REG - Trackwise Designs - Trading Update and Appointment of CFO Designate

Trackwise DesignsAnnouncement

28/01/2022 07:00

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RNS Number : 9135Z  Trackwise Designs PLC  28 January 2022

28 January 2022

 

TRACKWISE DESIGNS PLC

("Trackwise" or the "Company")

 

Trading Update and Appointment of CFO Designate

 

Trackwise Designs (AIM: TWD), a leading provider of specialist products using
printed circuit technology, provides an update on trading for the year ended
31 December 2021.

 

Subject to audit, the Company expects to report full year revenues of
approximately £8.08m (2020: £6.07m) and an adjusted* operating loss of
approximately £0.54m (2020: £0.19m), both in line with market expectations.

 

The Company is pleased to report record IHT revenues of £1.43m, an increase
of 140% on the prior year (2020: £0.6m). The number of engaged IHT customers
increased as the Company continues to grow its opportunities across its
primary target markets of Electric Vehicles ("EV"), Medical and Aerospace.

 

In line with the previously announced Product Manufacture and Supply Agreement
worth up to £54m over the next three years, the Company has received orders
for Q1 and Q2 of the current financial year from its UK EV OEM customer that
now total in excess of £3.5m and expects to receive further orders for Q3 and
Q4 in due course.

 

The new plant at Stonehouse, to increase IHT manufacturing capacity, has
continued to progress in line with the recent Fundraise announcement of 16
December 2021 and the Company remains on track to deliver the remainder of the
agreed volumes with its UK EV OEM customer.

 

Net debt at the year-end was £4.16m prior to the receipt of the second
placing tranche and open offer net proceeds of the recent equity raise which
completed in the new financial year of approximately £5.86m (before
expenses).

 

Appointment of CFO Designate

 

The Company is pleased to announce that Paul Cook has been appointed as CFO
Designate (initially a non-board position) effective 10 January 2022. Paul is
working alongside current CFO, Mark Hodgkins, who as previously announced, is
retiring, to effect a smooth transition of responsibilities, before taking
over from Mark at the Annual General Meeting in June.

 

Paul is an experienced finance professional with a track record of success
across senior positions at several technology-driven manufacturing businesses
selling into international markets, including Access IS, a manufacturer of
scanning devices, and Sonatest, a manufacturer of portable non-destructive
testing equipment. He was also Project Manager for PCB manufacturer, SMS
Electronics.

 

Most recently he was Chief Operating and Compliance Officer at YFM Equity
Partners ("YFM"), a leading private equity and venture capital investor, where
he worked for a period of more than eight years. In his time at YFM he played
an important role in the strategic development of the firm, while overseeing
the key financial functions and financial reporting of its two listed British
Smaller Companies VCTs.

 

 

Philip Johnston, CEO of Trackwise, commented: "2021 was another year of
continued progress in Trackwise's development. Notwithstanding the various
challenges posed by an uncertain economic environment, we continued to build
out our operations to lay the foundations for sustainable, long-term growth.
At the same time, we saw record sales performance in our IHT division, the
most exciting growth area for the Company, expanding our agreement with our
Electric Vehicle customer and successfully growing our pipeline of
opportunities across our chosen markets, underpinning future growth.

 

Industry-wide pressures, particularly in the supply chain, are likely to
persist as we move through this year, but we are experienced at mitigating
against them and will continue to do so as necessary. Supported by an
increasingly robust organisational infrastructure and with a highly desirable
product that has a growing reputation, the Board is confident 2022 will see
continued progress in the Company's commercial and operational development and
looks forward to the future with optimism."

 

*Before exceptional costs and share based payments

**Cash less borrowings, excluding IFRS16 lease liabilities

 

The financial information for 2021 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 / Kate Bannatyne / 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)

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