The
information contained within this announcement is deemed by the
Company to constitute inside information pursuant to Article 7 of
EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as
amended.
19 February 2024
Transense Technologies
plc
("Transense" or the "Company")
Interim Results &
Investor Presentation
Transense Technologies plc, the
provider of specialist sensor technology and measurement systems,
reports its unaudited Interim Results for the six months ended 31
December 2023 ("the Period").
The Interim Results demonstrate
further progress in the Period despite challenging economic
conditions. Increasing momentum in commercialisation at
SAWsense and opportunities for Translogik to enter new market
sectors more than justify the planned increase in investment in
business development and engineering recruitment in the second half
of the year.
Financial Highlights:
• Revenue increased by 10% to £1.81m (FY23 H1:
£1.64m)
• Operating expenses in H1 reduced by 18% to £0.97m (FY23 H1:
£1.18m)
• EBITDA
more than doubled to £0.74m (FY23 H1: £0.36m)
• Profit before taxation up 146% to £0.63m (FY23 H1:
£0.26m)
• Earnings per share up 73% to 4.32 pence (FY23 H1: 2.50
pence)
• Net
cash at 31 December 2023 of £1.31m (30 June 2023: £0.98m); cash at
31 January 2024 increased further to £1.91m
Translogik Highlights:
· Continuing demand from established sales channel
partners
· New
business development activity (including post-Period) is generating
a new pipeline of opportunities for FY25
· Engagement with 2 new tyre manufacturers, 5 new tyre and
maintenance management software providers, 2 major UK tyre service
centre groups and several large UK based fleet operators to create
new sales channels
· A
number of product demonstrations have been carried out, strong
interest in the product and immediate recognition of the benefits
of accurate, rapid, digital capture of tyre inspection
data
SAWsense Highlights:
• SAW
development projects now on contract with record number of
high-quality customers; eight active development programs,
including four in aerospace, two in automotive edrives, and one in
robotics
• Gaining strong traction in aerospace sector across multiple
applications, measuring torque, force and temperature in engines,
control surfaces, landing gear and gearboxes with a broader base of
customers
• Increased business potential with GE across three running
projects (T901, HEAT and RISE) and new project opportunities to
provide additional engineering support and components
• Further progress made demonstrating benefits in electric drive
systems; patent applications underway
• Healthy continued pipeline of potential SAW customers,
increasing further to 58 at February 2024 (Feb 2023: 40), with 9
progressed to funded projects or production (Feb 2023:
7)
Commenting on the results and prospects, Executive Chairman of
Transense, Nigel Rogers, said:
"The Company has continued to make progress in the Period,
increasing revenue by 10% and net profit before taxation by
146%. Revenue visibility is now much clearer for Bridgestone
iTrack, and the increasing pipeline activity at Translogik is
expected to provide a clear growth trajectory. Visibility of
SAWsense revenue is also beginning to improve as the customer base
expands and programmes mature, and the
concentration risk is reducing.
"The Board considers it appropriate to proceed with planned
increases in overhead in the second half of the year to ensure that
the generation and delivery of planned revenue growth is
properly resourced. Pipeline activity across
both Translogik and SAWsense provides confidence that this is
deliverable in coming months, although there is an inherent element
of timing risk. Accordingly, whilst it is appropriate to
manage a modest reduction in short
term profit expectations due to the carry-over of this investment cost into the
following financial year, the Board believes the Company is
increasingly well positioned to deliver medium and long term
growth."
Investor Presentation: 4pm today, Monday 19 February
2024
Nigel Rogers (Executive Chairman),
Melvyn Segal (Chief Financial Officer) and
Ryan Maughan (Business Development Director) will provide a
presentation on the Company and its Interim Results at 4pm today,
Monday 19 February 2024. The presentation will be hosted through
the digital platform Investor Meet Company.
To attend the presentation,
investors can sign up to Investor Meet Company for free and select
to meet Transense Technologies plc via the following link:
https://www.investormeetcompany.com/transense-technologies-plc/register-investor.
Investors who have already registered and selected
to meet the Company will automatically be invited to the
presentation.
Questions can be submitted before
the event to transense@walbrookpr.com,
or in real time during the presentation via the
"Ask a Question" function.
This Interim Results report will not
be posted to shareholders but will be available on the Company's
website later today along with the investor
presentation.
