REG - Transense Technlgy - Final results for the year ended 30 June 2019

Transense TechnologiesAnnouncement

26/09/2019 07:05

RNS Number : 6987N
Transense Technologies PLC
26 September 2019
 


26 September 2019
 
Transense Technologies Plc
("Transense", the "Company" or the "Group")
Final results for the year ended 30 June 2019
 
Transense Technologies Plc (AIM: TRT), the provider of sensor systems for industrial, mining and transportation markets, is pleased to report audited results for the year ended 30 June 2019 which are ahead of the Board's expectations.  The Translogik division revenues continue to expand, SAWSense activity remains high and the Board is confident of increased revenues and activity in the new financial year.
Highlights
 
 
·    Revenue up 9% to £2.23m (2018: £2.05m) 
·    iTrack II subscription revenue up 58% to £0.98m (2018: £0.62m)
·    Major commercial breakthroughs achieved in each business unit:
o  Licensee GE Aviation's T901-GE-900 engine incorporating a Transense Surface Acoustic Wave (SAW) sensor selected by the U.S. Army
o  Initial iTrack II order from Bridgestone Corporation, Japan
o  Global collaboration and financial support agreements signed with Bridgestone post year end
·    Net loss after taxation, ahead of expectations at £1.47m (2018: £1.89m)
·    Net cash used in operations reduced by 62% to £0.43m (2018: £1.11m)
·    Equity fund raise of £2.56m completed in April 2019
·    Net cash at end of period of £2.65m (2018: £1.59m)  
 
 
 
       
Executive Chairman of Transense Technologies, David Ford, said:
"I am pleased to report that 2019 has been a transformational year for the Group having made a number of breakthrough successes. These have included the selection of GE's engine by the U.S. Army, which includes our SAW sensor, the joint collaboration agreement with Bridgestone to develop the iTrack II system following Bridgestone Japan's initial iTrack II order. These milestones have been the culmination of several years of technical and commercial development activity.
"Looking forwards, the Company is well capitalised having completed a fundraising in April 2019 and has in place an interest free Loan with Bridgestone. This will provide a secure platform to support exciting future growth prospects."
 
 
For further information please visit www.transense.co.uk or contact:
 




Transense Technologies plc
Graham Storey, Chief Executive
 


Tel: +44 (0) 1869 238380
 




finnCap
Ed Frisby, Giles Rolls, Matthew Radley (Corporate Finance)
Tim Redfern, Tim Harper (ECM)
 


Tel: +44 (0) 20 7220 0500
 




 
About iTrack II
 
The iTrack II Mining system provides real-time data on the condition of the tyres, combined with live tracking of vehicle location and status. Our 24/7 Control Room monitors the pressures and temperatures live, and this information can, for example, be used to ensure tyres do not exceed critical heat thresholds, to detect incorrect load distributions, predict suspension failures and eliminate manual tyre pressure checks. The Directors believe that these benefits maximise the hours a truck is working (Truck Uptime) and improve productivity by minimising maintenance requirements and using data to identify underperforming trucks. www.trans-logik.com/itrack-2/ 
 
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. The Directors believe that Transense's Surface Acoustic Wave (SAW), wireless, battery-less, sensor systems offer advantages over legacy wireless sensor systems. Transense is targeting the transport and mining industries, and the global torque, temperature and pressure sensing markets, via its trading divisions, Translogik and SAWSense. www.transense.co.uk
Transense's shares are admitted to trading on AIM (AIM: TRT).
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
 
 
 
Chairman's statement

 
 
In a transformational year for the Group, financial results are improved and major breakthrough announcements have been made relating to commercialisation of each of our core technologies.  The balance sheet has been strengthened by an equity fundraise which, together with the interest free Bridgestone loan received in August 2019, will provide a secure platform to support exciting future growth prospects.
The Chairman wishes to thank the whole Transense team for its contribution towards achieving the breakthroughs in both iTrack and SAWSense during the year.
 
