Trackwise Designs PLC Trading Update (1962N)
January 16 2019 - 2:00AM
UK Regulatory
TIDMTWD
RNS Number : 1962N
Trackwise Designs PLC
16 January 2019
16 January 2019
Trackwise Designs Plc
("Trackwise" or the "Company")
Trading Update
Trackwise, a leading provider of specialist products using
printed circuit technology, is pleased to provide a trading update
in respect of the year ended 31 December 2018.
During 2018, the Company has seen strong growth in both its
Radio Frequency ("RF") and Improved Harness Technology ("IHT")
divisions versus the prior year and profits for the year ended 31
December 2018 are expected to be in line with market expectations,
subject to year-end financial close and audit procedures.
The Company is experiencing improved profit margins due to the
product mix and as a result of the improved operational
efficiencies resulting from the move to the Company's new Ashvale
facility at the end of 2017. As planned, the equity funds raised at
the time of the Company's Admission to AIM in July 2018 are being
invested in both manufacturing capability and capacity, together
with sales and marketing resource.
Whilst there have been some delays in ordering from IHT
customers, and some uncertainty regarding the impact of Brexit,
Trackwise continues to experience accelerating interest and demand
for its unique IHT technology across the Company's chosen markets
of Aerospace, Automotive, Space and Industrial. Recent highlights
include:
Aerospace - Unmanned Aerial Vehicles ("UAV")
- Trackwise' lead customer, a subsidiary of a large US
corporation, has publicly unveiled their UAV/High Altitude
Pseudo Satellite and announced plans for its first flight
in H1 2019; an important milestone for the Company.
Trackwise is the sole supplier of the entire aircraft
wiring harness and has received purchase orders for
the build of the second aircraft; with a third flight
model being discussed.
- Trackwise has received a first purchase order from a
large Israeli aerospace manufacturer for the development
of a large flex Printed Circuit Board ("PCB"), utilising
the Company's IHT technology, for use in a UAV application.
Aerospace - Civil
- Trackwise has received an initial order from a large
French Tier One aerospace manufacturer for the development
of a large, high temperature flex PCB for use in an
engine nacelle application.
Automotive - Electric Vehicles ("EV")
- Brexit is causing significant uncertainties in the UK
and European automotive sector, notably with Trackwise'
major EV battery pack customer, however wider EV development
continues apace.
- Trackwise has received a first purchase order from a
UK OEM for a low voltage harnesses for an electric scooter
battery pack. The same OEM is also developing with Trackwise
an integrated signal and power distribution harnesses
for their electric van.
Industrial
- The Company's CERN Large Hadron Collider HiLumi contract
proceeds according to plan, with the contract running
to 2020. This supply has led to a further contract with
KEK, a Japanese High Energy Accelerator research organisation.
- Trackwise has received an initial order from a UK manufacturer
to supply large slip ring assemblies for a medical scanner
application.
Space
- Trackwise has signed a contract with the European Space
Agency and a large French satellite OEM to study the replacement
of spacecraft wire harnesses by large flex PCBs utilising
the Company's IHT technology.
While the precise timing and progress of many of these projects
is outside of Trackwise' control, the directors consider that the
accelerating interest and demand for the Company's unique long-PCB
manufacturing capability across multiple sectors and applications
is important affirmation of the Company's unique IHT
technology.
Philip Johnston, CEO of Trackwise commented:
"2018 was a transformational year for Trackwise. We are very
pleased with the growth in IHT revenues during 2018 and see
considerable expansion in this area as new markets open up. Current
trading remains in line with expectations and we view the future
with optimism despite the uncertainties around Brexit and the
global economy.
"2019 has begun strongly with an increasing level of enquiries
from new customers for IHT solutions."
For further information contact:
Trackwise
Philip Johnston (CEO) / Mark Hodgkins
(CFO) +44 016 8429 9930
Arden Partners plc (Nominated Adviser
and Broker)
Steve Douglas / Ciaran Walsh / Daniel
Gee-Summons +44 020 7614 5900
IFC Advisory Limited (Financial PR
& IR)
Tim Metcalfe / Miles Nolan / Zach
Cohen +44 020 3934 6630
Notes to editors
Trackwise is an established business that manufactures
specialist products using printed circuit technology. The Company
consists of two divisions Radio Frequency ("RF") and Improved
Harness Technology ("IHT").
The RF business unit manufactures specialist printed circuits
which are primarily used in the antenna infrastructure to support
the 3G/4G mobile phone networks. However, the technology has a
number of other applications which render the RF business a stable
revenue generator.
The IHT division utilises the Company's unique proprietary
technology, a patented process that Trackwise has developed to
manufacture unlimited length multilayer flexible printed circuits.
The Directors believe that the technology has many applications but
believe one of its primary uses could be to replace traditional
wire harness used in a variety of industries.
Trackwise Designs plc was admitted to trading on AIM on 31 July
2018 with the ticker TWD.
For additional information please visit: www.trackwise.co.uk
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.
END
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