19th Dec 2019 12:43
(Alliance News) - Trackwise Designs PLC on Thursday said challenging market conditions hurt its performance in 2019.
The AIM-listed company said it expects to report 2019 revenue of GBP2.9 million and adjusted pretax profit of GBP200,000. In 2018, the company delivered revenue of GBP3.5 million and adjusted operating profit of GBP325,000.
Trackwise said its Radio Frequency business was hurt during the year by "customer specific events", such as the delayed T-Mobile US Inc merger with Sprint in the US, as well as Brexit, which caused French customers in particular to delay purchase decisions.
More positively, Trackwise said Radio Frequency orders have shown some slight recovery in December, but "too late" to make a positive impact in 2019. The company said it expects conditions to improve in 2020.
In addition, Trackwise said it saw a higher demand for its IHT technology across Aerospace, Automotive, Space, Medical and Industrial markets. Total IHT customers have increased to 68 from 57 a year ago, providing opportunity for future revenue growth, it noted.
"While the challenging market environment for manufacturing businesses continued to have a detrimental impact on customer orders in the Radio Frequency division in the second half of the year, the medium-term outlook for Trackwise remains extremely positive, driven by IHT growth," said Chief Executive Philip Johnston.
The stock was trading flat on Thursday in London at 79.00 pence a share.
By Evelina Grecenko; [email protected]
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