Trackwise Designs PLC (AIM:TWD)’s shares slumped over 50% after the company warned payments from a recent contract win will be delayed.
The manufacturer of specialist products using printed circuit technology expects a delay in the manufacture and deliveries of the parts under the contract whilst the customer undertakes a redesign and validation of the parts to meet revised design requirements.
The financial impact has yet to be quantified but funds from the contract were hoped to secure the group’s funding through to August 2023.
Trackwise said if the contract delays are not resolved soon it would “reduce the company's previously announced cash runway to the end of May 2023.”
Trackwise also expects to take a 100% impairment charge on its investment in Stevenage Circuits Limited.
As a result, Trackwise expects to report full-year revenues of £7.52mln (2021: £8.01mln), an operating loss of around £2.92mln (2021: loss of £0.58mln) and a pre-tax loss of £7.71mln – before taking account of the SCL charge - (2021: loss of £1.98mln).