Pre-Close Trading Update

RNS Number : 4011X

Trackwise Designs PLC

19 December 2019

 

19 December 2019

TRACKWISE DESIGNS PLC

("Trackwise" or the "Company")

Pre-Close Trading Update

Trackwise Designs (AIM: TWD), a leading provider of specialist interconnector products using printed circuit technology, today provides its pre-close Trading Update for the year ending 31 December 2019.

The Company expects to report revenues of approximately £2.9m and adjusted profit before tax of approximately £0.2m, subject to year-end financial close and audit procedures.

As previously announced, the Company's Radio Frequency ("RF") business has been adversely impacted during the year by customer specific events including the delayed T-Mobile / Sprint merger in the US, Brexit (where French customers particularly have delayed purchase decisions), and the rhetoric between the USA and China on trade generally which has been negative for antenna revenues within the mobile telephony marketplace.

RF orders have shown some slight recovery in December, but too late to make an impact in the 2019 financial year, and there are initial positive signs for an improving outlook for the coming year. We expect conditions to improve in 2020, but the Board will maintain a cautious stance on its expectations regarding the RF business.

The Board is encouraged by the performance of the Company's Improved Harness Technology^TM ("IHT") division, with revenues showing considerable growth on 2018.

Trackwise continues to experience accelerating interest and demand for its unique IHT technology across the Company's chosen markets of Aerospace, Automotive, Space, Medical and Industrial.  Of note in the second half of the year has been the conversion of enquiries from medical, automotive and science customers who have advanced their initial interest into committed orders. Customers are progressing from successful trials of the technology through to discussions regarding volume production, and the Board has a high level of confidence that these will result in a significant increase in production volumes and associated revenues in H1 2020 with further incremental revenues in 2021.

Total IHT customers and opportunities have now increased to 68 (H1 2019: 57, FY18: 31), providing considerable opportunity for future revenue growth. 

Philip Johnston, CEO of Trackwise commented:

"While the challenging market environment for manufacturing businesses continued to have a detrimental impact on customer orders in the RF division in the second half of the year, the medium-term outlook for Trackwise remains extremely positive, driven by IHT growth. We are seeing customers progress from initial IHT trials through to the discussion of significant orders for volume production and are confident of positive progress in 2020, which should see IHT becoming our principle revenue stream."

Enquiries:

Trackwise Designs plc	[phone]
Philip Johnston, CEO	www.trackwise.co.uk
Mark Hodgkins, CFO
finnCap Ltd	[phone]
NOMAD and Broker
Ed Frisby / Matthew Radley - Corporate Finance
Andrew Burdis / Manasa Patil - ECM
Alma PR	[phone]
Financial PR and IR
Caroline Forde / Josh Royston / Kieran Breheny

Notes to editors

Trackwise is an established business that manufactures specialist products using printed circuit technology. The Company consists of two divisions Radio Frequency ("RF") and Improved Harness Technology^TM ("IHT").

The RF business unit manufactures specialist printed circuits which are primarily used in the antenna infrastructure to support the 4G/5G mobile phone networks. However, the technology has a number of other applications which render the RF business a stable revenue generator.

The IHT division utilises the Company's unique proprietary technology, a patented process that Trackwise has developed to manufacture unlimited length multilayer flexible printed circuits. The Directors believe that the technology has many applications but believe one of its primary uses could be to replace traditional wire harness used in a variety of industries.

Trackwise Designs plc was admitted to trading on AIM on 31 July 2018 with the ticker TWD.

For additional information please visit: www.trackwise.co.uk

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

 

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