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Trackwise Designs

LN: TWD

Market Cap£58.2m

Last Close 202.5p

Trackwise Designs is a UK manufacturer of specialist products using printed circuit technology. These include a lightweight replacement for conventional wiring harnesses known as IHT and RF antennae. In H121 25% of revenues related to exports.

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Investment summary

As flagged in its July trading update, Trackwise Designs’ H121 group revenues increased by 71% y-o-y to £4.1m, reflecting the acquisition of Stevenage Circuits in March 2020 and a doubling of improved harness technology (IHT) revenues. Revenues from the advanced printed circuit board division were 6% higher than H220 despite supply chain shortages and the adverse impact of Brexit on trading with customers in mainland Europe. Group adjusted EBITDA quadrupled to £0.5m. Management notes the group remains on track to meet market FY21 expectations despite supply chain disruption so we have left our FY21 and FY22 estimates broadly unchanged.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 2.9 0.5 0.1 0.8 253.1 59.5
2020A 6.1 0.8 (0.4) 1.4 144.6 52.4
2021E 9.0 0.9 (0.7) (0.9) N/A 64.4
2022E 22.1 4.3 1.9 6.1 33.2 13.5
Industry outlook

Management expects the new Stonehouse site to start production in Q122. The site will be used for high-volume/low-mix IHT work, initially production for the electric vehicle (EV) OEM, while the Tewkesbury site will be used for low-volume IHT development projects. The Stonehouse site has capacity for the installation of a second line in the future.

Last updated on 14/10/2021
Content on Trackwise Designs
Trackwise Designs – executive interview
TMT | Edison TV | 15 September 2021
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Share price graph
Balance sheet
Forecast net debt (£m) 2.8
Forecast gearing ratio (%) 11
Price performance
%
1m
3m
12m
Actual (22.1) 15.7 (2.6)
Relative* (23.1) 14.1 (20.9)
52-week high/low 370.0p/170.0p
*% relative to local index
Key management
Philip Johnston CEO
Mark Hodgkins FD