REG - Tan Delta Systems - Interim Results
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RNS Number : 2992B Tan Delta Systems PLC 30 September 2025
The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014 as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the
Company's obligations under Article 17 of MAR. Upon the publication of this
announcement, this inside information is now considered to be in the public
domain.
Tan Delta Systems plc
('Tan Delta', or the 'Company')
Interim results for the six months ended 30 June 2025
Tan Delta (AIM:TAND), a leading provider of intelligent monitoring and
maintenance systems for commercial and industrial equipment, announces its
financial results for the six months ended 30 June 2025 ('H1 2025' or 'the
Period').
Financial highlights:
· Revenue £0.5m (H1 2024: £0.7m), due to conversion of
trial-to-rollout taking longer than anticipated
· Gross profit margins remain strong at 61% (H1 2024: £61%), due
to consistent sales product mix
· Loss before tax of £0.8m (H1 2024: loss of £0.5m), due to
higher administrative costs driven by extensive trial and customer evaluation
activities
· Cash of £2.0m as at 30 June 2025 (H1 2024: £3.6m), with no debt
· Management expects FY25 revenue to be not less than £1.0 million
Customer highlights:
· Pipeline has increased nearly two fold to circa £64m (31
December 2024: £35m), demonstrating continued strong interest in Tan Delta
products
· 17 active trials underway (31 December 2024: 20)
· 216 worldwide distributors (31 December 2024: 201)
Operational highlights:
· Resources directed towards supporting and converting 17 active
customer trials
· Core technology certified by TuV and strategic investments made
to embed more intelligence, enabling broader application across fluids
Chris Greenwood, CEO of Tan Delta, comments:
"In general, adoption of our solutions by customers is taking considerably
longer than expected resulting in disappointing financial results during the
Period. However, over the year a great deal of progress has been made
developing both existing and new prospects with no shortage of interest from
customers to pro-actively engage with us. We end the Period with no debt,
£2.0m of cash, 216 distributors, 17 active trials and visible forward sales
opportunities worth approximately £64.0m which I hope to start seeing
convert. Whilst I recognise and apologise for the frustration of the slow
financial progress operational activity and prospects are stronger than ever
boding well for the future."
For further enquiries:
Tan Delta Systems plc Tel: +44 (0) 845 094 8710
Chris Greenwood, CEO
John Higginbottom, CFO & COO
Zeus (Nominated Adviser & Broker) Tel: +44 (0) 203 829 5000
James Hornigold, David Foreman, Ed Beddows (Investment Banking)
Nick Searle (Sales)
Chairman Statement
Slower than expected conversions of trials into rollouts by customers has
resulted in a disappointing financial performance during the first half, with
revenues of £0.5m (H1 2024: £0.7m) generating a loss before tax of £0.8m
(H1 2024: £0.5m). Gross profit margin is maintained at 61%. Operating costs
have been tightly controlled, although have increased due to the increased
operational activity arising from the considerable sales and customer
evaluation activities that are ongoing. As at the year end, the Company had no
debt and cash of £2.0m, and inventory levels of £0.7m to support expected
sales conversions.
Whilst conversion into sustained rollouts has been much slower than expected,
market interest in our range of real time oil condition monitoring (RT-OCM)
has continued to increase as reflected by regular new inquiries, 17 active
evaluation trials and visible qualified sales opportunities worth circa
£64.0m. Our focus is on supporting these leading customers to complete their
trials and the process of planning how to implement RT-OCM across their
equipment estates and thus the commencement of material sales for us.
Operational
Due to the level of interest and trials operationally we have primarily been
focused on supporting these rather than new product developments. However, of
note has been the positive reaction to the certification of our core
technology and sensor capabilities by TuV, the world's largest independent
test and certification organisation. This is important as it provides
independent validation of our core technology and its exceptional oil analysis
performance upon which the quality of our data and the benefits that interest
our customer so much are based. In parallel, we have undertaken some strategic
investment embedding more intelligence into our products such that customers
are provided with a wider range of actionable insights on their equipment as
well as enabling its use on a wider range of fluids such as dielectric fluids
used in battery and insulation systems.
Sales
As previously stated, the process of adoption by customers has been
significantly slower than expected. We believe this to be for two reasons,
firstly due to customers being highly interested in the insight and benefits
our RT-OCM can provide, but also initially sceptical and requiring validation
that our sensors can produce the information and insight we claim, and
secondly understanding how to physically and operationally implement RT-OCM
across their estates within existing equipment management programs. The
adoption of RT-OCM is a significant long-term commitment from these customers
and thus this combination has resulted in a significant and growing backlog of
opportunities, but an extended sales cycle and slower than expected sales.