Strategy
The business strategy of the Group continues to be the development of 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.
Commercial developments
SawSense
SAWSense is a leader in the development of Surface Acoustic Wave ("SAW") wireless, batteryless, sensor systems that offer significant advantages over legacy systems in common use. The business continues to be involved in several projects in conjunction with major global industrial companies. 
In July 2016, SAWSense entered into a significant licensing agreement with General Electric Company ("GE") for the non-exclusive use of our patented, wireless, passive SAW technology. Initial license fees of US$0.75m were received following the agreement, and we are entitled to receive further significant royalty payments from GE in respect of unit sales anticipated in the future.
The likelihood of receiving future royalty payments took a step forward with the announcement in February 2019 that GE's engine, incorporating our SAW sensor, had been selected by the US Army for the Engineering and Manufacturing Development ("EMD") phase of the Improved Turbine Engine Program ("ITEP"), the U.S. Army's endeavour to re-engine its Boeing AH-64 Apaches and Sikorsky UH-60 Black Hawks. 
The U.S. Army intends to replace more than 6,000 engines installed in their current fleet of these two aircraft. The wider market for the T901 engine includes replacement engines for these aircraft in military forces outside of the U.S., as well as other military and commercial medium sized vertical take-off aircraft globally. This provides the prospect of an expected growing revenue stream as volumes of engines installed builds over time, this selection both demonstrates the ability of our SAW sensors to operate in extreme testing environments and that they can be manufactured in volume.  Our relationship with GE continues to deepen, with further applications being evaluated.
Progress continues with several other applications. Our Torque sensor is part of an innovative steering system which is due to start vehicle trials on off road sports vehicles in 2020. Our Joint Development Agreement with McLaren is exploring opportunities in other race formats and our participation in a Strain & Temperature related project with University of Southampton & Lloyds Register, which began earlier this year is progressing on schedule.
 
Translogik
Important advancements were made with the market traction of our iTrack II mining tyre monitoring systems.  The number of mine haul trucks fitted with the system increased during the year by more than 50% to 396, with annualised revenues at the end of the year exceeding £1.2m covering installations in 4 countries across 3 continents.
In February 2019, an initial order for 50 iTrack II units was received from Bridgestone Corporation, Japan ("Bridgestone") for installation in mines in North America. Bridgestone are a leading supplier of tyres to the mining off-the-road (OTR) marketplace and their decision to offer the iTrack system is a testament to the capabilities of Translogik and the iTrack system.
More recently in August 2019, the Company entered into a joint collaboration agreement with Bridgestone in respect of the iTrack II system and its future generations ("iTrack system") for an initial 18-month period with ability to extend.
 
Based on this joint collaboration agreement, Bridgestone has agreed to offer the iTrack system exclusively as a mining tyre monitoring system for tyres 57 inches and above for its OTR customers. In addition, the Company has agreed that it will not contract with any other tyre manufacturer for the provision of the iTrack system for tyres 57 inches and above for the term of the agreement, nor will it for a period of six months have discussions with any other party in relation to any transaction of a merger, acquisition or joint venture nature in respect of its iTrack business.
 
Since the year end, the total number of mine haul trucks fitted or agreed to be fitted with iTrack now exceeds 500. This includes 25 units being added at South Walker Creek in Australia. Pleasingly, Kal Tire, a corporation based in Canada and a substantial retailer and service provider in mining and OTR, has become a reseller for iTrack in Africa, and in August 2019 won a contract to supply 85 iTrack II mining tyre monitoring systems for haul trucks into a large multi-national mining company operating in Mozambique.


The selection of the iTrack system was the outcome of a competitive trial between iTrack and a number of other TPMS systems with the end user concluding that iTrack was the best overall solution, satisfying both Kal Tire, and the end user's very specific operational and information reporting requirements. Kal Tire has a large installed customer base throughout Africa and will be seeking to introduce additional iTrack systems into a number of their current and future on-site service operations.
 
