REG - Strip Tinning Hldgs - £43m Battery Technologies Nomination

Strip Tinning HoldingsAnnouncement

06/06/2024 07:00

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RNS Number : 2944R  Strip Tinning Holdings PLC  06 June 2024

6 June 2024

Strip Tinning Holdings plc

("Strip Tinning" or the Company")

£43m Battery Technologies Nomination

New major win in the strategic Battery Technologies segment, with an expected
lifetime value of £43m

Strip Tinning Holdings plc (AIM: STG), a leading supplier of specialist
connection systems to the automotive sector, is delighted to announce the
receipt of a major high volume strategic nomination in the Battery
Technologies (BT) market, from a leading German automotive motion technology
Tier 1 manufacturer.

 

The nomination is for the supply of the Cell Contact System (CCS) for the
battery pack modules to be used in an autonomous vehicle being developed by a
customer in the USA.  This vehicle manufacturer is wholly owned by one of the
world's largest corporations and is currently running trials on public roads
in three US cities.

Strip Tinning has been working on this programme for three years, having
received £1.7 million to date for pre-production work and is much encouraged
by the progress already made towards production readiness.  The product
launch will take the Company into high-volume CCS manufacture, using all the
capabilities that have been developed over the past four years since it began
its journey into the Battery Technologies market, accelerated following the
IPO in 2022.

Under the terms of the nomination, production supply will start in Q4 2025
with further pre-production revenues of over £1.0 million to be received over
2024 and 2025 for the supply of tooling and pre-serial parts. The nomination
lasts until 2028.  Based on the expected contract volumes and final prices,
annual sales value will peak at £12.4 million and the expected lifetime value
of the contract is £43.0 million. This contract increases the total lifetime
sales value of all nominations held by the Company to £95.7 million, a 181%
increase from the position as at 1 January 2024 when the nominations book was
worth £34.1million. These nominations support the sales growth currently
expected by 2026.

Given the substantial increase in the value of nominated business and its
robust sales pipeline, the Board has determined to accelerate the recruitment
of key engineering staff required to manage both the large new Glazing PDLC
and BT programmes and maintain its support of new programmes. This investment
in engineering resources is anticipated to cost circa £400k in 2024.

This production nomination is Strip Tinning's fourth in the Battery
Technologies market and marks a major step forward towards high volume
manufacture.  This state-of-the-art CCS is the largest yet supplied by Strip
Tinning, measuring 800 mm x 400 mm. It combines a laminated busbar laser
welded to a flexible printed circuit (FPC) that measures temperature and
charge across the battery module.

The win, in addition to the three smaller previous nominations already in
production, solidifies Strip Tinning's leading position in the growing
Mid-market segment. The Company has further programmes at earlier stages of
development and anticipates further progress.

In the Glazing division there has been some moderation of market demand from
OEMs as they align inventory levels, possibly in response to the flattening of
EV sales growth, and divisional performance is also being impacted by the well
documented recent increases in copper prices.

The Company will comment further on its first half performance and outlook for
FY 24 and beyond in its H1 30 June pre close update on 16 July.

 

Adam Robson, Executive Chair of Strip Tinning, commented:

"Momentum continues to build in the business and our positioning in the
Battery Technologies market goes from strength to strength. Our nominations
order book in the last four months alone has nearly tripled, underpinning our
medium-term ambitions and providing a very solid platform from which to grow.
We are delighted to be accelerating our recruitment drive and creating
employment opportunities and remain confident in securing further sales
progress."

 

The person responsible for arranging the release of this information on behalf
of the Company is Adam Le Van, Chief Financial Officer.

Enquiries:

Strip Tinning Holdings
plc
      Via Alma

Adam Robson, Executive Chairman

Mark Perrins, Chief Executive
Officer

Adam Le Van, Chief Financial Officer

 

Singer Capital Markets (Nominated Adviser and Sole
Broker)                    +44 (0) 20 7496 3000

Rick Thompson

James Fischer

 

Alma (Financial
PR)
striptinning@almastrategic.co (mailto:striptinning@almastrategic.co) m

Josh
Royston
+44 (0) 20 3405 0205

Joe Pederzolli
 

 

 

 

 

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