14 Sep 2022 08:05
TRACKWISE DESIGNS PLC
("Trackwise", the "Group" or the "Company")
UK EV OEM contract update
Trackwise Designs (AIM: TWD), a leading manufacturer of specialist products using printed circuit technology, announces that it is in advanced discussions with its UK EV OEM customer ("EV OEM") to replace the Product Manufacture and Supply Agreement ("PMSA") that was agreed between the parties with a new contractual arrangement.
The EV OEM announced on 11 August 2022 that it expects lower production volumes in 2022 compared to previous estimates. The announcement of the lower production volumes has had a knock-on impact on the availability, to the Company, of the planned asset-backed debt funding for the remaining pieces of capital expenditure at the new Stonehouse facility and, in addition, increases the Company's short-term cash requirements. Consequently, the Company has entered into discussions with the EV OEM to agree a new contractual arrangement whereby the EV OEM will provide an advance payment against future product deliveries, and such advance payment is expected to be backed by security.
The wider impact of the lower production volumes is that additional funding will be required and the Company is reviewing a number of options for additional funding with its advisers and will provide further updates in due course.
In addition, the Company is exploring longer term strategic investment partnerships in order to support development and conversion of the very significant pipeline of identified IHT sales opportunities, notably for EV battery cell connection systems ("CCS") for UK and EU OEMs, Tier 1 suppliers, and also for other Medical and Aerospace sales opportunities.
Enquiries:
Trackwise Designs plc | +44(0)16 8429 9930 |
Philip Johnston, CEO | www.trackwise.co.uk |
Paul Cook, 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 / Kieran Breheny / Pippa Crabtree |
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 operates from three sites, located in Tewkesbury, Stonehouse and Stevenage. 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 contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.