SCHURTER also became a
significant shareholder in the Company, having acquired CAP-XX shares in the
market representing 4.69% of the Company's issued share capital.

Successful uplift from marketplace to fulfilment with DigiKey and first stock
holding in the USA

Further to the Company's announcement on 25 April 2023, CAP-XX has
strengthened its relationship with DigiKey, including the successful
progression onto the "Fulfilled by DigiKey" programme. This includes the
implementation of an EDI (Electronic Data Interchange) link with DigiKey,
culminating with the first stock order from this leading global distributor of
electronic components.

This represents the first physical stock holding in the US - previously stock
was shipped from Australia upon receipt of an order. Local stock enables
faster delivery times of between 12 to 24 hours, better customer service, and
a more robust presence in the crucial North American market.

By DigiKey managing the fulfilment process, CAP-XX can enhance supply chain
operations, provide superior service to customers, and drive growth and
profitability.

About the CAP-XX external EDI system

The EDI system provides for automated commercial "conversations" between two
entities, encompassing the entire electronic data interchange process,
including transmission, message flow, document format, and software used to
interpret the documents. An external EDI system offers significant benefits,
including operational efficiency, cost savings, enhanced inventory management,
improved customer satisfaction, and greater overall control. By DigiKey
managing the fulfilment process, CAP-XX can enhance supply chain operations,
provide superior service to customers, and drive growth and profitability.

Update on the CAP-XX global distribution network:

CAP-XX has assembled a highly experienced commercial team under the leadership
of its CEO, Lars Stegmann, who personally oversees APAC and the Americas
region. Mark Davies is responsible for operations in Europe, while Ulrich
Lorenzen manages CAP-XX's activities in South Africa.

CAP-XX has established a comprehensive global distribution network for its
world-class supercapacitors. Distributors are strategically located across the
Americas, Asia Pacific, Europe, the Middle East, and Africa, providing local
support and expertise to meet the diverse needs of clients. During FY2024,
CAP-XX signed numerous distribution agreements worldwide, including: Astute
(Global), Syscom Prorep (France & Benelux), Darton (Italy, Spain &
Portugal), TME (Global), NuVision (South Africa) and Arrow-Alltech (South
Africa).

In the Americas, ongoing discussions with major partners aim to complement the
existing relationship with Kessler Batteries in Dallas, Texas. These
distributors are well-equipped to handle enquiries and provide supercapacitors
for a range of applications.

The extensive Asia Pacific network covers major regions such as ASEAN &
South Asia, China & Hong Kong, Taiwan, India, Japan, and South Korea. Key
partners include McCoy Pte. Ltd. in Singapore, Nanjing Sunlord Electronics Co.
Ltd. in China, PAC Electronics Co. Ltd. in Taiwan, and Synerdyne in Japan.
This network ensures that innovative products are readily available and
supported by local experts who understand the unique requirements of each
market.

Growing global supercapacitor market

The global supercapacitor market is currently experiencing significant growth,
driven by a combination of technological advancements and increased demand
across various sectors. Supercapacitors, known for their high power density,
rapid charge and discharge capabilities, and long cycle life, are becoming
increasingly important in applications such as automotive, renewable energy,
consumer electronics, and industrial equipment.

According to a recent report by MarketsandMarkets(1), the global
supercapacitor market is projected to grow from USD 475 million in 2022 to USD
1.4 billion by 2027, a compound annual growth rate (CAGR) of 23.5% during the
forecast period. This growth is being fuelled by the rising adoption of
electric vehicles (EVs), where supercapacitors are used alongside batteries to
improve performance and longevity. Additionally, the integration of renewable
energy sources, such as wind and solar, requires efficient energy storage
solutions like supercapacitors to balance supply and demand.

In the consumer electronics sector, the demand for faster-charging and more
durable energy storage devices is also propelling the supercapacitor market.
According to Research and Markets(2), the increasing use of supercapacitors in
smartphones, wearables, and other portable devices is expected to contribute
significantly to market expansion. The global push towards smart
infrastructure and grid modernisation is creating new opportunities for
supercapacitor technology in energy management and power backup systems.

With these multiple drivers, the global supercapacitor market is set for
robust growth in the coming years, cementing its role as a key component in
the evolving landscape of energy storage solutions.

(1) MarketsandMarkets. (2022). Supercapacitor Market by Type, Electrode
Material, Application, Region - Global Forecast to 2027.

(2) Research and Markets. (2023). Global Supercapacitor Market Analysis and
Forecast to 2028.

Chief Executive Officer of CAP-XX, Lars Stegmann, said: "The progress with our
new sales strategy has been strong in the period, increasing our global
geographic footprint in key markets, improving our customer service levels and
project management. The strengthening of our distribution partner base is
progressing well and supports our key objective to profitably build the CAP-XX
revenue base in the near term. With our newly strengthen board we look forward
to continuing our mission of powering the future with our state-of-the-art
supercapacitor technology."

For further information contact:

CAP-XX Limited

Pat Elliott
(Chairman)
+61 (2) 9157 0000

Lars Stegmann (Chief Executive Officer)

 

Allenby Capital (Nominated Adviser and Joint Broker)

David Hart / Piers Shimwell (Corporate Finance)
                                    +44 (0)
20 3328 5656

Tony Quirke / Stefano Aquilino (Sales and Corporate Broking)

 

Notes to Editors:

About SCHURTER

SCHURTER is a world leading Swiss technology company and solutions innovator.
SCHURTER manufactures and markets components for circuit protection, as well
as connectors, switches, EMC, and HMI products.

For more information about SCHURTER, visit www.schurter.com
(https://www.schurter.com/en)

About DigiKey

DigiKey is a leading global distributor of electronic components, renowned for
its extensive inventory and commitment to providing rapid, reliable service to
engineers, designers, and procurement professionals. DigiKey currently states
that it currently holds 1,900,000 products in stock, in their expandable
distribution space of more than 3 million square feet (278,709 square meters),
including a new 2.2 million sq. foot product distribution centre, allowing
them to ship the majority of orders the same day they are placed. On average,
DigiKey ships nearly 25,000 orders per day. DigiKey is an authorized
distributor of electronics components for more than 2,900 industry-leading
suppliers, offering more than 15.3 million different products. DigiKey also
supports innovation through comprehensive online resources, including
datasheets, reference designs, and a robust community forum, making it a
trusted partner in the electronics industry.

For more information about DigiKey, visit www.digikey.com
(http://www.digikey.com)

About CAP-XX

CAP-XX (LSE: CPX) is a leader in the design and manufacture of thin, flat
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
(http://www.cap-xx.com)

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