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TWD Trackwise Designs Plc

0.175
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Trackwise Designs Plc LSE:TWD London Ordinary Share GB00BFYT9999 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.175 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Trackwise Designs PLC Interim Results (3231B)

20/09/2018 7:00am

UK Regulatory


Trackwise Designs (LSE:TWD)
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RNS Number : 3231B

Trackwise Designs PLC

20 September 2018

20 September 2018

Trackwise Designs Plc

("Trackwise", the "Company" or the "Group")

Interim Results for the six months ended 30 June 2018

Trackwise, a leading provider of specialist products using printed circuit technology, is pleased to announce today 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.

Financial highlights

   --     Revenues of GBP1.846m (2017: GBP1.607m) up 14.9% year on year 
   --     IHT Revenues of GBP331K (2017: GBP53K) up 567% year on year 
   --     Operating profits of GBP154K (2017: GBP100K) up 54% 
   --     EBITDA of GBP347K (2017: GBP202K) 
   --     Gross margins of 39% (2017: 35%) on a like for like basis 
   --     Basic EPS of 0.74 pence per share 

Operational highlights

   --     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 GBP4.6m 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 commented:

"In the last six months the Company has moved to new premises and completed a successful flotation on AIM raising GBP4.6m 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."

Chairman's Statement

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.

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 6600 
 

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

Interim Statement of Comprehensive Income for the six months ended 30 June 2018

 
                                   Notes     Unaudited      Unaudited                 Audited 
                                            Six months     Six months              Year ended 
                                              ended 30       ended 30             31 December 
                                             June 2018      June 2017                    2017 
                                               GBP'000        GBP'000                 GBP'000 
 
 Revenue                             3           1,846          1,606        2          2,821 
 
 Cost of sales                                 (1,117)        (1,038)                 (1,751) 
 
 Gross profit                                      729            568                   1,070 
 
 Other operating income                             25              -                      22 
 Administrative expenses                         (600)          (460)                 (1,025) 
 
 Operating profit                                  154            100                      67 
 
 Exceptional Costs                                (41)              -                       - 
 
 Finance costs                                    (42)           (38)                    (80) 
 
 Profit/(loss) before 
  taxation                                          71             62                    (13) 
 
 Taxation                            4               -              -                      21 
 
 Profit and total comprehensive 
  income for the period                             71             62                       8 
                                          ------------  -------------           ------------- 
 
 Earnings per share (pence) 
 Basic and diluted                   6            0.74           0.65                   0.084 
                                          ------------  -------------           ------------- 
 
 

All activity relates to continuing operations.

Note 9 has details of the IFRS transition adjustments applied to the comparative period results.

Interim Statement of Financial Position

 
                                Notes   Unaudited   Unaudited        Audited 
                                          30 June     30 June    31 December 
                                             2018        2017           2017 
                                          GBP'000     GBP'000        GBP'000 
 ASSETS 
 Non-current assets 
 Intangible assets                7         1,913       1,329          1,646 
 Property, plant and 
  equipment                                 1,323         851          1,260 
                                            3,236       2,180          2,906 
                                       ----------  ----------  ------------- 
 
 Current assets 
 Inventories                                  357         232            313 
 Trade and other receivables                1,011         661            550 
 Current tax receivable                        60          34             95 
 Cash and cash equivalents                     80         332            166 
                                       ----------  ----------  ------------- 
                                            1,508       1,259          1,124 
                                       ----------  ----------  ------------- 
 
 Total assets                               4,744       3,439          4,030 
                                       ----------  ----------  ------------- 
 
 LIABILITIES 
 Current liabilities 
 Trade and other payables                 (1,127)       (736)        (1,123) 
 Derivative liability                        (49)           -           (49) 
 Borrowings                       8       (1,173)       (280)          (662) 
                                          (2,349)      (1,016        (1,834) 
                                       ----------  ----------  ------------- 
 
 Non-current liabilities 
 Deferred income - grants                   (418)       (298)          (306) 
 Borrowings                                 (426)       (491)          (410) 
 Deferred tax liabilities                   (254)       (234)          (254) 
                                       ----------  ----------  ------------- 
                                          (1,098)     (1,023)          (970) 
                                       ----------  ----------  ------------- 
 
 Total liabilities                        (3,447)     (2,039)        (2,804) 
                                       ----------  ----------  ------------- 
 
 Net assets                                 1,297       1,400          1,226 
                                       ----------  ----------  ------------- 
 
 EQUITY 
 
 Share capital                                381          14             14 
 Retained earnings                            812         876            722 
 Revaluation reserve                          104         143            123 
 Capital redemption reserve                     -         367            367 
 Total equity                               1,297       1,400          1,226 
                                       ----------  ----------  ------------- 
 

Interim Statement of Changes in Equity

 
                             Share   Retained earnings   Revaluation   Capital redemption   Total equity 
                           capital                           reserve              reserve 
                           GBP'000             GBP'000       GBP'000              GBP'000        GBP'000 
 
 At 1 January 2017              14                 795           162                  367          1,338 
 
