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Trackwise Designs plc

INTERVIEW: Trackwise Designs LTD Seeks Admission to AIM

Trackwise Designs LTD (LON:TWD) CFO Mark Hodgkins talks to DirectorsTalk about its plans to float on AIM. Mark provides some background on Trackwise, explains the main reason for listing at this time and how the proceeds will be used. Mark also talks about the main opportunities for the company and how they see the remainder of the year and beyond.

Company Highlights

· Trackwise is an established business that manufactures specialist products using printed circuit technology

· Based in Tewkesbury, Trackwise has two divisions: RF (“Radio Frequency”) and IHT (“Improved Harness Technology”)

· The Company develops specialist products and has an entrenched and long-standing customer base within its well-established RF division

· The directors of the Company (the “Directors”) believe that with the continuing adoption of mobile technology, current 4G development and future roll out of 5G RF products will continue to deliver strong demand for the Company.

· The RF division has resulted in the Company achieving growth of 6 per cent. CAGR from 2015 to 2017

· The IHT division utilises the Company’s unique proprietary technology to manufacture unlimited length multilayer printed circuits

· IHT is fully patented in the UK, US and China with a number of other patents waiting to be confirmed globally and provides considerable advantages to companies across a range of sectors – these include: weight reduction, improved precision, reliability and performance

· The Company has several high-profile customers for its fast emerging IHT division, including: customers from aerospace and automotive sectors

· During the first six months of 2018 the Company generated 1.7 times the total unaudited IHT revenues for 2017

· The Company is profitable and cash generative

Reasons for Admission

Trackwise is seeking Admission to AIM to:

· provide the Company with equity finance to support its growth;

· deliver a strategy of investing in capability and capacity; and

· increase its corporate profile, capital expenditure and further product development and invest in its global sales programme.

The Company intends to raise £7.0 million; £5.5 million in new equity and the balance to the selling shareholders, with an anticipated market capitalisation on Admission of £15.5 million.

Philip Johnston, CEO of Trackwise, commented: “I am delighted to announce the proposed Admission of Trackwise to AIM, which will position the Company for the next phase of its development in the coming years as we look to capitalise on strong new opportunities within our sector.

“This will position Trackwise with the prospect of further diversifying its range of products offered under the RF division, as well as significant potential upside as we further address the market for our IHT offering.

“In particular, becoming an AIM listed public company will provide an appropriate structure for the long-term development of the business and enable us to strengthen our team in order to sell our products on a much larger scale.”