£43m Battery Technologies Nomination

Strip Tinning Holdings PLC

06 June 2024

 

6 June 2024                              

Strip Tinning Holdings plc

("Strip Tinning" or the Company")

£43m Battery Technologies Nomination

New major win in the strategic Battery Technologies segment, with an expected lifetime value of £43m

Strip Tinning Holdings plc (AIM: STG), a leading supplier of specialist connection systems to the automotive sector, is delighted to announce the receipt of a major high volume strategic nomination in the Battery Technologies (BT) market, from a leading German automotive motion technology Tier 1 manufacturer.

The nomination is for the supply of the Cell Contact System (CCS) for the battery pack modules to be used in an autonomous vehicle being developed by a customer in the USA.  This vehicle manufacturer is wholly owned by one of the world's largest corporations and is currently running trials on public roads in three US cities.

Strip Tinning has been working on this programme for three years, having received £1.7 million to date for pre-production work and is much encouraged by the progress already made towards production readiness.  The product launch will take the Company into high-volume CCS manufacture, using all the capabilities that have been developed over the past four years since it began its journey into the Battery Technologies market, accelerated following the IPO in 2022.

Under the terms of the nomination, production supply will start in Q4 2025 with further pre-production revenues of over £1.0 million to be received over 2024 and 2025 for the supply of tooling and pre-serial parts. The nomination lasts until 2028.  Based on the expected contract volumes and final prices, annual sales value will peak at £12.4 million and the expected lifetime value of the contract is £43.0 million. This contract increases the total lifetime sales value of all nominations held by the Company to £95.7 million, a 181% increase from the position as at 1 January 2024 when the nominations book was worth £34.1million. These nominations support the sales growth currently expected by 2026.

Given the substantial increase in the value of nominated business and its robust sales pipeline, the Board has determined to accelerate the recruitment of key engineering staff required to manage both the large new Glazing PDLC and BT programmes and maintain its support of new programmes. This investment in engineering resources is anticipated to cost circa £400k in 2024.

This production nomination is Strip Tinning's fourth in the Battery Technologies market and marks a major step forward towards high volume manufacture.  This state-of-the-art CCS is the largest yet supplied by Strip Tinning, measuring 800 mm x 400 mm. It combines a laminated busbar laser welded to a flexible printed circuit (FPC) that measures temperature and charge across the battery module.

The win, in addition to the three smaller previous nominations already in production, solidifies Strip Tinning's leading position in the growing Mid-market segment. The Company has further programmes at earlier stages of development and anticipates further progress.

In the Glazing division there has been some moderation of market demand from OEMs as they align inventory levels, possibly in response to the flattening of EV sales growth, and divisional performance is also being impacted by the well documented recent increases in copper prices.

The Company will comment further on its first half performance and outlook for FY 24 and beyond in its H1 30 June pre close update on 16 July.

Adam Robson, Executive Chair of Strip Tinning, commented:  

"Momentum continues to build in the business and our positioning in the Battery Technologies market goes from strength to strength. Our nominations order book in the last four months alone has nearly tripled, underpinning our medium-term ambitions and providing a very solid platform from which to grow. We are delighted to be accelerating our recruitment drive and creating employment opportunities and remain confident in securing further sales progress."

The person responsible for arranging the release of this information on behalf of the Company is Adam Le Van, Chief Financial Officer.

Enquiries:

Strip Tinning Holdings plc                                                                                                                 Via Alma

Adam Robson, Executive Chairman

Mark Perrins, Chief Executive Officer                                                                                    

Adam Le Van, Chief Financial Officer

Singer Capital Markets (Nominated Adviser and Sole Broker)                    [phone]

Rick Thompson

James Fischer

Alma (Financial PR)                                                                                                        [e-mail]

Josh Royston                                                                                                                     [phone]       

Joe Pederzolli                                                                                   

 

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