17 Sep 2020 15:12
TRACKWISE DESIGNS PLC
("Trackwise", the "Company" or the "Group")
Variation to Acquisition Consideration
Trackwise Designs (AIM: TWD), a leading provider of specialist products using printed circuit technology, announces a variation to the total consideration payable in respect of the acquisition of Stevenage Circuits Limited ("SCL") (the "Acquisition").
Following completion of the Acquisition and a post-Acquisition warranty review, in agreement with the vendors, the total Acquisition price has now been reduced by up to £657,000 to £1,800,000. The reduction reflects repairs and maintenance work that the Company intends to undertake to property and plant and equipment that will improve the facilities and result in production efficiencies at Stevenage. There is now no deferred or contingent consideration payable in future.
There is not expected to be any impact on the Group's cash position as a consequence of this adjustment, with savings in cash consideration being invested in the Stevenage site over time.
The SCL assets and liabilities have been acquired at a discount to their provisional (unaudited) fair value resulting in negative goodwill which will be credited to the Group's income statement in accordance with IFRS 3. This credit relates to the ability of the combined Group to fully utilise the manufacturing capacity of SCL and enhance earnings from the specialist plant and equipment. The consolidated negative goodwill credit is not expected to be taxable. SCL has been cash generative since becoming part of the Group in April 2020.
The Company intends to announce its interim results on 23 September 2020.
Enquiries:
Trackwise Designs plc | +44 (0)1684 299 930 |
Philip Johnston, CEO | www.trackwise.co.uk |
Mark Hodgkins, CFO |
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finnCap Ltd | +44 (0)20 7220 0500 |
NOMAD and Broker |
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Ed Frisby / Matthew Radley - Corporate Finance Andrew Burdis / Manasa Patil - ECM |
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Alma PR | +44 (0)20 3405 0205 |
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