TIDMTRT
RNS Number : 3496D
Transense Technologies PLC
09 October 2018
Transense Technologies plc
("Transense", the "Company" or the "Group")
Final results for the year ended 30 June 2018
Transense Technologies plc (AIM: TRT), the provider of sensor
systems for industrial, mining and transportation markets, is
pleased to report audited results for the year ended 30 June 2018
in line with the Board's expectations. The Translogik division
revenues continue to expand, SAWSense activity remains high and the
Board is confident of increased revenues and activity in 2019 and
beyond.
Highlights
-- Revenues increased marginally to GBP2.05m (2017: GBP2.00m)
-- Translogik revenues increased by 60% to GBP1.90m (2017: GBP1.19m)
-- Gross margin increased to 62.9% of revenues (2017: 56.8%)
-- Administrative expenses reduced by 3% to GBP3.21m (2017: GBP3.32m)
-- Administrative expenses (excluding depreciation and
amortisation) reduced by 11% to GBP2.65m (2017: GBP2.96m)
-- Pre-tax loss from continuing operations reduced to GBP1.91m (2017: GBP2.16m)
-- Successful equity fund raise of GBP0.92m (net of costs) in June 2018
-- Significant increase in recurring iTrack II revenue on
subscription model; improving visibility
-- Significant increase in probe sales from adoption by multiple outlets
-- Continuing applications development for SAWSense showing positive results
Executive Chairman of Transense Technologies, David Ford,
said:
"Increased traction in the commercialisation of probes and
iTrack II have resulted in gaining increased market share. We are
confident that further opportunities will arise in the current
financial year to build on this traction through new routes to
market and partnerships.
The engagement with GE has moved from the non-recurring
engineering stage through to licensing and, in the medium term, we
look towards the final project stage, being the receipt of
royalties.
The Board continues to believe that the technology and products
developed by the Group along with the services provided in the
mining sector ensure that the Group is extremely well positioned in
all key areas of the businesses and as a result the current level
of optimism for future prospects is at a high level."
For further information please visit www.transense.co.uk or
contact:
Transense Technologies plc Tel: +44 (0) 1869 238380
Graham Storey, Chief Executive
finnCap (Nomad & Broker) Tel: +44 (0) 20 7220 0500
Ed Frisby, Giles Rolls (Corporate
Finance)
Tim Redfern (Corporate Broking)
About Transense Technologies
Based in Oxfordshire, UK, Transense has developed
patent-protected sensor systems and supporting technology for use
in a variety of diverse high growth markets. Transense's Surface
Acoustic Wave (SAW), wireless, battery-less, sensor systems offer
significant advantages over legacy wireless sensor systems.
Transense is targeting the transport and mining industries, and the
global torque, temperature and pressure sensing markets, via its
trading divisions, Translogik and SAWSense.
Transense's shares are admitted to trading on AIM, a market
operated by the London Stock Exchange (AIM: "TRT").
www.transense.co.uk
Chairman's statement
The Group has made steady progress over the last year in both of
its core businesses. Revenue generated by Translogik increased by
60% compared with the prior year, with iTrack II producing an
increased proportion of revenue from subscription services which
are expected to recur in future years.
It should be noted that in previous reports we have referred to
revenues derived from iTrack II as rental income however as the
revenue from the customer is substantially derived from providing a
service we now more accurately refer to this income as a
subscription service.
Increased traction in the commercialisation of probes and iTrack
II have resulted in gaining increased market share. We are
confident that further opportunities will arise in the current
financial year to build on this traction through new routes to
market and partnerships.
Whilst SAWSense has seen a reduction in current revenues, the
level of activity and live projects continues to increase.
Financial results and condition
Revenues grew marginally by 2% to GBP2.05m (2017: GBP2.00m).
Gross margins improved to 62.9% from 56.8%, and administrative
expenses reduced by 3% to GBP3.21m (2017: GBP3.32m). Administrative
expenses excluding depreciation and amortisation reduced by 11% to
GBP2.65m (2017: GBP2.96m).