 
Sales of tyre tread depth probes reduced by 46% to £0.45m (2018: £0.84m).  This followed a year of particularly strong growth in 2017/18, when the probe was selected by Goodyear USA for their new tyre management system called 'Tire Optix' which incorporates the Translogik tyre probe.  The take up rate has been somewhat slower than we had anticipated.
Our probes are also specified for use in Bridgestone's corresponding 'Toolbox' and 'Total Tyre Care' systems as well as Continental's 'Fleetfox' system, underpinning our belief that they represent an industry standard.
It is likely that the revenue reduction during the year was partly a result of reduced marketing effort, especially on-line.  We have recently recommenced advertising in this way, and are beginning to see a corresponding increase in sales orders, which is encouraging.  
Financial results and condition
 
Revenues for the year increased by 9% to £2.23m (2018: £2.05m). Recurring subscription revenues generated by Translogik from users of the iTrack II system increased by 58% to £0.98m (2018: £0.62m). We anticipate these revenues will continue to grow significantly over the coming year as the iTrack installed base significantly increases.
Gross margin increased to 80.5% of revenues (2018: 62.9%) reflecting the higher proportion of income from subscriptions, and also ad hoc fees to support new trials. The associated costs of the subscription income is included in depreciation charges, included within administrative expenses, which totalled £0.31m in the year (2018: £0.16m).         
Net operating expenses were £3.60m (2018: £3.21m) and the net loss before taxation from continuing operations reduced to £1.73m (2018: £1.91m).
The total comprehensive loss for the period reduced to £1.47m (2018: £1.89m), reflecting a tax credit of £0.27m (2018: £0.03m).
Net cash used in operations reduced by 62% to £0.43m (2018: £1.11m).  Offering iTrack II to customers on a subscription basis results in a short-term cash outlay and requires investment in the initial months of each contract. The net investment in fixed assets for such contracts in the period amounted to £0.38m (2018: £0.42m) and as Translogik's iTrack II installed base increases there will continue to be a need to invest in fixed assets.
In March and April 2019, the Company issued additional equity to new and existing shareholders raising £2.56m to provide additional working capital and fund further product development costs for the iTrack II system. 
The Group closed the year with net cash and cash equivalents of £2.65m (2018: £1.59m). ).  In August 2019 the Company received an interest free loan of $0.75m (£0.62m) from Bridgestone as part of the Joint Collaboration Agreement with them to be used to support the accelerated rate of growth that is anticipated from this relationship. 
Prospects
The breakthrough successes achieved in recent months have been the culmination of several years of technical and commercial development activity.  Each of the Group's business units are now closely aligned with global companies that are acknowledged to be leaders in their respective fields.
There remains much to be done to ensure that we, together with our commercial partners, are able to fully exploit the opportunities made possible by our technologies.  We are firmly committed, and well positioned, to provide the resources required to unlock potential for very exciting future growth.
 
 
David M Ford
Chairman
 
25 September 2019
 
 
 
Strategic Report
 
Financial Review
Results for the year
Revenues totalled £2.23m (2018: £2.05m). The pre-tax loss totalled £1.73m (2018: £1.91m).
Translogik revenues grew by 11% to £2.11m, and SAWSense generated £0.12m of revenues (2018: £0.15m). Gross margin improved to 80.5% (2018: 62.9%) reflecting the continual increase in the subscription base. The depreciation on capitalised iTrack kit, included in administrative expenses, increased to £0.31m (2018: £0.16m).
Administrative expenses for the year, before depreciation, amortisation and interest, amounted to £2.84m compared with £2.65m in the prior year.
The increase in Translogik revenues reflects the good growth in new iTrack subscription services following the launch of iTrack II in September 2016 and despite a 46% reduction in Probe sales during the period following a record year of sales in 2018.
The Earnings per share (EPS) are set out below (in Pence):




 


2019


2018






 


 


 




EPS (Loss)


(11.11)


(19.68)




 
 
Taxation 
The Company has UK tax losses available to carry forward at 30 June 2019 of approximately £21m, subject to HMRC agreement.
Certain elements of development expenditure undertaken by the Company are eligible for enhanced research and development tax relief which generally relates to salary costs of technical staff. The accounting treatment adopted is to recognise the R & D tax credits on a cash basis due to the uncertain nature of the claim. During the year the Company received R & D tax credits totalling £283,000 in respect of the two years ended 30 June 2018.
 
