Pre-close trading update

RNS Number : 6522R

CAP-XX Limited

07 July 2022

 

7 July 2022

CAP-XX Limited

("CAP-XX" or "the Company")

Pre-close trading update

CAP-XX Limited, a world leader in the design and manufacture of thin, prismatic supercapacitors and energy management systems, announces a trading update in respect of the financial year ended 30 June 2022.

The Company is pleased to announce that revenues and adjusted EBITDA* for the year ended 30 June 2022 are, subject to clearance by CAP-XX's independent auditors, expected to be in line with current market expectations. Product sales are up 39% by value on the previous year and total revenue up 31% on the previous year at A$5.6m.  Adjusted EBITDA* is expected to be a loss of (A$699K), after excluding A$2.4m in legal fees associated with the AVX and Maxwell court cases. EBITDA for FY22 is expected to be a loss of (A$3.1m) when the A$2.4m in legal fees are included.

Both court cases are progressing favourably and the Board, under advice from our lawyers, remains confident of the Company's prospects of securing a favourable outcome. This has enabled the Board  to secure litigation funding  which is expected to be in place to  cover the legal fees in FY23. Legal fees associated with these cases in FY22 were approximately A$2.0m higher than previously forecast as the cases moved closer to resolution and legal fees were incurred sooner than expected.

The Board is encouraged by the outlook for FY23 and beyond and expects to see continued strong growth in product sales. This growth is being driven by increasing customer demand for DMF and DMT products, cylindrical supercapacitors and traditional supercapacitor products made in Malaysia. In addition new products, such as LICs together with the expansion of our distribution channels are expected to increase sales.  Commissioning of the DMH line is expected to be completed around the middle of 2023, as time and resources allow, and subject to customer demand.

Cash reserves as at the end of June 2022 were approximately A$1.6m

The Company's results for the year ended 30 June 2022 are expected to be released on 29 September 2022.

* Adjusted EBITDA excludes the Company's legal expenses associated with its patent infringement actions.

For further information contact:

CAP-XX Limited Anthony Kongats (CEO)	[phone]
Kreab (Financial PR) Robert Speed	[phone]
Allenby Capital (Nominated Adviser and Joint Broker) David Hart / Alex Brearley (Corporate Finance) Tony Quirke (Sales and Corporate Broking)	[phone]
Cenkos Securities plc (Joint Broker) Neil McDonald / Pete Lynch	[phone]

More information is available at www.cap-xx.com

Notes to Editors:

CAP-XX (LSE: CPX) is a world leader in the design and manufacture of thin, flat supercapacitors and energy management systems used in portable and small-scale electronic devices, and to an increasing extent, in larger applications such as automotive and renewable energy. The unique feature of CAP-XX supercapacitors is their very high power density and high energy storage capacity in a space-efficient prismatic package. These attributes are essential in power-hungry consumer and industrial electronics, and deliver similar benefits in automotive and other transportation applications. For more information about CAP-XX, visit www.cap-xx.com

 

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