Whilst the Company has produced a pre-tax loss from continuing
operations for the year, excluding share based payments, of
GBP1.87m this does reflect a 16% improvement on the previous year's
pre-tax loss of GBP2.16m. The total loss attributable to
shareholders was GBP1.89m (2017: GBP2.17m) resulting in a net loss
per ordinary share of 19.68 pence (2017: 22.84 pence). The Board do
not recommend payment of a dividend (2017: Nil).
Net cash used in operations amounted to GBP1.11m (2017:
GBP0.87m). With overheads under close control and starting FY19 at
a reduced cost base, and an increasing proportion of revenues on a
recurring subscription service model, the net cash requirement to
fund ongoing operations continues to fall. In June 2018, additional
equity of GBP0.92m (net of associated costs) was raised in a
placing with existing shareholders. Net cash balances at 30 June
2018 were GBP1.59m (2017: GBP2.52m).
Strategy
The Group provides innovative sensor systems for various complex
applications and operates two principal businesses, SAWSense and
Translogik.
The Group intends to continue to commercialise sensor
technologies by working closely with global businesses and where
appropriate entering into partnership arrangements in order to
build a profitable business that generates value for shareholders
through both capital appreciation and, in due course, distributions
to shareholders.
SAWSense designs and develops Surface Acoustic Wave (or "SAW")
sensor devices that can be used to measure torque, pressure and/or
temperature in harsh, restricted or demanding environments to very
high accuracy. This world leading technology has a broad range of
potential uses ranging from premium value custom applications
through to high volume mass markets.
Translogik designs and markets a range of Tyre Pressure
Monitoring Systems ("TPMS") and tools to facilitate tyre
management. These products and services are for heavy duty off road
vehicles (particularly mine-haul trucks), commercial trucks, buses,
as well as passenger cars. These comprise the iTrack system, which
provides real-time tyre temperature and pressure measurements for
mine-haul trucks in service, and a range of tyre probes and other
offerings for the road transport sector.
The Translogik product offerings are continually evolving with
the focus on providing a comprehensive data service to clients in
the mining and truck industry. The data captured by our latest
product offering, iTrack II, provides an invaluable insight into
the location, condition and performance of haul trucks in live
operation. This provides mine operators with multiple opportunities
to deliver substantial cost savings and productivity gains.
Our markets
SAWSense in global industries
Sensor technology is widely used in virtually every industrial
application across a broad range of industries, contributing to
many billions of dollars in revenue. Sensors using SAW technology
are powered by radio frequency, are wireless, and do not require
batteries. This means that the sensor has significant benefits as
the package can be extremely small and light and is suited to harsh
environments or remote locations and does not require regular
maintenance. Being wireless enables the sensor to be used on
rotating components, other moving parts, or environments where
electrical wiring would not be feasible.
These benefits are particularly appropriate in drives, motors,
gearboxes, valves and couplings, which are in common use in the
industrial equipment, energy generation, oil & gas, aviation,
military and automotive sectors.
As Original Equipment Manufacturers (OEMs) seek ever more data
on a real-time basis to optimise the performance of their products,
accurate and frequent measurement becomes increasingly important.
The world's largest and most successful companies in these fields
are recognising SAW as one of the enabling technologies in
developing the "Internet of Things" in this arena, contributing to
a vision by which machines are networked with embedded sensors to
optimise performance using real time analytical tools, algorithms
and interactive controls.
TPMS in Mining
The original iTrack system was developed to provide tyre
pressure and temperature monitoring data to mine haul-truck
operators, primarily to reduce or eliminate the incidence of tyre
failure. The associated benefits in tyre life management were
evident and were initially viewed as a means of payback for the
improved safety performance achieved.