For further information please
visit www.transense.com or contact:
Transense Technologies plc
Nigel Rogers (Executive
Chairman)
Melvyn Segal (CFO)
Ryan Maughan (Business Development
Director)
|
Via
Walbrook PR
|
Allenby Capital (Nominated Adviser
and Broker)
Jeremy Porter/George Payne (Corporate
Finance)
Stefano Aquilino/Tony Quirke (Sales
and Corporate Broking)
|
Tel: +44
(0)20 3328 5656
|
Walbrook PR
Tom Cooper/Nick Rome/Joe
Walker
|
Tel: +44
(0)20 7933 8780
Transense@walbrookpr.com
|
Notes to Editors:
Transense is a developer of
specialist sensor technology and measurement systems. The
Company has two active business divisions:
· Translogik a range of smart, connected tyre inspection and
management equipment, used by leading tyre manufacturers, dealers
and fleet operators to reduce costs and improve safety; and
· SAWsense, developing Surface Acoustic Wave (SAW) sensor
technology, to improve performance, reliability and efficiency in
focus markets of aerospace, automotive, robotics and industrial
machinery.
In addition, the Company earns
residual royalty income from Bridgestone iTrack (new branding name
for iTrack), a tyre condition and performance monitoring system,
that was developed by Translogik and subsequently licensed to
Bridgestone Corporation for a ten year period in 2020, expiring in
2030.
The Group's strategy is to maximise
shareholder value through the delivery of sustained revenue growth
from its business divisions by leveraging excellence in innovation
and know-how to commercialise technologies through industry
partnerships and exposure to global growth markets.
Transense is headquartered in
Oxfordshire, UK, and was admitted to trading on AIM, a market
operated by the London Stock Exchange (AIM: TRT), in 1999.
www.transense.com
For further information please
contact transense@walbrookpr.com.
Transense Technologies plc - Interim
Results for the six months ended 31 December 2023 (the
"Period")
Chairman's statement
The Company has continued to make progress in the
Period, increasing revenue by 10% and net profit before taxation by
146%.
Planned investment in sales and
marketing activity at Translogik is opening new market channels, which underpin the expectation of shorter term
revenue
acceleration and strong
potential for significant long-term business
growth.
There is an increasing momentum
of commercial enquiries and contracted business in SAWsense with high quality
global customers, although challenging economic
conditions and technical delays
unrelated to SAW technology have
resulted
in some slippage in revenue generation in the
Period.
Business strategy
The business strategy of the Company
is to develop and supply innovative sensing technology and measurement solutions
through its two trading divisions:
· Translogik: tyre inspection and data capture tools for
commercial vehicle fleets, tyre manufacturers and vehicle service
centre markets; and
· SAWSense: torque,
temperature, pressure and force sensing using SAW technology in
aerospace, electric drive systems,
machinery & robotics and
motorsport
markets
Commercial revenue is generated
through the supply of products, components and
engineering services to
customers. Value is realised through a combination of commercial
revenue, royalties, licensing
income and capital gains on
disposals.
The Board's mid-term financial plans for 2023-28 expect a compound annual
growth rate (CAGR) of around
15% per annum in
the
Bridgestone iTrack
installed base, increased
funded development work at SAWsense to secure financial
self-sufficiency, and annual step changes in
Translogik revenues as the primary driver
of the Company's top line
growth.
Business review
Royalty
income - Bridgestone
iTrack
Royalty income
from Bridgestone iTrack for the
Period amounted
to £1.23m, which represented an
increase of 27% compared with the equivalent period last
year (FY23 H1: £0.97m). During the Period,
the annualised royalty
run rate in pound sterling terms increased by 10%,
to reach £2.58m per annum
(30 June 2023:
£2.34m).
This rate of increase is consistent with the
CAGR target in the Company's
mid-term
plan.
Translogik
Inspection and Management Tools
Revenue from the Translogik range of
smart, connected tyre inspection and management
tools, derived from established channel partners,
was marginally lower than the prior
year's record level at £0.49m (FY23 H1: £0.52m).
As set out in the mid-term financial
plan, Translogik continues to be viewed by the Board as the primary
driver of revenue growth for the period 2023-28. There were
two key appointments on 1 January 2024: a dedicated sales director
for Translogik and a marketing executive covering both Translogik
and SAWsense. This has had an immediate impact on the profile
and sales pipeline of the business.
