Trackwise Designs Plc (LON:TWD), a leading provider of specialist products using printed circuit technology, has today announced its interim results for the year ended 30 June 2018. These results relate to the trading period immediately prior to the Company’s recent Admission to AIM.
· Revenues of £1.846m (2017: £1.607m) up 14.9% year on year
· IHT Revenues of £331K (2017: £53K) up 567% year on year
· Operating profits of £154K (2017: £100K) up 54%
· EBITDA of £347K (2017: £202K)
· Gross margins of 39% (2017: 35%) on a like for like basis
· Basic EPS of 0.74 pence per share
· Admission to AIM on 31 July 2018 post period end
· Continued focus on our chosen markets, Aerospace, Automotive, Space and Industrial, and have made further progress in winning new business from a range of customers:-
o In aviation we have developed our work with a Tier 1 UK aerospace manufacturer and moved further forward with developing the industrialisation plan for the integrated harness technology (“IHT”) product application;
o Successfully installed a full harness wiring solution to a Boeing subsidiary for large format unmanned aerial vehicles (“UAVs”);
o Continued development of our offering to our large European Space Prime Contractor manufacturing flexible printed circuit boards (“PCBs”) for solar arrays;
o In automotive our work with a leading OEM has continued and we are actively engaged in the second phase of their EV battery pack management solution and also with multiple other participants in this rapidly evolving field.
o Continued to invest in our technological development with a doubling of headcount in our development team.
Post half year end highlights
· Successful flotation on AIM in July raising £4.6m net in an oversubscribed fundraising
· We have installed and commissioned the first continuous vertical plating line which enhances our plans to be ready for commercialisation of IHT for use with civil aircraft manufacturer supply in 2019;
Philip Johnston, CEO of Trackwise Designs commented:
“In the last six months the Company has moved to new premises and completed a successful flotation on AIM raising £4.6m in an oversubscribed fundraising. Throughout this period, we have continued to be focused on addressing new opportunities.
We are delighted with the growth in IHT revenues and see considerable growth in this area as new markets open up. Current trading is in line with expectations and we view the future with optimism.”
I am pleased to be addressing shareholders for the first time following the Company’s successful Admission to AIM.
The Company, which will celebrate its 30th anniversary in 2019, has pioneered a state-of-the-art new wiring technology and management are well set to deliver this important development for the next phase of the Company’s growth.
I look forward to leading the Board and management on this journey. The Board are delighted to welcome all our new shareholders and thank them for their support.
The RF division has traded in line with expectations for the first half and is expected to do so for the remainder of the year with order books in line with historic patterns and management plans.
Trading in the IHT division continues to be well ahead of last year with a continual increase in enquiries for the use of the technology in a range of applications across our chosen markets. Revenues are well ahead of last year (567%).
We successfully moved our production facility to the larger premises at Ashvale and increased both our capacity and capability whist doing so.
The Company’s financial performance for the half year and to the date of this announcement is in line with market expectations for the full year.
Trackwise Designs Plc is an established business that manufactures specialist products using printed circuit technology. The Company consists of two divisions Radio Frequency and Improved Harness Technology.
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.