REG - Trackwise Designs - FY22 Trading Update

Trackwise DesignsAnnouncement

24/06/2022 07:00

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RNS Number : 0528Q  Trackwise Designs PLC  24 June 2022

 

TRACKWISE DESIGNS PLC

("Trackwise", the "Group" or the "Company")

 

FY22 Trading Update

 

Trackwise Designs (AIM: TWD), a leading provider of specialist products using
printed circuit technology, provides an update on current trading for the year
ended 31 December 2022 ("FY22").

 

FY22 trading update

The Company now has an IHT sales pipeline with 95 customers and opportunities
in total (excluding any early stage opportunities) predominantly across the
primary target markets of Electric Vehicles ("EV"), Medical and Aerospace.
Notably, the Group has a growing number of opportunities in the EV target
market, including Tier 1 and Tier 2 supplier opportunities for a number of
major OEMs.

 

However, in the short term, due to reduced near term UK EV OEM customer
demand, Group sales in 2022 are now expected to be below previous market
expectations. Despite this revenue impact, the Group reports that, due to the
benefit of specific contract terms, it expects to deliver FY22 adjusted
operating profit*, and adjusted profit before tax*, in line with market
expectations.

 

The Company's total order book for delivery in FY22 is currently £4.6
million, of which the IHT order book is £2.5 million, and the APCB order book
is £2.1 million.

 

For the five months to 31 May 2022 the Company has achieved total revenue of
£3.3 million (6 months to 30 June 2021: £4.1 million, 12 months to 31
December 2021: £8.0 million), which includes five month IHT revenue of £0.5
million (6 months to 30 June 2021: £0.6 million, 12 months to 31 December
2021: £1.5 million).

 

Cash of £3.2m has been received this month relating to asset financing for
capital equipment now on site and commissioned at Stonehouse.

 

Stonehouse facility

Completion and commission work is continuing at Stonehouse. The site houses
the high-volume, low mix, roll to roll IHT production facility and will
significantly increase Trackwise's production capacity to meet expected demand
for IHT across its target markets, initially prioritising EV. The Company
looks forward to inviting investors to a Capital Markets Day at Stonehouse
later this year.

 

 

*Before exceptional costs and share based payments.

The financial information including current year guidance included in this
announcement is unaudited.

 

Enquiries:

 

 Trackwise Designs plc                       +44(0)16 8429 9930
 Philip Johnston, CEO                        www.trackwise.co.uk (http://www.trackwise.co.uk)
 Mark Hodgkins, CFO

 finnCap Ltd                                 +44(0)20 7220 0500
 NOMAD and Broker
 Ed Frisby / Tim Harper - Corporate Finance
 Andrew Burdis / Barney Hayward - ECM

 Alma PR                                     +44(0)20 3405 0212
 Financial PR and IR
 David Ison / Josh Royston / Kieran Breheny

 

Notes to Editors

Trackwise is a UK-based manufacturer of specialist products using printed
circuit technology.

 

The full suite includes: Improved Harness Technology™ ("IHT") and Advanced
PCBs - Microwave and Radio Frequency ("RF"), Short Flex, Flex Rigid and Rigid
Multilayer products.

 

IHT uses a proprietary, patented process that Trackwise has developed to
manufacture multilayer flexible printed circuits of unlimited length. While
the technology has many applications, the directors expect that one of its
primary uses will be to replace traditional wire harness in a variety of
industries.

 

The Company manufactures on two sites, located in Tewkesbury and Stevenage
(following the acquisition of Stevenage Circuits Ltd in April 2020). It serves
customers in Europe and North America. The Company has acquired a third site
in Stonehouse Gloucestershire initially for its EV programme.

 

Trackwise Designs plc was admitted to trading on AIM in 2018 with the ticker
TWD. For additional information please visit www.trackwise.co.uk
(http://www.trackwise.co.uk)

 

 

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

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