REG - Transense Technlgy - Interim Results & Investor Presentation
19/02/2024 07:00
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RNS Number : 5100D Transense Technologies PLC 19 February 2024
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.
19 February 2024
Transense Technologies plc
("Transense" or the "Company")
Interim Results & Investor Presentation
Transense Technologies plc, the provider of specialist sensor technology and
measurement systems, reports its unaudited Interim Results for the six months
ended 31 December 2023 ("the Period").
The Interim Results demonstrate further progress in the Period despite
challenging economic conditions. Increasing momentum in commercialisation at
SAWsense and opportunities for Translogik to enter new market sectors more
than justify the planned increase in investment in business development and
engineering recruitment in the second half of the year.
Financial Highlights:
• Revenue increased by 10% to £1.81m (FY23 H1: £1.64m)
• Operating expenses in H1 reduced by 18% to £0.97m (FY23 H1:
£1.18m)
• EBITDA more than doubled to £0.74m (FY23 H1: £0.36m)
• Profit before taxation up 146% to £0.63m (FY23 H1: £0.26m)
• Earnings per share up 73% to 4.32 pence (FY23 H1: 2.50 pence)
• Net cash at 31 December 2023 of £1.31m (30 June 2023: £0.98m);
cash at 31 January 2024 increased further to £1.91m
Translogik Highlights:
· Continuing demand from established sales channel partners
· New business development activity (including post-Period) is
generating a new pipeline of opportunities for FY25
· Engagement with 2 new tyre manufacturers, 5 new tyre and
maintenance management software providers, 2 major UK tyre service centre
groups and several large UK based fleet operators to create new sales channels
· A number of product demonstrations have been carried out, strong
interest in the product and immediate recognition of the benefits of accurate,
rapid, digital capture of tyre inspection data
SAWsense Highlights:
• SAW development projects now on contract with record number of
high-quality customers; eight active development programs, including four in
aerospace, two in automotive edrives, and one in robotics
• Gaining strong traction in aerospace sector across multiple
applications, measuring torque, force and temperature in engines, control
surfaces, landing gear and gearboxes with a broader base of customers
• Increased business potential with GE across three running
projects (T901, HEAT and RISE) and new project opportunities to provide
additional engineering support and components
• Further progress made demonstrating benefits in electric drive
systems; patent applications underway
• Healthy continued pipeline of potential SAW customers,
increasing further to 58 at February 2024 (Feb 2023: 40), with 9 progressed to
funded projects or production (Feb 2023: 7)
Commenting on the results and prospects, Executive Chairman of Transense,
Nigel Rogers, said:
"The Company has continued to make progress in the Period, increasing revenue
by 10% and net profit before taxation by 146%. Revenue visibility is now much
clearer for Bridgestone iTrack, and the increasing pipeline activity at
Translogik is expected to provide a clear growth trajectory. Visibility of
SAWsense revenue is also beginning to improve as the customer base expands and
programmes mature, and the concentration risk is reducing.
"The Board considers it appropriate to proceed with planned increases in
overhead in the second half of the year to ensure that the generation and
delivery of planned revenue growth is properly resourced. Pipeline activity
across both Translogik and SAWsense provides confidence that this is
deliverable in coming months, although there is an inherent element of timing
risk. Accordingly, whilst it is appropriate to manage a modest reduction in
short term profit expectations due to the carry-over of this investment cost
into the following financial year, the Board believes the Company is
increasingly well positioned to deliver medium and long term growth."
Investor Presentation: 4pm today, Monday 19 February 2024
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, Monday 19 February 2024. 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)
Ryan Maughan (Business Development Director)
Allenby Capital (Nominated Adviser and Broker) Tel: +44 (0)20 3328 5656
Jeremy Porter/George Payne (Corporate Finance)
Stefano Aquilino/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 a developer of specialist sensor technology and measurement
systems. The Company has two active business divisions:
· Translogik a range of smart, connected tyre inspection and
management equipment, used by leading tyre manufacturers, dealers and fleet
operators to reduce costs and improve safety; and
· SAWsense, developing Surface Acoustic Wave (SAW) sensor
technology, to improve performance, reliability and efficiency in focus
markets of aerospace, automotive, robotics and industrial machinery.
