TIDMTRT
RNS Number : 6303Q
Transense Technologies PLC
22 February 2023
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.
22 February 2023
Transense Technologies plc
("Transense" or the "Company")
Interim Results & Investor Presentation
Transense Technologies plc, the developer of specialist sensor
systems, reports its unaudited I nterim R esults for the six months
ended 31 December 2022. The Company continued to deliver robust
growth in revenues and profitability in line with the Board ' s
expectations, and reports further strengthening in current trading
and a positive outlook.
Financial Highlights:
-- Revenue increased by 37% to GBP1.64m (FY22 H1: GBP1.20m)
-- EBITDA up 80% to GBP0.36m (FY22 H1: GBP0.20m)
-- Profit before taxation up threefold to GBP0.26m (FY22 H1: GBP0.08m)
-- Earnings per share of 2.50 pence (FY 22 H1: 0.69 pence)
-- Net cash at 31 December 2022 of GBP0.63m (30 June 2022:
GBP1.05m) ; cash at 17 February 2023 has increased to GBP1.28m
-- Accelerated growth in revenue and profitability since period end
Surface Acoustic Wave (SAW) highlights:
-- Increased pipeline of potential SAW customer engagements to
40 at February 2023 (September 2022: 24)
-- Signed Memorandum of Understanding with Parker Meggitt; work progressing
-- Gained external verification of significant efficiency
improvements in electric motor control
-- Commenced funded development project with major Tier One aerospace client
-- Passed gateway review to Phase 2 of UK's Advanced Propulsion
Centre grant funded development programme
Commenting on the results and prospects, Executive Chairman of
Transense, Nigel Rogers, said:
" Transense continues on its upward trajectory, with significant
growth across all three income streams. Trading since the period
end has been strong, and the pipeline development across the
business, especially in SAW, gives us every reason to be confident
in the future."
Investor Presentation: 4pm today, Wednesday 22 February 2022
Nigel Rogers (Executive Chairman), Mel vyn Segal (Chief
Financial Officer) and Ryan Maughan (Business Development Director)
will provide a presentation on the Company and its Interim Results
at 4pm today, Wednesday 22 February 2023. 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 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)
Tony Quirke (Sales and Corporate Broking)
Walbrook PR Tel: +44 (0)20 7933
Tom Cooper/Nick Rome/Joe Walker 8780
Transense@walbrookpr.com
Notes to Editors:
Transense is headquartered in Oxfordshire, UK and its shares are
traded on AIM, a market operated by the London Stock Exchange (AIM:
TRT). The Company develops and supplies wireless sensor technology
and systems, and currently has three business segments:
SAW - patent protected Surface Acoustic Wave sensor technology
that provides real time measurement of torque, temperature,
pressure and strain, and is used to improve efficiency,
performance, safety and sustainability of propulsion systems and
machinery. Current focus is the development of a pipeline of high
calibre customers and collaborative partnerships for a variety of
applications in electric drives, aerospace, industrial machinery
(including off-highway and robotics) and high performance
automotive sectors.
Translogik - smart, connected commercial vehicle tyre inspection
equipment, used by vehicle fleets to more easily gather and
maintain accurate tyre safety and condition data; and,
iTrack - a tyremonitoring system for off-highway vehicles,
licensed exclusively to Bridgestone Corporation, the world's
largest tyre producer, under a ten-year deal expiring in 2030.
For further information please contact
transense@walbrookpr.com
Transense Technologies plc - Interim Results for the half year
ended 31 December 2022
Chairman's s tatement
It is pleasing once again to report healthy results, with
increased revenue and profits across all areas of the business, and
the achievement of further important milesones in building the
longer term value proposition from our SAW technology.
Business strategy
The business strategy of the Company remains to develop
innovative sensing solutions across a range of applications, which
are commercialised either through the launch of products and
services to customers or by forming strategic alliances with
partner organisations. Value is realised through a combination of
commercial income, royalties, licensing income and capital gains on
disposals.
