18 Sep 2020 07:00
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 £5.0 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™-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 £38 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 £38 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 £0.6 million announced on 24 February 2020. Production and sales under this previously announced £0.6 million order continues during 2020, with £0.1 million of revenue year to date, as part of Company total IHT revenues year to date of £0.3 million and Company total revenues for the six months to 30 June 2020 of £2.4 million (unaudited) (H1 2019: £1.5 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 |
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Financial PR and IR |
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Notes to editors
Trackwise is a UK-based manufacturer of specialist products using printed circuit technology.
The full suite includes: Improved Harness Technology™ ("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.