In addition, the Company earns residual royalty income from Bridgestone iTrack
(new branding name for iTrack), a tyre condition and performance monitoring
system, that was developed by Translogik and subsequently licensed to
Bridgestone Corporation for a ten year period in 2020, expiring in 2030.
The Group's strategy is to maximise shareholder value through the delivery of
sustained revenue growth from its business divisions by leveraging excellence
in innovation and know-how to commercialise technologies through 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
(mailto:transense@walbrookpr.com) .
Transense Technologies plc - Interim Results for the six months ended 31
December 2023 (the "Period")
Chairman's statement
The Company has continued to make progress in the Period, increasing revenue
by 10% and net profit before taxation by 146%.
Planned investment in sales and marketing activity at Translogik is opening
new market channels, which underpin the expectation of shorter term revenue
acceleration and strong potential for significant long-term business growth.
There is an increasing momentum of commercial enquiries and contracted
business in SAWsense with high quality global customers, although challenging
economic conditions and technical delays unrelated to SAW technology have
resulted in some slippage in revenue generation in the Period.
Business strategy
The business strategy of the Company is to develop and supply innovative
sensing technology and measurement solutions through its two trading
divisions:
· Translogik: tyre inspection and data capture tools for commercial
vehicle fleets, tyre manufacturers and vehicle service centre markets; and
· SAWSense: torque, temperature, pressure and force sensing using
SAW technology in aerospace, electric drive systems, machinery & robotics
and motorsport markets
Commercial revenue is generated through the supply of products, components and
engineering services to customers. Value is realised through a combination of
commercial revenue, royalties, licensing income and capital gains on
disposals.
The Board's mid-term financial plans for 2023-28 expect a compound annual
growth rate (CAGR) of around 15% per annum in the Bridgestone iTrack installed
base, increased funded development work at SAWsense to secure financial
self-sufficiency, and annual step changes in Translogik revenues as the
primary driver of the Company's top line growth.
Business review
Royalty income - Bridgestone iTrack
Royalty income from Bridgestone iTrack for the Period amounted to £1.23m,
which represented an increase of 27% compared with the equivalent period last
year (FY23 H1: £0.97m). During the Period, the annualised royalty run rate in
pound sterling terms increased by 10%, to reach £2.58m per annum (30 June
2023: £2.34m). This rate of increase is consistent with the CAGR target in
the Company's mid-term plan.
Translogik Inspection and Management Tools
Revenue from the Translogik range of smart, connected tyre inspection and
management tools, derived from established channel partners, was marginally
lower than the prior year's record level at £0.49m (FY23 H1: £0.52m).
As set out in the mid-term financial plan, Translogik continues to be viewed
by the Board as the primary driver of revenue growth for the period 2023-28.
There were two key appointments on 1 January 2024: a dedicated sales director
for Translogik and a marketing executive covering both Translogik and
SAWsense. This has had an immediate impact on the profile and sales pipeline
of the business.
There are many opportunities to expand revenue from current channels, where we
are addressing gaps in take up across their worldwide networks. In addition
to expanding existing channels, there are plans to develop new customers and
trading partners in direct sales to fleets, tyre service organisations, the
emergency vehicle sector and working in conjunction with or partnering fleet
software providers. There will also be deeper market penetration through
improved sales and marketing driving market awareness of the Company and
product range, and one immediate example of this is our new association with
TyreSafe, the UK's leading authority on tyre safety.
There is a high level of engagement with some large potential customers,
including some which have successfully tested Translogik products in fleet
audits and trial activities. Unlike SAW technology, Translogik offers
solutions that are used in the automotive aftermarket virtually 'out of the
box', subject to integration with the channel partners software. This
substantially reduces lead times into adoption which are typically measured in
months. It is anticipated that some successes will become evident in the
second half of the year, although the full benefits and visibility of a
healthy pipeline will extend into FY25.