Business review
iTrack royalty income
iTrack royalty income for the period amounted to GBP0.97m ,
which represented an increase of 47% compared with the equivalent
period last year (FY22 H1: GBP0.66m). During the six months ended
31 December 2022 , the iTrack installed base grew at a more modest
rate than had previously been experienced, with the annualised
royalty run rate in Sterling terms increasing by nearly 2 5 % in
the last 12 months , to reach GBP1.97m per annum (31 December 2021:
GBP1.57m). The Board consider s this reduced rate of growth to be
principally attributable to delays in implementation by end users,
however , the sales pipeline at the end of the period was strong.
This was evidenced by the conversion of two major accounts towards
the end of the period which are currently in the process of
installing iTrack.
Surface Acoustic Wave (SAW)
There are clear signs of increasing traction in the
commercialisation of SAW technology. During the period SAW revenue
s (including g rant income) more than doubled to GBP0.17m (FY22 H1:
GBP0.07m ). The pipeline of potential customers and partners has
increased substantially since last year's final results were
reported in September 2022, and now stands at 40 (September 2022:
24). Our activities are focused on four key target market
sectors:
Aerospace
Aerospace applications have been g enerating interest where
torque measurement is required in several applications across the
sector. Our SAW technology continues to offer advantages over other
technologies due to its accuracy, robustness and compact size and
weight , t he benefits of which will be to improve efficiency,
safety, pilot control and engine reliability.
Under the non-exclusive licence agreed in 2016, GE Aviation's
testing of the first T901 engine under the ITEP programme has been
very successful, with the engine accumulating more than 100 hours
of run time with impressive performance and condition. A second
engine build is under preparation and this unit will enter testing
in 2023. We a re continu ing to support the development phase of
GE's Hybrid Electric Altitude Testbed flight demonstrator (HEAT) p
rogramme , and our technology is under consideration for other
engine development work.
During the period, the Company entered a Memorandum of
Understanding (MoU) with Meggitt SA, now Parker Meggitt, part of
the Parker Hannifin Corporation, with the shared aim to enter into
a licensing agreement prior to 31 December 2023 covering one or
more fields of use in aerospace. Good progress has been made
already and the preparation phase of this work is complete,
enabling engagement with potential customers in the second half of
our financial year .
We are also free to continue to engage independently with a
number of leading Original Equipment Manufacturers (OEM) and Tier
One (T1) technology providers to explore potential aerospace
applications during this phase of the MoU. There is significant
interest across a broad range of applications, extending beyond
engines to other areas including, for example, actuation and
braking systems. Since the period end, we have commenced a paid
feasibility study with another major T1 to evaluate the potential
use of SAW, with early-stage discussions underway with a number of
potential customers to identify further similar projects. The
Company is now actively engaged with a combined total of 10
aerospace OEMs and T1s e ach at various stages of testing,
assessment and discussions .
Electric m otors and d rives (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. Transense
SAW technology can enable the direct measurement of output torque
to improve performance, efficiency, and safety in electric motor
drive systems.
Transense successfully passed the stage gate assessment process
to enter the second phase of the UK's Advanced Propulsion Centre
TDAP (Technology Developer Accelerator Programme) . Our aims for
this stage are:
-- Continued market engagement, working with automotive OEMs and
Tier 1 and 2 suppliers to help them understand the benefits of SAW
technology. The C ompany has increased engagement to 18
organisations in this sector, with opportunities beginning to
progress through to customer funded trials and design-in project s,
and is working to increase this in the second half of the financial
year ;
-- Characterising the benefits of SAW sensing technology in an
electric motor drive system . T he C ompany commissioned a
simulation study by expert consultancy Drive System Design Ltd . T
he first 2 stages of this study are complete and show strong p
otential to achieve significant improvements in efficiency and
performance by using active torque feedback in the electric motor
control sys tem;
-- Developing the manufacturing and calibration processes to
demonstrate improved capability, reduced costs and a clear route to
higher volumes . T he C ompany has identified a plan of work and
the internal and external resources required to deliver it ;
and
-- Developing the supply chain for key components to secure a clear route to higher volumes .
The process improvement and supply chain activity also has
benefits for the exploitation of SAW technology in other
sectors.