 Profit and total 
  comprehensive 
  income for the period                             62             -                                  62 
 Revaluation realised 
  in period                                         19          (19)                                   - 
                         ---------  ------------------  ------------  -------------------  ------------- 
 At 30 June 2017 and 
  1 July 2017                   14                 876           143                  367          1,400 
                         ---------  ------------------  ------------  -------------------  ------------- 
 
 Loss and total 
  comprehensive 
  expense for the 
  period                         -                (54)             -                    -           (54) 
 Dividends paid                  -               (120)             -                    -          (120) 
 Revaluation realised 
  in period                      -                  20          (20)                    -              - 
 
 At 31 December 2017 
  and 1 January 2018            14                 722           123                  367          1,226 
                         ---------  ------------------  ------------  -------------------  ------------- 
 
 Profit and total 
  comprehensive 
  income for the period          -                  71             -                    -             71 
 Bonus issue from 
  reserves                     367                                 -                (367)              - 
 Revaluation realised 
  in period                      -                  19          (19)                                   - 
                                                        ------------ 
 At 30 June 2018               381                 812           104                    -          1,297 
                         ---------  ------------------  ------------  -------------------  ------------- 
 
 
                                       Note        Unaudited     Unaudited        Audited 
                                                  Six months    Six months     Year ended 
                                                    ended 30      ended 30    31 December 
                                                   June 2018     June 2017           2017 
                                                     GBP'000       GBP'000        GBP'000 
 Cash flow from operating 
  activities 
 Profit/(loss) for the period 
  before taxation                                         71            62           (13) 
 Adjustment for: 
 Depreciation of property, 
  plant and equipment                                     94            88            158 
 Profit on disposal of property,                         (1)             -              - 
  plant and equipment 
 Amortisation of intangible 
  assets                                7                 57             1              3 
 Finance costs                                            42            38             80 
 Changes in working capital: 
 Decrease/(increase) in inventories                     (44)            46           (35) 
 (Increase)/decrease in trade 
  and other receivables                                (461)          (23)             88 
 Increase in trade and other 
  payables                                               116           341            599 
                                             ---------------  ------------  ------------- 
 Cash generated from operations                        (125)           553            880 
 Income tax received                                      35             -              - 
                                             ---------------  ------------  ------------- 
 Net cash (used in)/from operating 
  activities                                            (91)           553            880 
                                             ---------------  ------------  ------------- 
 
 Cash flow from investing 
  activities 
 Purchase of property, plant 
  and equipment (net of new 
  finance leases)                                       (47)          (40)          (257) 
 Proceeds from sale of property,                           1             -              - 
  plant and equipment 
 Purchase of intangible assets 
  (net of related grant funding)        7              (324)         (200)          (402) 
 Net cash used in investing 
  activities                                           (370)         (240)          (659) 
                                             ---------------  ------------  ------------- 
 
 
 Cash flow from financing 
  activities 
 Dividends paid to shareholders           -       -   (120) 
 Interest paid                         (42)    (38)    (80) 
 Increase/(decrease) in invoice 
  discounting                             -    (13)   (129) 
 Proceeds from borrowings               493       -     515 
 Repayment of borrowings                  -    (22)   (241) 
 Repayment of capital element 
  of finance 
  Lease contracts                      (76)    (30)   (122) 
                                      -----  ------  ------ 
 Net cash from/(used in) financing 
  activities                            375   (103)   (177) 
                                      -----  ------  ------ 
 
   (Decrease)/increased in cash 
   and cash equivalents                (86)     210      44 
                                      -----  ------  ------ 
 
   Net cash and cash equivalents 
   at beginning of the period           166     122     122 
                                      -----  ------  ------ 
 
   Net cash and cash equivalents 
   at end of period (all cash 
   balances)                             80     332     166 
                                      -----  ------  ------ 
 

Notes to the Interim Financial Information

   1.      Corporate information 

Trackwise Designs Limited is a Company incorporated in the United Kingdom. The registered address of the Company is 1 Ashvale, Alexandra Way, Ashchurch, Tewkesbury, Gloucestershire, GL20 8NB.

The principal activity of the company is the development, manufacture and sale of printed circuit boards.

   2.      Accounting policies 

Basis of preparation

This unaudited consolidated interim financial information has been prepared in accordance with IFRS as adopted by the European Union including IAS 34 'Interim Financial Reporting'. The principal accounting policies used in preparing the interim results are those it expects to apply in its financial statements for the year ending 31 December 2018 and are unchanged from those disclosed in the financial information included in the Company's Alternative Investment Market ('AIM@) listing document in July 2018.

The financial information does not contain all of the information that is required to be disclosed in a full set of IFRS financial statements. The financial information for the six months ended 30 June 2018 and 30 June 2017 is unreviewed and unaudited and does not constitute the Company's statutory financial statements for those periods.

The comparative financial information for the full year ended 31 December 2017 has, however, been derived from the audited statutory financial statements for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified, did not include references to any matters to which the auditor drew attention by way of emphasis without qualifying its report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.

The financial information in the Interim Report is presented in Sterling.

