REG - Transense Technlgy - Trading Statement <Origin Href="QuoteRef">TRT.L</Origin>

Transense TechnologiesAnnouncement

06/09/2014 02:19

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RNS Number : 5364J
Transense Technologies PLC
13 June 2014 
 
13 June 2014 
 
Transense Technologies plc
("Transense" or the "Company") 
 
Trading Statement 
 
Transense provides the following update on current trading and expected
performance for the year ending on 30 June 2014. 
 
The Board has been greatly encouraged by the volume of sales activity during
the current financial year and anticipates that final sales for the year will
be not less than £3.5m, which will exceed last year by more than 130%. This
figure is lower than that anticipated at the time of announcing the Company's
interim figures in early February. At that time, management information
indicated that growth in the second half of the year would enable full year
expectations to be met. However, the length of the sales cycle has proven
greater than expectedEssentially all of the unconverted sales prospects that
formed the basis for market guidance remain active and we remain confident
that we will continue to achieve substantial increases in turnover
year-on-year. 
 
The market opportunities for Transense's products remain large and attractive,
with new distribution channels established or being established in China,
Japan, Chile, Columbia and Malaysia in recent months, incorporating a direct
presence via sales channel support. 
 
The delays in placement of certain new orders is expected to result in an
EBITDA loss for the current year, rather than the previously anticipated
breakeven result.  However, given the encouraging trends in the business
including the strong top line growth, robust gross margins in line with
expectations and better-than-expected overheads, the EBITDA loss for this
financial year will be less than half that sustained in the previous year. 
 
The pipeline includes a number of substantial potential new orders at an
advanced stage of discussion. As the installed base of customers continues to
grow, Transense expects to benefit over the longer term from higher levels of
repeat orders of replacement items such as its tyre probes.  However, larger
individual contracts may still continue to cause some volatility in reported
results.  A further update on progress across all divisions will be given at
the time of the full year results in September. 
 
The Company's cash position remains strong at £3.2m and the Directors continue
to believe that the business has sufficient capital required to pursue the
business plan and deliver significant growth in the years ahead. 
 
For more information please contact: 
 
 Transense Technologies plcGraham Storey, Chief Executive         Tel: +44 1869 238 380  
 N+1 Singer - Nominated Adviser & BrokerAubrey PowellAlex Wright  Tel: +44 20 7496 3000  
 Newgate ThreadneedleCaroline Forde, Robyn McConnachie            Tel: +44 20 7653 9850  
 
 
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. 
 
Transense's shares are admitted to trading on AIM, a market operated by the
London Stock Exchange (AIM: "TRT"). 
 
Transense's sensors are also being used in the wind turbine monitoring
industry. The Company 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 
 
This information is provided by RNS
The company news service from the London Stock Exchange