Over recent years the collection of pressure and temperature
data has become increasingly sophisticated, and our systems for
measuring, monitoring and reporting tyre conditions are seen by key
customers as a management tool to optimise asset utilisation and
productivity, whilst continuing to make a key contribution to mine
safety.
iTrack II, which was launched at MINExpo in September 2016,
collects live tyre performance data from sensors, and transmits
this instantly to an optional in-cab display and web based
applications readable in real time by the Translogik Global Control
Centre as well as the individual mine operators in their own
operational control rooms. This valuable data can be utilised to
minimise truck down time, extend tyre life, and improve safety.
Crucially, it can also be used to increase mine productivity by
identifying opportunities to optimise routings, loadings, and even
road architecture.
The Board remains of the opinion that our system is the most
technologically advanced mining truck TPMS technology available,
offering specific benefits in cost savings and operating efficiency
that are not delivered by competitors in the market to the same
degree. We continue to provide iTrack II primarily as a
subscription service model, which enables users to recognise the
monthly cost in operating overheads, alongside the substantial
savings in tyre operating costs and the productivity gains that are
evident when in use. We are also continually developing additional
features and capabilities, such as the provision of accelerometer
data and improved connectivity, in order to maintain our technology
leadership over potential competitors.
Tyre tread depth probes
Our tyre tread depth probes offer a fast and reliable way for
mining and on-road truck service providers, as well as passenger
car tyre fitters, to record and automatically transmit tread depth
data by Bluetooth. Our product range has been manufactured for over
15 years, during which time it has earned a reputation in the
market place as a rugged and reliable solution. Coupled with
software developed in-house, we also offer a Passenger Car Audit
System ("PCAS"), which captures tread depth data and provides a
clear visual display of tyre conditions to the end customer to aid
decision making.
Our range is uniquely compatible with the product management
systems of a number of the world's leading tyre producers,
including Bridgestone, Continental, Goodyear and Michelin.
Equity fund raise
In June 2018, shareholders approved a proposal that the Company
issue an additional 2,500,000 shares at a price of 40 pence each to
existing institutional investors to support marketing, product
development and working capital requirements of the Group. The net
proceeds of the placing amounted to GBP0.92m net of associated
costs and were included in the net cash balances at the year
end.
Prospects
The Board continues to believe that the technology and products
developed by the Group along with the services provided in the
mining sector ensure that the Group is extremely well positioned in
all key areas of the businesses and as a result the current level
of optimism for future prospects is at a high level.
David M Ford
Group Chairman
8 October 2018
Chief Executive's report
The Group has made solid progress this year with increased
traction for both iTrack II and probes with growing commercial
revenues from both products and services that are well placed to
offer unique solutions over a sustained period of competitive
advantage in the future.
SAWSense
SAWSense is a leader in the development of Surface Acoustic Wave
("SAW") wireless, battery-less, sensor systems that offer
significant advantages over legacy systems in common use. The
business is actively involved in several projects in conjunction
with major global industrial companies.
In the short to medium term, the primary source of ongoing
revenue is dependent upon the level of customer chargeable
engineering activity and licensing fees, both of which reduced in
the current year as a consequence of the more advanced stage of
development of key projects. Recharged engineering costs were
GBP0.15m in 2018, compared with GBP0.29m in 2017, licensing fees
were GBP0.00m in 2018, compared to GBP0.58m in 2017.
In the prior year, SAWSense entered into a significant licensing
agreement with GE for the use of our patented, wireless, passive
SAW technology in a specific torque application. The Group received
a non-refundable license fee of GBP0.58m following successful
technical validation. In the current year, a manufacturing partner
has been selected and significant technical progress has been made.
Commercialisation cannot be considered certain, but the likelihood
is increasing through time. GE will pay to Transense a perpetual
sales royalty in respect of unit sales upon commercialisation,
although this is not likely to arise for several years.
We are currently in discussions with GE on three further
industrial projects. We also have two current projects in the
automotive sector which are progressing and we continue to provide
instrumented torque shafts for US Motor Sport through our Joint
Development Agreement with McLaren. In addition to our on-board
marine torque prop shaft trial, which continues, we have also,
shortly after the year end, received funding in conjunction with
one UK university from a charity connected to a major financial
institution, with the aim of developing a SAW based solution
focussed on improving health and safety in the maritime
transportation of fluids.
