Trackwise Designs PLC Manufacturing agreement signed with EV OEM (3631Z)
September 18 2020 - 1:00AM
UK Regulatory
TIDMTWD
RNS Number : 3631Z
Trackwise Designs PLC
18 September 2020
18 September 2020
TRACKWISE DESIGNS PLC
("Trackwise" or the "Company")
Manufacturing agreement signed with EV OEM
Trackwise Designs (AIM: TWD), a leading provider of specialist
products using printed circuit technology, is pleased to announce
that it has signed a three-year Product Manufacture and Supply
Agreement (the "Agreement") with a UK manufacturer of electric
vehicles ("EV OEM"), that has the potential to be worth up to
GBP5.0 million in 2021, and with the expectation of increased
revenues in 2022 and 2023.
The Agreement is for the supply of Trackwise's Improved Harness
Technology(TM)-enabled ("IHT") flexible printed circuit boards for
use in high and low voltage circuits in the manufacturer's vehicle
battery modules and battery packs, reducing part count and assembly
time while saving on space and weight. The Agreement is Trackwise's
first for full series production for its IHT products.
The Agreement includes annual volumes, and certain payments to
Trackwise in the event of lower volumes. In the event all
contracted volumes are achieved the Agreement would be worth,
subject to annual pricing reviews, up to GBP38 million over the
period to 31 December 2023. Whilst material payments to Trackwise
will be due in the event of lower volumes, this potential up to
GBP38 million total revenue value is not guaranteed in total as it
is conditional on, inter alia, orders placed, supply, and annual
pricing reviews. The Agreement can be terminated by either party
after 31 December 2023.
The Agreement follows an initial order of approximately GBP0.6
million announced on 24 February 2020. Production and sales under
this previously announced GBP0.6 million order continues during
2020, with GBP0.1 million of revenue year to date, as part of
Company total IHT revenues year to date of GBP0.3 million and
Company total revenues for the six months to 30 June 2020 of GBP2.4
million (unaudited) (H1 2019: GBP1.5 million).
In line with its growth strategy, Trackwise will continue to
explore ways in which it can further broaden and deepen its
relationship with its customer, while building the pipeline of
opportunities for IHT elsewhere in the electric vehicle space and
in industries where demand is growing for lighter, smaller and more
functional connectivity such as medical and civil aviation.
Philip Johnston, CEO of Trackwise, commented: "This is a very
significant commercial milestone for Trackwise. Our customer is at
the forefront of driving the adoption of sustainable technologies
and the selection of Trackwise to help power its vehicles at scale
is a fantastic endorsement of our technology.
"With our manufacturing capacity and capability recently
improved, we look forward to continuing to support our customer as
it looks to build out its transportation ecosystem in the coming
years.
"At the same time, the number of opportunities for the
application of IHT elsewhere in the electric vehicle industry and
across our other target markets continues to grow at a healthy
rate. We look forward to updating shareholders with further
progress in due course."
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
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
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END
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