Industrial m achinery
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. 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.
Transense has increased engagement to 11 industrial machinery
manufacturers with opportunities beginning to progress through to
customer funded trials and design-in projects, thanks to increased
awareness of the technology and its capabilities. Transense is also
seeing regular new enquiries from industrial machinery
manufacturers. The C ompany will continue to promote the technology
and its benefits to this market and develop opportunities with
leading OEMs and T1s in this sector.
Performance a utomotive
The performance automotive market continues to offer a
high-profile proving ground for our SAW technology which may
subsequently be adopted in mainstream vehicles. There is strong
overlap with EMD as high volume performance vehicles are
increasingly being developed using an electric drivetrain.
Our five-year Joint Collaborative Agreement (JCA) with McLaren
Applied in premium motor sport, signed in September 2021, delivered
increased revenue in the period as SAW technology extended beyond
the IndyCar race series into Le Mans Daytona hybrid (LMDh), with
pleasing results and positive feedback. Opportunities to augment
the reach into other race series and beyond into high performance
road cars are under consideration, as well as seeking opportunities
in other McLaren Applied niche markets.
Pipeline development
The C ompany has implemented a pipeline management process to
create visibility of opportunities and their stage of development ,
divided into the four key focus markets above ( a erospace, e
lectric m otors and d rives, i ndustrial m achinery, and p
erformance a utomotive). Opportunities are qualified against agreed
criteria and progressed accordingly.
The C ompany has created marketing assets aimed at communicating
the benefits of the technology in key applications in the focus
markets. As well as an increased online presence , the C ompany has
attended several key trade shows and conferences. This targeted
marketing approach has yielded significantly improved quality and
quantity of inbound enquiries. Due to this success, the C ompany
will continue online content creation and promotion activity and
also increase the number of physical events attended in the next
period.
The number of potential customers engaged , from active enquiry
through to contract, at February 2023 (September 2022) was as
follows:
Aerospace Electric Industrial Performance Total
motors machinery automotive
and drives (incl OTR
& Agric)
Stage 4 - Contracted 1 (1) 0 (0) 0 (0) 1 (1) 2 (2)
---------- ------------ ----------- ------------ ----------
Stage 3 - Contract
under negotiation 1 (1) 0 (0) 0 (0) 0 (0) 1 (1)
---------- ------------ ----------- ------------ ----------
Stage 2 - In development 2 (1) 1 (1) 1 (1) 0 (0) 4 (3)
---------- ------------ ----------- ------------ ----------
Stage 1 - Active
enquiry 6 (4) 17 (10) 10 (4) 0 (0) 33 (18)
---------- ------------ ----------- ------------ ----------
Total 10 (7) 18 (11) 11 (5) 1 (1) 40 (24)
---------- ------------ ----------- ------------ ----------
The substantial increase in the number of potential customers
engaged from 24 to 40 is encouraging, and endorses the relevance of
SAW technology in our key target markets. It must be recognised
that progressing this initial interest into funded development
activity can take time, as it is dependent upon commercial and
engineering support within customer organisations as well as budget
allocation and approval. Accordingly, we must continue to be
realistic when assessing the likelihood and timing of recurring
revenue generation from these activities. Once converted, however,
there are realistic prospects of long term success deriving from
delivering a unique solution that can offer high value outcomes for
our customers and partners.
T ranslogik tyre monitoring p robes
The modular TLGX Series range currently offer s four levels of
probe technology, offering progressively enhanced features at a
variety of price points , and has now replaced the original TLG
Generation One probe.
The TLGX Series provide s extremely accurate, reliable and
instant tyre data, ranging from simple tread depth readings through
to the TLGX4, which provides tread depth and the facility to read
RFID tags and tyre pressure sensors remotely . The range is
principally aimed towards service providers, systems integrators
and fleet managers in the truck and bus sector. The product range
is designed to be compatible with the tyre management systems of
most of the world's leading tyre producers.
Revenue from Translogik probes increased by 11% to GBP0.52m
(FY22 H1: GBP0.47m) , with gross margin increasing to 57% from 54%
of revenue as the new range becomes fully established.