Translogik
iTrack II
Commercialisation of iTrack II has seen steady progress
throughout the year, with the system live on a substantial number
of trucks at the year end and covering eight mines in three
continents. This generated a threefold increase in monthly
subscription service income since the start of the financial
year.
At the end of the year there were active prospects with
realistic expectations of success at a further ten sites. Much of
the existing business is with world leading mine owners such as
Glencore and BHP; companies which operate many thousands of trucks
across hundreds of sites world-wide, and recognise the benefits of
data provided by our system.
We continue to believe that our product range demonstrates
substantial superiority in capabilities and reliability to those of
our rivals.
The strength of our product offering and the iTrack brand
reputation has resulted in Translogik moving from "opportunities to
work more closely with selected partners" as stated in the interim
report to the current state of play whereby we are holding
discussions on collaborative arrangements with major global
companies in this sector.
We are firmly of the view that progressing opportunities to work
closely with one or more major partners could substantially
accelerate market penetration, in turn producing increased
recurring revenues.
Probe
Translogik revenues derived for the sale of our range of tyre
tread depth probes increased by 83% to GBP0.84m (2017:
GBP0.46m).
Goodyear USA, which alone operates 2,300+ Truck and Bus tyre
service centres, launched their new tyre management system in March
2018 called 'Tire Optix' which incorporates the Translogik tyre
probe. We have subsequently seen a significant increase in Goodyear
orders and this is a trend we expect to continue as adoption of
their system expands within the USA and worldwide. In addition to
this, we are seeing further rollout of Bridgestone's corresponding
'Toolbox' and 'Total Tyre Care' systems as well as Continental's
'Fleetfox' system, all of which adopt the Translogik probe.
Current trading and outlook
Trading in the first two months of the current year has seen an
increase in revenues and a reduction in pre-tax losses compared to
the first two months of the year ended 30 June 2018 (FY18) and the
cash burn in the first two months of the financial year 2019 (FY19)
has run at the monthly rate of GBP0.11m which is half the rate of
the first two months in FY18.
The ongoing success of ITrack II and the results of recent
trials is anticipated to produce further adoption of the system in
H1 of the financial year 2019. The potential collaboration with
major global companies in the mining sector could lead to an
acceleration in the growth rate of mines adopting iTrack II.
The interest in the different versions of the probe with the
major tyre suppliers has grown considerably during the year and the
prospects in FY 19 remain positive as the majors continue to
integrate the probe into their tyre management systems.
The engagement with GE has moved from the NRE stage through to
licensing and, in the medium term, we look towards the final
project stage, being the receipt of royalties.
Graham Storey
Chief Executive Officer
8 October 2018
Strategic Report
Financial Review
Results for the year
Revenues from continuing activities totalled GBP2.05m (2017:
GBP2.00m). The pre-tax loss (before discontinued operations)
totalled GBP1.91m (2017: GBP2.16m).
Translogik revenues grew by 60% to GBP1.90m, and SAWSense
generated GBP0.15m of revenues (2017: GBP0.81m which included the
GE license fee of GBP0.58m). Gross margins improved to 62.9% (2017:
56.8% reflecting the change from selling iTrack to providing it on
a subscription basis. The depreciation on capitalised iTrack kit,
included in administrative expenses, increased to GBP0.16m (2017:
GBP0.07m). Administrative expenses for the year, before
depreciation, amortisation and interest, amounted to GBP2.65m
compared with GBP2.96m in the prior year.
The increase in Translogik revenues reflects the good growth in
the new iTrack subscription services following the launch of iTrack
II in September 2016 and an 80% increase in Probe sales during the
period. During the previous year overheads rose as a result of a
bad debt, additional professional fees and the launch of iTrack II
in the current year we experienced a reduction in administrative
overheads both pre and post depreciation and amortisation.