Given the level of inquiries and sales opportunity backlog we have not needed
to undertake any marketing and our sales and technical support teams are
focused on responding to inquiries. Today we have 17 active trials underway,
some of which are with very large multi-national equipment owners/operators,
several of which are scheduled to complete during H2 and lead to some initial
phased rollouts. Each trial is a significant investment and commitment for
each customer and also for Tan Delta and is only embarked upon following
extensive discussions and proposals such that each has a clear timeline and
outcome objective. As of the date of this report we are satisfied that these
trials are proceeding well.
Other notable sales activities have been our new agreement with Shell Marine
which targets deployment on thousands of vessels in the coming years, global
distribution agreement with Fuchs SE, one of the world's largest lubricant
distributors, a distributor agreement with Core Arabia in Saudi Arabia. One of
the trials underway is with the world's largest online retail logistics
company who wishes to monitor certain critical assets within their warehouses
to detect any issues and pinpoint optimal maintenance periods. We have
recently successfully completed the initial proof of concept phase and are now
proceeding into a wider multi-site trial which if successful could lead to a
global rollout. The customer has hundreds of sites worldwide, each having
thousands of individual assets, with up to 40% of these considered critical.
This is an example of the very significant, but slow-moving opportunities that
we are developing and is underpinned by the exceptional capabilities of our
core RT-OCM technology.
Outlook
We expect the remainder of this financial year to continue to reflect the
recent past with significant market interest and the progressive completion of
existing trials, but minimal, if any, material sales conversions resulting in
expected revenues of not less than £1.0m for FY25. However, we do expect to
see the completion of the trials, along with greater market validation of our
solution, to drive a sustained uptick trend in sales during the next financial
year and onward into the future.
Notes to editors
Tan Delta is an industrial-tech business that enables operators of commercial
and industrial equipment reduce operating and maintenance costs and improve
reliability. Our business is built around our unique proprietary core sensor
technology that analyses lubrication oil in real time generating data rich
with insight which with the application of analytics converts into actionable
information for equipment operators that can enable oil consumption and
associated cost savings of up to 50%. Our customers include operators of all
types of equipment that rely upon engines and gearboxes, from the largest
ships to mining trucks, generators, and wind turbines, applicable applications
are ubiquitous and worldwide.
www.tandeltasystems.com
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS
ENDED 30 JUNE 2025
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
30-Jun-25 30-Jun-24 31-Dec-24
£ £ £
Revenue 526,005 657,425 1,215,328
Cost of sales (206,079) (253,756) (460,990)
Gross profit 319,926 403,669 754,338
Other operating income - -
-
Distribution costs - -
-
Administrative expenses (1,152,744) (1,022,133) (2,091,389)
(Loss) Profit from operations
Adjusting items - (36,905)
-
Excluding adjusting items (832,818) (618,464) (1,300,146)
(Loss) / Profit from operations (832,818) (618,464) (1,337,051)
Interest expense (995) (1,409) (2,612)
Interest Income 48,872 90,310 166,260
(Loss) / Profit before tax
Adjusting items - (36,905)
-
Excluding adjusting items (784,941) (529,562) (1,136,497)
(Loss) /Profit before tax (784,941) (529,562) (1,173,402)
Taxation - 5,682
-
(Loss) / Profit for the period attributable to equity holders of the Company (784,941) (529,562) (1,167,720)
Other comprehensive income
Total other comprehensive income - -
-
Total comprehensive (loss) / profit for the period attributable to equity (784,941) (529,562) (1,167,720)
holders of the Company
Basic and diluted earnings per share (£) (0.01) (0.01) (0.02)
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2025
Unaudited Unaudited Audited
As at Restated As at As at
30-Jun-25 30-Jun-24 31-Dec-24
£ £ £
Non-current assets
Intangible assets 84,777 128,934 111,928
Right of use asset 53,537 80,306 66,922
Property, plant and equipment 69,120 82,339 73,923
207,434 291,579 252,773
Current assets
Inventories 693,726 505,770 733,136
Trade and other receivables 297,694 308,151 309,619
Cash and cash equivalents 2,035,777 3,617,957 3,083,552
3,027,196 4,431,878 4,126,307
Total assets 3,234,631 4,723,457 4,379,080
Current liabilities
Trade and other payables 169,433 244,273 514,936
Short term lease liability 28,647 27,802 28,221
198,080 272,075 543,157
Non-current liabilities
Long term lease liability 29,518 58,165 43,949
29,518 58,165 43,949
