22 Jan 2021 07:00
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 £6.1 million (2019: £2.9 million) and an adjusted* operating loss of approximately £0.2 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 adjusted 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 £11.15 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™ ("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.