The Earnings per share (EPS) are set out below (in Pence):
2018 2017
EPS (including discontinued operations) (19.68) (22.84)
EPS (excluding discontinued operations) (19.68) (22.78)
Taxation
The Company has UK tax losses available to carry forward at 30
June 2018 of approximately GBP19.8m, subject to HMRC agreement.
Certain elements of development expenditure undertaken by the
Company are eligible for enhanced research and development tax
relief which generally relates to salary costs of technical staff.
The accounting treatment adopted is to recognise the R & D tax
credits on a cash basis due to the uncertain nature of the claim.
Subject to HMRC approval, the expected tax credit to be received in
June 2019 in relation to 2017 and 2018 is approximately
GBP0.27m.
2018 2017
EPS (including discontinued operations) (19.68) (22.84)
EPS (excluding discontinued operations) (19.68) (22.78)
Cash flow and financial position
There was a net cash outflow of GBP0.93m (2017: GBP1.13m) during
the year, arising from trading and GBP0.92m of proceeds arising
from the issue of equity share capital in June 2018.
Net cash used in operations amounted to GBP1.11m (2017:
GBP0.88m).
At 30 June 2018 the Group had net cash balances of GBP1.59m
(2017: GBP2.52m).
The forward looking cash flow forecasts based on the anticipated
level of activity indicates that the Group should have sufficient
funds available for the short to medium term. The Board are however
aware that the effect of increased demand for iTrack services will
put pressure on working capital due to the timeline between
investment and recoupment.
Going Concern
The financial statements have been prepared on the going concern
basis. The Group has made a loss for the year of GBP1.89m (2017:
profit of GBP2.17m). The Group has Accumulated Losses of GBP1.89m
(2017: Accumulated Losses of GBP0.01m following the Share Capital
reorganisation). The balance of cash and cash equivalents at 30
June 2018 is GBP1.59m (2017: Cash and cash equivalents
GBP2.52m).
The Group meets its day to day working capital requirements
through existing cash reserves and does not currently have an
overdraft facility. The directors have prepared cash flow forecasts
for the period to 30 September 2019. These forecasts indicate that
the Group should continue to be able to operate within its current
cash resources for the foreseeable future.
Capital Structure
The Company Share Capital reduction and reorganisation was
completed during the previous year.
A more detailed review of the financial year is provided in the
Chairman's statement and the Chief Executive's report.
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2018
Year ended Year ended
30 June 30 June
2018 2017
GBP'000 GBP'000
Continuing
operations
Revenue 2,050 2,003
Cost of sales (761) (865)
---------------------------------------------- ----------------------------------------------
Gross profit 1,289 1,138
Administrative
expenses (3,208) (3,318)
---------------------------------------------- ----------------------------------------------
Operating loss (1,919) (2,180)
Financial income 5 23
---------------------------------------------- ----------------------------------------------
Loss before
taxation (1,914) (2,157)
Taxation 26 (4)
---------------------------------------------- ----------------------------------------------
Loss from
continuing
operations (1,888) (2,161)
---------------------------------------------- ----------------------------------------------
Discontinued
operations
Loss from
discontinued
operation - (5)
---------------------------------------------- ----------------------------------------------
Loss for the year (1,888) (2,166)
============================================== ==============================================
Basic and fully
diluted loss
per share
(pence)
Continuing
operations (19.68) (22.78)
Discontinued
operations - (0.06)
---------------------------------------------- ----------------------------------------------
Total operations (19.68) (22.84)
============================================== ==============================================
Loss for the year (1,888) (2,166)
---------------------------------------------- ----------------------------------------------
Other
comprehensive
income:
Exchange
difference on
translating
foreign
operations - 21
---------------------------------------------- ----------------------------------------------
Other
comprehensive
income for the
year - 21
Total
comprehensive
income for the
year
attributable to
the equity
holders of the
parent (1,888) (2,145)
============================================== ==============================================
Consolidated Balance Sheet
at 30 June 2018
Year ended 30 June Year ended 30 June
2018 2018 2017 2017
GBP'000 GBP'000 GBP'000 GBP'000
Non current
assets
Property,
plant and
equipment 474 258
Intangible
assets 909 938
Trade lease
receivables - 59