In line with the transition provisions of IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers the Company has elected to apply on transition to these standards on 1 January 2018 a limited retrospective approach. Applying a limited retrospective approach on adoption of IFRS 9 and IFRS 15 in 2018 results in no restatement of comparative periods or in opening retained earnings on 1 January 2018.

   3.      Segmental reporting 

IFRS 8, Operating Segments, requires operating segments to be identified on the basis of internal reports that are regularly reviewed by the company's chief operating decision maker. The chief operating decision maker is considered to be the Board of Directors.

The company comprised only one operating segment until 31 December 2017 for the sale of printed circuit boards. The operating segments are monitored by the chief operating decision maker and strategic decisions are made on the basis of adjusted segment operating results. From January 2018 the RF and IHT activities have begun to be separately reviewed and monitored. Revenue of GBP1,515,000 arose from RF and GBP231,000 from IHT in the six months ended 30 June 2018.

All assets, liabilities and revenues are located in, or derived in, the United Kingdom. The material assets and liabilities relate to overall activity with the exception of the intangible development costs and deferred grants which are solely in respect of IHT.

Notes to the Interim Financial Information

In the six months ended 30 June 2018 the company had two major customers who represented 28% and 9% of total revenue (six months ended 30 June 2017: 41% and 9% of revenue, full year ended 31 December 2017: 33% and 14% of revenue).

Revenue by geographical destination was as follows:

 
                Unaudited     Unaudited                 Audited 
               Six months    Six months              Year ended 
                 ended 30      ended 30             31 December 
                June 2018     June 2017                    2017 
                  GBP'000       GBP'000                 GBP'000 
 UK                   536           354                     702 
 Europe             1,230         1,191                   1,983 
 Other                 80            61                     136 
 
                    1,846         1,606        2          2,821 
          ---------------  ------------           ------------- 
 

4. Income tax

Taxation is provided at the estimated rate of tax for the period, applying 17% to deferred tax balances, and including the benefit of enhanced allowances for research and development costs.

5. Dividends paid and proposed

Amounts recognised as distributions to equity holders in the period:

 
                                           Unaudited       Unaudited         Audited 
                                          Six months      Six months      Year ended 
                                            ended 30        ended 30     31 December 
                                           June 2018       June 2017            2017 
                                            GBP'000          GBP'000         GBP'000 
 
 Interim ordinary dividends 
  paid for the six months ended 
  30 June 2018 of nil (six months 
  ended 30 June 2017: nil, year 
  ended 31 December 2017: 1.26) 
  pence per share                                   -                -            120 
                                    -----------------   --------------  ------------- 
 

6. Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:

 
 
 Earnings                               Unaudited     Unaudited        Audited 
                                       Six months    Six months     Year ended 
                                         ended 30      ended 30    31 December 
                                        June 2018     June 2017           2017 
                                          GBP'000       GBP'000        GBP'000 
 Earnings for the purpose 
  of basic earnings per share 
  being net profit attributable 
  to the shareholders                          71            62              8 
                                  ---------------  ------------  ------------- 
 
 

Notes to the Interim Financial Information

7. Intangible fixed assets

 
 
                               Goodwill         Patent   Development     Total 
                                                 costs         costs 
                                GBP'000        GBP'000       GBP'000   GBP'000 
 Cost 
 At 1 January 2017                  104             52           987     1,143 
 Additions                            -              -           200       200 
 As at 30 June 2017                 104             52         1,187     1,343 
 Additions                            -              3           316       319 
 As at 31 December 2017             104             55         1,503     1,662 
 Additions                            -              5           319       324 
 As at 30 June 2018                 104             60         1,822     1,986 
                              ---------  -------------  ------------  -------- 
 
 Amortisation or impairment 
 At 1 January 2017                    -             13             -        13 
 Charge                               -              1             -         1 
 As at 30 June 2017                   -             14             -        14 
 Charge                               -              2             -         2 
 As at 31 December 2017               -             16             -        16 
 Charge                               -              1            56        57 
 As at 30 June 2018                   -             17            56        73 
                              ---------  -------------  ------------  -------- 
 
 Carrying amount 
 As at 30 June 2017                 104             38         1,187     1,329 
                              ---------  -------------  ------------  -------- 
 As at 31 December 2017             104             39         1,503     1,646 
                              ---------  -------------  ------------  -------- 
 As at 30 June 2018                 104             43         1,766     1,913 
                              ---------  -------------  ------------  -------- 
 

Additions to capitalised development costs represent further and continuing development of the IHT technology and capability.

8. IPO and post balance sheet events

On 31 July 2018, the Company's shares were listed on AIM and 5,238,097 new ordinary shares were placed raising GBP4.6m net of related costs for the company. The existing working capital and loan facilities were repaid with borrowings now comprising only hire purchase facilities used to finance tangible fixed assets.

Copies of this statement will be available on the Company's website (www.trackwise.co.uk) and from Trackwise Designs PLC, 1 Ashvale, Alexandra Way, Tewkesbury, Gloucester, GL20 8HB

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

IR FKCDNABKDOCD

(END) Dow Jones Newswires

September 20, 2018 02:00 ET (06:00 GMT)

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