REG - Transense Technlgy - Interim Results & Investor Presentation
22/02/2023 07:00
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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 Interim Results 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 £1.64m (FY22 H1: £1.20m)
• EBITDA up 80% to £0.36m (FY22 H1: £0.20m)
• Profit before taxation up threefold to £0.26m (FY22 H1: £0.08m)
• Earnings per share of 2.50 pence (FY 22 H1: 0.69 pence)
• Net cash at 31 December 2022 of £0.63m (30 June 2022: £1.05m);
cash at 17 February 2023 has increased to £1.28m
• 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), Melvyn 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
(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
(mailto: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 Broker) Tel: +44 (0)20 3328 5656
Jeremy Porter/George Payne (Corporate Finance)
Tony Quirke (Sales and Corporate Broking)
Walbrook PR Tel: +44 (0)20 7933 8780
Tom Cooper/Nick Rome/Joe Walker 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
(mailto:transense@walbrookpr.com)
Transense Technologies plc - Interim Results for the half year ended 31
December 2022
Chairman's statement
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 £0.97m, which represented an
increase of 47% compared with the equivalent period last year (FY22 H1:
£0.66m). 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 25% in the
last 12 months, to reach £1.97m per annum (31 December 2021: £1.57m). The
Board considers 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 revenues (including grant income) more
than doubled to £0.17m (FY22 H1: £0.07m). 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 generating 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, the 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 are continuing to support the
development phase of GE's Hybrid Electric Altitude Testbed flight demonstrator
(HEAT) programme, 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 each at various stages of testing, assessment and
discussions.
Electric motors and drives (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
Company has increased engagement to 18 organisations in this sector, with
opportunities beginning to progress through to customer funded trials and
design-in projects, 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. The Company commissioned a simulation study by expert
consultancy Drive System Design Ltd. The first 2 stages of this study are
complete and show strong potential to achieve significant improvements in
efficiency and performance by using active torque feedback in the electric
motor control system;
· Developing the manufacturing and calibration processes to demonstrate
improved capability, reduced costs and a clear route to higher volumes. The
Company 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 machinery
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 Company will continue to promote the technology
and its benefits to this market and develop opportunities with leading OEMs
and T1s in this sector.
Performance automotive
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 Company has implemented a pipeline management process to create visibility
of opportunities and their stage of development, divided into the four key
focus markets above (aerospace, electric motors and drives, industrial
machinery, and performance automotive). Opportunities are qualified against
agreed criteria and progressed accordingly.
The Company 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 Company 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
Company 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 motors and drives Industrial machinery (incl OTR & Agric) Performance automotive Total
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.
Translogik tyre monitoring probes
The modular TLGX Series range currently offers 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 provides 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 £0.52m (FY22 H1: £0.47m),
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, product
availability has not impacted sales and we are confident that we have
sufficient inventories to meet the strong current pipeline of demand for the
second half of the year.
We are also experiencing increased enquiries from fleet management system
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 £1.64m (FY22 H1: £1.20m).
Royalty income generated by iTrack technology increased by 47% to £0.97m
(FY22 H1: £0.66m). The installed base increased by 195% since inception of
the contract. The annualised royalty run rate at 31 December 2022
was£1.97m, 207% higher than the opening US Dollar run rate in June 2020, or
in Sterling terms a similar increase of 209%. Translogik probe revenues
increased by 11% to £0.52m, with improved margins the gross profit has
increased by 16%.
SAW revenues doubled to £0.14m for the period (FY22 H1: £0.07m). Whilst SAW
activities continue to incur a net loss, the Board is satisfied that it 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 £1.18m (FY22 H1: £0.90m).
The year on year increase mainly reflects increased salary costs as a result
of additional head count in the SAW team, and a net foreign exchange loss
resulting from forward contracts purchased to hedge the iTrack royalty income
at $1.23 to £1 during the first half of the year. The contracted rates for
the second half are $1.17 to £1, and at current exchange rates these are
expected to generate a foreign exchange gain in the second half of the
financial year.
EBITDA increased by 82% to £0.36m (FY22 H1: £0.20m), and net profit before
taxation was £0.26m (FY22 H1: £0.08m). After recognition of deferred tax,
the net profit after taxation attributable to shareholders was £0.40m (FY22
H1: £0.11m) and earnings 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 (£m) 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 (£m) 0.36 0.20 0.52
EPS (pence) 2.50 0.69 0.96
Available cash balances (£m) 0.63 1.07 1.06
Distributable reserves (£m) 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 £0.42m (FY22 H1: £0.24m). There was a planned net investment
in working capital which totalled £0.59m 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 £0.15m
during the period.
Net cash balances at the end of the period stood at £0.62m (30 June 2022:
£1.07m). 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 £1.28m, 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 Directors 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 closed 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 programme 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 shares 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 awards 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 to Half year to Full year to
31 Dec 22 31 Dec 21 30 Jun 22
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'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
31 Dec 22 31 Dec 21 30 Jun 22
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'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 capital Share premium account Share based payments Retained earnings Total equity
Treasury Shares
£'000 £'000 £'000 £'000 £'000
£'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 - - - 399 - 399
Profit for the period
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 to Half year to Full year to
31 Dec 22 31 Dec 21 30 Jun 22
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'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 (http://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 region Half year Half year to 31 Dec 21 Full year to 30 Jun 22
to 31 Dec 22
(Unaudited) (Unaudited) (Unaudited)
£'000 £'000 £'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 2022 IT Royalties SAW Probes Admin Total
£'000 £'000 £'000 £'000 £'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 Dec 2021 IT Royalties SAW Probes Admin Total
£'000 £'000 £'000 £'000 £'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 2022 IT Royalties SAW Probes Admin Total
£'000 £'000 £'000 £'000 £'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 £23m 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 £5m plus half of the surplus above
£5m. 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 2022 31 December 2021 30 June 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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