Philip Johnston, CEO of Trackwise commented:
“2018 was a transformational year for Trackwise. We are very pleased with the growth in IHT revenues during 2018 and see considerable expansion in this area as new markets open up. Current trading remains in line with expectations and we view the future with optimism despite the uncertainties around Brexit and the global economy.
“2019 has begun strongly with an increasing level of enquiries from new customers for IHT solutions.”
Trackwise Design Plc (LON:TWD), a leading provider of specialist products using printed circuit technology, today provided a trading update in respect of the year ended 31 December 2018.
During 2018, the Company has seen strong growth in both its Radio Frequency and Improved Harness Technology divisions versus the prior year and profits for the year ended 31 December 2018 are expected to be in line with market expectations, subject to year-end financial close and audit procedures.
The Company is experiencing improved profit margins due to the product mix and as a result of the improved operational efficiencies resulting from the move to the Company’s new Ashvale facility at the end of 2017. As planned, the equity funds raised at the time of the Company’s Admission to AIM in July 2018 are being invested in both manufacturing capability and capacity, together with sales and marketing resource.
Whilst there have been some delays in ordering from IHT customers, and some uncertainty regarding the impact of Brexit, Trackwise continues to experience accelerating interest and demand for its unique IHT technology across the Company’s chosen markets of Aerospace, Automotive, Space and Industrial. Recent highlights include:
Aerospace – Unmanned Aerial Vehicles
-Trackwise’ lead customer, a subsidiary of a large US corporation, has publicly unveiled their UAV/High Altitude Pseudo Satellite and announced plans for its first flight in H1 2019; an important milestone for the Company. Trackwise is the sole supplier of the entire aircraft wiring harness and has received purchase orders for the build of the second aircraft; with a third flight model being discussed.
-Trackwise has received a first purchase order from a large Israeli aerospace manufacturer for the development of a large flex Printed Circuit Board (“PCB”), utilising the Company’s IHT technology, for use in a UAV application.
Aerospace – Civil
-Trackwise has received an initial order from a large French Tier One aerospace manufacturer for the development of a large, high temperature flex PCB for use in an engine nacelle application.
Automotive – Electric Vehicles (“EV”)
-Brexit is causing significant uncertainties in the UK and European automotive sector, notably with Trackwise’ major EV battery pack customer, however wider EV development continues apace.
-Trackwise has received a first purchase order from a UK OEM for a low voltage harnesses for an electric scooter battery pack. The same OEM is also developing with Trackwise an integrated signal and power distribution harnesses for their electric van.
-The Company’s CERN Large Hadron Collider HiLumi contract proceeds according to plan, with the contract running to 2020. This supply has led to a further contract with KEK, a Japanese High Energy Accelerator research organisation.
Trackwise has received an initial order from a UK manufacturer to supply large slip ring assemblies for a medical scanner application.
-Trackwise has signed a contract with the European Space Agency and a large French satellite OEM to study the replacement of spacecraft wire harnesses by large flex PCBs utilising the Company’s IHT technology.
While the precise timing and progress of many of these projects is outside of Trackwise’ control, the directors consider that the accelerating interest and demand for the Company’s unique long-PCB manufacturing capability across multiple sectors and applications is important affirmation of the Company’s unique IHT technology.