In addition to direct sales activity, we are rebranding and rationalising the
current model range, accelerating marketing programmes, collaborating with
software providers and developing a subscription model to generate recurring
revenue streams.
SAWsense
Revenue for the Period was £0.08m compared with £0.14m in FY23 H1. This
small reduction in revenue does not reflect the substantial progress made in
building the SAWsense pipeline. Revenue was constrained primarily by two
factors: delays in introduction of a new powertrain in one motorsport
championship, unconnected to either Transense or our partner, McLaren Applied,
and extended decision processes in research and development spending
commitments across the corporate sector. At the same time, pre-revenue
engagement with both existing and potential new customers, has grown beyond
the Board's expectations.
The pipeline of potential customers and partners has increased further and now
stands at 58, of which a record number of nine are now on contract to provide
funded services compared with two at the beginning of 2022.
SAWsense's activities are focused on four key target market sectors:
Aerospace
The aerospace market is the most advanced sector for SAWSense when viewed in
the context of recognition of the benefits that SAW technology can offer. As
a result, the business now has a record number of projects running and new
opportunities in a range of applications and customers covering VTOL and fixed
wing aircraft, military and commercial, and for potential uses in engine,
propulsion systems, actuation and landing gear. SAW technology offers a
competitive advantage over other technologies due to its accuracy, robustness
and compact size and weight, enabling improved efficiency, safety, control and
reliability.
Aerospace programmes typically involve a development lead time to production
revenue of seven to ten years, and during this period the selected suppliers
have the benefit of certainty of specification and the potential to generate
substantial revenue through the supply of engineering services, and
development and testing of prototypes. Investments in additional engineering
capacity now allows Transense an opportunity to participate and support
pre-production engineering programmes. Having a spread of programmes and
customers also allows the Company to offset the risk associated with one
project or customer not delivering to expectations.
Under the non-exclusive licence agreed in 2016, GE Aviation is now building
T901 engines in low volume pilot quantities for flight testing. Transense
will earn royalty income on a per engine basis, which is currently expected to
exceed US$100,000 per annum by 2027/28. In addition to royalty income, there
are new opportunities under discussion for Transense to provide engineering
and production support services which would enhance revenue potential.
Transense is continuing to support two further development programmes with GE:
the Hybrid Electric Altitude Testbed flight demonstrator (HEAT) and GE/CFM
Revolutionary Innovation for Sustainable Engines (RISE), although there have
been delays not connected to Transense such that revenue earning activity has
not yet commenced.
At the end of the Period, on 31 December 2023, the Memorandum of Understanding
("MoU") with Parker Meggitt expired. It had been the mutual intention to
implement a commercial licence, however, Parker Meggitt was unable to progress
suitable opportunities within the agreed timescale. Meanwhile, Transense
independently achieved substantial market engagement with a number of other
leading companies in the aerospace sector. The Company continues to see
Parker Meggitt as a valuable potential partner, both on existing programmes
and in the generation of new business.
The Board anticipates more newsflow in the second half in this sector, as
terms have been agreed and the contract is in the final stages of signoff for
a significant project with a new Aerospace partner, and management is in
advanced negotiations elsewhere.
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.
In order to progress the potential amongst a growing list of major target
customers in this sector, Transense has commissioned a leading engineering
consultancy to carry out live trials on a demonstration test rig to validate
the simulation data previously generated. This data provided good evidence
of the benefits of using real time actual torque in the motor control loop in
place of traditional torque estimation methods. These trials will be
completed during the second half of the Company's financial year, and will
underpin the expansion of the intellectual property portfolio and the
development of commercial opportunities.
Transense continues to work with two Tier 1 suppliers on technical feasibility
and demonstration projects for torque and temperature sensing in electric
motors. These projects are progressing well and have the potential to expand
into larger programmes of work. We have other opportunities under discussion
at an earlier stage which will progress in the second half of the financial
year.
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 and agricultural machinery. 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.
It is perhaps within this sector that economic headwinds have been most
noticeable, characterised by constraints with research and development
budgets, and reluctance to commit to development project work already agreed
in principle. This has not affected the overall level of engagement, however
the Company's resources have been concentrated towards other sectors where
decision making has been less adversely affected.
