REG - Transense Technlgy - AGM Statement & Trading Update

Transense TechnologiesAnnouncement

29/11/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231129:nRSc9790Ua&default-theme=true

RNS Number : 9790U  Transense Technologies PLC  29 November 2023

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014 which is part of UK law by virtue of the European Union (withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

Transense Technologies plc

("Transense", or "the Company")

 

AGM Statement and Trading Update

Transense Technologies plc, the provider of specialist sensing solutions and
measurement systems, announces the following trading update for the first four
months of the financial year to 30 June 2024 (the "Period") ahead of its
Annual General Meeting to be held at 10:00 a.m. today.

Trading Update

Revenues in the Period were 13 per cent higher than in the comparable period
last year.  The unaudited profit before taxation increased threefold on that
generated in the comparable period, assisted by a temporary reduction in
operating costs following the team reorganisation.

Although well ahead of the prior period, revenue in the Period was below the
Board's expectations.  Royalty income from iTrack continued to rise, although
more slowly than the historic run rate.  Revenues from Translogik and
SAWsense were substantially unchanged from the prior period, with a return to
strong growth expected towards the second half of the financial year.  The
short-term order book and opportunity pipeline for both SAWsense and
Translogik indicate an upturn in trading, and therefore the Board expects to
meet market expectations for the full year.

Operating cashflow is robust, and the net cash balance at 31 October 2023,
following the receipt of Q1 iTrack royalties, was approximately £1.72m (30
June 2023: £0.98m).

To drive further revenue growth, market awareness, and accelerate pipeline
conversion across its divisions, the Company is actively recruiting. An
additional senior mechanical engineer joined this month, and offers of
employment have been accepted by four further team members: a Business
Development Director for Translogik, and three experienced engineering and
project management professionals, to support the delivery of new projects and
industrialisation activity in SAWsense. The Company is also hiring a dedicated
marketing lead to support the business development teams across both
divisions. These new members of the team will be joining early in the new year
with a full workload.

As well as supporting a growing blue-chip customer base, R&D activity in
the Period has led to significant progress towards industrialisation of the
SAWsense technology.  This meets the objective of being able to better
support customers by demonstrating a clear pathway to scale-up manufacturing,
as well as improving low volume production capacity and capability. Transense
has also expanded functionality and delivered enhancements to the Translogik
product in response to customer requests that will open up new market
potential. This R&D activity has also led to the Company making its first
new patent applications in ten years, significantly extending the SAWsense IP
base.  Details of these new patents will be released in due course.

Transense signed an MOU last year with Meggitt SA, with the joint aim of
concluding a licence for SAW technology in the aerospace sector by 31 December
2023. The acquisition of Meggitt by Parker since then opens up new potential
to expand the current working relationship between both parties, but the
resulting organisational changes within their business have impacted their
ability to progress licence discussions. Whilst the pace of progress has been
measured, the Board continues to value the relationship with Parker Meggitt.
Transense does not expect to conclude a licence by 31 December and will
provide further updates in due course.

 

Independently, Transense has made excellent progress in the broader aerospace
market, where the Company is now engaged directly with a number of additional
engine and air frame manufacturers.

Since the announcement of a £0.65m share buyback programme on 27 September
2022, the Company has acquired 528,000 shares to be held in treasury at a
total cost of £0.47m.  The remainder of £0.18m is available for further
such purchases, subject to shareholder approval at today's AGM.  The Board
may announce a further programme during the year if this is considered
appropriate.

The Board is pleased with the momentum in the ongoing commercial pipeline,
both for SAWsense and Translogik, which provides confidence in the prospects
for the current financial year and beyond.

Online access to the AGM

Shareholders who wish to view the AGM remotely should register for the event
in advance via the following link:

https:www.investormeetcompany.com/transense-technologies-plc/register-investor

 

For further information please visit www.transense.com or contact:

 Transense Technologies plc                                       Via Walbrook PR

 Nigel Rogers (Executive Chairman)

 Melvyn Segal (CFO)
 Allenby Capital (Nominated Adviser and Broker)                   Tel: +44 (0)20 3328 5656

 Jeremy Porter/George Payne (Corporate Finance)

 Stefano Aquilino / Tony Quirke (Sales & Corporate Broking)
 Walbrook PR                                                      Tel: +44 (0)20 7933 8780

 Tom Cooper/Nick Rome/Joe Walker                                  Transense@walbrookpr.com

 

Notes to Editors:

Transense is a developer of specialist wireless sensor systems used to enable
real-time data gathering and monitoring.  Products include the patent
protected Surface Acoustic Wave (SAW) sensor technology, used to improve
equipment power, performance, reliability and efficiency; iTrack, Transense's
Tyre Pressure Monitoring System, licensed to Bridgestone Corporation, the
world's largest tyre producer, under a ten-year deal in June 2020; and a range
of intelligent tyre monitoring equipment under the Translogik brand. Target
sectors include aerospace, automotive (high performance and off-road) and
complex machine control.

 

The Group's strategy is to maximise shareholder value through the delivery of
sustained revenue growth from all three principal technologies - SAW, iTrack
and Translogik probes - through leveraging excellence in innovation, know-how
in commercialising technologies, industry partnerships and exposure to global
growth markets.

 

Transense is headquartered in Oxfordshire, UK, and was admitted to trading on
AIM, a market operated by the London Stock Exchange (AIM: TRT), in 1999.
www.transense.com

 

For further information please contact transense@walbrookpr.com.

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGMPPGWGGUPWPPR