Wheelsure Holdings plc (the “Company”)
Following the Company’s Trading Update announced in July, the Directors of the Company are pleased to update shareholders with further progress as follows:
We continue to receive orders from London Underground for an increasing range of track applications. Orders valued at £100,000 were delivered in the final quarter of our financial year ended 31 August 2014 and, as previously notified, we have now extended our user base within London Underground to include the Jubilee, Northern and Piccadilly lines. A further order valued at just under £19,000 has also been received for a brand new track application and will be delivered in the early autumn. These orders follow considerable development and consultancy work and are for five different track applications including crossings and turnouts.
After a lengthy design and testing process, the Board can also report receipt of our first order for the Docklands Light Railway Metro. This order, from the maintenance company Serco is valued at just under £10,000 is for two track applications widely used in that network.
Additionally, we have initiated a first test application with a third UK track operator in the last two months. This has now progressed to second stage testing.
As previously reported, we have installed 500 Tracksure kits in a DB Netz braking system following the initial order from Siemens AG. This order means we are now formally listed as a supplier to the latter company who have won the tender to supply 36 brake retarders incorporating Tracksure to the Halle region of Germany.
The installed Tracksure braking system kits were formally inspected by senior DB Netz engineering personnel in late August as part of the approval process and are reported as being secure and performing well. The Board remains confident that these exciting developments in Germany will lead to broader approval for all brake systems in this important market is expected before the end of the calendar year.
Following previously reported testing, the Board expects to receive a protocol whereby Tracksure will be specified for use on future production of crossings by the in house manufacturer of RFI, the Italian state rail infrastructure manager. A first order from RFI Central Purchasing for 35 crossings is anticipated.
Continuing orders from manufacturers DT and Del Rio for the private rail operator Ferrovienord are anticipated. Our agent has confirmed that Ferrovienord has specified Tracksure products on orders to DT which we believe will result in further sales.
As part of our ongoing market plans in the USA our prospective partner LB Foster (LBF) has placed a first stock order for Tracksure products. This order will be sold to various USA railroad businesses who have initiated using the Tracksure products. This initial order is expected to generate future royalty income of approximately $40,000 for the Company. The Board believe that this progress will be consolidated and that a formal distributing agreement will be signed with LBF in the future.
In addition to the specific details related above, we continue to develop opportunities previously referred to across a wide range of countries, including Australia & Holland. Tracksure will be exhibiting between 23rd and 26th September at Innotrans, the world’s largest rail exhibition.
The directors of the Company are responsible for the contents of this announcement.
|For further information please contact:|
|Wheelsure Holdings plc|
|Gerhard Dodl||01525 840 557|
|Peterhouse Corporate Finance Limited|
|Duncan Vasey and Mark Anwyl||020 7469 0930|
17 September 2014