There are many opportunities to
expand revenue from current channels, where we are addressing gaps
in take up across their worldwide networks.
In addition to expanding existing
channels, there are plans to
develop new customers and trading partners in direct sales to
fleets, tyre service organisations, the emergency vehicle sector
and working in conjunction with or partnering fleet software
providers. There will also be deeper
market penetration through improved sales and marketing driving
market awareness of the Company and product range, and one
immediate example of this is our new association with TyreSafe, the
UK's leading authority on tyre safety.
There is a high level of engagement
with some large potential customers, including
some which have successfully tested Translogik products in fleet audits and
trial activities. Unlike SAW technology, Translogik
offers solutions that are used in the automotive aftermarket
virtually 'out of the box', subject to integration with the channel partners
software. This
substantially reduces lead times into
adoption which are
typically measured in months.
It is anticipated
that some successes will become evident in the second half of the
year, although the full benefits and visibility of a healthy
pipeline will extend into FY25.
In addition to direct sales
activity, we are rebranding and rationalising
the current model range,
accelerating marketing programmes, collaborating with software providers and
developing a
subscription model to generate recurring revenue
streams.
SAWsense
Revenue
for the Period was £0.08m
compared with £0.14m in FY23 H1. This
small reduction
in revenue does not reflect the substantial
progress made in building the SAWsense pipeline.
Revenue was constrained primarily by two
factors: delays in
introduction of a new
powertrain in one motorsport championship, unconnected to
either Transense or our partner, McLaren Applied, and extended decision
processes in
research and development spending commitments across the corporate sector.
At the same time, pre-revenue engagement with both
existing and potential new customers, has grown
beyond
the Board's expectations.
The pipeline of
potential customers and partners has increased further and now stands at 58, of
which a record number of nine are
now on contract to provide funded services
compared with two at the
beginning of
2022.
SAWsense's activities are focused on
four key target market sectors:
Aerospace
The aerospace
market is the
most advanced sector for SAWSense when viewed in the context of
recognition of the benefits
that SAW technology can
offer. As a result,
the business now has a record number of projects
running and new opportunities in a range of
applications and customers
covering
VTOL and fixed wing
aircraft, military and commercial, and for potential uses in
engine, propulsion systems, actuation
and landing gear.
SAW technology offers a
competitive advantage over other
technologies due to its accuracy, robustness and compact size and
weight, enabling improved efficiency, safety,
control and reliability.
Aerospace programmes typically
involve a development lead time to production revenue of seven to ten
years, and
during this period the selected suppliers have the benefit of certainty of
specification and the potential to generate substantial revenue
through the supply of engineering services,
and development and testing of
prototypes. Investments in additional engineering
capacity now allows Transense an opportunity to
participate and support
pre-production engineering
programmes.
Having a spread of
programmes
and customers also allows the Company to offset the risk associated with one
project or customer not
delivering to expectations.
Under the non-exclusive licence
agreed in 2016, GE Aviation is now building T901 engines in
low volume pilot quantities for
flight testing. Transense
will earn royalty income on a per engine basis, which is
currently expected to exceed
US$100,000 per annum by
2027/28. In addition to royalty income,
there are new opportunities under
discussion for Transense to provide engineering and production support services which would enhance revenue
potential.
Transense is continuing to support two
further development
programmes with GE: the Hybrid Electric
Altitude Testbed flight demonstrator (HEAT) and
GE/CFM Revolutionary Innovation for
Sustainable Engines (RISE), although there have been delays not connected to Transense such that revenue earning activity has not yet commenced.
At the end of the Period, on 31
December 2023, the Memorandum of Understanding
("MoU") with Parker Meggitt expired. It had been
the mutual intention to implement
a commercial licence,
however,
Parker Meggitt was unable to progress suitable opportunities within the agreed
timescale. Meanwhile,
Transense independently achieved substantial
market engagement with a number of other leading companies in the aerospace
sector. The
Company continues to see Parker Meggitt as a valuable potential
partner, both on existing programmes and in the generation of new
business.
