TIDMTRT
RNS Number : 9790U
Transense Technologies PLC
29 November 2023
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014 which is part of UK law by
virtue of the European Union (withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now
considered to be in the public domain.
Transense Technologies plc
("Transense", or "the Company")
AGM Statement and Trading Update
Transense Technologies plc, the provider of specialist sensing
solutions and measurement systems, announces the following trading
update for the first four months of the financial year to 30 June
2024 (the "Period") ahead of its Annual General Meeting to be held
at 10:00 a.m. today.
Trading Update
Revenues in the Period were 13 per cent higher than in the
comparable period last year. The unaudited profit before taxation
increased threefold on that generated in the comparable period,
assisted by a temporary reduction in operating costs following the
team reorganisation.
Although well ahead of the prior period, revenue in the Period
was below the Board's expectations. Royalty income from iTrack
continued to rise, although more slowly than the historic run rate.
Revenues from Translogik and SAWsense were substantially unchanged
from the prior period, with a return to strong growth expected
towards the second half of the financial year. The short-term order
book and opportunity pipeline for both SAWsense and Translogik
indicate an upturn in trading, and therefore the Board expects to
meet market expectations for the full year.
Operating cashflow is robust, and the net cash balance at 3 1
October 2023, following the receipt of Q1 iTrack royalties, was
approximately GBP1.72m (30 June 202 3: GBP0.98m).
To drive further revenue growth, market awareness, and
accelerate pipeline conversion across its divisions, the Company is
actively recruiting. An additional senior mechanical engineer
joined this month, and offers of employment have been accepted by
four further team members: a Business Development Director for
Translogik, and three experienced engineering and project
management professionals, to support the delivery of new projects
and industrialisation activity in SAWsense. The Company is also
hiring a dedicated marketing lead to support the business
development teams across both divisions. These new members of the
team will be joining early in the new year with a full
workload.
As well as supporting a growing blue-chip customer base, R&D
activity in the Period has led to significant progress towards
industrialisation of the SAWsense technology. This meets the
objective of being able to better support customers by
demonstrating a clear pathway to scale-up manufacturing, as well as
improving low volume production capacity and capability. Transense
has also expanded functionality and delivered enhancements to the
Translogik product in response to customer requests that will open
up new market potential. This R&D activity has also led to the
Company making its first new patent applications in ten years,
significantly extending the SAWsense IP base. Details of these new
patents will be released in due course.
Transense signed an MOU last year with Meggitt SA, with the
joint aim of concluding a licence for SAW technology in the
aerospace sector by 31 December 2023. The acquisition of Meggitt by
Parker since then opens up new potential to expand the current
working relationship between both parties, but the resulting
organisational changes within their business have impacted their
ability to progress licence discussions. Whilst the pace of
progress has been measured, the Board continues to value the
relationship with Parker Meggitt. Transense does not expect to
conclude a licence by 31 December and will provide further updates
in due course.
Independently, Transense has made excellent progress in the
broader aerospace market, where the Company is now engaged directly
with a number of additional engine and air frame manufacturers.
Since the announcement of a GBP0.65m share buyback programme on
27 September 2022, the Company has acquired 528,000 shares to be
held in treasury at a total cost of GBP0.47m. The remainder of
GBP0.18m is available for further such purchases, subject to
shareholder approval at today's AGM. The Board may announce a
further programme during the year if this is considered
appropriate.
The Board is pleased with the momentum in the ongoing commercial
pipeline, both for SAWsense and Translogik, which provides
confidence in the prospects for the current financial year and
beyond.
Online access to the AGM
Shareholders who wish to view the AGM remotely should register
for the event in advance via the following link:
https:www.investormeetcompany.com/transense-technologies-plc/register-investor
For further information please visit www.transense.com or
contact:
Transense Technologies plc Via Walbrook PR
Nigel Rogers (Executive Chairman)
Melvyn Segal (CFO)
Allenby Capital (Nominated Adviser and Tel: +44 (0)20 3328
Broker) 5656
Jeremy Porter/George Payne (Corporate Finance)
Stefano Aquilino / Tony Quirke (Sales &
Corporate Broking)
Walbrook PR Tel: +44 (0)20 7933
Tom Cooper/Nick Rome/Joe Walker 8780
Transense@walbrookpr.com
Notes to Editors:
Transense is a developer of specialist wireless sensor systems
used to enable real-time data gathering and monitoring. Products
include the patent protected Surface Acoustic Wave (SAW) sensor
technology, used to improve equipment power, performance,
reliability and efficiency; iTrack, Transense's Tyre Pressure
Monitoring System, licensed to Bridgestone Corporation, the world's
largest tyre producer, under a ten-year deal in June 2020; and a
range of intelligent tyre monitoring equipment under the Translogik
brand. Target sectors include aerospace, automotive (high
performance and off-road) and complex machine control.
The Group's strategy is to maximise shareholder value through
the delivery of sustained revenue growth from all three principal
technologies - SAW, iTrack and Translogik probes - through
leveraging excellence in innovation, know-how in commercialising
technologies, 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.
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END
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