Trackwise Designs — Strong growth in IHT revenues during H121

Trackwise Designs (LN: TWD)

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Trackwise Designs — Strong growth in IHT revenues during H121

Trackwise Designs expects H121 group revenues to increase 71% year-on-year to £4.1m, reflecting the acquisition of Stevenage Circuits (SCL) in March 2020 and a 130% jump in IHT revenues to £0.6m. Management expects adjusted EBITDA to quadruple to £0.45m and adjusted operating loss to narrow from £0.4m to £0.1m. We leave our estimates unchanged.

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Trackwise Designs

Strong growth in IHT revenues during H121

Trading update

Tech hardware & equipment

29 July 2021



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Net cash (£m) at 30 June 2021 (excluding IFRS 16 lease liabilities)


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Business description

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 FY20, 39% of revenues related to exports.


Anne Margaret Crow

+44 (0)20 3077 5700

Trackwise Designs is a research client of Edison Investment Research Limited

Trackwise Designs expects H121 group revenues to increase 71% year-on-year to £4.1m, reflecting the acquisition of Stevenage Circuits (SCL) in March 2020 and a 130% jump in IHT revenues to £0.6m. Management expects adjusted EBITDA to quadruple to £0.45m and adjusted operating loss to narrow from £0.4m to £0.1m. We leave our estimates unchanged.

Year end

Revenue (£m)



































Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

The trading update shows progress in both the improved harness technology (IHT) and advanced printed circuit board (PCB) activities during H121. IHT revenues are expected to be 95% of FY20 levels at £0.6m, backed by deliveries to the UK electric vehicle OEM and an industrial customer. The opportunity continues to expand as Trackwise supplies early-stage samples to other companies in the electric vehicle sector as well as development products to a range of customers in the medical, industrial and aerospace markets, including the first customer for aerospace battery packs. H121 revenues in the Advanced PCB division were 6% higher than H220 (this is a better comparator than H121 because SCL was acquired in March 2020), despite supply chain shortages and the adverse impact of Brexit on trading with customers in mainland Europe. The division’s order book is growing, encouraging management to add a second shift later in FY21 to meet production demand.

The new Stonehouse site, which will be dedicated to IHT production, remains on track to be fully operational by end FY21. This additional IHT capacity is needed to meet the requirements of the UK electric vehicle OEM as production ramps up in early FY22, with some surplus to accommodate the potential demand from the medical sector, which could lead to volume shipments from FY22 onwards. Net cash (excluding IFRS 16 lease liabilities) reduced from £13.8m at end December 2020 to £2.6m at end June 2021 because of investment in this facility.

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