Interim Results
September 03 2003 - 3:03AM
UK Regulatory
RNS Number:3196P
Transense Technologies PLC
03 September 2003
Date: 3rd September 2003
On behalf of: Transense Technologies plc ("Transense" or "the Company")
Embargoed until: 0700hrs
Transense Technologies plc
Interim Results for the six months ended 30 June 2003
Chairman's Statement
The first half-year of 2003 has been a period of stability and consolidation for
Transense after the world uncertainties of 2001/2. The improvement in six-month
turnover from #37,000 in 2002 to #180,000 in 2003 was comprised primarily of
contributions from our licensees for our technical support and also includes a
first, albeit very small, contribution from royalties resulting from our tyre
pressure monitoring system technology (TPMS). Our costs for the year are under
strict control and will be in line with budget.
I am pleased to say that the thorough testing being carried out on TPMS is
proving our technology to be very robust and reliable and your Directors are
still of the opinion that it continues to demonstrate itself to be the leading
non-battery system available.
It came as no surprise to us on 6 August that a Federal Court in America ruled
the use of an ABS-based indirect TPMS to be unsafe. This overturned the National
Highways Traffic Safety Administration (NHTSA) decision that indirect should be
used alongside direct interrogation methods. It is now expected that NHTSA will
issue a new rule by next Spring requiring only direct monitoring. Although
using the ABS to "deduce" tyre pressure was potentially cheaper than existing
direct systems, we did not view this as a threat since it only worked when tyre
pressures were well below the recommended safety levels and not at all at
certain speeds.
The major push forward for TPMS starts in November this year when it will be
obligatory in America for certain categories of new vehicles such as passenger
cars to start using pressure warning systems. Undoubtedly, larger commercial
vehicles, which are outside current legislation, will also fall into line
because of those safety and operating costs associated with tyre blowouts. The
first of these systems, which is already in the market place, is battery
operated. We feel the Transense TPMS still gives us a major edge over these
competing products.
The Company also continues to make steady progress in other areas such as
electric power steering and has recently developed and patented a new SAW
device, which will extend our patents in this area for a further 20 years. Our
licensees are still on target for systems incorporating our technology to go
into production in 2005.
Although negotiations with a number of new potential licensees are going well
and we hope to announce further agreements this year, progress has been somewhat
slower than anticipated, due mainly to world market conditions. As a result,
investors were naturally beginning to question whether we would have need of
further funds - before products using our technology would reach the market
place and the expected royalty streams start to flow.
We still have over #1 million on deposit, but it would be imprudent of your
Directors to let matters reach a stage where we had no alternative but to ask
shareholders for further funds. To reassure our investors and the market
therefore, we announced last week that we have raised #1.23 million net of
expenses through a placing of approximately 2.5 million new ordinary shares of
which 1.5 million were placed with First State Investments, a new shareholder,
and the balance with two of our existing investment institutions. The placing,
at 50p per share was at a 6% premium to the then market price. Given earlier
market turbulence and share price movements this is a satisfactory conclusion
leaving us well placed for the medium term.
Peter Woods
Chairman
3rd September 2003
Enquiries:
James Perry, Chief Executive Tel: 01869 238 380
Transense Technologies plc
Emma Kane Tel: 020 7955 1410
Redleaf Communications Ltd
Notes to Editors:
* Transense was founded in 1991 and its shares were listed on AIM in 1999;
* Transense's technology is divided into two business streams: Torque
measurement and Pressure measurement;
* Current licensees of Transense's technology include SmarTire, Michelin,
Honeywell and TT electronics;
* Further information on Transense is available at the Company's website at
www.transense.co.uk
CONSOLIDATED PROFIT & LOSS ACCOUNT
For the six months to 30 June 2003
6 months to 6 months to
30 June 2003 30 June 2002
#'000 #'000
Turnover 180 37
Cost of Sales (29) (21)
Gross profit 151 16
Administration expenses (916) (678)
Operating Loss (765) (662)
Interest income 26 56
Loss on ordinary activities before taxation (739) (606)
Taxation 0 0
Loss on ordinary activities after taxation (739) (606)
Minority interest 6 6
Loss on ordinary activities after minority interest (733) (600)
Dividends 0 0
Loss per share: Basic (1.4p) (1.2p)
Fully diluted (1.4p) (1.1p)
CONSOLIDATED BALANCE SHEET
at 30 June 2003
30 June 31 December
2003 2002
#'000 #'000 #'000 #'000
Fixed Assets 1,516 1,433
Current assets: Debtors 94 269
Investments 34 51
Cash 1,205 1,850
1,333 2,170
Current liabilities: Creditors 125 125
Accruals 35 50
160 175
Net Current assets 1,173 1,995
Net assets 2,689 3,428
Capital & reserves: Share capital 5,066 5,066
Share premium 2,363 2,363
Profit & Loss account (4,718) (3,985)
Shareholders' funds 2,711 3,444
Minority interest (22) (16)
2,689 3,428
CONSOLIDATED CASH FLOW STATEMENT
For the six months to 30 June 2003
6 months to 6 months to
30 June 2003 30 June 2002
#'000 #'000
Net cash outflow from operating activities (621) (531)
Returns on investments and servicing of finance 26 56
Corporation tax received 52 20
Capital expenditure and financial investment (152) (218)
Cash outflow before financing (695) (673)
Financing
Issue of new ordinary shares 50 0
Decrease in cash in the period (645) (673)
Reconciliation of operating loss to net cash outflow from
operating activities
Operating loss (765) (662)
Depreciation, amortisation 69 40
Impairment in value of investment 17 0
Decrease in debtors 73 62
Decrease/increase in creditors (15) 29
(621) (531)
Reconciliation of net cash flow to movement in net debt
Decrease in cash in the period (645) (673)
Decrease in value of current asset investment (17) 0
Movement in net funds in the period (662) (673)
Net funds at 1 January 1,901 3,177
Net funds at 30 June 1,239 2,504
Analysis of net funds
Liquid Cash Current asset Total
resources Investments
#000 #000 #000 #000
At 1 January 2003 1,700 150 51 1,901
Cash flow (600) (45) (645)
Non cash charges (17) (17)
At 30 June 2003 1,100 105 34 1,239
This information is provided by RNS
The company news service from the London Stock Exchange
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