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 holders of the Company
(784,941)
(529,562)
(1,167,720)
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 29th 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.
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