More recently, and post-Period, the Company received an order for a technical
feasibility project with a new customer, which is a leading global
manufacturer of motor-drive systems for industrial robots. This is an
application for which the Board considers SAW to offer several key advantages.
Motorsport
Revenue under the five-year joint collaborative agreement (JCA) with McLaren
Applied in premium motor sport, signed in September 2021, has been a major
element of ongoing income for SAWsense in recent years, but reduced in the
Period. This was attributable to non-SAW related delays in the
implementation of a new hybrid engine into the IndyCar series, which was
expected to be shipped in the Period but is now scheduled for the second half
of this financial year at best, and possibly not until next financial year.
SAW sensors are specified on the new engine but cannot be supplied until it
is approved for use.
Despite this short term setback, McLaren Applied have indicated their
expectation that SAW sensing will be a significant element of their growth
strategy in premium motorsport, both through race organisations as a balance
of performance tool, and for performance improvement by racing teams across
multiple series. McLaren Applied are actively working on a number of
opportunities and new programmes, although it is of note that we do not split
these down in our pipeline, treating all opportunities with McLaren Applied as
one of the 58 active engagements.
Financial review
Financial results
Revenues for the six months increased by 10% to £1.81m (FY23 H1: £1.64m),
with a 27% increase in Bridgestone iTrack royalty and a small reduction in
revenues from SAWsense and Translogik. Overall gross margin increased to 88%
of revenue (FY23 H1: 86%).
Operating expenses in the Period reduced by 18% to £0.97m (FY23 H1:
£1.18m). This was in part attributable to the benefits of the
reorganisation in the second half of the financial year 2023, augmented by the
capitalisation of SAWsense development costs of approximately £0.11m into
intangible assets. In view of the confidence level in prospects across both
SAWsense and Translogik, additional costs have been approved for the second
half of the year including the recruitment of the Sales Director at
Translogik, marketing and administrative support and three senior engineers at
SAWsense.
EBITDA doubled to £0.74m (FY23 H1: £0.36m), and net profit before taxation
was £0.63m (FY23 H1: £0.26m). After recognition of deferred tax, the net
profit after taxation attributable to shareholders was £0.67m (FY23 H1:
£0.40m) and earnings per share increased 73% to 4.32 pence (FY23 H1: 2.50
pence).
Key performance indicators (KPI)
The Board considers the following to be the key performance indicators for the
Company:
FY 2024 FY 2023
Interim Interim Full Year
(unaudited) (unaudited) (audited)
Revenue (£m) 1.81 1.64 3.53
Bridgestone iTrack royalty run rate growth YoY (in USD) 36% 15% 30%
Translogik probe revenue growth YoY (6%) 11% 17%
SAW revenue growth YoY (43%) 100% 146%
EBITDA (£m) 0.74 0.36 1.39
EPS (pence) 4.32 2.50 8.81
Available cash balances (£m) 1.31 0.63 1.17
Distributable reserves (£m) 2.80 1.45 2.19
Average share price in period (pence) 98.2 72.9 79.6
Cash flow and financial position
Net cash inflow from operating activities before movements in working capital
amounted to £0.79m (FY23 H1: £0.42m). The Company continued to fund the
repurchase of treasury shares amounting to £0.07m during the Period (FY23 H1:
£0.15m).
Net cash balances at the end of the Period stood at £1.31m (30 June 2023:
£0.98m). The net cash balance at 31 January 2024 increased to £1.91m, which
reflects the post Period collection of receivables (including Bridgestone
iTrack royalties for the final quarter of calendar year 2023).
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 86.5p on 1 July 2023 to a
peak of 115.5p on 29 September 2023 and closed the Period on 31 December 2023
at 103.5p. The most recent share price as at 16 February 2024 stood at
102.5p.
