Transense Technologies Share Discussion Threads

[gnnmartin] 02/10/2017 17:10

Thanks for drawing my attention to the presentation. It is encouraging.

[drw1] 29/9/2017 18:21

Worth listening to the results presentation on DIrectors talk.
Melvyn gives a very full explanation of the numbers.
The outlook is actually quite encouraging.


Around 20 minutes into the presentation the implications of increasing itrack rentals is covered.
400 is cash flow positive-we currently have 186.
The outlook in the results strongly suggests this number is likely to increase in the near term.

[piggyinthemiddle] 29/9/2017 17:56

timbo003-yes,I get all that,it`s just I was under the impression that circa £2mill would be enough to cover overheads atm so £4mill plus took me a little by surprise!

Of course we will also have income from iprobe and GE as well so maybe we won`t need to get to 900 trucks to break even?

[sojourno] 29/9/2017 10:05

Thanks again.

[timbo003] 29/9/2017 08:48

>>>Piggy, yes people need wages and the rent has to be paid, but there is also COGs as well as operational expenses. Also worth noting that after 900 (sticky) contracts, operational gearing kicks in.

One last thing from the investor meeting on Tuesday: GS was effusive about the GE collaboration on Saw Sense (torque sensor) and gave the impression that there was a very good chance that GE will sign up for additional applications in this financial year, MS added that the GE agreement(s) would be at a fixed royalty per unit with the possibility of an upfront sign on fee built in (for any additional application).

[piggyinthemiddle] 29/9/2017 08:14

900 trucks at $6K each a year gives an income of $5.4 million to break even?

Expensive company to run!

[gnnmartin] 29/9/2017 01:17

Thanks again, timbo.

[timbo003] 28/9/2017 22:43

Monty/Sojourno

This originally came up at the March investor meeting and it refers to the whole group, see notes from the March meeting:


A couple of other points whilst I am here (and before I forget),

Apparently they are now exploring ways how they can modify the tyre probe business model from one off capital sales, to a recurring revenue model which would probably include additional services. If they could achieve this, it should go down well with city scribblers and help towards a re-rating of the shares

During the analyst meetings held earlier in the day, the question came up of how much is the the IP worth and should the value be included on the balance sheet? Another point discussed was should they start paying a small dividend once break-even is achieved (which could be achieved after 18 months - 24 months)?

I don't think any conclusions were reached on either of these two points.

[sojourno] 28/9/2017 20:22

Monty... seems to me that's the whole group. i.e. the listing.

[monty68] 28/9/2017 14:45

What do you think they mean
"900 trucks is break even"
Is that the company as a whole or the I Track side of things?

[amt] 28/9/2017 07:44

Good no equity dilution so that should give a big boost to share price

[timbo003] 28/9/2017 07:40

Sorry about the continued delay in writing up my notes from Tuesday evening, but I have been otherwise occupied and I have a particularly contentious AGM to attend this morning which has required some preparation.

I bought up the question of funding and the slightly ambiguous statement regarding funding in the latest finncap update

"While there appears to be sufficient net cash to sustain activities in the short to
medium term, the effect of increased demand for iTrack rentals will put pressure
on working capital due to the timeline between investment and recoupment"

The response was that unless there was some very, very good news, for example, someone like BHP or Glencore putting in an order for iTracK units sufficient for 1,000 trucks within a period of a few weeks, there should be no need for any further funding. In such happy circumstances, they would only need funding to cover the gap between procuring the iTracK kit and the commencement of revenue generation from the new units, furthermore the funding might not take the form of an equity raise, it could be via another source, for example via a short term loan with relatively favourable terms.

[glavey] 28/9/2017 06:05

"They dont need any cash in short to medium term..."

You'll be telling us they will be going without pay next, I suppose?

[horsepower] 27/9/2017 08:45

Thanks Timbo.

[gnnmartin] 27/9/2017 08:21

Thanks timbo.

[timbo003] 27/9/2017 07:25

GE still going strong, don't know about GM

[timbo003] 27/9/2017 07:25

I think (I am not 100% sure) that Melvyn said they are hoping to have 300 trucks by the end of the calendar year and at 900 trucks they would be at break even.

Note the data analytics fee (when they start charging for it) is not in the analysts forecasts

[amt] 27/9/2017 07:22

What happened to GM. Any progress there after 15 years it seems to have dropped out of the news. Perhaps confidentiality and about to launch ?

[amt] 27/9/2017 07:19

Anyone any idea how many trucks these 14 trials might equate too. They need to be installing in say 50 per month over the next couple of years to make things look interesting and maybe get that 2 quid valuation.

[amt] 27/9/2017 07:11

2 quid valuation must mean they have penciled in sales of at least 5m with ebitda of at least 1m diwn the road so at least there is some hope. Lets hope its not a false dawn.

[timbo003] 27/9/2017 07:11

I found it a very useful meeting last night, I have posted responses to Nigel's questions below and will write up some more comprehensive notes later, unfortunately it might be much later (i.e. tomorrow evening), as I now have to take time out to prepare for another meeting tomorrow morning


Q: We had 11 trials at the interim stage. 2 have converted to usage (plus a 3rd that was not in the trials). What is the status of the other 9? And have any further trials started?

A: Some of the other 9 have converted to usage, but also some new trials have commenced, the current total is 14, but note some customers will not (did not) require trials in each individual mine to place order for multiple mines.

Q: I assume the jump in costs in the last half year was the cost of the trials. Is that correct?

A: Partly, but they also include iTracK2 launch costs (£100k) and £300k costs for setting up the data analytics service which comes with iTracK2 (new hires in Chili and elsewhere)

Q: Was any of the cost of setting up the new customers included in the year to June?

A: Yes, see above

[sojourno] 26/9/2017 13:09

Thanks Digger and Timbo.

[sojourno] 26/9/2017 13:06

Looking stronger as each quarter goes by. Good work chaps! Sorry I can't go this evening.

Rather pleasant to see Beaufort giving a valuation of 200p but they do need to put their backs into garnering further institutional holders.

[digger2779] 26/9/2017 12:09

hxxp://www.directorstalk.net/interview-transense-technology-plc-significant-revenue-increase-set-continue/

[gnnmartin] 26/9/2017 10:00

I can't attend the meeting today. For those who can, I would like to know:
We had 11 trials at the interim stage. 2 have converted to usage (plus a 3rd that was not in the trials). What is the status of the other 9? And have any further trials started?

I assume the jump in costs in the last half year was the cost of the trials. Is that correct? Was any of the cost of setting up the new customers included in the year to June?