Trackwise Designs Share Discussion Threads

[dumballs] 24/6/2021 13:09

Something is amiss to me. If Stevenage circuits historical t/o is 4-5 m then his 20 year old company has sales of how much of the £6.07m? And who would sell a company for 1.64m (note 23) under asset value, which has then been used in the P&L for the same year as exceptional profit! What was the purchase price of SCL?

[dumballs] 24/6/2021 13:08

Something is amiss to me. If Stevenage circuits historical t/o is 4-5 m then his 20 year old company has sales of how much of the £6.07m? And who would sell a company for 1.64m (note 23) under asset value, which has then been used in the P&L for the same year as exceptional profit! What was the purchase price of SCL?

[mustau] 23/6/2021 15:27

Shield

😠 that was the cfo.

[shieldbug] 23/6/2021 13:21

Mustau - not sure what you mean by Philip Johnson being petrified. I think he is a little defensive and not helped by his positioning on camera. I just think that he is a man who has run a company for 20 years and now has to answer damn silly questions to shareholders - something he may not have quite understood the reality of when he took the company public to get funding to grow the business.

In the CEO statement in the results he uses the word stoicism - I would imagine that he finds investors comparative lack of stoicism quite irritating.

[geovest] 23/6/2021 11:30

I have added substantially to my holdings in TWD over the last two days.

The 3 month delay in revenues from the EV customer was at the customers request because of their distributed manufacturing model. In exchange they extended the contract by a year adding approximately £16m to the contract. This is a good deal. In addition, TWD actually needed this as the new factory also took a bit longer. This is not really unexpected either.

TWD also decided to buy the premises rather than renting it that will result in substantial savings and provide expansion capacity.

A lot of progress has been made in other income streams, nuclear, medical, aerospace and motor windings. All of which have substantial potential revenue streams.

Don't forget, bringing new manufacturing capacity on line in a totally new industry takes time and there will be inevitably some bumps in the road. Even Tesla struggled a few years to get their capacity ramped up.

The potential for TWD has increased over the last year, not decreased and the investment case is now even better.

I am grateful for some shareholders not realising this and allowing me and others to top up at below the discounted rights issue price.

[mustau] 23/6/2021 09:23

Not a bad presentation, shame bout Mr 😠.CEO seemed petrified.

[amt] 23/6/2021 07:32

On fundamentals underpriced by 60%

[smegster] 22/6/2021 23:28

So there is going to be some delays in revenue in 2021 due to

- Some supply issues related to customer choosing the specific use of PCB copper laminate from a single supplier Dupont
- Impact of Covid pandemic affecting global economic activity
- One quarter delay in UK EV OEM production due to the OEM

All these factors were outside the companies control and revenue has been delayed not lost.

For me, a a quarters delay in revenue pales in significant against a £16m rise in expected revenue

[74tom] 22/6/2021 16:25

Two profit warnings in 6 months, after a horrendous discounted placing. CFO has to be walking a tightrope here.

[pugugly] 22/6/2021 13:23

amt Hedged with so many provisions the string could be as long or as short as anyones guess "In the event all contracted volumes are achieved, the Agreement would now be worth up to GBP54 million over the period to 31 December 2024"

I could be a multi-millionaire by 31 December 2024 - or I could be pushing up the daiseys - Nobody knows!!

[amt] 22/6/2021 12:48

I call a 54m contract major.

[pugugly] 22/6/2021 11:54

On fundamentals possibly 50% over priced - Could have the potential of SCE but remember that was a 10 year burn and not quite there yet though potential being acknowledged

House Broker FinnCap still very enthusiastic (but then they would be !!!!) Until major contracts signed and in place for production the share price will (imo) continue to drift down -

Not yet top-up-time just need to sweat it out - That is if one still has real confidendence in the rapid adoption of the technology - Remember needs to be long time proven in the real world as failures would be very very costly to rectify - even if practical.

[scrutable] 22/6/2021 10:53

shieldbug

Your points are well made but are you convinced that the global (particulaly Asian) motor/transportation industry is fully aware of the potential application? Now when the once-in-a-lifetime changes are having to be made is the time to include this fundamental assembly advantage in forward plans. I assume that the Europeans really know - but even that is not a given.
At this point in time all Manufacturing Directors need to have seriuously considered (even if for good cause, rejected) what is a universal improvement to assembly of moving vehicles.

THAT is a marketing communication problem beyond the reach of small companies without government or globally established marketing specialist help.

[32campomar] 22/6/2021 10:50

The issue is that this is effectively another profit warning on top of the one earlier in the year. How do we know there won't be another one or another cash call? There's a lack of visibility on costs.

[shieldbug] 22/6/2021 10:04

Scrutable - Not sure this is a marketing issue. IHT will always take a long time to implement in new customer products. Its not something that can be retrofitted. It needs to be in the design from a very early stage. Philip Johnston has repeatedly said that their biggest competitor is the status quo/existing technologies. IHT is most suited to disruptive companies like Arrival and CathPrint.

From today's RNS "Trackwise's active discussions with a number of EV OEMs and Tier 1 suppliers supports our belief that flex PCBs will be adopted widely as a solution for battery module and battery pack interconnect across all cell formats and we are confident of strong future activity in this sector"

[vprt] 22/6/2021 09:24

I agree with strollingmolby, who beat me to making that point...

Working capital may also need to grow, depending on payment terms in the big contract, stocking up on inputs etc. Not saying it is certain or absolutely necessary, just that it is conceivable / possible.

[strollingmolby] 22/6/2021 09:23

They HAD £11m cash at 31-Dec-20. As at 21-Jun-21 they now have £2.866m...so getting low again.

[amt] 22/6/2021 09:18

No chance of another cash raise. They have 11m in cash and running at about break even.
I wonder if we will get an upgrade on the large potential order increase

[shieldbug] 22/6/2021 09:10

Not unexpected in my view. Arrival's micro factory model is a novel idea and almost certain to take longer to implement than expected.

It does annoy me that these results are coming out in late June. This stuff should have been dealt with months ago.

Main concern now will be the need for additional cash raise.

[charlie9038] 22/6/2021 08:50

Topped up on the low
GLA

[hydrus] 22/6/2021 08:12

Bad luck - not necessarily a problem longer term but have to say I sold out a few months ago having been incredibly unimpressed with the CFO in particular. A degree of naivety about the placing they did and seemingly now a series of profit warnings....

[amt] 22/6/2021 08:03

Significant upgrade although some switch of revenue by a couple of months or so
Overaĺl excellent news

In the event all contracted volumes are achieved, the Agreement would now be worth up to GBP54 million over the period to 31 December 2024, an aggregate increase of GBP16 million over the original Agreement for up to GBP38 million.

[32campomar] 22/6/2021 07:15

Another profits warning...Combined, these factors above will have an impact on revenues in 2021, although some will be offset by new business from other smaller customers as well as a continued focus on cost controls.

[charlie9038] 17/6/2021 08:56

Guess its a waiting game now for 22 June until final results come through.

Any rumours/expectations?

Cant see much happening before that.
GLA