The global shortage of electronic components has been a
challenge , but due to our ability to act quickly to adopt
innovative design changes, pro duct availability has not impacted
sales and we are confident that we have suf ficient inventories to
meet the strong current pipeline of demand for the second half of
the year.
We are also experiencing increased enquiries from f leet m
anagement sy s tem software providers who are recognising the
qualities of our probe , enabling them to provide a fully digital
fleet management system which provides improved efficiency, audit
trail and meets increasingly demanding regulatory standards around
the world.
Financial review
Financial results
Revenues for the six months increased by 37% to GBP1.64m (FY22
H1: GBP1.20m).
Royalty income generated by iTrack technology increased by 47%
to GBP0.97m (FY22 H1: GBP0.66m). The installed base increased by 19
5 % since inception of the contract . T he annualised royalty run
rate at 31 December 2022 was GBP1.97m, 207% higher than the opening
US Dollar run rate in June 2020 , or in Sterling terms a similar
increase of 20 9 %. Translogik probe revenues increased by 11% to
GBP0.52m, with improved margins the gross profit has increased by
16%.
SAW revenues doubled to GBP0.14m for the period (FY22 H1:
GBP0.07m). Whilst SAW activities continue to incur a net loss, the
Board is satisfied that i t is appropriate to continue to allocate
capital to developing this business in recognition of the prospects
of future commercial success.
Operating expenses in the period increased to GBP1.18m (FY22 H1:
GBP0.90m) . T he year on year increase mainly reflect s increased
salary costs as a result of a d ditional head count in the SAW team
, and a net foreign exchange loss result ing from forward contracts
purchased to hedge the iTrack royalty income at $1.23 to GBP1
during the first half of the year. The contracted rates for the
second half are $1.17 to GBP1, and at current exchange rates th ese
are expected to generate a foreign exchange gain in the second half
of the financial year.
EBITDA increased by 82% to GBP0.36m (FY22 H1: GBP0.20m) , and
net profit before taxation was GBP0.26m (FY22 H1: GBP0.08 m). A
fter recognition of deferred tax, the net profit after taxation
attributable to shareholders was GBP0.40m (FY22 H1: GBP0.11 m) and
e arnings per share amounted to 2.50 pence (FY22 H1: 0.69
pence).
Key performance indicators (KPI)
The Board considers the following to be the key performance
indicators for the Company :
FY 2023 FY 2022
Interim Interim Full Year
(unaudited) (unaudited) (audited)
------------- ------------- -----------
Revenue (GBPm) 1.64 1.20 2.63
------------- ------------- -----------
iTrack royalty run rate growth
YoY (in USD) 15% 122% 46%
------------- ------------- -----------
Translogik probe revenue growth
YoY 11% 15% 14%
------------- ------------- -----------
SAW revenue growth YoY 100% (36)% 28%
------------- ------------- -----------
EBITDA (GBPm) 0.36 0.20 0.52
------------- ------------- -----------
EPS (pence) 2.50 0.69 0.96
------------- ------------- -----------
Available cash balances (GBPm) 0.63 1.07 1.06
------------- ------------- -----------
Distributable reserves (GBPm) 1.45 0.74 1.20
------------- ------------- -----------
Average share price in period
(pence) 72.9 99.3 85.5
------------- ------------- -----------
Cash flow and financial position
Net cash inflow from operating activities before movements in
working capital amounted to GBP0.42m (FY22 H1: GBP0.24m). There was
a planned net investment in working capital which totalled GBP0.59m
in the period, the largest proportion being in support of inventory
build for Translogik probes, and the generation of increased
receivables from both iTrack and Translogik. The Company also
funded the repurchase of treasury shares amounting to GBP0.15m
during the period.
Net cash balances at the end of the period stood at GBP0.62m (30
June 2022: GBP1.07m) . The net investment in working capital peaked
around the period end, and will unwind through the first quarter of
2023 . The net cash balance at 17 February 2023 increased to
GBP1.28m , which reflects the post period collection of receivables
(including iTrack royalties for the final quarter of calendar year
2022) and the settlement of the related foreign exchange forward
contract.