The Board anticipates more newsflow
in the second half in this sector, as terms have been agreed and
the contract is in the final stages of signoff for a significant
project with a new Aerospace partner, and management is in advanced
negotiations elsewhere.
Electric motors and drives ("EMD")
The electric motor and drive systems
market is a large and rapidly growing sector due to the widespread
electrification of vehicles and the desire to improve range and
performance.
In order to progress the potential
amongst a growing list of major target customers in this
sector, Transense has commissioned a leading engineering
consultancy to carry out live trials on a demonstration test rig to validate the simulation data previously
generated. This data provided good evidence of the benefits of using real time
actual torque in the motor
control loop in place of traditional torque
estimation methods. These trials will be
completed during the second half of the Company's
financial year, and will underpin the
expansion of the intellectual
property portfolio and the
development of commercial opportunities.
Transense continues to work with
two Tier 1 suppliers on technical
feasibility and demonstration projects for torque and temperature
sensing in electric motors. These
projects are progressing well and have the potential to expand into
larger programmes
of work. We have other opportunities under discussion at an
earlier stage which
will progress in the second half of the financial
year.
Industrial machinery
Industrial machinery covers a huge
range of applications from off-highway construction and
agricultural equipment to manufacturing and warehouse robots.
Torque and force sensing is already used today in some industrial
machinery applications such as collaborative
robots and agricultural machinery. The demand to improve machine performance and increase
automation is leading to requirements for more capable sensing
systems not possible with conventional sensing technology. SAW
technology can create robust and reliable smart
components with improved sensing functionality that can be
integrated into advanced machines and systems to provide highly
accurate sensing.
It is perhaps within this
sector that economic headwinds
have been most noticeable, characterised by constraints with
research and
development
budgets, and reluctance to commit to development project work
already agreed in principle. This has not affected the overall
level of engagement, however the Company's
resources have been concentrated towards other
sectors where decision making has been less adversely affected.
More recently, and post-Period,
the Company received
an order for a
technical feasibility
project with a
new customer, which is a leading global manufacturer of motor-drive
systems for industrial
robots.
This is an application for which
the Board considers SAW to offer several key
advantages.
Motorsport
Revenue under the five-year joint
collaborative agreement (JCA) with McLaren Applied in premium motor
sport, signed in September 2021, has been a major element of
ongoing income for SAWsense in recent years, but reduced in the
Period. This was attributable to non-SAW related delays in
the implementation of a new hybrid engine into the IndyCar series,
which was expected to be shipped in the Period but is now scheduled
for the second half of this financial year at best, and possibly
not until next financial year. SAW sensors are
specified on the new engine but cannot be supplied until it is
approved for use.
Despite this short term setback,
McLaren Applied have indicated their expectation that SAW sensing
will be a significant element of their growth strategy in premium
motorsport, both through race organisations as a balance of
performance tool, and for performance improvement by racing teams
across multiple series. McLaren Applied are actively working on a
number of opportunities and new programmes, although it is of note
that we do not split these down in our pipeline, treating all
opportunities with McLaren Applied as one of the 58 active
engagements.
Financial review
Financial results
Revenues for the six months
increased by 10% to £1.81m (FY23 H1: £1.64m), with a 27% increase
in Bridgestone iTrack royalty and a small reduction in revenues
from SAWsense and Translogik. Overall gross margin increased to 88%
of revenue (FY23 H1:
86%).
Operating expenses in the
Period reduced by 18% to £0.97m
(FY23 H1: £1.18m). This was in
part attributable to the benefits of the reorganisation in the
second half of the financial year 2023, augmented by the
capitalisation of SAWsense
development costs of
approximately £0.11m into intangible assets. In view of the confidence level in
prospects across both SAWsense and Translogik, additional costs
have been approved for the second half of the year
including the recruitment of the Sales Director at Translogik, marketing and
administrative support and three senior engineers
at
SAWsense.
EBITDA doubled
to £0.74m
(FY23 H1: £0.36m), and net profit before taxation was £0.63m (FY23 H1: £0.26m). After recognition of deferred tax,
the net profit after taxation attributable to shareholders was
£0.67m (FY23
H1: £0.40m) and
earnings per share increased 73%
to 4.32 pence
(FY23 H1: 2.50
pence).
