REG - Sondrel (Holdings) - FY23 Update

Sondrel (Holdings)Announcement

10/01/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240110:nRSJ1640Za&default-theme=true

RNS Number : 1640Z  Sondrel (Holdings) plc  10 January 2024

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

10 January 2024

Sondrel (Holdings) plc

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

 

FY23 Update

 

Sondrel (AIM: SND), the fabless semiconductor business providing turnkey
services in the design and delivery of 'application specific integrated
circuits' ("ASICs") and 'system on chips' ("SoCs") for leading global
technology brands, provides a further update in respect of the financial year
ended 31 December 2023 ("FY23").

 

As announced by the Company on 28 December 2023, Sondrel previously reported
that its ASIC project with a Tier 1 automotive OEM will not now achieve tape
out until the end of Q1 2024 and involve additional resource and cost to
complete.

 

Discussions are ongoing with the customer over resolution of the funding for
the project extension, but the Company now announces that this will not be
resolved in time to be reflected in the Company's FY23 results.

 

It is therefore expected that revenue associated with the automotive project
of approximately £2.7m will instead now be recognised in the year ending 31
December 2024 ("FY24"). This revenue includes the £1.7m that is now expected
to be received in January and February 2024, as per the announcement on 28
December 2023.

 

As a result, reported FY23 revenue is now expected to be materially lower than
previous expectations* at approximately £10m. There will also be a
corresponding impact on reported FY23 loss before tax due to the delay and
also the additional resources and cost in advancing the project.

 

Notwithstanding the delay in the automotive ASIC project, significant new ASIC
business opportunities are in final negotiations for project starts in early
2024 and indications remain encouraging that European and US market demand for
Sondrel's turnkey ASIC services is strong.

 

As previously announced, and with a view to managing Group liquidity,
negotiations are underway with suppliers to improve the terms of existing
supply arrangements, and these are ongoing. The Group also announced that it
will 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, and that, if the payments associated with the automotive
project are not received in January and February 2024, this will need to be
secured in shorter order. This position remains unchanged.

 

* Current consensus analyst forecasts are for FY23 revenues of £13.0 million
and an adjusted loss before tax of £6.0 million.

 

 Graham Curren, Chief Executive Officer of Sondrel, commented:

 

 

"The end of FY23 was clearly a challenging period. Importantly, our operating
model and our growth ambitions remain the same and we are now focused on
delivering for all of our stakeholders: our shareholders, our customers and
our employees. Whilst it is disappointing to see the FY23 financial results
impacted by the previously announced delays in this project, the expectation
remains that the project will be completed in Q1 2024 and the Company remains
encouraged by significant new ASIC business opportunities in the final stages
of negotiation."

 

 

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 / Charlie Combe - Sales & ECM

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

 Stephanie Whitmore
 Jack Devoy
 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
(http://www.ir.sondrel.com/) .

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDEAEFNELKLEAA