REG - Sondrel (Holdings) - Corporate Update

Sondrel (Holdings)Announcement

05/02/2024 07:00

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RNS Number : 9439B  Sondrel (Holdings) plc  05 February 2024

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK Market Abuse
Regulation

5 February 2024

Sondrel (Holdings) plc

("Sondrel", the "Company" and together with its subsidiaries the "Group")

Corporate Update

Sondrel (AIM: SND), a leading provider of ultra-complex chips for leading
global technology brands, is pleased to confirm that it has received £1.5
million of payments in relation to the material turnkey ASIC engagement with
its automotive Tier 1 supplier in January 2024, further to the announcement of
10 January 2024.

As a result, previously deferred December 2023 Group payroll has been met
along with January 2024 Group payroll and certain creditor payments.
Discussions with the customer over resolution of the funding for the project
extension continue and additional payments are expected in the coming months,
assuming completion of the 'tapeout' milestone and including the balance of
£0.2 million.

Significant new ASIC business opportunities are in final negotiation for
project start in early 2024 and indications remain encouraging that European
and US market demand for Sondrel's turnkey ASIC services is strong.

Negotiations remain ongoing with suppliers to improve the terms of existing
supply arrangements but the Group continues to need to secure additional
capital prior to the end of March 2024 to provide a more permanent solution to
meet the Company's short-term working capital requirements.

Graham Curren, Chief Executive Officer of Sondrel, commented:

"We have made good progress on the ASIC project with the automotive Tier 1
supplier. I would like to thank Sondrel's employees, suppliers and customers
for their continued support over recent months.

"We remain encouraged by the positive development of key opportunities in our
pipeline and we look forward to providing further updates on new ASIC business
opportunities at advanced stages of negotiation in due course."

 For further information:

 

 Sondrel (Holdings) plc                                        Via Buchanan
 Graham Curren, CEO                                            Tel: +44 (0) 20 7466 5000
 Nick Stone, Interim CFO

 Cavendish Capital Markets Limited                             Tel: +44 (0) 20 7220 0500
 Ben Jeynes / Katy Birkin / George Lawson - Corporate Finance
 Michael Johnson - Sales

 Buchanan Communications                                       Tel: +44 (0) 20 7466 5000
 Chris Lane                                                    sondrel@buchanan.uk.com (mailto:sondrel@buchanan.uk.com)

 Stephanie Whitmore
 Abby Gilchrist

 

About Sondrel

Sondrel is a UK-based fabless semiconductor company specialising in high end,
complex digital Application Specific Integrated Circuits (ASICs) and System on
Chips (SOCs). It provides a full turnkey service in the design, prototyping,
testing, packaging and production of ASICs and SoCs.

 

The Company is one of only a few companies capable of designing and supplying
the higher-spec chips built on the most advanced semiconductor technologies,
selling into a range of hyper growth end markets such as high-performance
computing, automotive, artificial intelligence, VR/AR, video analytics, image
processing, mobile networking and data centres.  Sondrel designs have enabled
products by leading technology brands including Apple (iPhone), Sony
(PlayStation), Meta's (Oculus), Samsung, Google and Sony smartphones, JVC
(prosumer camcorders), Tesla and Mercedes-Benz cars.

 

Sondrel is well-established, with a 20-year track record of successful
delivery, supported by long standing ecosystem partnerships including Arm,
TSMC and Samsung. Headquartered in the UK, Sondrel has a global presence with
offices in UK, USA, China, India and Morocco.

 

For more information please visit: ir.sondrel.com (https://ir.sondrel.com/) .

 

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