Key performance indicators
(KPI)
The Board considers the following to
be the key performance indicators for the
Company:
|
FY
2024
|
FY
2023
|
|
Interim
(unaudited)
|
Interim
(unaudited)
|
Full
Year
(audited)
|
Revenue (£m)
|
1.81
|
1.64
|
3.53
|
Bridgestone iTrack royalty run rate
growth YoY (in USD)
|
36%
|
15%
|
30%
|
Translogik probe revenue growth
YoY
|
(6%)
|
11%
|
17%
|
SAW revenue growth YoY
|
(43%)
|
100%
|
146%
|
EBITDA (£m)
|
0.74
|
0.36
|
1.39
|
EPS (pence)
|
4.32
|
2.50
|
8.81
|
Available cash balances
(£m)
|
1.31
|
0.63
|
1.17
|
Distributable reserves
(£m)
|
2.80
|
1.45
|
2.19
|
Average share price in period
(pence)
|
98.2
|
72.9
|
79.6
|
Cash flow and financial
position
Net cash inflow from operating
activities before movements in working capital amounted to
£0.79m (FY23
H1: £0.42m). The Company continued to fund the repurchase of treasury
shares amounting to £0.07m
during the Period (FY23 H1:
£0.15m).
Net cash balances at the end of the
Period stood at £1.31m (30 June 2023: £0.98m). The net cash balance at
31 January
2024
increased to £1.91m, which
reflects the post Period
collection of receivables (including Bridgestone iTrack royalties
for the final quarter of
calendar year 2023).
The Board has assessed the financial
and operational needs of the business over the next twelve
months, taking into account a
range of contingencies, and the Directors are satisfied that the Company has access to adequate
sources of finance. Accordingly, the Board considers that the
Company will have sufficient resources to continue in operational
existence for the foreseeable future, and has adopted the going
concern basis of
accounting.
Capital allocation and distribution policy
The Company's share price over
the Period rose
from 86.5p on 1 July
2023 to a peak of 115.5p on 29 September 2023 and closed the Period on 31 December
2023 at 103.5p. The
most recent share price as at 16 February 2024 stood at
102.5p.
Capital is allocated by the Board
with the aim of maximising long term shareholder returns. Profits generated
from Bridgestone
iTrack and Translogik are first applied to meet
the Company's unallocated
overhead expenses and net investment in the continuing development
of SAWsense. It is anticipated
that a surplus will be generated from these trading activities,
which will be allocated to the
retention of earnings in the business for long
term investment, and for distribution to
shareholders.
In April 2022, the Company commenced a share buyback programme and at the beginning of the current
financial year the Company held 895,536 shares which were purchased
at an average cost of 79
pence per share.
In the Period
a further 67,500 shares were purchased at an average price of
99 pence per
share, resulting in the Company
holding 962,856 treasury
shares at an average price of 80
pence per share at the Period
end.
The Board has authority from
shareholders to continue the programme to acquire
up to approximately 1.5m shares for treasury to continue to
offset the dilutive impact of share
awards to Directors and employees in due course, and
where market conditions deem such action to be
appropriate.
The Board also keeps the commencement of payment
of dividends under regular
review.
Current trading and outlook
The Board's expectations
for revenue in the current
financial year were
heavily weighted towards the second half of the
year. Historically, forecasting has been
challenging due to the
early stage of adoption of technology, and the concentration of
revenue generation from a relatively narrow
customer base. Revenue
visibility is now much clearer
for Bridgestone iTrack, and the increasing pipeline
activity at Translogik
is expected to provide
a clear growth
trajectory. Visibility of SAWsense revenue is also beginning to
improve as the
customer base expands and programmes mature,
and the concentration risk is reducing.
The current year market expectation was initially set two years ago and
has been maintained despite subsequent recognition of a slower growth
rate from the Bridgestone iTrack royalty.
Earnings in the first half of the year are in line
with expectations on slower revenue growth, partly due to
a temporary reduction in
overheads.
The Board considers
it appropriate to proceed with
planned increases in overhead in the second half of the year
to ensure that
the generation and delivery of planned revenue growth is properly
resourced. Pipeline activity across both Translogik and SAWsense
provides
confidence that this is
deliverable in coming months,
although there
is an inherent element of
timing risk.