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 D irectors 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 62.5p on 1
July 2022 to a peak of 95.5p on 30 November 2022 and clos ed the
period on 31 December 2022 at 87.5p . The recent share price as at
20 February 2023 stood at 93.0p.
Capital is allocated by the Board with the aim of maximising
long term shareholder returns. Profits generated from iTrack and
Translogik are first applied to meet the Company's unallocated
overhead expenses and net investment in the continuing development
of the SAW business. 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 p rogramme
and in the prior financial year acquired 434,000 treasury shares at
an average price of 70 pence per share. In the period to 31
December 2022 a further 170,027 shares were purchased at an average
price of 89 pence per share, resulting in the Company holding
604,027 treasury shar es at an average price of 75 pence per share
at the period end .
The Board has authority from shareholders to continue the
programme to acquire up to 500,000 further shares for treasury to
continue to offset the dilutive impact of share awa rds to
Directors and employees in due course, and where market conditions
deem such action to be appropriate.
The Board has also previously indicated an intention to consider
commencing the payment of dividends and will provide further
guidance around the end of this financial year.
Current trading and outlook
Trading in the month following the period end has seen both SAW
and Translogik deliver strong revenues. There are indications that
the iTrack royalty pipeline should return to higher growth in
calendar 2023. Overall, the Board's outlook for the remainder of
this year is positive and the Directors expect the Company to meet
its expectations for the financial year .
Looking further forward , the Board is greatly encouraged by the
depth and quantity of engagement with leading companies across the
four key high growth market sectors for SAW . These interactions
give us continued optimism that we can forge lasting partnerships
and fulfil the undoubted potential that our technology
demonstrates.
Nigel Rogers
Executive Chairman
22 February 2023
Transense Technologies plc
Condensed Statement of Comprehensive Income
Half year Half year Full year
to to to
31 Dec 22 31 Dec 21 30 Jun
22
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 1,638 1,203 2,632
Cost of sales (227) (217) (398)
------------ ------------ -------------
Gross profit 1,411 986 2,234
Operating expenses (1,180) (898) (1,970)
------------ ------------ -------------
Operating profit 231 88 264
Financial expense/income 2 (6) (12)
Other income 24 - 16
------------ ------------ -------------
Profit before taxation 257 82 268
Taxation 142 32 609
------------ ------------ -------------
Profit for the period from
continuing operations 399 114 877
------------ ------------ -------------
Earnings per share (pence) 2.50 0.69 5.36
----- ----- -----
Transense Technologies plc
Condensed Statement of Financial Position
30 Jun
31 Dec 22 31 Dec 21 22
(Unaudited) (Unaudited) (Audited)
------------------------------- ------------ ------------ ----------
GBP'000 GBP'000 GBP'000
Non current assets
Property, plant and equipment 159 201 167
Intangible assets 645 731 671
Deferred tax 787 68 645
------------ ------------ ----------
1,591 1,000 1,483
------------ ------------ ----------
Current assets
Inventory 315 108 88
Corporation tax receivable - 71 -
Trade and other receivables 1,300 731 1,133
Cash and cash equivalents 625 1,071 1,055
------------ ------------ ----------
2,240 1,981 2,276
------------ ------------ ----------
Total assets 3,831 2,981 3,759
------------ ------------ ----------
Current liabilities
Trade and other payables (363) (269) (560)
Lease liabilities (63) (63) (65)
------------ ------------ ----------
Total liabilities (426) (332) (625)
Non current liabilities
Lease liabilities (7) (75) (42)
------------ ------------ ----------
Total liabilities (433) (407) (667)
------------ ------------ ----------
Net assets 3,398 2,574 3,092
------------ ------------ ----------
Capital and reserves
Share capital 1,644 1,644 1,644
Share premium 65 65 65
Treasury Shares (455) - (303)
Share based payments 239 122 180
Retained profit 1,905 743 1,506
------------ ------------ ----------
Shareholders' funds 3,398 2,574 3,092
------------ ------------ ----------
Transense Technologies plc
Condensed Statement of Changes in Equity (Unaudited)
Share Share
Share premium based Retained Treasury Total
capital account payments earnings Shares equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
July 2021 1,631 - 82 629 - 2,342
Comprehensive income for the year:
Profit for the
year - - - 877 - 877
Share based payment - - 98 - - 98
Warrants exercised 13 65 - - - 78
Treasury Shares - - - - (303) (303)
--------- --------- ---------- ---------- ----------- --------
Balance at 30
June 2022 1,644 65 180 1,506 (303) 3,092
--------- --------- ---------- ---------- ----------- --------
Comprehensive
income for the
period
Profit for the
period - - - 399 - 399
Share based payment - - 59 - - 59
Treasury Shares - - - - (152) (152)
--------- --------- ---------- ---------- ----------- --------
Balance at 31
December 2022 1,644 65 239 1,905 (455) 3,398
--------- --------- ---------- ---------- ----------- --------
Transense Technologies plc
Condensed Statement of Cash Flows
Half year Half year Full year
to to to
31 Dec 31 Dec 30 Jun
22 21 22
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Cash flow from operating activities
Profit for the period 399 114 877
Adjustments for:
Taxation (142) (32) (609)
Net financial expense/income (2) 6 12
Depreciation of property, plant
and equipment 47 43 88
Amortisation and impairment of
intangible assets 58 65 155
Share based payments 59 40 98
------------ ------------ ----------
Operating cash flows before movements
in working capital 419 236 621
Change in receivables (167) (167) (569)
Change in payables (197) 9 300
Change in inventories (227) (35) (15)
------------ ------------ ----------
Cash used in operations (172) 43 337
Taxation recovered - - 71
------------ ------------ ----------
Net cash (used)/generated in operations (172) 43 408
------------ ------------ ----------
Cash flows from investing activities
Acquisition of property, plant
& equipment (39) (33) (44)
Acquisition of intangible assets (32) (25) (56)
Net cash used in investing activities (71) (58) (100)
------------ ------------ ----------
Cash flows from financing activities
Warrants exercised - 78 78
Treasury shares (152) - (303)
Interest paid 2 (6) (12)
Payment of lease liabilities (37) (31) (62)
------------ ------------ ----------
Net cash (used)/generatedfor financing
activities (187) 41 (299)
------------ ------------ ----------
Net (decrease)/increase/ in cash
and cash equivalents (430) 25 9
Cash and cash equivalents at beginning
of period 1,055 1,046 1,046
------------ ------------ ----------
Cash and cash equivalents at end
of period 625 1,071 1,055
------------ ------------ ----------
Notes to the Interim results for the six months to 31 December
2021
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 2022 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 2022. There has
been no change to any accounting policy since the date of that
report.
4. Segmental analysis
Revenue by Half year Half year Full year
region to 31 Dec to 31 Dec to 30 Jun
22 21 22
(Unaudited) (Unaudited) (Unaudited)
------------ ------------ ------------
GBP'000 GBP'000 GBP'000
------------ ------------ ------------
North America 219 211 323
------------ ------------ ------------
South America 89 64 123
------------ ------------ ------------
Australia 23 18 41
------------ ------------ ------------
UK & Europe 275 226 387
------------ ------------ ------------
Rest of the
World 57 24 109
------------ ------------ ------------
Royalty Income 975 660 1,557
------------ ------------ ------------
Total 1,638 1,203 2,540
------------ ------------ ------------
Half Year to 31
Dec IT Royalties SAW Probes Admin Total
2022 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Turnover 975 143 520 - 1,638
------------------ ------------------ ------------------ ----------------- -------------------
Gross profit 975 138 298 - 1,411
------------------ ------------------ ------------------ ----------------- -------------------
Operating costs - (582) (78) (415) (1,075)
------------------ ------------------ ------------------ ----------------- -------------------
EBITDA* 975 (444) 220 (415) 336
------------------ ------------------ ------------------ ----------------- -------------------
Depreciation and
amortisation (22) (57) - (26) (105)
------------------ ------------------ ------------------ ----------------- -------------------
Other Income - 24 - - 24
------------------ ------------------ ------------------ ----------------- -------------------
Finance
expenses/income - 2 - - 2
------------------ ------------------ ------------------ ----------------- -------------------
Profit/(loss)
before
taxation 953 (475) 220 (441) 257
------------------ ------------------ ------------------ ----------------- -------------------
Taxation - - - 142 142
------------------ ------------------ ------------------ ----------------- -------------------
Profit/(loss)
after
taxation 953 (475) 220 (299) 399
