TIDMTWD
RNS Number : 4676E
Trackwise Designs PLC
30 June 2023
30 June 2023
TRACKWISE DESIGNS PLC
("Trackwise", the "Company" or the "Group")
Delay of Results and Trading Update
Trackwise Designs plc (AIM: TWD), a leading manufacturer of
specialist products using printed circuit technology, provides the
following update in relation to its annual report and financial
statements for its financial year ended 31 December 2022 (the "2022
Annual Report"). The Company also provides an update on FY22
trading, progress with the existing UK EV OEM customer (the "EV
OEM"), and the OEM Pipeline.
In accordance with Rule 19 of the AIM Rules for Companies, the
Company is required to publish its 2022 Annual Report by 30 June
2023. However, due to intense demands upon the entire management
team in dealing both with the impact of the EV OEM (see below) and
working to secure new business, there has been a delay in
completion of the audit process. As a result, the Company now
expects to publish the 2022 Annual Report during July 2023.
Accordingly, trading in the Company's ordinary shares on AIM will
be suspended with effect from 7.30 a.m. on 3 July 2023 pending
publication of the 2022 Annual Report.
Contract Update and Pipeline
On 30 March 2023, the Company announced that it expected a delay
in the manufacture and deliveries of a fixed quantity of flexible
printed circuit boards (the Parts to the EV OEM), whilst the EV OEM
undertakes a redesign and validation of the Parts to meet their
revised design requirements. The Change Control procedure within
the Commercial Order was initiated, including the impact upon the
Parts price and production completion, with a Change Control Note
("CCN") issued to the EV OEM on 19 April 2023. The Company has
reiterated to the EV OEM that it is in material breach of the
Commercial Order as they have failed to engage with the Company in
good faith to conclude the CCN. The Company has repeated its
message to the EV OEM that it remains committed to agreeing the CCN
in good faith.
The delay caused by the EV OEM means that the planned increase
in working capital associated with start of production has been
delayed. The Company's cash runway is expected to extend at least
into July 2023. The Company's potential new production customer (a
Tier 1) is expected to learn if it has achieved supplier
nomination* shortly on a major EV cell-to-pack ("CCS") program with
OEM B. A final round of price negotiations has taken place with OEM
B, and the Company has been informed that an announcement on a
supplier nomination* may be made in the very immediate future. Upon
nomination the Company will immediately review its funding
options.
Trackwise continues to have a significant pipeline of identified
IHT sales opportunities with a number of EV CCS opportunities
progressing towards Tier 1 supplier nomination. Of note and in
addition to the OEM B opportunity detailed above, an RFQ, from an
already-nominated Tier 1 to OEM C, has been received by the
Company, with bids to be submitted in July 2023 for Tier 2 supplier
nomination expected by the end of August 2023.
The Company is pleased to announce that it has received this
week a six figure Purchase Order from a US Aerospace OEM, for
qualification test samples.
FY22 Trading Update
Subject to audit, the Company expects to report full year
revenues of GBP7.52m (2021: GBP8.01m), and an adjusted** operating
loss of approximately GBP2.95m (2021: loss of GBP0.58m). The loss
before taxation is expected to be GBP7.74m (2021: loss of
GBP1.98m).
Net debt*** at 31 December 2022 was GBP9.34m prior to the
receipt of the placing, subscription and open offer net proceeds of
the equity fundraise which completed in the 2023 financial year of
approximately GBP4.75m (before expenses).
* A supplier nomination achieved by a Tier 1 supplier and
potential Trackwise production customer is a key step in the
process towards the Company working with the Tier 1 to achieve Tier
2 supplier nomination and then subsequently enter into a Tier 2
supply contract.
** Before exceptional costs: impairment of goodwill of
GBP104,000, new facility set up costs of GBP2.845m, and additional
production and set up costs of GBP1.307m.
*** Cash less borrowings, excluding IFRS16 right of use lease
liabilities.
The financial information for 2022 included in this announcement
is unaudited.
Enquiries
Trackwise Designs plc +44 (0)1684 299 930
Philip Johnston, CEO www.trackwise.co.uk
Paul Cook, CFO
finnCap Ltd +44 (0)20 7220 0500
NOMAD and Broker
Ed Frisby/Fergus Sullivan - Corporate
Finance
Andrew Burdis/Barney Hayward -
ECM
Alma PR +44 (0)20 3405 0205
Financial PR and IR
David Ison/Kieran Breheny/Pippa
Crabtree
Notes to editors
Trackwise is a UK-based, King's Award winning, manufacturer of
specialist products using printed circuit technology.
The full suite includes: Improved Harness Technology(TM) ("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 harnesses 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTNKCBDDBKBPAB
(END) Dow Jones Newswires
June 30, 2023 02:00 ET (06:00 GMT)
Trackwise Designs (LSE:TWD)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
Trackwise Designs (LSE:TWD)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
