REG - Transense Technlgy - Preliminary Results <Origin Href="QuoteRef">TRT.L</Origin>

Transense TechnologiesAnnouncement

29/10/2014 12:24

RNS Number : 8673R
Transense Technologies PLC
17 September 2014
17 September 2014
Transense Technologies plc
("Transense" or the "Company")
Preliminary unaudited results for year ended 30 June 2014

Transense Technologies plc(AIM: TRT), the provider of sensor systems for the transportation and industrial markets, is pleased to announce its preliminary results for the year ended30 June 2014. The audited accounts will be published as soon as reasonably practicable. It is the intention of the Company to hold its AGM on Thursday 13 November 2014 and the appropriate notice will be given at the same time as the full accounts are published.
Highlights 
 Sales for the year were 3.6m (FY 2013, 1.5m) a year-on-year increase of 138%
 Reduction in Operating loss to 1.2m (FY 2013, 2.4m)
 All three trading divisions are seeing growing interest in their products and increased market awareness of the commercial and technological benefits they offer
 Translogik
o Achieved profitability for the year as a whole 
o Year-on-year sales growth of 226% 
o Deployments continuing at the Sishen mine in South Africa and mines managed by Otraco Chile
 IntelliSAW
o Expanded global network
o First order secured with global switchgear OEM 
o Selected by Siemens India to supply its IS485 system for real-time temperature monitoring in medium voltage switchgear cabinets
 SAWSense
o Revenue up 113% compared to the previous financial year
Graham Storey, CEO, commented:
"With revenue having increased year-on-year by approximately 138% compared to 2013 the Board is pleased by progress across all divisions. 
Translogik has now achieved profitability, although it remains reliant on the receipt of large orders, and we believe that IntelliSAW is well positioned for similar success within the next 12 to 18 months, as the extremely lengthy product pilots begin to translate into major orders. Whilst order intake in recent months has been disappointing, the prospects for all three divisions are strong, with the pipeline of potential sales opportunities continuing to expand. The outlook for 2015 is encouraging."
For further information, please contact:
Transense Technologies plc
Tel: +44 1869 238 380
Graham Storey, Chief Executive



N+1 Singer - Nominated Adviser
Aubrey Powell, Alex Wright
Tel: +44 20 7496 3000


Newgate Threadneedle
Tel: +44 20 7653 9850
Caroline Forde, Robyn McConnachie, Tim Thompson

