Trackwise Designs (TWD) 🔌 - Share Chat

Trackwise Designs manufactures specialist products using printed circuit technology. The Company consists of two divisions Radio Frequency (“RF”) and Improved Harness Technology (“IHT”).

Doesn’t seem to get a lot of love among the cheaper brokers…see here

Edging up but still very under the radar

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The £38m EV deal seems to have gone down well! Widely assumed to be with the EV manufacturer Arrival but client name seems subject to an NDA.

Did you invest? Congrats if so :fire:

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Anybody able to provide any insights into this company? Down today after raising 11m through a share placing.

I’m really not familiar with this area but I think I’m going to dip in if there’s another drop next week, for the following reasons:

  1. Likelihood of lower commodity (copper) inflation that market currently expects, at least long-term. This should be a tailwind as company has pricing power anyway and should be able to increase margin should prices ease. If I’m wrong and there’s a giant commodity supercycle, hey, that’s still more revenue, although greatly priced in already.

  2. Uncertain macroeconomic backdrop/deglobalisation. Lots of talk about UK stocks being a safer bet with historic underperformance and could see them do well this year if rate/inflation/vaccine uncertainty continues to mess around with US/EU/EM. Has a lot of exposure to domestic UK industry, which brings me onto…

  3. Revenue visibility and low valuation. Guided capacity of £50m pounds by years end, and there’s that £38m contract with Arrival (just completed merger). Near-term £3m+ pipeline with quite diversified customer profile (not too reliant on EVs). Revenue projections are conservative given Arrival alone is worth £12m+ a year.

As I say I’m really not sure if this is a long-term hold. I don’t know enough about the competitive threat to IHT and would probably dump before Arrival contract is finished.

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Edison research

trackwise-designs_27781_20200918.pdf (229.0 KB)

I’ve been following them for a while, interesting tech. Links to aerospace, healthcare, 5G and of course EVs. Conservatively run and the founder holds 24% of the shares, plenty of smart cookies running funds have a slice too. They are in conversation with dozens of potential customers (87 at year end), all of which might come to nought of course. But given their size, it won’t take many new contracts to push up the share price. I expect they would be snapped up by a bigger fish if they can demonstrate their tech can actually do the business.

Worth noting the EV contract is “up to £38m”

up to £38 million total revenue value is not guaranteed in total as it is conditional on, inter alia, orders placed, supply, and annual pricing reviews.

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