Disappointment 'beyond words' as Trackwise appoints administrators
By David Wood | 3rd August 2023
Tewkesbury-based specialist manufacturer Trackwise Designs has appointed administrators.
The news comes after Punchline reported last week that the Kings Award winning manufacturer of products using printed circuit technology had launched a sale process for the business.
Philip Johnston, CEO of Trackwise, said: "It is beyond words the disappointment that I feel in having to make this announcement. So many colleagues - past and present, customers, suppliers, collaborators and investors have worked tirelessly, sacrificed so much, dug so deep, to develop Trackwise and to deliver Improved Harness Technology™.
"I thank them all for their support over many years and am so very sorry that all of that has come to this. It is certainly not for the lack of trying."
A statement from the company said: "Since September 2022, the board of directors of Trackwise has been exploring longer term strategic investment partnerships in order to support development and conversion of the pipeline of identified IHT sales opportunities, notably for EV battery cell connection systems and also for other medical and aerospace sales opportunities.
"Following the 24 July 2023 announcement that Trackwise had commenced a sale process, discussions with respect to a sale of the company or in relation to an equity or other such fundraising transaction have not been successful.
"Regrettably therefore, following the 25 July 2023 announcement that the company had resolved to file a notice of intention to appoint administrators, the board has now concluded that it is required to take the necessary steps to preserve value for creditors."
The board has resolved to appoint Arvindar Jit Singh and Raj Mittal, both of FRP Advisory Trading Ltd, Birmingham, as joint administrators to Trackwise Designs.
Trackwise says the likely outcome for creditors of the company is currently unknown and it is not expected that the appointment of the joint administrators will enable there to be any return to the shareholders of Trackwise. Stevenage Circuits Ltd (SCL).
It added: "This announcement does not affect Stevenage Circuits Ltd which is not in administration. Further to the announcement of 3 May 2023 of the SCL sale process, initial offers have been received and are being assessed. "
Andrew Lapping, chair of Trackwise, said: "I am truly sorry that the strategy set out for Trackwise in December has failed to produce the hoped for result. Chris Pennison and I joined the board in January in the knowledge that the £4.8m fundraise only gave the company a limited cash runway and would therefore require positive commercial progress in H1 2023.
"Our short-term strategy was dependent on securing a nomination from a Tier 1 for automotive OEM B, a project that has been worked on for at least 12 months. A decision on this was originally expected in Q1 or in April but in the event, a final decision was only made in late July.
"If we had won the nomination, it would have allowed Trackwise to seek to raise sufficient funds to take it to the start of production and significant cash flow. Moreover, it would have provided the company with much needed verification, giving our customer pipeline further confidence to trade with Trackwise.
"Confirmation that we had lost out on the nomination was a huge disappointment for everyone. We had expended a huge amount of effort to give us the best possible chance of success. The result of not winning the nomination, particularly after the delay in the award decision, inevitably left our cash runway severely depleted.
"After consultation, and with no obvious source of new funding, there was simply no choice but to put the company up for sale and this action greatly increased creditor pressure. I want to assure all that we have explored all possible routes to raising finance without success.
"It is with personal regret that the strategy set out in December has failed and I can only apologise for the end result."
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