About Transense Technologies
Based in Oxfordshire, UK, Transense has developed patent-protected sensor systems and supporting technology for use in a variety of diverse high growth markets. Transense's Surface Acoustic Wave (SAW), wireless, battery-less, sensor systems offer significant advantages over legacy wireless sensor systems. Transense is targeting the global electrical Smart Grid applications market, the transport and mining industries, and the global torque, temperature and pressure sensing markets, via its three trading divisions, IntelliSAW, Translogik and the newly established SAWSense, respectively.
The Company's sensors are also being used in the wind turbine monitoring industry. Transense is part of a consortium of nine companies ("IntelWind") that has begun development on a major EU funded project to improve the efficiency and reliability of wind turbines.
Transense's shares are admitted to trading on AIM, a market operated by the London Stock Exchange (AIM: "TRT").
www.transense.co.uk
Chairman's statement
Transense is pleased to announce its full year results for the year ending 30 June 2014. 
Sales for the year were 3.6m (FY to the 30 June 2013 - 1.5m), a year-on-year increase of approximately 138%. The Company achieved a maiden EBITDA profit of 0.02m for the first half, but as highlighted in the most recent trading update, the Company recorded a loss for the full year of 1m. This is due to delays in orders which are still anticipated but were originally expected to conclude before the year end.
Given the strong top line growth, robust gross margins in line with expectations and lower than forecast overheads, the EBITDA loss for the financial year is trending favourably and was less than half that sustained in the previous year.
As a result of the increase in turnover, we have also experienced a substantial increase in the working capital requirement to fund the increased debtors and stock requirements.
All three trading divisions are seeing growing interest in their products and increased market awareness of the commercial and technological benefits they offer. Translogik, our tyre management solutions business, has seen record levels of sales and new enquiries during the year. IntelliSAW, our electrical switchgear monitoring and protection business, now has a presence in 29 countries and has secured recent contract wins with global switchgear OEMs after lengthy system pilots, lasting up to two years. Despite the longer sales cycle for IntelliSAW, these wins encourage our belief that the considerable number of trials underway around the globe should translate into significant orders. SAWSense, our torque sensor business, has several projects that offer the potential for commercialisation of its SAW (Surface Acoustic Wave) technology in 2015. 
Transense recently moved into new premises in Weston on the Green, a few miles from the previous office location in Upper Heyford, which is being redeveloped. The new site offers more space to support the Company's growth plans, and provides higher quality facilities to enable the Company to maintain itself as a centre of technical excellence.
Although larger individual contracts are likely to continue to cause volatility in reported results and delays in finalising orders, if continued, could have an adverse effect on future results, the considerable pipeline of contract opportunities across the division gives the Board confidence in achieving another year of solid growth, building on the progress achieved to date.
David M Ford
Chairman
17th September 2014
Chief Executive's report
The last financial year began strongly, with record sales and EBITDA profitability for the Group achieved in the first half of the year. Delays in signing a number of significant contracts resulted in a decrease in revenue in the second half; however the Translogik division was profitable for the year as a whole and the Company expects IntelliSAW to follow a similar revenue growth pattern in due course.
Translogik
The Translogik division, which provides tyre management solutions for the mining, earthmover and commercial vehicle markets, had an excellent year and made a major contribution to group overheads, with year-on-year sales growth of 226%.
Inspection Tools
The last twelve months have seen significant increases in sales of both the Generation 1 probe (up 200%) and the newer iProbe (up 22%). A number of new customers are currently developing systems that integrate the probes, and more than one of these systems is for passenger cars. Previously the tyre inspection probes were used for commercial vehicles only. The market for passenger cars is significantly larger than the commercial vehicle market alone, representing an encouraging additional development.
iTrack
Sales of Translogik's iTrack Tyre Temperature and Pressure Monitoring Systems for mining and off-the-road vehicles ("iTrack") increased by 370%, with deployments continuing at the Sishen mine in South Africa, owned by Kumba Iron Ore, a subsidiary of Anglo American plc, as well as at mines managed by Otraco Chile, a subsidiary of Otraco International (the world's leading provider of earthmover/off-the-road tyre management services to the mining industry). 
Translogik has received encouraging feedback from customers on the value of accurate, real-time tyre data being provided by the iTrack system, with new insights being gained into how 24/7 tyre monitoring information can impact on overall mining vehicle performance and mine efficiency.
Further field trials and deployments are continuing in Australia.
IntelliSAW
IntelliSAW has expanded its global network and now has distributors in 29 different countries. Sales have been below expectations and we believe this to have been largely caused by the extended pilots and complex validation processes required for potential customers to implement a new product to such critical assets. A recent contract win with one of the world's top three switchgear OEMs in China came about after completion of a project that began over two years ago. Now that these validation processes have been completed by several major industrial customers, IntelliSAW expects adoption of the IS485 system on a larger scale. Additionally, as a reflection of the products' increasing industry recognition, a number of end-users have begun to request the Company's system when specifying switchgear panels.
In South America, a first order was received from a major switchgear OEM providing switchgear panels to one of the largest petrochemical operations in the world. This project began well over a year ago, once again demonstrating how long the sales process can be when dealing with top-tier customers. This win in Brazil marks both the displacement of the prior go-to supplier of thermal monitoring in that market (using infrared camera technology) as well as significantly increasing IntelliSAW's visibility with several other switchgear OEMs and industrial customers within that market. 
A number of pilots are underway in the UAE where switchgear failure due to overheating is common and a reliable solution is highly sought after. This is a valuable potential market to IntelliSAW as solutions are required urgently and large infrastructure budgets are available.
In 2013 IntelliSAW was selected by Siemens India to supply its IS485 system for real-time temperature monitoring in medium voltage switchgear cabinets. The systems are provided as a factory-installed option for Siemens customers requesting this feature. Switchgear cabinets produced at this Siemens operation began shipping with factory-fitted IS485 systems in January 2014. This supply agreement represents an important milestone for IntelliSAW, both in terms of the growing market recognition of its products, and driving the potential for new customer wins in association with a top-tier global switchgear manufacturer.
Development of new complementary products to the IS485 system, combining the system reader function with a full-featured HMI (Human Machine Interface), have greatly simplified the system implementation process while bringing additional functionality to the end-user. At the same time, the option to add humidity sensors to the system brings another point of performance monitoring within these critical electric power delivery assets.
SAWSense
A number of projects are underway and Transense is pleased to report that progress is being made in partnership with one of the largest European industrial electronic system manufacturers on a SAW application as part of a condition monitoring system. The project has been underway for two years developing prototypes. The customer has started the industrialisation process with production expected to follow in the second half of the current financial year. The customer has a global interest in SAW technology for multiple applications. 
In addition, SAWSense progress continues on a major torque related project with one of the world's largest industrial companies. This company has the in-house capability to develop, build and deploy SAWSense torque sensing solutions in multiple applications across a host of industrial sectors with a mixture of both short and longer term industrialisation timescales. As the client is both the developer of the applications, as well as the end-user, this represents an excellent opportunity.
Work continues on a diverse range of applications of Transense's SAW technology for measuring torque (electric power assisted steering and driveline), temperature and pressure with new companies and the Board is hopeful that further licences will be granted, subject to the satisfactory conclusion of commercial discussions in each case.
SAWSense's revenue for the full year to June 2014 was up 113% compared to the previous financial year and prospects for further growth are strengthening.
Outlook
With revenue having increased year-on-year by approximately 138% compared to 2013 the Board is pleased by progress across all divisions.
Translogik has now achieved profitability, although it remains reliant on the receipt of large orders and we believe that IntelliSAW is well positioned for similar success within the next 12 to 18 months, as the extremely lengthy product pilots begin to translate into major orders. Whilst order intake in recent months has been disappointing, the prospects for all three divisions are strong, with the pipeline of potential sales opportunities continuing to expand. The outlook for 2015 is encouraging. 
Graham Storey
Group CEO
17th September 2014
Group Statement of Comprehensive Income









