This Week's AIM Highlights 16th December 2022

Morning Note – 15 December 2022

Trackwise Designs - New OEM agreement, cash payment and production order

The group announced that it has secured a replacement agreement with its UK EV OEM, including a cash receipt of £3.99m in 2022 and a fixed-quantity production order. The group continues to have large-scale market opportunities for the adoption of its IHT into EVs, aerospace and medical markets. Over the next two years, the EV space looks to be the early adopter of the technology for use in Battery Cell Connection Systems (CCS) and has a pipeline of EV opportunities with both start-up and traditi

Trackwise Designs - Termination of coverage

Edison Investment Research is terminating coverage on SandpiperCl (SANDPI), Mirriad Advertising (MIRI), Trackwise Designs (TWD), Lookers (LOOK) and BerGenBio (BGBIO). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

Morning Note – 30 September 2022

Trackwise Designs - Interim results

Interim results were in line with scaled back expectations, as the statement provides little new information on the renegotiation of the contract with the first EV OEM compared to its statement announced on 14 September. Financing options and longer-term strategic partnerships continue to be evaluated. First-half revenues declined 7.6% due to the known delay and lower production schedule for its first EV OEM, as well as a customer contract in APCB, which has been delayed into the second half. Th

Morning Note – 28 July 2022

Trackwise Designs - Full-year results, H1 trading update signal some sales delay

The group has announced its FY21 results and an H1 trading update. As previously signalled, sales to its large EV OEM have been slower to accelerate than expected and will not achieve the levels previously anticipated. We reduce our FY22 revenue forecast by 53% to £10.5m, with an 5.4% reduction in adj PBT to £1.4m. Commercial progress with several traditional UK and EU OEMs to use the IHT in their EV platforms offers a significant opportunity. Some equipment installation delays have been encount

Morning Note – 24 June 2022

Machinations - finnCap Industrial Technology quarterly sector note

Company results surprisingly resilient in the face of multi-faceted challenges. The Industrial Technology Sector share prices have been badly affected over recent months, despite underlying company trading statements and recent annual results in March being mostly in line with expectations. The Ukraine invasion is the latest in a line of challenges that managements have had to overcome over the past two years. The greatest challenges for the sector and the wider economy have centred around the w

Morning Note – 31 January 2022

Trackwise Designs - Connection under demanding conditions

Trackwise Designs has developed a proprietary, proven technology, IHT, for manufacturing extremely long, flexible circuits that can replace conventional wiring harnesses. This disruptive technology is applicable to many industries including electric vehicles (EVs), medical devices and aerospace. Since listing in July 2018, Trackwise has invested substantially in capacity, acquiring Stevenage Circuits in March 2020 and a new site in Stonehouse in April 2021. The new site is scheduled to commence

Trackwise Designs - 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

Morning Note – 16 December 2021

Trackwise Designs - Placing announced ahead of EV ramp up

The group has announced that it has raised £6.0m, via a placing at a price of 80p issuing 7.5m new shares. This represents a FY22 EV/EBITDA of 5.3x and a P/E of 16x. The placing will fund additional capex plans as well as growth capital as the group kits out and scales up its new high volume, low mix, roll-to-roll IHT production facility. Some supply chain delays and higher prices have affected equipment deliveries. The group has received its first purchase order from its large OEM customer for

AFC Energy (AFC LN) - H-Power Tower deployment accelerates

AFC has provided a useful update on the deployment of the H-Power Tower product range, following system validations in 2022. H-Power Towers have now been leased for more than 7,000 hours in the UK and European construction markets, providing valuable off-grid power solutions to customers. In addition, contracts have been signed for more than 8,000 hours of H-Power Tower lease hire in 2023 to date. AFC also reports that it has a growing order book supported by an increase in customer proposals. A

Cenkos: Seeing Machines Ltd -- Revenue upgrade on OEM momentum

Seeing Machines' released interim results showing the strong momentum it is experiencing in its OEM division with OEM revenues growing 268% YoY. This strong performance carried a weaker performance in Aftermarket (down 14% YoY) and enabled the company to report total revenues up 54% YoY and an EBITDA loss reduced by 58% to just $3.9m. Looking ahead we continue to view Seeing Machines as highly undervalued compared to its market position in DMS, with rapid adoption in both OEM and aftermarket dri

Finals

FY22 finals from Spectra Systems Corp (SPSY.L), a leader in machine-readable high-speed bank note authentication, brand protection technologies, and gaming software, comfortably exceeded forecasts that had been upgraded three times during the year. Revenue +18% to $19.6m (ACLe: $17.9m) and adj. EBITDA by 17% to $8.1m (ACLe: $7.6m). Net cash was a record $17.5m (ACLe: $16.9m) and a 11.5 cent DPS has been declared. Short and medium-term outlooks remain positive with Spectra’s key central bank cust

Hybridan Small Cap Feast - 06 Mar 23

6 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objective

Hybridan Small Cap Feast - 23 Mar 23

23 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

LIBERUM: Superdry* - A phenomenal deal realising great value for shareholders

Morning Note – 21 March 2023

SHORE CAPITAL - Portmeirion (PMP) - House Stock at 353p - Significantly undervalued

Diversifying with a stronger base

Quixant - Record revenue and improved margins demand a rerating

Record FY22 results are in line with forecasts upgraded with the post-YE update, although a tax credit boosted Adj. EPS and the improved outlook and healthy cash position encouraged a higher-than-expected 3.0p dividend. Underlying markets remain robust and demand is high, while component shortages are easing to improve margins; diversification and new products (QMax-3, the turnkey cabinet solution and Broadcast products) drives growth and improves visibility. We therefore raise FY23 expectations

Hybridan Small Cap Feast - 16 Mar 23

16 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Hybridan Small Cap Feast - 24 Mar 23

24 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Hybridan Small Cap Feast - 13 Mar 23

13 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Hybridan Small Cap Feast - 20 Mar 23

20 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Moving into 2023 with cautious optimism & clear strategy

Set against a tough consumer / inflationary backdrop today’s finals are satisfactory and in line with previous guidance – revenue +5% and PBT +11%. Higher net debt is the main forecast variance, reflecting elevated inventory but we expect most of this to unwind in FY23. The outlook is cautiously optimistic and whilst prudence dictates holding fire on forecasts, the risk is on the upside. Our conservatively pitched numbers imply a 3 year EPS CAGR of 14%. The equity story is all about delivering a