Capital is allocated by the Board with the aim of maximising long term
shareholder returns. Profits generated from Bridgestone iTrack and Translogik
are first applied to meet the Company's unallocated overhead expenses and net
investment in the continuing development of SAWsense. 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 at the beginning of the current
financial year the Company held 895,536 shares which were purchased at an
average cost of 79 pence per share. In the Period a further 67,500 shares were
purchased at an average price of 99 pence per share, resulting in the Company
holding 962,856 treasury shares at an average price of 80 pence per share at
the Period end.
The Board has authority from shareholders to continue the programme to acquire
up to approximately 1.5m 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 also keeps the commencement of payment of dividends under regular
review.
Current trading and outlook
The Board's expectations for revenue in the current financial year were
heavily weighted towards the second half of the year. Historically,
forecasting has been challenging due to the early stage of adoption of
technology, and the concentration of revenue generation from a relatively
narrow customer base. Revenue visibility is now much clearer for Bridgestone
iTrack, and the increasing pipeline activity at Translogik is expected to
provide a clear growth trajectory. Visibility of SAWsense revenue is also
beginning to improve as the customer base expands and programmes mature, and
the concentration risk is reducing.
The current year market expectation was initially set two years ago and has
been maintained despite subsequent recognition of a slower growth rate from
the Bridgestone iTrack royalty. Earnings in the first half of the year are
in line with expectations on slower revenue growth, partly due to a temporary
reduction in overheads.
The Board considers it appropriate to proceed with planned increases in
overhead in the second half of the year to ensure that the generation and
delivery of planned revenue growth is properly resourced. Pipeline activity
across both Translogik and SAWsense provides confidence that this is
deliverable in coming months, although there is an inherent element of timing
risk. Accordingly, whilst it is appropriate to manage a modest reduction in
short term profit expectations due to the carry-over of this investment cost
into the following financial year, the Board believes the Company is
increasingly well positioned to deliver medium and long term growth.
Nigel Rogers
Executive Chairman
19 February 2024
Transense Technologies plc
Condensed Statement of Comprehensive Income
Half year to Half year to Full year to
31 Dec 23 31 Dec 22 30 Jun 23
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Continuing operations
Revenue 1,805 1,638 3,529
Cost of sales (224) (227) (474)
Gross profit 1,581 1,411 3,055
Administrative expenses (965) (1,180)
(2,086)
Exceptional administrative expenses - - (220)
Operating profit 616 231 749
Net Financial income 11 2 4
Other income 5 24 113
Profit before taxation 632 257 866
Taxation 38 142 530
Profit for the period 670 399 1,396
Earnings per share (pence) 4.32 2.50 8.81
Transense Technologies plc
Condensed Statement of Financial Position
31 Dec 23 31 Dec 22 30 Jun 23
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Non current assets
Property, plant and equipment 183 159 154
Intangible assets 842 645 731
Deferred tax 1,213 787 1,175
2,238 1,591 2,060
Current assets
Inventories 262 315 260
Trade and other receivables 1,305 1,300 1,263
Cash and cash equivalents 1,308 625 978
2,875 2,240 2,501
Total assets 5,113 3,831 4,561
Current liabilities
Trade and other payables (264) (363) (334)
Lease liabilities - (63) (36)
Total liabilities (264) (426) (370)
Non current liabilities
Lease liabilities - (7) -
Total liabilities (264) (433) (370)
Net assets 4,849 3,398 4,191
Capital and reserves
Share capital 1,644 1,644 1,644
Share premium 65 65 65
Treasury Shares (774) (455) (708)
Share based payments 342 239 288
Retained earnings 3,572 1,905 2,902
Shareholders' funds 4,849 3,398 4,191
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 2022 1,644 65 180 1,506 (303) 3,092
Comprehensive income for the year:
Profit for the year - - - 1,396 - 1,396
Share based payment - - 108 - - 108