Year ended 30 June

Year ended 30 June


2014

2013







000

000





Revenue

 3,603 

 1,517 





Cost of Sales
(987)

(500)










Gross Profit
 2,616 

 1,017 





Administrative Expenses
(3,789)

(3,464)










Operating loss
(1,173)

(2,447)





Financial Income
 62 

 4 





Financial Expenses













Loss before Taxation
(1,111)

(2,443)





Taxation

 75 

 60 





Loss for the Period
(1,036)

(2,383)




















Basic and fully diluted loss per share (pence)
(0.38)

(1.20)










Group Statement of Financial Position















Year ended


Year ended



30 June


30 June


2014
2014

2013
2013









000
000

000
000







Non current assets






Property, plant and equipment

 153 


 137 

Intangible assets

 906 


 989 











 1,059 


 1,126 
Current assets






Inventories

 738 


 315 

Corporation tax

 136 


 61 

Trade and other receivables

 2,087 


 440 

Cash and cash equivalents

 3,082 


 1,989 











 6,043 


 2,805 














Total assets


 7,102 


 3,931 







Current liabilities






Trade and other payables

(638)


(488)

Current tax liabilities

(44)


(51)








Total liabilities


(682)


(539)














Net assets


 6,420 


 3,392 














Equity






Issued share capital


 9,724 


 9,102 
Shares to be issued


 249 



Share premium


 16,329 


 13,144 
Warrant reserve


-


 378 
Accumulated losses


(19,882)


(19,232)














Total equity


 6,420 


 3,392 














Group statement of changes in equity























Share

Share

Shares to

Warrant

Cumulative

Total

Capital

premium

be issued

reserve

losses

equity

000

000

000

000

000

000












Balance at 1 July 2012
 8,591 

 9,753 

-

 430 

(17,017)

 1,757 
Loss for the year








(2,383)

(2,383)
Shares and warrants issued and share premium
 511 

 3,391 







 3,902 
Transfer between reserves






(52)

 52 

-
Share based payments








 116 

 116 












Balance at 30 June 2013
 9,102 

 13,144 

-

 378 

(19,232)

 3,392 
























Loss for the year








(1,036)

(1,036)
Shares and warrants issued and share premium
 622 

 3,185 

 249 





 4,056 
Transfer between reserves






(378)

 378 

-
Share based payments








 8 

 8 












Balance at 30 June 2014
 9,724 

 16,329 

 249 

-

(19,882)

 6,420 
























Group Statement of Cash Flows











Group









Year ended 30 June

Year ended 30 June


2014

2013


000

000





Loss Before Tax

(1,111)

(2,443)





Financial Income

(62)

(4)
Depreciation

 58 

 72 
Amortisation

 162 

 218 
Loss on disposal of fixed assets

 0 

-
Share Based payments

 8 

 116 





Operating cashflows before movements in working capital

(945)

(2,041)





(Increase) in recievables

(1,647)

(141)
Increase in payables

 150 

 234 
(Increase) in inventories

(423)

(175)





Cash used in Operations

(2,865)

(2,123)





Taxation recovered

(7)

 90 





Net cash used in operations

(2,872)

(2,033)










Investing activities




Interest received

 62 

 4 
Proceeds from disposal of fixed and investment assets

 0 

 0 
Acquisitions of property, plant & equipment

(74)

(60)
Acquisitions of intangible assets

(79)

(19)





Net cash used in investing activities

(91)

(75)





Financing activities




Proceeds from issue of equity share capital & warrants

 4,056 

 3,902 





Net cash from financing activities

 4,056 

 3,902 





Net increase in cash & cash equivalents

 1,093 

 1,794 





Cash and equivalents at the beginning of the period

 1,989 

 195 





Cash and equivalents at the end of the period

 3,082 

 1,989 










Basis of Preparation
 The financial information in this report for the year ended 30 June 2014 was authorized for issue in accordance with a resolution of the Directors on 15th September 2014.
 The financial information in this report does not include all notes of the type normally included within a full annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.
 The accounting policies and methods of computation are the same as those to be adopted in the annual financial report for the year ended 30th June 2014.

This information is provided by RNS
The company news service from the London Stock Exchange
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