Total liabilities 227,598 330,239 587,106
Net assets 3,007,033 4,393,218 3,791,974
Equity attributable to equity holders of the Company
Ordinary share capital 73,224 73,224 73,224
Share premium account 5,482,198 5,445,293 5,482,198
Retained earnings (2,548,389) (1,125,299) (1,763,448)
Total equity 3,007,033 4,393,218 3,791,974
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2025
Note Share capital Share premium account Restated Other reserves Retained earnings / losses Other reserves
£ £ £ £ £
Restated Balance at 1 January 2024 73,224 5,426,204 19,089 (595,737) 4,922,780
Ordinary share capital - - - - -
Comprehensive income:
Loss for the period - - - (529,562) (529,562)
Share option costs - - - - -
Unaudited Balance at 30 June 2024 73,224 5,426,204 19,089 (1,125,299) 4,393,218
Note Share capital Share premium account Other reserves Retained earnings / losses Total equity
£ £ £ £ £
Balance at 1 July 2024 73,224 5,426,204 19,089 (1,125,299) 4,393,218
Ordinary share capital - - - - -
Comprehensive income: - -
Loss for the period - - - (638,149) (638,149)
Share option costs - - 36,905 - 36,905
Audited Balance at 31 December 2024 73,224 5,426,204 55,994 (1,763,448) 3,791,974
Note Share capital Share premium account Other reserves Retained earnings / losses Total equity
£ £ £ £ £
Balance at 1 January 2025 73,224 5,426,204 55,994 (1,763,448) 3,791,974
Ordinary share capital - - - - -
Comprehensive income: -
Loss for the period - - - (784,941) (784,941)
Share option costs - - - - -
Unaudited Balance at 30 June 2025 73,224 5,426,204 55,994 (2,548,389) 3,007,033
An adjustment was made in FY 2023 to correct an over expense to the share
option reserve. Share option costs had been recognised incorrectly for the
full year (£76,907) instead of recognising share option charges for five
months (£19,089) since they were issued in August 2023. This resulted in the
loss for the year 31 December 2023 decreasing by £57,818, with the closing
balance of the share option reserve also decreasing by this amount to a
revised closing balance of £19,089.
STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2025
Note Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
30-Jun-25 30-Jun-24 31-Dec-24
£ £ £
Cash flows from operating activities
Loss / Profit before Tax (784,941) (529,562) (1,173,402)
Adjustments for non-cash/non-operating items:
Depreciation 10,997 12,519 25,230
Amortisation of intangible assets 27,151 24,714 51,911
Amortisation of right of use assets 13,384 13,384 26,769
Taxation - - 5,682
Tax paid / received - - -
Share Options Costs - - 36,905
Loss / Profit on disposal of plant and equipment - - -
Interest income (48,872) (90,310) (166,261)
Interest expense 995 1,409 2,612
Operating cash flows before movements in working capital (781,286) (567,847) (1,190,554)
(Increase) / decrease in inventories 39,411 (140,445) (367,803)
(Increase) / decrease in trade and other receivables 11,926 (33,512) (34,975)
Increase / (decrease) in trade and other payables (345,503) (221,563) 49,096
Net cash (used in) / generated from operating activities (1,075,452) (963,367) (1,544,236)
Cash flows from investing activities
Investments in Property & Equipment (6,195) (39,178) (43,473)
Investments in Intangible assets - (9,811) (20,003)
Net cash from / (used in) investing activities (6,195) (48,989) (63,476)
Cash flows from financing activities
Issuance /(repayment) of debt - - -
Issuance /(repayment) of lease (15,000) (15,000) (30,000)
Issuance / (repayment) of equity - - -
Proceeds from investments in Bank 48,872 90,310 166,261
Net cash from / (used in) financing activities 33,872 75,310 136,261
Net increase / (decrease) in cash and cash equivalents (1,047,775) (937,046) (1,471,451)
Cash and cash equivalents at the beginning of the period 3,083,552 4,555,003 4,555,003
Cash and cash equivalents at the end of the period 10 2,035,777 3,617,957 3,083,552
Notes to the condensed interim financial statements
1. General information
The interim financial statements were approved by the Board of Directors on
the 29(th) of September 2025.
2. Basis of preparation
The interim financial statements of the Company are for the six months ended
30 June 2025.
The financial statements were prepared under International Financial Reporting
Standards ('IFRS'). The six months comparative figures were unaudited and
prepared in accordance to International Financial Reporting Standards ('IFRS')
and the provisions of the Companies Act 2006.
The condensed interim financial statements for H1 2025 do not include all the
information and disclosures required in the annual financial statements and
have not been audited or reviewed by an auditor pursuant to the Auditing
Practices Board guidance on Review of Interim Financial Information. However,
selected explanatory notes are included to explain events and transactions
that are significant for an understanding of the changes in the Company's
financial position and performance in the period.