Cash flow and financial position
There was a net cash inflow of £1.06m (2018: outflow of £0.93m) during the year, arising from trading and £2.34m of net proceeds arising from the issue of equity share capital during 2019 (2018: £0.92m).
Net cash used in operations amounted to £0.43m (2018:  £1.11m).
At 30 June 2019 the Group had net cash balances of £2.65m (2018: £1.59m).
The forward looking cash flow forecasts based on the anticipated level of activity indicates that the Group should have sufficient funds available for the short to medium term. The Board note that part of the effect of increased demand for iTrack services has been funded by Bridgestone after the year end. 
Going Concern
 
The financial statements have been prepared on the going concern basis. The Group has made a loss for the year of £1.47m (2018: loss of £1.89m). The Group has accumulated losses of £3.36m (2018: £1.89m). The balance of cash and cash equivalents at 30 June 2019 is £2.65m (2018: £1.59m).
 
The Group's cash used in operations during the year was £0.43m (2018: £1.11m).
 
The Group meets its day to day working capital requirements through existing cash reserves and does not currently have an overdraft facility. The directors have prepared cash flow forecasts for the period to 31 December 2020. These forecasts indicate that the Group should continue to be able to operate within its current cash resources for the foreseeable future.
 
 
 
Melvyn Segal
Finance Director
 
25 September 2019
 
 
 
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2019




 


 


Year ended
30 June


Year ended
30 June




 


 


 


2019


 


2018




 


 


 


£'000


 


£'000




Continuing operations


 


 


 


 


 






Revenue


 


 


2,226


 


2,050




Cost of sales


 


 


(435)


 


(761)




 


 


 


----------------------------------------------


 


----------------------------------------------




Gross profit


 


 


1,791


 


1,289




 


 


 


 


 


 




Administrative expenses


 


 


(3,603)


 


(3,208)




 


 


 


----------------------------------------------


 


----------------------------------------------




Operating loss


 


 


(1,812)


 


(1,919)




Financial income


 


 


2


 


5




Other income


 


 


79


 


-




 


 


 


----------------------------------------------


 


----------------------------------------------




 


 


 


 


 


 




Loss before taxation


 


 


(1,731)


 


(1,914)




Taxation


 


 


266


 


26




 


 


 


----------------------------------------------


 


----------------------------------------------




Loss for the year


 


 


(1,465)


 


(1,888)




 


 


 


==============================================


 


==============================================




Basic and fully diluted loss per share (pence)


 


 


(11.11)


 


(19.68)




 


 


 


==============================================


 


==============================================




 


 


 


 


 


 




Loss for the year


 


 


(1,465)


 


(1,888)




 


 


 


----------------------------------------------


 


----------------------------------------------




Other comprehensive income:


 


 


 


 


 




Exchange difference on translating foreign operations


 


 


2


 


-




 


 


 


----------------------------------------------


 


----------------------------------------------




Other comprehensive income for the year


 


 


2


 


-




Total comprehensive income for the year attributable to the equity holders of the parent


 


 


(1,463)


 


(1,888)




 


 


 


==============================================


 


==============================================




 
 
Consolidated Balance Sheet
at 30 June 2019




 


at 30 June


at 30 June




 


2019


2019


2018


2018




 


£'000


£'000


£'000


£'000




Non current assets


 


 


 


 






Property, plant and equipment


529


 


474


 




Intangible assets


946


 


909


 




 


----------------------------------------------


 


----------------------------------------------


 




 


 


1,475


 


1,383




Current assets


 


 


 


 




Inventories


566


 


685


 




Trade and other receivables


789


 


698


 




Cash and cash equivalents


2,647


 


1,592


 




 


----------------------------------------------


 


----------------------------------------------


 




 


 


4,002


 


2,975




 


 


----------------------------------------------


 


----------------------------------------------




Total assets


 


5,477


 


4,368




 


 


 


 


 




Current liabilities


 


 


 


 




Trade and other payables


(604)


 


(316)


 




Current tax liabilities


(55)


 


(66)


 




Provisions


(70)


 


