REG - Trackwise Designs - New Agreement with UK EV OEM

Trackwise DesignsAnnouncement

21/10/2022 14:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221021:nRSU7592Da&default-theme=true

RNS Number : 7592D  Trackwise Designs PLC  21 October 2022

21 October 2022

TRACKWISE DESIGNS PLC

("Trackwise", the "Company")

New Agreement with UK EV OEM

 

Trackwise Designs (AIM: TWD), a leading provider of specialist products using
printed circuit technology, is pleased to announce that, further to the
Company's announcements on 14 September and 30 September 2022, it has
concluded its discussions to replace the Product Manufacture and Supply
Agreement ("PMSA") for the supply of flexible printed circuit boards to its UK
EV OEM customer ("EV OEM") and has agreed a new contractual arrangement with
its customer.

The new agreement ("New Commercial Order") has been entered into for a fixed
quantity of flexible printed circuit boards which are due to be delivered
through to July 2023. The New Commercial Order provides for a £3.99 million
advanced payment in 2022, with the balance of the contract value satisfied by
standard payments on delivery of the products.

The advanced payment will be secured by a charge over various manufacturing
assets involved in the production of the circuit boards at the new production
facility at Stonehouse, Gloucestershire. The charge will be released upon
completion of the supply of the full contracted quantity.

Completion of the new contract and release of the charge will conclude
contractual arrangements between the two companies. Any further supply of
existing parts or development of new parts for the EV OEM, will be under new
arrangements to be agreed with the EV OEM.

As previously announced, the wider impact upon Trackwise of the lower
production volumes for the EV OEM is that additional funding is required and
Trackwise is reviewing a number of options for additional funding with its
advisers and will provide further updates in due course. The orders under the
New Commercial Order as detailed above are consistent with Trackwise's Base
Case forecast as outlined in its interim results announcement of 30 September
2022.

In addition, Trackwise is actively exploring longer term strategic investment
partnerships in order to support development and conversion of the very
significant pipeline of identified IHT sales opportunities, notably for EV
battery cell connection systems ("CCS") for UK and EU OEMs, with Trackwise as
a Tier 1 or Tier 2 supplier, and also for other Medical and Aerospace sales
opportunities.

Philip Johnston, CEO of Trackwise, commented:

"Both Trackwise and our EV OEM customer have been faced with delivering their
respective innovations and capital projects against a massively challenging
macro business environment. This has sadly led to the situation where the PMSA
supply arrangement has had to be reset.

We remain convinced that the Stonehouse facility, as a state-of-the-art roll
to roll FPC and FPCA facility, is the right investment at the right time,
especially to meet the potentially very large future demand for EV CCS. The
length-agnostic manufacturing process that we have developed and continue to
develop, is of particular relevance for cell-to-pack application and Trackwise
is actively bidding into a very large EV CCS sales pipeline (in excess of
£1bn). We recognise that the scale of such a pipeline is likely to be beyond
the balance sheet of Trackwise alone and we are therefore actively exploring
longer term strategic investment partnerships with larger global businesses -
who can, together with Trackwise, leverage our IHT patent and manufacturing
know-how to meet this global demand."

 

Enquiries

 

 Trackwise Designs plc                                  +44 (0)1684 299 930
 Philip Johnston, CEO                                   www.trackwise.co.uk (http://www.trackwise.co.uk/)
 Paul Cook, 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 0205
 Financial PR and IR
 David Ison/Caroline Forde/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 harnesses in a variety of
industries.

The Company operates from three sites, located in Tewkesbury, Stonehouse and
Stevenage. It serves customers in Europe and North America.

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.

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  AGRXFLFLLBLFFBZ