Trackwise Designs

LN: TWD

£57m market cap

252p 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

Trackwise has announced a placing which has raised £11.0m (gross) at 200p/share and an open offer, which will close on 8 December and raise up to £1.0m at 200p/share. This is to fund a new manufacturing facility that is expected to quadruple IHT production capacity and is scheduled to start production in Q421. In total, an estimated £5.4m of the funds raised will be spent on plant and machinery for the new facility, £0.7m to fit out the new facility and the remainder used to satisfy working capital requirements. We will revise our estimates to reflect the share dilution, funds raised and capital expenditure on the new facility when the open offer has completed.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 3.5 0.6 0.3 2.14 117.8 N/A
2019A 2.9 0.6 0.2 1.13 223.0 52.9
2020E 7.1 0.7 (0.3) 0.36 700.0 N/A
2021E 14.3 2.7 1.3 6.25 40.3 69.6
Industry outlook

The additional capacity is required to support the up to £38m electric vehicle (EV) contract announced in September and potential volume orders from electro-surgical catheter manufacturers and aerospace OEMs and suppliers.

Last updated on 03/12/2020
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Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 0.5
Forecast gearing ratio (%) 4
Price performance
%
1m
3m
12m
Actual (7.4) 146.0 266.3
Relative* (18.0) 119.7 296.1
52-week high/low 361.3p/68.8p
*% relative to local index
Key management
Philip Johnston CEO
Mark Hodgkins FD