(100)


 




 


----------------------------------------------


 


----------------------------------------------


 




Total liabilities


 


(729)


 


(482)




 


 


----------------------------------------------


 


----------------------------------------------




Net assets


 


4,748


 


3,876




 


 


==============================================


 


==============================================




Equity


 


 


 


 




Issued share capital


 


5,451


 


5,025




Share premium


 


2,591


 


682




Translation reserve


 


23


 


21




Share based payments


 


41


 


41




Accumulated loss


 


(3,358)


 


(1,893)




 


 


----------------------------------------------


 


----------------------------------------------




 


 


4,748


 


3,876




 


 


==============================================


 


==============================================




 
 
Consolidated Statement of Changes in Equity
For the year ended 30 June 2019




Group


Share
capital


Share
premium


Translation reserve


Share based payments


Cumulative
losses


Total
equity




 


 


£'000


£'000


£'000


£'000


£'000


£'000




Balance at 1 July 2017


4,766


22


21


-


(5)


4,804




Comprehensive income for the year:


 


 


 


 


 


 




Loss for the year


-


-


-


-


(1,888)


(1,888)




Total comprehensive income for the year


-


-


-


-


(1,888)


(1,888)




Share based payments


-


-


-


41


-


41






Shares issued and share premium


259


660


-


-


-


919




 


------------------------------------------


----------------------------------------------


----------------------------------------------


----------------------------------------------


----------------------------------------------


----------------------------------------------




Balance at 30 June 2018


5,025


682


21


41


(1,893)


3,876




 


------------------------------------------


----------------------------------------------


----------------------------------------------


----------------------------------------------


----------------------------------------------


----------------------------------------------




Comprehensive income for the year:


 


 


 


 


 


 




Loss for the year


-


-


-


-


(1,465)


(1,465)




Other comprehensive income for the year:


 


 


 


 


 


 




Currency movement on subsidiary reserves


-


-


2


-


-


2




Total comprehensive income for the year


-


-


2


-


(1,465)


(1,463)




Shares issued and share premium


426


1,909


 


-


-


2,335




 


------------------------------------------


----------------------------------------------


----------------------------------------------


----------------------------------------------


----------------------------------------------


----------------------------------------------




Balance at 30 June 2019


5,451


2,591


23


41


(3,358)


4,748




 


=========================================


==============================================


==============================================


==============================================


==============================================


==============================================



 
 
 
 
 
 
 
 



 
 
Consolidated Cash Flow Statement
For the year ended 30 June 2019
 




 


Group




 


Year ended
30 June
2019


Year ended

30 June
2018




 


£'000


£'000




Loss from operations


(1,465)


(1,888)




Adjustments for:


 


 




Taxation


(266)   


-    




Financial income


(2)


(5)




Depreciation


369


227




Amortisation of intangible assets


396


332




Share based payments


-


41




 


----------------------------------------------


----------------------------------------------




Operating cash flows before movements in working capital


(968)  

 


(1,293)

 




Increase in receivables


(91)  


(203)




Decrease/(increase) in payables


247   


(169)




Decrease in inventories


119


300




Decrease in trade lease receivables


-   


266   




 


----------------------------------------------


----------------------------------------------




Cash (used)/generated in operations


(693)  


(1,099)




Taxation (paid)/recovered


266  


(7)




 


----------------------------------------------


----------------------------------------------




Net cash used in operations


(427)


(1,106)




 


----------------------------------------------


----------------------------------------------




Investing activities


 


 




Interest received


2


5




Acquisitions of property, plant and equipment


(424)


(443)




Acquisitions of intangible assets


(433)


(303)




 


----------------------------------------------


----------------------------------------------




Net cash used in investing activities


(855)


(741)




 


----------------------------------------------


----------------------------------------------




Financing activities


 


 




Proceeds from issue of equity share capital


2,335


919




 


----------------------------------------------


----------------------------------------------




Net cash from financing activities


2,335


919




 


----------------------------------------------


----------------------------------------------




Net decrease in cash and cash equivalents


1,053


(928)




Unrealised Currency translation gain


2


-




Cash and equivalents at the beginning of year


1,592


2,520




 


----------------------------------------------


----------------------------------------------




Cash and equivalents at the end of year


2,647


1,592




 


==============================================


==============================================




 
 
NOTES RELATING TO THE GROUP FINANCIAL STATEMENTS
 
BASIS OF PREPARATION
The group financial statements have been prepared and approved by the Directors in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU and with those parts of the Companies Act 2006 applicable to companies reporting under adopted IFRS.
 
