Transense Technologies PLC Year End Trading Update (0633E)

TIDMTRT

RNS Number : 0633E

Transense Technologies PLC

05 July 2021

Transense Technologies plc

("Transense", or "the Company")

Year End Trading Update

Transense Technologies plc, the provider of specialist sensor systems, is pleased to provide a trading update for the financial year ended 30 June 2021.

Trading for the full year has closed in line with market expectations (as upgraded in February 2021) based on the unaudited accounts, with revenues of approximately GBP1.8m and a profit at both EBITDA* and profit after tax levels.

Net cash balances at 30 June 2021 were GBP1.04m (FY20: GBP1.19m). The operating cash flow for the full financial year is expected to be positive before movements in working capital. Royalties for the final quarter of the financial year are not reflected in the year end cash balance as they are not payable until July 2021, thereby further demonstrating the Company's increasingly strong financial position.

iTrack Royalties

The rate of increase in the installed base of iTrack gathered significant additional momentum in the second half of the financial year, and especially in North America during the final quarter. As a consequence, the royalty run rate has increased by around 80% since the licence was granted.

iTrack system capabilities continue to be enhanced under Bridgestone ownership as it becomes further embedded into their mining solutions business and, as referenced in their mid-term update in May 2021**, a number of global long term contracts have been committed and are in the roll out stage. This process is expected to accelerate following completion of Bridgestone's proposed acquisition of Otraco International PTY Limited, a leader in tyre management solutions with an extensive service network in key markets such as Australia, Chile and South Africa.

Surface Acoustic Wave (SAW)

Commercial relationships with existing key customers for our SAW technology are deepening, generating growth in revenues from technical support, engineering fees, and system sales.

Significant progress has also been made, with the support of the SAW Commercial Advisory Panel (SAWCAP), in identifying and evaluating several new potential applications across a range of industry sectors. This has advanced our knowledge and understanding of how our offer can be differentiated from other torque measurement tools and techniques, which in turn enables us to better allocate our resources and evaluate the likelihood of successful outcomes.

Translogik

Translogik tyre probe revenues increased substantially, with year-on-year growth of around 50%. Revenues from the original TL-G1 probe held up well and importantly, following the launch of the new modular TLGX probe range in June 2020, we have seen a growing increase in both sales and interest in the new range. We are very encouraged that a number of major OEMs using the TL-G1 probe are trialing the new modular probes, although this led to some potential demand in the last few months of the year being delayed pending a decision to switch to the TLGX range. These decisions are now looking positive, and we anticipate that the outcome will act to stimulate further success in future financial years.

Overall, the Board is satisfied with the Company's progress and looks forward to providing further details in the final audited results for the year to 30 June 2021, which are expected to be released in late September.

* EBITDA comprises earnings before interest, taxation, depreciation and amortisation

** Source: Bridgestone Corporation - Mid Term Business Plan (2021-2023) Progress Update, May 17, 2021

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/James Reeve (Corporate Finance) 
  Tony Quirke (Equity Sales) 
 Walbrook PR                                      Tel: [phone] 
  Tom Cooper/Nick Rome/Anysia Virdi                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 automotive, aerospace, industrial, green energy, rail and marine.

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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July 05, 2021 02:00 ET (06:00 GMT)