Edison Investment Research Limited: Trackwise Designs (TWD): Fundraising supports EV contract

London, UK, 23 December 2021

Trackwise Designs (TWD): Fundraising supports EV contract

Trackwise Designs has announced a fund-raising programme that will raise up to £7.0m (gross) at 80p/share to help provide the working capital needed to support a previously announced order for improved harness technology (IHT) worth up to £54m from a UK electric vehicle (EV) manufacturer. Management notes that FY21 group revenues are expected to be approximately £8.0m because of weaker demand for its advanced printed circuits boards (PCBs) so we have downgraded our FY21 and FY22 EBITDA estimates by 16% and 25% respectively.

Our peer multiples-based analysis shows Trackwise trading on EV/Sales and EV/EBITDA multiples for year 2 that are below the peer average. This suggests that at current levels the potential growth in sales and EBITDA associated with the EV opportunity is not fully priced in.

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