(Alliance News) - Trackwise Designs PLC shares tanked by over 50% on Friday as continued manufacture and delivery issues contributed to the delay of its audited results, which in turn has caused the company's shares to face suspension from AIM.
The Tewkesbury, England-based manufacturer of products using printed circuit technology also announced a pessimistic update regarding its anticipated annual results, which include widened losses and decreased revenue.
Shares in Trackwise were down 53% at 0.19 pence on Friday morning in London.
The company had said in late March that it expected a delay in the manufacture and deliveries of parts to an electric vehicle original equipment manufacturer. This involved a GBP8.0 million order for a fixed quantity of flexible printed circuit boards scheduled for delivery through to July. The EV OEM customer reportedly was undertaking a redesign and validation of the Parts to meet their revised design requirements.
Trackwise on Friday said that the delay has in turn delayed the planned increase in working capital which should have accompanied the start of production, although its cash runway is anticipated to extend at least into July.
The company said that a potential new production customer for a major EV cell-to-pack programme with another OEM may shortly achieve supplier nomination status, following a final round of price negotiations. Upon nomination, it will "immediately" review its funding options.
Trackwise also said it still has a "significant pipeline" of identified sales opportunities, and received a six-figure purchase order this week for qualification test samples from a US aerospace OEM.
Trackwise said it was unable to complete auditing for its 2022 annual report on time, "due to intense demands upon the entire management team in dealing both with the impact of the EV OEM...and working to secure new business."
Consequently, Trackwise now expects to publish its annual results in July and its shares will be suspended from trading on AIM with effect from Monday morning, pending that publication.
Ahead of the annual report, Trackwise said it expects a pretax loss of GBP7.7 million for 2022, compared with a GBP2.0 million loss the year before. Its adjusted operating loss should be around GBP3.0 million, compared with GBP580,000 the prior year, and it expects to report GBP7.5 million in revenue, down from GBP8.0 million.
By Emma Curzon, Alliance News reporter
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