Trackwise Designs PLC Trading Update (5367M)
January 22 2021 - 01:00AM
UK Regulatory
TIDMTWD
RNS Number : 5367M
Trackwise Designs PLC
22 January 2021
TRACKWISE DESIGNS PLC
("Trackwise" or the "Company")
Trading Update
Trackwise Designs (AIM: TWD), a provider of specialist products
using printed circuit technology, provides an update on trading for
the year ended 31 December 2020.
The Company expects to report full year revenues of
approximately GBP6.1 million (2019: GBP2.9 million) and an
adjusted* operating loss of approximately GBP0.2 million. While the
revenue is lower than expected, the operating loss is in line with
current market expectations.
Year-end sales in both the IHT and Advanced PCBs divisions have
been impacted by the tightening of COVID-19 restrictions in the UK
and overseas and also by the nervousness at the end of the Brexit
transition period. This has led to customers delaying purchases as
a result of impacts on their operations and softness in their own
end markets. The Company expects trading activity to normalise as
restrictions ease. Through continued careful cost control within
the business , the a djusted operating loss remains as
expected.
The pipeline of revenue opportunities across the primary target
markets of Electric Vehicle ("EV"), Medical and Aerospace continues
to grow. IHT total customers and opportunities had risen to 87 at
the year end.
Good progress has been made with the project to increase IHT
manufacturing capacity and the Company is on track to deliver
against Trackwise's first series production order for Improved
Harness Technology ("IHT") from an EV manufacturer, as previously
announced. Net cash** at year end was GBP11.15 million. Deposits
are expected to be paid shortly for long lead time capital
equipment.
Philip Johnston, CEO of Trackwise, commented: "2020 was a
transformational year for Trackwise, as we made substantial
progress in expanding and upgrading our manufacturing facilities
including the acquisition of SCL, and secured our first series
production order from an electric vehicle manufacturer. We are in
discussions with an ever growing number of potential customers and
the opportunities ahead of us in our primary target markets and the
longer-term prospects for Trackwise continue to grow."
*Before share based payments, acquisition expenses, and
excluding the negative goodwill (credit) arising on the acquisition
of SCL and excluding a small FX gain
**Cash less borrowings, excluding IFRS16 lease liabilities
The financial information for 2020 included in this announcement
is unaudited
Enquiries:
Trackwise Designs plc +44(0)16 8429 9930
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 / Tim Harper - ECM
Alma PR +44(0)20 3405 0212
Financial PR and IR
David Ison / Caroline Forde / Josh Royston
/ Kieran Breheny
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")
and Advanced PCBs - Microwave and Radio Frequency ("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 and North America.
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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