IFRS and IFRIC are issued by the International Accounting Standards Board (the IASB) and must be adopted into European Union law, referred to as endorsement, before they become mandatory under the IAS Regulation.
 
1        SEGMENT INFORMATION
The Group has two reportable segments being the unique trading divisions, SAWSense and Translogik, which make use of technology developed by the Group to measure and record temperature, pressure and torque.
The business revenues include royalties, engineering support and sale of product in relation to this technology.
Information regarding the Group's segments is included in the primary statements and notes to the financial statements. Revenue and EBITDA are the Group's key focus and in turn is the main performance measure adopted by management.
 
The tables below sets out the Group's revenue split and operating segments.
Revenue




 


Year ended
30 June 2019


Year ended
30 June 2018




 


£'000


£'000




 


 


 






North America


743


322




Chile


670


660




Australia


398


400




UK & Europe


192


362




Japan


31


160




Rest of the World


192


146




 


----------------------------------------------


----------------------------------------------




 


2,226


2,050




 


=============================================


=============================================




 




 


Translogik
£'000


SAWSense
£'000


Admin
£'000


Total
£'000




Year ended 30 June 2019


 


 


 


 






Sales


2,106


120


-


2,226




 


=====================


=====================


=====================


====================




Gross profit


1,678


113


-


1,791




Other Income


-


79


-


79




Overheads


(1,227)


(472)


(1,902)


(3,601)




 


-----------------------------


------------------------------


------------------------------


-----------------------------




Profit/(loss) before taxation


451


(280)


(1,902)


(1,731)




 


 


 


 


 




Taxation


108


158


 


266




 


-------------------------------


-------------------------------


-------------------------------


-------------------------------




Profit/(loss) for the year


559


(122)


(1,902)


(1,465)




 


======================


======================


======================


======================




 




 


Translogik
£'000


SAWSense
£'000


Admin
£'000


Total
£'000




Year ended 30 June 2018


 


 


 


 






Sales


1,903


147


-


2,050




 


=====================


=====================


=====================


====================




Gross profit


1,173


116


-


1,289




Overheads


(978)


(482)


(1,743)


(3,203)




 


-----------------------------


------------------------------


------------------------------


-----------------------------




Profit/(loss) before taxation


195


(366)


(1,743)


(1,914)




 


 


 


 


 




Taxation


26


-


-


26




 


-------------------------------


-------------------------------


-------------------------------


-------------------------------




Profit/(loss) for the year


221


(366)


(1,743)


(1,888)




 


======================


======================


======================


======================




 
During the year ended 30 June 2019 there were 3 (year ended 30 June 2018: 3) customers whose turnover accounted for more than 10% of the Group's total revenue as follows:




Year ended 30 June 2019


Revenue
 £'000


Percentage of total




 


 


 




Customer A


466


21%




Customer B


429


19%




Customer C


397


18%




 


 


 




Year ended 30 June 2018


Revenue
£'000


Percentage of total




 


 


 




Customer A


400


20%




Customer B


365


18%




Customer C


262


13%




 
 
2        FINANCIAL INCOME AND EXPENSE
Recognised in profit or loss




 


Year ended
30 June 2019


Year ended
30 June 2018




 


£'000


£'000




 


 


 




Finance income


2


5




 


             


             




Total finance income


2


5




 
3        TAXATION
Recognised in the statement of comprehensive income
 




 


Year ended
30 June 2019


Year ended

30 June 2018




 


£'000


£'000




Current tax expense


 


 




Current year


-


-




Adjustment for previous year


(266)


(26)




 


----------------------------------------------


----------------------------------------------




Tax credit in statement of comprehensive income


(266)