---------------------------------------------- ----------------------------------------------
1,383 1,255
Current
assets
Inventories 685 985
Trade and
other
receivables 698 702
Cash and
cash
equivalents 1,592 2,520
---------------------------------------------- ----------------------------------------------
2,975 4,207
---------------------------------------------- ----------------------------------------------
Total assets 4,358 5,462
Current
liabilities
Trade and
other
payables (316) (511)
Current tax
liabilities (66) (41)
Provisions (100) (100)
---------------------------------------------- ----------------------------------------------
Total
liabilities (482) (658)
---------------------------------------------- ----------------------------------------------
Net assets 3,876 4,804
============================================== ==============================================
Equity
Issued share
capital 5,025 4,766
Share
premium 682 22
Translation
reserve 21 21
Share based
payments 41 -
Accumulated
loss (1,893) (5)
---------------------------------------------- ----------------------------------------------
3,876 4,804
============================================== ==============================================
Consolidated Statement of Changes in Equity
For the year ended 30 June 2018
Group Share Share Translation Reserve Share based payments Cumulative Total
capital premium losses equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
July 2016 11,546 17,218 - - (21,841) 6,923
Loss for the
year - - - - (2,166) (2,166)
Share
reorganisation (6,823) (17,218) - - 24,041 -
Costs of share
reorganisation - - - - (39) (39)
Shares issued
and share
premium 43 22 - - - 65
Currency
movement on
subsidiary
reserves - - 21 - - 21
---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Balance at 30
June 2017 4,766 22 21 - (5) 4,804
---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Loss for the
year - - - - (1,888) (1,888)
Share based
payments - - - 41 - 41
Shares issued
and share
premium 259 660 - - - 919
---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Balance at 30
June 2018 5,025 682 21 41 (1,893) 3,876
============================================== ============================================== ============================================== ============================================== ============================================== ==============================================
Consolidated Cash Flow Statement
For the year ended 30 June 2018
Group
Year ended Year ended
30 June 30 June
2018 2017
GBP'000 GBP'000
Loss before taxation
from continuing
operations (1,888) (2,166)
Adjustments for:
Financial income (5) (23)
Depreciation 227 118
Amortisation of
intangible assets 332 238
Share based payments 41 -
Unrealised currency
translation gain - 21
Cost of capital
restructure - (39)
---------------------------------------------- ----------------------------------------------
Operating cash flows
before movements
in working capital (1,293) (1,851)
(Increase)/decrease in
receivables (203) 766
Decrease in payables (169) (57)
Decrease/(increase)/
in inventories 300 (414)
Decrease in trade
lease receivables 266 598
---------------------------------------------- ----------------------------------------------
Cash (used)/generated
in operations (1,099) (958)
Taxation
(paid)/recovered (7) 81
---------------------------------------------- ----------------------------------------------
Net cash used in
operations (877) (877)
---------------------------------------------- ----------------------------------------------
Investing activities
Interest received 5 23
Acquisitions of
property, plant and
equipment (443) (63)
Acquisitions of
intangible assets (303) (282)
Assets/liabilities - -
held for sale
---------------------------------------------- ----------------------------------------------
Net cash used in
investing activities (741) (322)
---------------------------------------------- ----------------------------------------------
Financing activities
Proceeds from issue of
equity share capital 919 65
---------------------------------------------- ----------------------------------------------
Net cash from
financing activities 919 65
---------------------------------------------- ----------------------------------------------
Net decrease in cash
and cash equivalents (928) (1,134)
Cash and equivalents
at the beginning
of year 2,520 3,654
---------------------------------------------- ----------------------------------------------
Cash and equivalents
at the end of year 1,592 2,520
============================================== ==============================================
NOTES RELATING TO THE GROUP FINANCIAL STATEMENTS
BASIS OF PREPARATION
The group financial statements have been prepared and approved
by the Directors in accordance with the International Financial
Reporting Standards (IFRS) as adopted by the EU and with those
parts of the Companies Act 2006 applicable to companies reporting
under adopted IFRS.
