Trackwise Designs PLC Variation to Acquisition Consideration (3427Z)
September 17 2020 - 9:12AM
UK Regulatory
TIDMTWD
RNS Number : 3427Z
Trackwise Designs PLC
17 September 2020
TRACKWISE DESIGNS PLC
("Trackwise", the "Company" or the "Group")
Variation to Acquisition Consideration
Trackwise Designs (AIM: TWD), a leading provider of specialist
products using printed circuit technology, announces a variation to
the total consideration payable in respect of the acquisition of
Stevenage Circuits Limited ("SCL") (the "Acquisition").
Following completion of the Acquisition and a post-Acquisition
warranty review, in agreement with the vendors, the total
Acquisition price has now been reduced by up to GBP657,000 to
GBP1,800,000. The reduction reflects repairs and maintenance work
that the Company intends to undertake to property and plant and
equipment that will improve the facilities and result in production
efficiencies at Stevenage. There is now no deferred or contingent
consideration payable in future.
There is not expected to be any impact on the Group's cash
position as a consequence of this adjustment, with savings in cash
consideration being invested in the Stevenage site over time.
The SCL assets and liabilities have been acquired at a discount
to their provisional (unaudited) fair value resulting in negative
goodwill which will be credited to the Group's income statement in
accordance with IFRS 3. This credit relates to the ability of the
combined Group to fully utilise the manufacturing capacity of SCL
and enhance earnings from the specialist plant and equipment. The
consolidated negative goodwill credit is not expected to be
taxable. SCL has been cash generative since becoming part of the
Group in April 2020.
The Company intends to announce its interim results on 23
September 2020.
Enquiries:
Trackwise Designs plc +44 (0)1684 299 930
Philip Johnston, CEO www.trackwise.co.uk
Mark Hodgkins, CFO
finnCap Ltd +44 (0)20 7220 0500
NOMAD and Broker
Ed Frisby / Matthew Radley - Corporate
Finance
Andrew Burdis / Manasa Patil - ECM
Alma PR +44 (0)20 3405 0205
Financial PR and IR
Caroline Forde / Josh Royston / David
Ison
Notes to editors
Trackwise is a UK-based manufacturer of specialist products
using printed circuit technology.
The full suite includes: Improved Harness Technology(TM)
("IHT"), Microwave and 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, North America, Asia,
and Australia.
Trackwise Designs plc was admitted to trading on AIM in 2018
with the ticker TWD. For additional information please visit
www.trackwise.co.uk
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END
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