Contract Update

RNS Number : 5536W

Strip Tinning Holdings PLC

19 August 2022

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered in the public domain.

19th August 2022

Strip Tinning Holdings plc

("STH" or the "Company")

Contract update

Strip Tinning Holdings plc (AIM: STG), a leading supplier of specialist connectors to the automotive sector, announces that its wholly owned subsidiary, Strip Tinning Limited ("STL") has received notice purporting to terminate its contract with a Croatian electric vehicle (EV) technology innovator for the supply of cell management systems to a leading German OEM, with effect from 1^st October 2022. The contract was signed in December 2021 following an extended period of design and development work with the customer.

The supply agreement, for a term of 5 years, is worth €2m per annum to STL at peak volumes, with production ramp up starting in H2 2023.  Whilst the loss of the contract would have no material impact on market expectations for the current financial year, the customer had recently indicated that volumes were likely to be increased by 33% over the life of the project and STL had adjusted plans with capital equipment suppliers to accommodate this.

STL is in dialogue with the customer to better understand the rationale and legal basis of their decision as all STL milestone deliverables within the framework of the contract have been met to date, including the incorporation of substantial engineering changes at the request of the customer, which have been subject to re-pricing negotiations to ensure the contract remains profitable.

STL preference would be to continue working with the customer and is in early discussions about the possibility of working together in the future whilst fully reserving its legal position. 

Based on continued demand for its EV cell management system technology, STG will continue to invest in scaling up its production capability for this product line to meet firm customer orders.

A further update will be made in due course.

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

Enquiries:

Strip Tinning Holdings plc  Via Alma PR

Richard Barton, Chief Executive Officer 

Adam Le Van, Chief Financial Officer

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

Rick Thompson

Will Goode

Alex Bond

James Fischer

Alma PR (Financial PR)                                                                                            [e-mail]

Josh Royston    [phone] 

Joe Pederzolli    

 

END

 

 

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