Trackwise Designs delivers record IHT revenues in FY21

Francesca Morgan
Vox Newswires
12:22, 28th January 2022

In an update for the year to 31 December 2021, Trackwise Designs (TWD) said it expects to report revenues of around £8.08m, up from £6.07m a year prior, and in line with expectations.

The group, which offers specialist products using printed circuit technology, also expects to report an adjusted operating loss of around £0.54m, also in line with market expectations.

The company reported record IHT revenues of £1.43m, a rise of 140% on £0.6m from 2020. It said the number of engaged IHT customers increased as it continued to grow its opportunities across its primary target markets which are electric vehicles ("EV"), medical and aerospace.

In June 2021, the company received an extension and amendment to a previously secured product manufacture and supply agreement with an unnamed electrical vehicle manufacturer. 

The terms of the agreement, which was originally secured in September 2020, was extended from three to four years, with a significant increase in expected volumes and potential value. At the time, it said material revenues were expected to be received in 1H22 rather than 2021.

The agreement’s value could be worth up to £54 million over the period to 31 December 2024, an aggregate increase of £16 million over the original agreement for up to £38 million. 

To date, Trackwise has received orders for 1Q and 2Q from its UK EV OEM customer that totals in excess of £3.5m. The group said it expects to receive more orders for 3Q and Q4. 

A new plant at Stonehouse, which is intended to increase IHT manufacturing capacity, has continued to progress in line with last month’s fundraise. As a result, the group said it remains ‘on track’ to deliver the remainder of the agreed volumes with its UK EV OEM customer.

Shares in Trackwise Designs were trading 2.44% higher today at 84p following the news.

TWD price chart

Net debt as at 31 December 2021 was £4.16m, prior to the receipt of the second placing tranche and open offer net proceeds of the equity raise which comes to around £5.86m. 

Addressing shareholders, Philip Johnston, Chief Executive Officer of Trackwise Designs, told investors today: "2021 was another year of continued progress in Trackwise's development. Notwithstanding the various challenges posed by an uncertain economic environment, we continued to build out our operations to lay the foundations for sustainable, long-term growth.”

He said Trackwise saw record sales performance in its IHT division, “the most exciting growth area for the Company,” expanding its agreement with its EV customer and “successfully growing” its pipeline of opportunities across its chosen markets to “underpin future growth.”

“Supported by an increasingly robust organisational infrastructure and with a highly desirable product that has a growing reputation, the Board is confident 2022 will see continued progress in its commercial and operational development and looks forward to the future with optimism."

On 10 January 2022, the company appointed Paul Cook, an experienced finance professional who initially held a non-board position at Trackwise Designs, as CFO Designate of the group. Cook will take over from current CFO, Mark Hodgkins, following the firm’s AGM in June 2022. 

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