Accordingly, whilst it is appropriate to manage a modest reduction in
short term profit expectations
due to the carry-over of this investment cost
into the following financial
year,
the Board
believes the Company is increasingly well positioned to deliver medium
and long term growth.
Nigel Rogers
Executive Chairman
19 February 2024
Transense Technologies plc
|
|
|
|
|
Condensed Statement of Comprehensive
Income
|
|
|
|
|
|
|
|
|
Half year
to
|
|
Half year
to
|
|
Full year
to
|
|
|
31 Dec
23
|
|
31 Dec
22
|
|
30 Jun
23
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
|
£'000
|
|
£'000
|
|
£'000
|
Continuing operations
|
|
|
|
|
|
Revenue
|
|
1,805
|
|
1,638
|
|
3,529
|
Cost of sales
|
|
(224)
|
|
(227)
|
|
(474)
|
Gross profit
|
|
1,581
|
|
1,411
|
|
3,055
|
Administrative expenses
|
(965)
|
|
(1,180)
|
|
(2,086)
|
Exceptional administrative
expenses
|
-
|
|
-
|
|
(220)
|
|
|
|
|
|
|
Operating profit
|
|
616
|
|
231
|
|
749
|
Net Financial income
|
|
11
|
|
2
|
|
4
|
Other income
|
|
5
|
|
24
|
|
113
|
Profit before taxation
|
632
|
|
257
|
|
866
|
Taxation
|
|
38
|
|
142
|
|
530
|
Profit for the period
|
670
|
|
399
|
|
1,396
|
|
|
|
|
|
|
|
| |
Earnings per share (pence)
|
4.32
|
|
2.50
|
|
8.81
|
Transense Technologies plc
|
|
|
|
|
|
Condensed Statement of Financial
Position
|
|
|
|
|
|
|
|
|
|
|
31 Dec
23
|
|
31 Dec
22
|
|
30 Jun
23
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
|
£'000
|
|
£'000
|
|
£'000
|
Non current assets
|
|
|
|
|
|
Property, plant and
equipment
|
183
|
|
159
|
|
154
|
Intangible assets
|
|
842
|
|
645
|
|
731
|
Deferred tax
|
|
1,213
|
|
787
|
|
1,175
|
|
|
2,238
|
|
1,591
|
|
2,060
|
Current assets
|
|
|
|
|
|
|
Inventories
|
262
|
|
315
|
|
260
|
Trade and other
receivables
|
1,305
|
|
1,300
|
|
1,263
|
Cash and cash equivalents
|
1,308
|
|
625
|
|
978
|
|
|
2,875
|
|
2,240
|
|
2,501
|
Total assets
|
|
5,113
|
|
3,831
|
|
4,561
|
Current liabilities
|
|
|
|
|
|
|
Trade and other payables
|
(264)
|
|
(363)
|
|
(334)
|
Lease liabilities
|
-
|
|
(63)
|
|
(36)
|
Total liabilities
|
|
(264)
|
|
(426)
|
|
(370)
|
Non current liabilities
|
|
|
|
|
|
|
Lease liabilities
|
|
-
|
|
(7)
|
|
-
|
|
|
|
|
|
|
|
Total liabilities
|
|
(264)
|
|
(433)
|
|
(370)
|
|
|
|
|
|
|
|
Net assets
|
|
4,849
|
|
3,398
|
|
4,191
|
Capital and reserves
|
|
|
|
|
|
Share capital
|
|
1,644
|
|
1,644
|
|
1,644
|
Share premium
|
|
65
|
|
65
|
|
65
|
Treasury Shares
|
|
(774)
|
|
(455)
|
|
(708)
|
Share based payments
|
|
342
|
|
239
|
|
288
|
Retained earnings
|
|
3,572
|
|
1,905
|
|
2,902
|
Shareholders' funds
|
4,849
|
|
3,398
|
|
4,191
|
|
|
|
|
|
|
|
|
Transense Technologies plc
|
|
Condensed Statement of Changes in
Equity (Unaudited)
|
|
|
Share
capital
|
Share
premium account
|
Share
based payments
|
Retained
earnings
|
Treasury
Shares
|
Total
equity
|
|
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
|
Balance at 1 July 2022
|
1,644
|
65
|
180
|
1,506
|
(303)
|
3,092
|
|
Comprehensive income for the
year:
|
|
|
|
Profit for the year
|
-
|
-
|
-
|
1,396
|
-
|
1,396
|
|
Share based payment
|
-
|
-
|
108
|
-
|
-
|
108
|
|
Treasury Shares
|
-
|
-
|
-
|
-
|
(405)
|
(405)
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2023
|
1,644
|
65
|
288
|
2,902
|
(708)
|
4,191
|
|
|
|