------------------ ------------------ ------------------ ----------------- -------------------
Half Year to 31 IT Royalties SAW Probes Admin Total
Dec 2021 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ ------------------ ------------------ ----------------- -------------------
Turnover 660 73 470 - 1,203
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
Gross profit 660 70 256 - 986
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
Operating costs - (411) (62) (317) (790)
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
EBITDA* 660 (341) 194 (317) 196
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
Depreciation and
amortisation (22) (57) (29) (108)
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
Finance expenses - - - (6) (6)
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
Profit/(loss)
before
taxation 638 (398) 194 (352) 82
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
Taxation 5 6 - 21 32
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
Profit/(loss)
after
taxation 643 (392) 194 (331) 114
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
Year to 30 June IT Royalties SAW Probes Admin Total
2022 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ ------------------- ------------------- ----------------- -----------------
Turnover 1,557 200 875 - 2,632
------------------ ------------------ ------------------- ------------------- ----------------- -----------------
Gross profit 1,557 193 484 - 2,234
------------------ ------------------ ------------------- ------------------- ----------------- -----------------
Operating costs - (871) (126) (729) (1 ,726)
------------------ ------------------ ------------------- ------------------- ----------------- -----------------
Other income - 16 - - 16
------------------ ------------------ ------------------- ------------------- ----------------- -----------------
EBITDA* 1,557 (662) 358 (729) 524
------------------ ------------------ ------------------- ------------------- ----------------- -----------------
Depreciation and
amortisation (44) (142) - (58) (244)
------------------ ------------------ ------------------- ------------------- ----------------- -----------------
Finance expenses - - - (12) (12)
------------------ ------------------ ------------------- ------------------- ----------------- -----------------
Profit/(loss)
before
taxation 1,513 (804) 358 (799) 268
------------------ ------------------ ------------------- ------------------- ----------------- -----------------
Taxation - - - 609 609
------------------ ------------------ ------------------- ------------------- ----------------- -----------------
Profit/(loss)
after
taxation 1,513 (804) 358 (190) 877
------------------ ------------------ ------------------- ------------------- ----------------- -----------------
*Earnings before interest, tax, depreciation and
amortisation
Note: The presentation of segmental information has been changed
in the current period. The Directors have determined that it is
more appropriate to include premises and other establishment costs
in Central Overheads rather than in SAW activity as previously
stated. Prior period information has been restated to be consistent
with the current period.
5. Corporation tax and deferred tax
The Company has approximately GBP23m 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 GBP5m plus half of the surplus above GBP5m. As the
Company moved into profitability, Deferred Tax was recognised for
the first time in the full years accounts to 30 June 2021 by
recognising a credit relating to FY22 estimated results. In the
accounts for the year to 30 June 2022, the Deferred Tax credit was
extended to reflect the estimated results for the following 24
months and the credit in these Interim accounts has been calculated
on a consistent basis looking ahead 24 months.
The deferred tax charge and credit 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
FY23, FY24 and 6 months of FY25. This policy reflects the fact that
the Company now has a trend of underlying profitability.
6. Earnings per share
31 December 31 December 30 June
2022 2021 2022
Shares Shares Shares
----------------------------------- ------------ ------------ -----------
Weighted average number of shares
in the period 15,962,643 16,402,998 16,365,640
------------ ------------ -----------
Basic and diluted Earnings per
share 2.50p 0.69p 5.36p
------------ ------------ -----------
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END
IR MZGZZGMMGFZZ
(END) Dow Jones Newswires
February 22, 2023 02:00 ET (07:00 GMT)
Transense Technologies (AQSE:TRT.GB)
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Transense Technologies (AQSE:TRT.GB)
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