Transense Technologies Plc (LON:TRT), the provider of sensor systems for industrial, mining and transportation markets, has today reported audited results for the year ended 30 June 2017 in line with the Board’s expectations. Each of the two business units have gained commercial traction which the Board expect to lead to increased revenues in 2018 and beyond.
Highlights
· Revenues steady at £2.00m (2016: £2.08m*)
· Increased opex investment in product development and commercialisation
· Pre tax loss from continuing operations for the year of £2.16m (2016: Pre tax profit of £1.59m, adjusted pre tax loss of £1.17m**)
· Net cash used in operations of £0.88m (2016: net cash generated £0.84m)
· Net cash at end of period of £2.52m (2016: £3.65m)
· Signed significant, non-exclusive, license with General Electric (“GE”) for single specialist application using SAW technology
· Market launch of iTrack II system for mining productivity with system now demonstrating commercial successes following the adoption by major global mining companies
· Probe sales gaining traction and first significant PCAS order in July 2017
* the comparative revenue of £2.08m is calculated after deducting the gross license fee of £3.04m which arose from the disposal of the IntelliSAW division in October 2015
** the net adjusted pre tax loss of £1.17m is calculated by reference to the pre tax profit of £1.59m less the license fee (net of costs) of £2.76m
Executive Chairman of Transense Technologies Plc, David Ford, said: “Since the beginning of the new financial year on 1 July 2017, revenues have shown a significant increase on the run rate of the prior year. iTrack II was adopted by two Glencore mines in Australia during June 2017, and in early August 2017, a further Australian mine operated by BHP. These systems are now in implementation, and revenues have commenced.
During the year, several multinational tyre manufacturers have commenced the implementation of new software platforms that have been integrated with the probe and it has become clear that our product is the tread depth tool of choice for Bridgestone, Goodyear and Continental, amongst others and as a result our probe revenue in the final quarter of the year experienced a marked upturn.
More recently the Group has been involved in discussions with a number of other divisions within GE regarding further projects and the relationship between the Company and GE continues to progress well.
The forward looking cash flow based on the anticipated level of activity indicates that the Group should have sufficient funds available for the short to medium term”