IFRS and IFRIC are issued by the International Accounting
Standards Board (the IASB) and must be adopted into European Union
law, referred to as endorsement, before they become mandatory under
the IAS Regulation.
1 SEGMENT INFORMATION
The Group has two reportable segments being the unique trading
divisions, SAWSense and Translogik, which make use of technology
developed by the Group to measure and record temperature, pressure
and torque.
The business revenues include royalties, engineering support and
sale of product in relation to this technology.
Information regarding the Group's segments is included in the
primary statements and notes to the financial statements. Revenue
and EBITDA are the Group's key focus and in turn is the main
performance measure adopted by management.
The tables below sets out the Group's revenue split and
operating segments.
Revenue
Year ended Year ended
30 June 2018 30 June 2017
GBP'000 GBP'000
Chile 660 659
North America 322 703
United Kingdom &
Europe 362 313
Australia 400 104
Japan 160 108
Rest of the World 146 116
---------------------------------------------- ----------------------------------------------
2,050 2,003
============================================= =============================================
Translogik SAWSense Total
GBP'000 GBP'000 GBP'000
Year ended 30
June 2018
Sales 1,903 147 2,050
============================================= ============================================= =============================================
Gross profit 1,173 116 1,289
Allocated
overheads (978) (482) (1,460)
---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Contribution 195 (366) (171)
---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Group
overheads (1,702)
----------------------------------------------
Loss before
taxation (1,873)
Taxation 26
----------------------------------------------
Loss for the
year (1,847)
=============================================
Translogik SAWSense Total
GBP'000 GBP'000 GBP'000
Year ended 30
June 2017
Sales 1,193 810 2,003
============================================= ============================================= =============================================
Gross profit 376 762 1,138
Allocated
overheads (1,304) (482) (1,786)
---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Contribution (928) 280 (648)
---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Group
overheads (1,509)
Loss from
discontinued
operations (5)
----------------------------------------------
Loss before
taxation (2,162)
Taxation (4)
----------------------------------------------
Loss for the
year (2,166)
=============================================
During the year ended 30 June 2018 there were 3 (year ended 30
June 2017: 3) customers whose turnover accounted for more than 10%
of the Group's total revenue as follows:
Year ended 30 June 2018 Revenue Percentage
GBP'000 of total
Customer A 400 20%
Customer B 365 18%
Customer C 262 13%
Year ended 30 June 2017 Revenue Percentage
GBP000 of total
Customer A 624 31%
Customer B 380 19%
Customer C 221 11%
2 FINANCIAL INCOME AND EXPENSE
Recognised in profit or loss
Year ended Year ended
30 June 30 June
2018 2017
GBP'000 GBP'000
Finance income 5 23
Interest income on cash on deposit - -
Total finance income 5 23
=============== ==========
3 TAXATION
Recognised in the statement of comprehensive income
Year ended Year ended
30 June 30 June
2018 2017
GBP'000 GBP'000
Current tax expense
Current year - 4
Adjustment for
previous year (26) -
---------------------------------------------- ----------------------------------------------
Tax credit in
statement of
comprehensive income (26) 4
============================================= =============================================
Reconciliation of effective tax rate
Year ended Year ended
30 June 30 June
2018 2017
GBP'000 GBP'000
(Loss) for the year (1,914) (2,157)
Total tax credit - -
---------------------------------------------- ----------------------------------------------
(Loss) before tax (1,914) (2,157)
============================================= =============================================
Tax calculated at
the average
standard UK
corporation tax
rate of 19.00%
(2017: 19.75%) (364) (426)
Expenses not
deductible for tax
purposes 3 48
Current year losses
for which no
deferred
tax asset was
recognised 357 378
Adjustment for
overseas profits 4 4
Prior year
adjustment (26) -
---------------------------------------------- ----------------------------------------------
Total tax
(credit)/charge (26) 4
============================================= =============================================
A deferred tax
asset has not been
recognised
in respect of the
following item:
Tax Losses 3,345 3,561
============================================= =============================================
Reductions in the UK corporation tax rate 20% to 19% (effective
from 1 April 2017) has been enacted. This will reduce the Company's
future current tax charge accordingly. Deferred tax has been
calculated at the rate of 19% at the balance sheet date. The effect
of this change is that the deferred tax asset as at 30 June 2017
has been calculated based on the rate of 19% substantively enacted
at the balance sheet date.