Treasury Shares - - - - (405) (405)
Balance at 30 June 2023 1,644 65 288 2,902 (708) 4,191
Comprehensive income for the period - - - 670 - 670
Profit for the period
Share based payment - - 54 - - 54
Treasury Shares - - - - (66) (66)
Balance at 31 December 2023 1,644 65 342 3,572 (774) 4,849
Transense Technologies plc
Condensed Statement of Cash Flows
Half year to Half year to Full year to
31 Dec 23 31 Dec 22 30 Jun 23
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Cash flow from operating activities
Profit for the period 670 399 1,396
Adjustments for:
Taxation (38) (142) (530)
Net financial expense/income (11) (2) (4)
Depreciation of property, plant and equipment 56 47 98
Amortisation and impairment of intangible assets 60 58 112
Share based payments 54 59 108
Operating cash flows before movements in working capital 791 419 1,180
Change in receivables (42) (167) (130)
Change in payables (70) (197) (226)
Change in inventories (2) (227) (172)
Net cash generated/(used) in operations 677 (172) 652
Cash flows from investing activities
Acquisition of property, plant & equipment (83) (39) (85)
Acquisition of intangible assets (173) (32) (172)
Net cash used in investing activities (256) (71) (257)
Cash flows from financing activities
Treasury shares (67) (152) (405)
Interest 11 2 4
Payment of lease liabilities (36) (37) (71)
Net cash used in financing activities (92) (187) (472)
Net increase/(decrease) in cash and cash equivalents 330 (430) (77)
Cash and cash equivalents at beginning of period 978 1,055 1,055
Cash and cash equivalents at end of period 1,308 625 978
Notes to the Interim results for the six months to 31 December 2023
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 2023 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
2023. 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 22 Full year to 30 Jun 23
to 31 Dec 23
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
North America 181 219 351
South America 45 89 143
Australia 1 23 32
UK & Europe 270 275 864
Rest of the World 74 57 129
Royalty Income 1,234 975 2,010
Total 1,805 1,638 3,529
Half Year to 31 December 2023 IT Royalties SAWsense Translogik Admin Total
£'000 £'000 £'000 £'000 £'000
Turnover 1,234 83 488 - 1,805
Gross profit 1,234 83 264 - 1,581
Administrative expenses (22) (466) (70) (407) (965)
Operating profit/(loss) 1,212 (383) 194 (407) 616
Other income - 5 - - 5
Net financial income/(expense) - - - 11 11
Taxation - - - 38 38
Profit/(loss) for the period 1,212 (378) 194 (358) 670
Half Year to 31 December 2022 IT Royalties SAWsense Translogik Admin Total
£'000 £'000 £'000 £'000 £'000
Turnover 975 143 520 - 1,638
Gross profit 975 138 298 - 1,411
Administrative expenses (22) (639) (78) (441) (1,180)
Operating profit/(loss) 953 (501) 220 (441) 231
Other income - 24 - - 24
Net financial income/(expense) - 2 - - 2
Taxation - - - 142 142
Profit/(loss) for the period 953 (475) 220 (299) 399
Year to 30 June 2023 IT Royalties SAWsense Translogik Unallocated Total
£'000 £'000 £'000 £'000 £'000
Turnover 2,010 492 1,027 - 3,529
Gross profit 2,010 457 588 - 3,055
Administrative expenses (44) (1,119) (165) (758) (2,086)
Exceptional administrative costs - (220) - - (220)
Operating profit/(loss) 1,966 (882) 423 (758) 749
Other income - 113 - - 113
Net financial income/(expense) - - - 4 4
Taxation - - - 530 530
Profit/(loss) for the year 1,966 (769) 423 (224) 1,396
*Earnings before interest, tax, depreciation and amortisation
Note: The presentation of segmental information was modified in the year ended
30 June 2023 accounts and that modification has been adopted in these accounts
and the previous half year's numbers adjusted accordingly.
5. Corporation tax and deferred tax
The Company has approximately £22m 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 has moved into consistent profitability, Deferred Tax is
recognised and the Deferred Tax credit is calculated to reflect the
estimated results for the following 24 months.
The deferred tax 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 FY24, FY25 and 6 months of FY26.
6. Earnings per share
31 December 2023 31 December 2022 30 June 2023
Shares Shares Shares
Weighted average number of shares in the period 15,506,141 15,962,643 15,849,527
Basic and diluted Earnings per share 4.32p 2.50p 8.81p
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