The condensed interim financial statements for H1 2025 have been prepared
based on the accounting policies expected to be adopted for the year ending 31
December 2025. These accounting policies are drawn up in accordance with
adopted International Accounting Standards ('IAS') and International Financial
Reporting Standards ('IFRS') as issued by the International Accounting
Standards Board and adopted by the EU.
AIM-listed companies are not required to comply with IAS 34 'Interim Financial
Reporting' and accordingly the Company has taken advantage of this exemption.
3. Revenue from contract customers
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
30-Jun-25 30-Jun-24 31-Dec-24
£ £ £
United Kingdom 111,096 206,053 385,068
Europe 165,649 204,083 391,350
Rest of the World 249,260 247,289 438,910
526,005 657,425 1,215,328
4. Adjusting items
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
30-Jun-25 30-Jun-24 31-Dec-24
£ £ £
Share Option Costs - - (36,905)
- - (36,905)
5. Interest expense
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
30-Jun-25 30-Jun-24 31-Dec-24
£ £ £
Interest on finance leases (995) (1,409) (2,612)
(995) (1,409) (2,612)
6. Interest income
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
30-Jun-25 30-Jun-24 31-Dec-24
£ £ £
Interest Income 48,872 90,310 166,260
7. Income tax expense
£7,215 was received in H1 2025 in relation to R&D tax credits available
from HMRC through the SME R&D relief scheme.
8. Earnings per share
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
30-Jun-25 30-Jun-24 31-Dec-24
£ per share £ per share £ per share
Earnings per share are as follows:
Basic and diluted earnings per share (0.01) (0.01) (0.02)
The calculations of basic and diluted earnings per share are based upon:
(Loss) / Profit for the period attributable to the owners (784,941) (529,562) (1,167,720)
Number Number
Weighted average number of ordinary shares 73,223,800 73,223,800 73,223,800
The calculation of basic earnings per share is based on the results
attributable to ordinary shareholders divided by the number of ordinary shares
outstanding as if the bonus issue and share split had occurred at the
beginning of the earliest period presented. The earnings per share
calculations for the period and prior period presented are based on the new
number of shares.
The number of shares in issue at the end of the period is used as the
denominator in calculating basic earnings per share. As the Company is loss
making the effect of instruments that convert into ordinary shares is
considered anti-dilutive, hence there is no difference between the diluted and
non-diluted loss per share.
9. Trade and other receivables
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
30-Jun-25 30-Jun-24 31-Dec-24
£ £ £
Amounts falling due within one year:
Trade receivables 214,587 213,948 187,978
Other receivables 24,763 38,491 83,987
Tax recoverable 5,682 7,215 12,897
Prepayments 52,662 48,497 24,757
297,694 308,151 309,619
10. Cash and cash equivalents
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
30-Jun-25 30-Jun-24 31-Dec-24
£ £ £
Cash at banks 2,035,777 3,617,957 3,083,552
11. Trade and other payables
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
30-Jun-25 30-Jun-24 31-Dec-24
£ £ £
Trade payables 65,652 113,555 380,325
Other payables 30,476 60,486 30,778
Other Taxation and social security 37,600 29,673 29,789
Accruals 30,003 27,837 64,414
Deferred Income 5,701 12,721 9,631
169,433 244,273 514,936
12. Borrowings and lease liabilities
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
30-Jun-25 30-Jun-24 31-Dec-24
£ £ £
Current:
Lease liability 28,647 27,802 28,221
28,647 27,802 28,221
Non-current:
Lease liability 29,518 58,165 43,949
29,518 58,165 43,949
13. Share capital
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
30-Jun-25 30-Jun-24 31-Dec-24
£ £ £
Allotted, called up and fully paid
Opening share capital 73,224 73,224 73,224
Total 73,224 73,224 73,224
Called up share capital
Called up share capital represents the nominal value of shares that have been
issued.
All classes of shares have full voting, dividends, and capital distribution
rights.
14. Reserves
Share premium account.
This represents the excess value recognised from the issue of ordinary shares
above nominal value.
Other reserves.
This represents the cumulative fair value of share options charged to the
statement of comprehensive income net of the transfers to the profit and loss
reserve on exercised and cancelled/lapsed options.
Retained earnings.
This represents cumulative net gains and losses less distributions made.
15. Post balance sheet events
No adjusting events have occurred between reporting date and the date of
authorisation of the condensed interim report.
16. Availability
Further copies of this interim announcement are available on the Tan Delta
Systems plc website,
www.tandeltasystems.com (http://www.tandeltasystems.com) .
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