|
Comprehensive income for the
period
Profit for the period
|
-
|
-
|
-
|
670
|
-
|
670
|
|
Share based payment
|
-
|
-
|
54
|
-
|
-
|
54
|
|
Treasury Shares
|
-
|
-
|
-
|
-
|
(66)
|
(66)
|
|
|
|
|
|
|
|
|
|
Balance at 31 December
2023
|
1,644
|
65
|
342
|
3,572
|
(774)
|
4,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Transense Technologies plc
|
Condensed Statement of Cash
Flows
|
|
|
Half year
to
|
|
Half year
to
|
|
Full year
to
|
|
|
31 Dec
23
|
|
31 Dec
22
|
|
30 Jun
23
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
|
£'000
|
|
£'000
|
|
£'000
|
Cash flow from operating
activities
|
|
|
|
|
|
Profit for the period
|
670
|
|
399
|
|
1,396
|
Adjustments for:
|
|
|
|
|
|
Taxation
|
(38)
|
|
(142)
|
|
(530)
|
Net financial
expense/income
|
(11)
|
|
(2)
|
|
(4)
|
Depreciation of property, plant and
equipment
|
56
|
|
47
|
|
98
|
Amortisation and impairment of
intangible assets
|
60
|
|
58
|
|
112
|
Share based payments
|
54
|
|
59
|
|
108
|
|
|
|
|
|
|
Operating cash flows before movements
in working capital
|
791
|
|
419
|
|
1,180
|
|
|
|
|
|
|
|
Change in receivables
|
(42)
|
|
(167)
|
|
(130)
|
Change in payables
|
(70)
|
|
(197)
|
|
(226)
|
Change in inventories
|
(2)
|
|
(227)
|
|
(172)
|
Net cash generated/(used) in
operations
|
677
|
|
(172)
|
|
652
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
Acquisition of property, plant &
equipment
|
(83)
|
|
(39)
|
|
(85)
|
Acquisition of intangible
assets
|
(173)
|
|
(32)
|
|
(172)
|
Net cash used in investing
activities
|
(256)
|
|
(71)
|
|
(257)
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
Treasury shares
|
(67)
|
|
(152)
|
|
(405)
|
Interest
|
11
|
|
2
|
|
4
|
Payment of lease
liabilities
|
(36)
|
|
(37)
|
|
(71)
|
Net cash used in financing
activities
|
(92)
|
|
(187)
|
|
(472)
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and
cash equivalents
|
330
|
|
(430)
|
|
(77)
|
Cash and cash equivalents at
beginning of period
|
978
|
|
1,055
|
|
1,055
|
Cash and cash equivalents at end of
period
|
1,308
|
|
625
|
|
978
|
|
|
|
|
|
|
|
Notes to the Interim results for the
six months to 31 December 2023
1.
Reporting Entity and Basis of Preparation
Transense Technologies plc ("the
Company") is a company incorporated in the United Kingdom under the
Companies Act 2006. These condensed interim financial statements
are presented in pounds sterling, rounded to the nearest
thousand.
The financial statements of the
Group are available upon request from the Company's registered
office or at www.transense.com
2.
Going Concern
The Board has considered the
financial position and future plans of the Company and is satisfied
that the Company will have adequate resources to continue in
operational existence for the foreseeable future.
Accordingly, these interim financial statements have been prepared
on a going concern basis.
3.
Accounting policies
The Condensed Financial Statements
for the half yearly report for the six months ended 31 December
2023 have been prepared using accounting policies and methods of
computation consistent with those set in Transense Technologies
plc's Annual Report and Financial Statements for the year ended 30
June 2023. There has been no change to any accounting policy
since the date of that report.
4.