The Group has tax losses, subject to agreement by HM Revenue and
Customs, in the sum of GBP19.7m (2017: GBP18.1m), which are
available for offset against future profits of the same trade.
There is no expiry date for tax losses. An appropriate asset will
be recognised when the Group can demonstrate a reasonable
expectation of sufficient taxable profits to utilise the temporary
differences.
The rate of Corporation Tax will reduce to 17% with effect from
1 April 2020.
As a result, the effective tax rate used to calculate the
current tax for the period ended 30 June 2018 was 19.00% (2017:
19.75%).
4 EARNINGS PER SHARE
Basic loss per share is calculated by dividing the loss after
taxation of GBP1.89m (2017: loss of GBP2.17m) by the weighted
average number of ordinary shares in issue during the year of
9,595,825 (2017: 9,483,815). Unexercised options over the ordinary
shares are not included in the calculation of diluted loss per
share as they are anti-dilutive.
Year ended Year ended
30 June 30 June
2018 2017
Number Number
Weighted average
number of shares -
basic 9,595,825 9,483,815
Share option
adjustment - -
---------------------------------------------- ----------------------------------------------
Weighted average
number of shares -
diluted 9,595,825 9,483,815
============================================= =============================================
Notes to the financial statements (continued)
Basic and fully diluted loss per share (continued)
Year ended Year ended
30 June 30 June
2018 2017
GBP'000 GBP'000
(Loss) from
continuing
operations (1,888) (2,160)
From continuing
operations
---------------------------------------------- ----------------------------------------------
Basic (loss) per
share (19.68) (22.78)
============================================= =============================================
Loss from
discontinued
operations - (5)
From discontinued
operations
---------------------------------------------- ----------------------------------------------
Basic loss per
share - (0.06)
============================================= =============================================
Earnings
attributable to
shareholders
Basic (loss) per
share (19.68) (22.84)
============================================= =============================================
There are 665,000 share options at 30 June 2018 (2017: 675,000)
that are not included within diluted earnings per share because
they are anti-dilutive.
5 CASH AND CASH EQUIVALENTS
Group
30 June 2018 30 June 2017
GBP000 GBP000
Cash and cash equivalents per balance
sheet 1,592 2,520
Cash and cash equivalents per cash
flow
statements 1,592 2,520
============ ============
6 STATUTORY ACCOUNTS
The Financial information set out in this announcement does not
constitute the Company's Consolidated Financial Statements for the
financial years ended 30 June 2018 or 30 June 2017 but are derived
from those Financial Statements. Statutory Financial Statements for
2017 have been delivered to the Registrar of Companies and those
for 2018 will be delivered following the Company's AGM. The
auditors Grant Thornton UK LLP have reported on those financial
statements. Their reports were unqualified, did not draw attention
to any matters by way of emphasis without qualifying their report
and did not contain statements under Section 498(2) or (3) of the
Companies Act 2006 in respect of the Financial Statements for 2018
or 2017.
The Statutory accounts are available on the Company web site and
will be posted to shareholders who have requested a copy and
thereafter by request to the Company's registered office.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR FKFDQCBDDQKK
(END) Dow Jones Newswires
October 09, 2018 02:00 ET (06:00 GMT)
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