£71.9m market cap
253p last close
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 FY19, 64% of revenues related to exports.
Investment summary
In January management announced that it expected FY20 revenues to be c £6.1m, which was lower than our £7.1m estimate, reflecting disruptions to supply chains caused by tighter coronavirus restrictions and uncertainty about the Brexit deal. However, careful cost control meant that management expected adjusted operating losses to be c £0.2m, in line with our estimate. We updated our FY20 forecasts but left our FY21 estimates unchanged as these are underpinned by the EV order which is worth up to £38m over three years.
Y/E Dec |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2018A | 3.5 | 0.6 | 0.3 | 2.14 | 118.2 | N/A |
| 2019A | 2.9 | 0.6 | 0.2 | 1.13 | 223.9 | N/A |
| 2020E | 6.1 | 0.7 | (0.3) | 0.35 | 722.9 | N/A |
| 2021E | 14.3 | 2.7 | 1.3 | 4.86 | 52.1 | N/A |
Industry outlook
The main growth drivers are broadly unaffected by either the pandemic or Brexit. IHT revenues are supported by the major EV contract. Having delivered samples to its lead electro-surgical catheter customer, a large US medical OEM, management anticipates further orders in 2021 and is targeting early 2022 for production revenues. While the commercial aerospace industry has been badly affected by the pandemic, investment in new technology such as IHT, which cuts both carbon emissions and operating costs, continues. The number of IHT customers and qualified opportunities rose from 82 in June to 87 in December.
Last updated on 04/03/2021
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Share price graph
Balance sheet |
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| Forecast net cash (£m) | 11.2 |
| Forecast gearing ratio (%) | N/A |
Price performance
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12m |
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Key management |
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| Philip Johnston | CEO |
| Mark Hodgkins | FD |
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