Segmental analysis
Revenue by
region
|
Half year
to 31 Dec
23
|
Half year
to 31 Dec 22
|
Full year
to 30 Jun 23
|
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|
£'000
|
£'000
|
£'000
|
North America
|
181
|
219
|
351
|
South America
|
45
|
89
|
143
|
Australia
|
1
|
23
|
32
|
UK
& Europe
|
270
|
275
|
864
|
Rest of the World
|
74
|
57
|
129
|
Royalty Income
|
1,234
|
975
|
2,010
|
Total
|
1,805
|
1,638
|
3,529
|
Half Year to 31 December
2023
|
IT
Royalties
£'000
|
SAWsense
£'000
|
Translogik
£'000
|
Admin
£'000
|
Total
£'000
|
Turnover
|
1,234
|
83
|
488
|
-
|
1,805
|
Gross profit
|
1,234
|
83
|
264
|
-
|
1,581
|
Administrative expenses
|
(22)
|
(466)
|
(70)
|
(407)
|
(965)
|
Operating profit/(loss)
|
1,212
|
(383)
|
194
|
(407)
|
616
|
Other income
|
-
|
5
|
-
|
-
|
5
|
Net financial
income/(expense)
|
-
|
-
|
-
|
11
|
11
|
Taxation
|
-
|
-
|
-
|
38
|
38
|
Profit/(loss) for the
period
|
1,212
|
(378)
|
194
|
(358)
|
670
|
Half Year to 31 December
2022
|
IT
Royalties
£'000
|
SAWsense
£'000
|
Translogik
£'000
|
Admin
£'000
|
Total
£'000
|
Turnover
|
975
|
143
|
520
|
-
|
1,638
|
Gross profit
|
975
|
138
|
298
|
-
|
1,411
|
Administrative expenses
|
(22)
|
(639)
|
(78)
|
(441)
|
(1,180)
|
Operating profit/(loss)
|
953
|
(501)
|
220
|
(441)
|
231
|
Other income
|
-
|
24
|
-
|
-
|
24
|
Net financial
income/(expense)
|
-
|
2
|
-
|
-
|
2
|
Taxation
|
-
|
-
|
-
|
142
|
142
|
Profit/(loss) for the
period
|
953
|
(475)
|
220
|
(299)
|
399
|
Year to 30 June 2023
|
IT
Royalties
£'000
|
SAWsense
£'000
|
Translogik
£'000
|
Unallocated
£'000
|
Total
£'000
|
Turnover
|
2,010
|
492
|
1,027
|
-
|
3,529
|
Gross profit
|
2,010
|
457
|
588
|
-
|
3,055
|
Administrative expenses
|
(44)
|
(1,119)
|
(165)
|
(758)
|
(2,086)
|
Exceptional administrative
costs
|
-
|
(220)
|
-
|
-
|
(220)
|
Operating profit/(loss)
|
1,966
|
(882)
|
423
|
(758)
|
749
|
Other income
|
-
|
113
|
-
|
-
|
113
|
Net financial
income/(expense)
|
-
|
-
|
-
|
4
|
4
|
Taxation
|
-
|
-
|
-
|
530
|
530
|
Profit/(loss) for the
year
|
1,966
|
(769)
|
423
|
(224)
|
1,396
|
*Earnings before interest, tax,
depreciation and amortisation
Note: The presentation of segmental
information was modified in the year ended 30 June 2023 accounts
and that modification has been adopted in these accounts and the
previous half year's numbers adjusted accordingly.
5.
Corporation tax and deferred tax
The Company has approximately £22m
of Corporation Tax losses which, subject to agreement by HM Revenue
and Customs, are available for offset against future profits of the
same trade. There is no expiry date for tax losses, however, there
is an annual restriction of £5m plus half of the surplus above £5m.
As the Company has moved into consistent profitability, Deferred
Tax is recognised and the Deferred Tax credit is calculated
to reflect the estimated results for the following 24
months.
The deferred tax in H1 reflects the
charge reversing the credit for the pre tax profit in H1 and an
additional credit reflecting the forecast pre tax profits for the
full year FY24, FY25 and 6 months of FY26.
6.
Earnings per share
|
31
December 2023
|
31
December 2022
|
30
June 2023
|
|
Shares
|
Shares
|
Shares
|
Weighted average number of shares in
the period
|
15,506,141
|
15,962,643
|
15,849,527
|
|
|
|
|
Basic and diluted Earnings per
share
|
4.32p
|
2.50p
|
8.81p
|