First half revenue rise at Trackwise Designs
Tewkesbury-based Trackwise Designs, which manufactures specialist products using printed circuit technology, has reported revenues of £2.39 million in the first half of 2020 (H1 2019: £1.547 million).
Earlier this month we reported that Trackwise had signed a three-year product manufacture and supply agreement with a UK manufacturer of electric vehicles. The agreement has the potential to be worth up to £5 million in 2021, and up to £38 million by 2023.
However, gross margins fell from 38 per cent in the first half of last year to 17.8 per cent in the first half of this year, reflecting increased capacity investment prior to anticipated increased business and the impacts of COVID-19, said the company.
Philip Johnston, CEO of Trackwise, said: "While the business remained open and safely operational throughout the period, like many businesses we were not immune from the impacts of COVID-19. Nevertheless we have made excellent progress strategically with the acquisition of Stevenage Circuits, which has extended our product range, our expertise and customer base and increased our production capabilities, enabling us to move towards the facility in Tewkesbury becoming dedicated to IHT production.
"Since the period end, we completed the commissioning of the critical roll to roll direct imaging machine, which represents the final investment of our IPO proceeds and we secured the highly significant three-year contract to manufacture IHT for electric vehicles.
"Looking ahead, while the Company's full year performance will reflect the difficult economic trading conditions, the EV manufacturing contract win and progress in our two other core target markets, medical and aerospace, support our convictions of IHT's merit and its potential to be a catalyst for transformation in these markets, with our innovation enabling the global technology of the future.
"With a growing customer base and pipeline, and a net cash position, we are confident in our ability to deliver on these growth opportunities as trading conditions normalise."
