6
June 2024
Strip Tinning Holdings
plc
("Strip
Tinning" or the Company")
£43m Battery Technologies
Nomination
New major win in the
strategic Battery Technologies segment, with an expected lifetime
value of £43m
Strip Tinning Holdings plc (AIM:
STG), a leading supplier of specialist connection systems to the
automotive sector, is delighted to announce the receipt of a major
high volume strategic nomination in the Battery Technologies (BT)
market, from a leading German automotive
motion technology Tier 1 manufacturer.
The nomination is for the supply of
the Cell Contact System (CCS) for the battery pack modules to be
used in an autonomous vehicle being developed by a customer in the
USA. This vehicle manufacturer is wholly owned by one of the
world's largest corporations and is currently running trials on
public roads in three US cities.
Strip Tinning has been working on
this programme for three years, having received £1.7 million to
date for pre-production work and is much encouraged by the progress
already made towards production readiness. The product launch
will take the Company into high-volume CCS manufacture, using all
the capabilities that have been developed over the past four years
since it began its journey into the Battery Technologies market,
accelerated following the IPO in 2022.
Under the terms of the nomination,
production supply will start in Q4 2025 with further pre-production
revenues of over £1.0 million to be received over 2024 and 2025 for
the supply of tooling and pre-serial parts. The nomination lasts
until 2028. Based on the expected contract volumes and final
prices, annual sales value will peak at £12.4 million and the
expected lifetime value of the contract is £43.0 million. This
contract increases the total lifetime sales value of all
nominations held by the Company to £95.7 million, a 181% increase
from the position as at 1 January 2024 when the nominations book
was worth £34.1million. These nominations support the sales growth
currently expected by 2026.
Given the substantial increase in
the value of nominated business and its robust sales pipeline, the
Board has determined to accelerate the recruitment of key
engineering staff required to manage both the large new Glazing
PDLC and BT programmes and maintain its support of new programmes.
This investment in engineering resources is anticipated to cost
circa £400k in 2024.
This production nomination is Strip
Tinning's fourth in the Battery Technologies market and marks a
major step forward towards high volume manufacture. This
state-of-the-art CCS is the largest yet supplied by Strip Tinning,
measuring 800 mm x 400 mm. It combines a laminated busbar laser
welded to a flexible printed circuit (FPC) that measures
temperature and charge across the battery module.
The win, in addition to the three
smaller previous nominations already in production, solidifies
Strip Tinning's leading position in the growing Mid-market segment.
The Company has further programmes at earlier stages of development
and anticipates further progress.
In the Glazing division there has
been some moderation of market demand from OEMs as they align
inventory levels, possibly in response to the flattening of EV
sales growth, and divisional performance is also being impacted by
the well documented recent increases in copper prices.
The Company will comment further on
its first half performance and outlook for FY 24 and beyond in its
H1 30 June pre close update on 16 July.
Adam Robson, Executive Chair of Strip Tinning,
commented:
"Momentum continues to build in the business and our
positioning in the Battery Technologies market goes from strength
to strength. Our nominations order book in the last four months
alone has nearly tripled, underpinning our medium-term ambitions
and providing a very solid platform from which to grow. We are
delighted to be accelerating our recruitment drive and creating
employment opportunities and remain confident in securing further
sales progress."
The person responsible for arranging
the release of this information on behalf of the Company is Adam Le
Van, Chief Financial Officer.
Enquiries:
Strip Tinning Holdings
plc
Via
Alma
Adam Robson, Executive
Chairman
Mark Perrins, Chief Executive
Officer
Adam Le Van, Chief Financial
Officer
Singer Capital Markets (Nominated Adviser and Sole
Broker)
+44 (0) 20 7496 3000
Rick Thompson
James Fischer
Alma (Financial
PR)
striptinning@almastrategic.com
Josh Royston
+44 (0) 20 3405 0205
Joe Pederzolli