FY22 Trading Update

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, t he 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	[phone]
Philip Johnston, CEO	www.trackwise.co.uk
Mark Hodgkins, CFO
finnCap Ltd	[phone]
NOMAD and Broker
Ed Frisby / Tim Harper - Corporate Finance
Andrew Burdis / Barney Hayward - ECM
Alma PR	[phone]
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

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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