The hi-tech speaker company behind super-thin headphones that sell for up to £45,000 has struck a deal to supply its products to one of the world’s top luxury vehicle manufacturers. Warwick Acoustics has signed the contract to supply its super-lightweight speakers to what it says is a “global top 10 luxury manufacturer”
Management said the deal, and the car company it has been struck with, are still top secret – but luxury manufacturers are typically seen as those that build cars which retail for $80,000 (£64,000) and upwards. All they would say was that the contract, running over several years, was a “major milestone” for the growing business.
Warwick Acoustics works out of the MIRA Technology Park – an R&D base for some of the biggest automotive companies in the world – which is based just off the A5, near Hinckley, in west Leicestershire.
Its lightweight speakers are an environmentally friendly, compact, though costly alternative to traditional magnetic speakers used in headphones and car stereo systems. Their design means they can be just 1cm thick, ultra-light – weighing 30g rather than 300g – can be cut in any shape, and are directional.
Chief executive Dr Mike Grant told BusinessLive the company had doubled its headcount to 40 in the last year and the new contract would add even more staff to the payroll. He said details of the client would be revealed in the coming months.
Dr Gant said: “We see it very much as a major milestone on the road that we are travelling on. Because of some regulatory requirements we’re not talking about who it is or the scale of the contract, but I am very happy about what’s in place. In about 18 months you will know exactly who it is.
“If you look at some of the premium audio systems out there at the moment there is a mass of complexity, and what we can provide is both consolidation and efficiency and provide premium customers with what they are looking for.”
He said in the last couple of years the business had been able to bring the overall width of the speakers down to around 1.4-times that of the equivalent traditional speaker.
He said: “Our headphones and automotive work sit very much side-by-side and there has been a very good market reaction. Independent commentators, sound engineers and musicians will tell you the headphones are the best in the world bar none. The audio production is just phenomenal.
“We have five different headphone products out there right now and others in the pipeline, starting at £5,000, with the most expensive costing £45,000 – this is not a mass market product but the best of the best.
“This is the first announcement of our technology going into serious production as part of a vehicle programme. We do have some other OEMs [original equipment manufacturer] under contract, so it’s fair to say we have a very strong pipeline and significant interest.”
The deal was announced in a statement from Mercia Asset Management, which has a 40.3 per cent stake in the business.
It said the contract will initially be for two vehicle programs and would see a significant expansion of Warwick Acoustics' design, development and manufacturing capabilities.
It said the tech gives drivers an “outstanding audiophile experience”, while manufacturers would benefit from an audio system that was significantly lighter in weight than traditional technology.
It said Warwick Acoustics' ElectroAcoustic panels also use less energy, do not require rare earth materials and can be easily recycled at the end of a vehicle's life – key attributes as the automotive industry moves to electric vehicles and increases its focus on environmental sustainability.
Mercia Asset Management chief executive Mark Payton said: “Warwick Acoustics has already secured development contracts from five global automotive OEMs, but this landmark achievement represents the first transition of these into a commercial production agreement, following extensive evaluation and testing.
"We first backed this University of Warwick spinout through our managed funds in 2009, as it sought to develop high-end headphones that have received global recognition and are sold worldwide.
“We first invested from our balance sheet in 2014 and have supported Warwick Acoustics as it resolved numerous technical and manufacturing challenges to reach the position they are in today – ready to revolutionise the passenger acoustic experience in high-end, sustainable vehicles."
