Trackwise swings to profit as IHT revenues soar

(Sharecast News) - Trackwise Designs' shares climbed on Thursday as the business swung to an annual profit following revenue growth, driven by the success of its Improved Harness Technology (IHT).The printed circuit technology specialist recorded revenue of £3.5m for 2018, an increase of 23% compared to the year before, as IHT sales increased by 217% to £0.6m, chiefly due to significant orders from the company's lead customer in the aerospace sector, while RF revenues grew 10% to £2.9m.Consequently, Trackwise reported a profit before tax of £68,000, up from a loss of £13,000, with a 26% increase in cost of sales to £2.4m partially offsetting the higher salesIan Griffiths, chairman of Trackwise Designs, said: "2018 was a year of significant progress for the company and the results show the benefits of the strategy for operational development and growth in the business in line with our core strategy outlined at the time of the IPO. The improved financial results reflect the hard work and achievements of 2018."Trackwise's IPO on 31 July raised more than £1.2m for investment into improving the business' capacity.Cash and cash equivalents stood at £2.8m at the end of the year, up from £0.2m at the same point the year beforehand, while no dividend was recommended as the AIM traded company said it was "still in the process of investing in essential capability and capacity requirements".A statement from Trackwise said: "The new year has begun steadily with revenue in line with our expectations. There is some delay in ordering from new IHT customers and there is, inevitably, some uncertainty regarding the impact of Brexit, but we continue to experience accelerating interest and demand for the IHT technology."Trackwise Designs' shares were up 4.65% at 96.80p at 0855 BST.