Just a month after it revealed it had landed a £600,000 contract related to electric cars the same Tewkesbury firm has expanded with a near £2.5 million acquisition.

Trackwise Designs plc said it had taken over Stevenage Circuits Ltd (SCL) in a £2.457 million deal, adding it had raised £5.87 million through a new share placement.

Trackwise described SCL as a UK-based designer and manufacturer of short flex and rigid printed circuit boards which for the year ended September 30, 2019, achieved revenue of £6.5m and made profits before tax of £360,000.

Philip Johnston, CEO of Trackwise, said: "We are pleased by the significant support shown by existing and new investors.

"The acquisition of SCL extends our manufacturing capabilities, providing us with the capacity to deliver IHT series production, while diversifying our revenue streams and customer base.

"The SCL team brings additional depth to our technical, sales and operational expertise and we look forward to welcoming them to Trackwise.

"With a broader platform from which to capitalise on the growing market awareness of IHT and an expanded team and customer base, we look to the future with confidence."

According to the firm the acquisition "adds further manufacturing capacity to enable the demand-led ramp up of the company's Improved Harness Technology (patented flexible circuit board technology) production, as well as customers and technical, sales and operational expertise.

Proceeds from the sale of shares will also help fund "additional capacity and capability and the provision of growth working capital to include the continued development of the Company's IP and know-how".

"The Acquisition is expected to be immediately earnings enhancing, and strengthens the Company's cash generative revenue streams," said a statement from the Gloucestershire business.

Trackwise floated on the London AIM market in July 2018. In April 2019 it reported a 23 per cent increase in revenues.

The company is 30 years old and based at the Ashchurch trading estate near to the M5 Motorway.

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