Transense Technologies PLC AGM Statement & Trading Update (9790U)

TIDMTRT

RNS Number : 9790U

Transense Technologies PLC

29 November 2023

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Transense Technologies plc

("Transense", or "the Company")

AGM Statement and Trading Update

Transense Technologies plc, the provider of specialist sensing solutions and measurement systems, announces the following trading update for the first four months of the financial year to 30 June 2024 (the "Period") ahead of its Annual General Meeting to be held at 10:00 a.m. today.

Trading Update

Revenues in the Period were 13 per cent higher than in the comparable period last year. The unaudited profit before taxation increased threefold on that generated in the comparable period, assisted by a temporary reduction in operating costs following the team reorganisation.

Although well ahead of the prior period, revenue in the Period was below the Board's expectations. Royalty income from iTrack continued to rise, although more slowly than the historic run rate. Revenues from Translogik and SAWsense were substantially unchanged from the prior period, with a return to strong growth expected towards the second half of the financial year. The short-term order book and opportunity pipeline for both SAWsense and Translogik indicate an upturn in trading, and therefore the Board expects to meet market expectations for the full year.

Operating cashflow is robust, and the net cash balance at 3 1 October 2023, following the receipt of Q1 iTrack royalties, was approximately GBP1.72m (30 June 202 3: GBP0.98m).

To drive further revenue growth, market awareness, and accelerate pipeline conversion across its divisions, the Company is actively recruiting. An additional senior mechanical engineer joined this month, and offers of employment have been accepted by four further team members: a Business Development Director for Translogik, and three experienced engineering and project management professionals, to support the delivery of new projects and industrialisation activity in SAWsense. The Company is also hiring a dedicated marketing lead to support the business development teams across both divisions. These new members of the team will be joining early in the new year with a full workload.

As well as supporting a growing blue-chip customer base, R&D activity in the Period has led to significant progress towards industrialisation of the SAWsense technology. This meets the objective of being able to better support customers by demonstrating a clear pathway to scale-up manufacturing, as well as improving low volume production capacity and capability. Transense has also expanded functionality and delivered enhancements to the Translogik product in response to customer requests that will open up new market potential. This R&D activity has also led to the Company making its first new patent applications in ten years, significantly extending the SAWsense IP base. Details of these new patents will be released in due course.

Transense signed an MOU last year with Meggitt SA, with the joint aim of concluding a licence for SAW technology in the aerospace sector by 31 December 2023. The acquisition of Meggitt by Parker since then opens up new potential to expand the current working relationship between both parties, but the resulting organisational changes within their business have impacted their ability to progress licence discussions. Whilst the pace of progress has been measured, the Board continues to value the relationship with Parker Meggitt. Transense does not expect to conclude a licence by 31 December and will provide further updates in due course.

Independently, Transense has made excellent progress in the broader aerospace market, where the Company is now engaged directly with a number of additional engine and air frame manufacturers.

Since the announcement of a GBP0.65m share buyback programme on 27 September 2022, the Company has acquired 528,000 shares to be held in treasury at a total cost of GBP0.47m. The remainder of GBP0.18m is available for further such purchases, subject to shareholder approval at today's AGM. The Board may announce a further programme during the year if this is considered appropriate.

The Board is pleased with the momentum in the ongoing commercial pipeline, both for SAWsense and Translogik, which provides confidence in the prospects for the current financial year and beyond.

Online access to the AGM

Shareholders who wish to view the AGM remotely should register for the event in advance via the following link:

https:www.investormeetcompany.com/transense-technologies-plc/register-investor

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            Tel: [phone] 
  Broker)                                           5656 
  Jeremy Porter/George Payne (Corporate Finance) 
  Stefano Aquilino / Tony Quirke (Sales & 
  Corporate Broking) 
 Walbrook PR                                       Tel: [phone] 
  Tom Cooper/Nick Rome/Joe Walker                   8780 
                                                    [e-mail] 
 

Notes to Editors:

Transense is a developer of specialist wireless sensor systems used to enable real-time data gathering and monitoring. Products include the patent protected Surface Acoustic Wave (SAW) sensor technology, used to improve equipment power, performance, reliability and efficiency; iTrack, Transense's Tyre Pressure Monitoring System, licensed to Bridgestone Corporation, the world's largest tyre producer, under a ten-year deal in June 2020; and a range of intelligent tyre monitoring equipment under the Translogik brand. Target sectors include aerospace, automotive (high performance and off-road) and complex machine control.

The Group's strategy is to maximise shareholder value through the delivery of sustained revenue growth from all three principal technologies - SAW, iTrack and Translogik probes - through leveraging excellence in innovation, know-how in commercialising technologies, 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 [e-mail].

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November 29, 2023 02:00 ET (07:00 GMT)