CAP-XX makes 'excellent progress' ahead of year-end

Supercapacitor designer and manufacturer CAP-XX updated the market on its trading for the year to 30 June on Wednesday, reporting that it continued to make “excellent progress” in advancing negotiations on new licensing agreements and high value customer contracts for its range of supercapacitors.

The AIM-traded company said its existing licensees, AVX and Murata, continued to perform strongly.

AVX paid £0.75m of licence fees due to CAP-XX ahead of schedule under existing agreements, whilst the royalty payments from Murata continued to increase, with the last quarterly royalty payment being the highest ever - up by over 50% compared to the same period in the prior year.

The company said it continued to develop and expand its licensing and new business opportunities.

“The board noted in the interim statement on 20 March that they expected to finalise additional licence and sales opportunities by 30 June,” the CAP-XX board said in a statement.

“Whilst the board remains very confident that new licence deals and sales opportunities will be realised in the next few months, it now believes that certain of these licence opportunities may not be completed prior to the end of the current financial year.”

As a result of those delays, the board said it now expected that revenues for the year ending 30 June would be AUD 4.11m and as a result, the EBITDA loss generated by company for the year would be AUD 1.15m.

“The company has adequate cash resources to meet its foreseeable needs and the board is increasingly confident of a successful conversion of the growing pipeline of high value enquiries received for licensing and manufactured products.”