(26)




 


=============================================


=============================================




Reconciliation of effective tax rate




 


Year ended
30 June 2019


   Year ended

30 June 2018




 


£'000


£'000




Loss before tax


(1,731)


(1,914)




 


=============================================


=============================================




 


 


 




Tax calculated at the average standard UK corporation tax rate of 19.00% (2018: 19.00%)


(329)


(364)




Expenses not deductible for tax purposes


12


3




Additional deduction for R&D expenditure


(120)


-




Current year losses for which no deferred tax asset was recognised


391


357




Adjustment to deferred tax average rate of 19%


46


-




Adjustment for overseas profits


-


4




Prior year adjustment


(266)


(26)




 


----------------------------------------------


----------------------------------------------




Total tax (credit)/charge


(266)


(26)




 


=============================================


=============================================




A deferred tax asset has not been recognised in respect of the following item:


 


 




 


 


 




Tax Losses


3,760


3,345




 


=============================================


=============================================




 


 


 




 
The applicable UK corporation tax rate is 19% throughout the reporting period.
 
The Group has tax losses, subject to agreement by HM Revenue and Customs, in the sum of £20.7m (2018: £19.7m), which are available for offset against future profits of the same trade. There is no expiry date for tax losses. An appropriate asset will be recognised when the Group can demonstrate a reasonable expectation of sufficient taxable profits to utilise the temporary differences.
 
The rate of Corporation Tax will reduce to 17% with effect from 1 April 2020.
 
The effective tax rate used to calculate the current tax for the period ended 30 June 2019 was 19.00% (2018: 19.00%).
 
 
 
4        EARNINGS PER SHARE
Basic loss per share is calculated by dividing the loss after taxation of £1.47m (2018: loss of £1.89m) by the weighted average number of ordinary shares in issue during the year of 13,184,581 (2018: 9,595,825). Unexercised options over the ordinary shares are not included in the calculation of diluted loss per share as they are anti-dilutive.
 




 


Year ended 30 June 2019


   Year ended

30 June 2018




 


Number


Number




 


 


 




Weighted average number of shares - basic


13,184,581


9,595,825




Share option adjustment


-


-




 


----------------------------------------------


----------------------------------------------




Weighted average number of shares - diluted


13,184,581


9,595,825




 


=============================================


=============================================




 
          Basic and fully diluted loss per share (continued)




 


Year ended 30 June 2019


Year ended

30 June 2018




 


£'000


£'000




 


 


 




Loss from operations


(1,465)


(1,888)




 


 


 




 


----------------------------------------------


----------------------------------------------




Basic (loss)/earnings per share


(11.11)


(19.68)




 


=============================================


=============================================




 


 


 




Earnings attributable to shareholders


 


 




Basic (loss)/earnings per share


(11.11)


(19.68)




 


 


 




 


=============================================


=============================================




There are 665,000 share options at 30 June 2019 (2018: 665,000) that are not included within diluted earnings per share because they are anti-dilutive.
 
5        CASH AND CASH EQUIVALENTS
 




 


Group




 


30 June 2019


30 June 2018




 


£000


£000




 


 


 




Cash and cash equivalents per balance sheet


2,647


1,592




 


             


             




Cash and cash equivalents per cash flow
 statements


2,647


1,592




 
6        STATUTORY ACCOUNTS
 
The Financial information set out in this preliminary announcement does not constitute the Company's Consolidated Financial Statements for the financial years ended 30 June 2019 or 30 June 2018 but are derived from those Financial Statements.  Statutory Financial Statements for 2018 have been delivered to the Registrar of Companies and those for 2019 will be delivered following the Company's AGM.  The auditors Grant Thornton UK LLP have reported on those financial statements.  Their reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under Section 498(2) or (3) of the Companies Act 2006 in respect of the Financial Statements for 2019 or 2018.
 
The Statutory accounts are available on the Company's website and will be posted to shareholders who have requested a copy and thereafter by request to the Company's registered office.
 
 




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 or visit www.rns.com.
 
END
 
 
FR SEUFMIFUSEIU