TIDMTWD
RNS Number : 8266G
Trackwise Designs PLC
29 July 2021
TRACKWISE DESIGNS PLC
("Trackwise", the "Company" or the "Group")
Trading Update
Trackwise Designs (AIM: TWD), a leading provider of specialist
products using printed circuit technology, is pleased to provide an
update on trading for the six months ended 30 June 2021.
For the first half, the Company expects to report:
-- Revenues up 71% to GBP4.1 million (H1 2020: GBP2.4 million)
-- IHT revenues up 130% to GBP0.58 million (H1 2020: GBP0.25 million)
-- Gross margin of 29% (H1 2020: 17.8%), significantly improved by performance from IHT
-- Adjusted(1) EBITDA up 349% to GBP0.45 million (H1 2020: GBP0.10 million)
-- Adjusted(1) operating loss of GBP0.12 million (H1 2020: GBP0.37 million)
-- Reported loss after tax of GBP0.23 million (H1 2020: profit GBP0.92 million(2) )
-- Net cash(3) at 30 June 2021 of GBP2.6 million (GBP4.0 million
gross of borrowings) (31 December 2020 net cash: GBP13.8 million),
following investment at new Stonehouse site, and mortgage finance
expected to follow shortly
Operational Highlights:
-- Appointment of Chief Operating Officer
-- Acquisition of new site at Stonehouse Gloucestershire
-- Good progress on Stonehouse capital investment programme for
the new high-volume, low mix, roll to roll IHT production
facility
The Group performed well in the first half of the year as a
result of increased demand, as well as a full six-month
contribution of revenues in the Advanced PCB division from SCL.
Revenue growth continues to be restrained by the impacts of Covid
on the supply of raw materials, and the effects of Brexit on our
continental business at APCB; however, we are seeing some signs of
these effects abating. H2 trading and outlook is in line with
current market expectations.
IHT - Electric vehicles
IHT revenues, the key growth area for Trackwise, have resumed a
growth pattern in 2021, with IHT revenues for the first half of
2021 expected to be 95% of those for the whole of 2020 and are
expected to be at record levels for full year 2021. Interest in IHT
for electric vehicles continues to grow and we are now in
early-stage sample manufacture with a number of companies working
on both passenger and commercial vehicles.
IHT - Other target markets
IHT development products have been delivered in the first half
of 2021 to a range of customers across our chosen verticals of
medical and aerospace as well as for industrial. This included
development products for a first customer for aerospace battery
packs. Our IHT products have been well-received and the pipeline of
revenue opportunities across these markets continues to grow. In
May we announced a multi-year agreement with the Stockholm-based
medical device technology company CathPrint AB, paving the way for
a potential longer-term ramp up in volume.
IHT - New production facility
In March we appointed Steve Hudson as COO to lead the delivery
of our new site at Stonehouse, which will house the high-volume,
low mix, roll to roll IHT production facility. Good progress is
being made with the aim of being productive in time for the revised
ramp-up date provided by the Company's EV OEM customer as announced
last month in the agreement extension announcement.
Stonehouse site development finance
In April the Group purchased the Stonehouse site and the Company
expects to shortly be in receipt of new funds as it is now well
progressed in the process of agreeing mortgage financing with its
bank on this freehold site. At 30 June 2021 the Company had net
cash(3) of GBP2.6 million, gross cash of GBP4.0 million and unused
facilities of up to GBP0.75 million.
Advanced PCBs
The APCB division has had a solid first half despite the impacts
of Covid, with revenues c.6% ahead of H2 2020. The division
continues to be cash generative and has a growing order book, with
plans to add a second shift this year to accommodate growth seen
recently and anticipated in future.
Philip Johnston, CEO of Trackwise, commented:
"We are pleased with progress in H1 2021. Our belief has
consistently been that battery management is an ideal use case for
flex PCBs and this confidence is borne out by quickly growing
opportunities. We are confident that the Stonehouse installation is
the right investment at the right time to deliver these
opportunities."
The Company expects to announce its interim results for the six
months to 30 June 2021 in the second half of September 2021.
(1) Before share based payments; and in addition in the prior
year before acquisition expenses, excluding a negative goodwill
(credit) arising on the acquisition of SCL and excluding a small FX
gain.
(2) Prior year included the benefit of a GBP1.6 million negative
goodwill (credit) arising on the acquisition of SCL.
(3) Cash less borrowings, excluding IFRS16 right of use lease
liabilities.
The financial information 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 / Tim Harper - Corporate Finance
Andrew Burdis / Barney Hayward - 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. The
Company has acquired a third site in Stonehouse Gloucestershire
initially for its EV programme.
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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