LONDON (ShareCast) - Transense Technologies on Friday warned that its turnover for the year ending June 30th will be lower than previously estimated, generating an overall loss.

The firm, which develops non-contact battery-less sensors, explained that the length of its sales cycle has proven greater than expected, but that all of the sales prospects remain active and as such it expects to continue to achieve substantial increases in turnover year-on-year.

The group, which had expected to breakeven for the year, said the total loss should be around half that reported for the previous year, which came in at £2.38m.

"However, given the encouraging trends in the business including the strong top line growth, robust gross margins in line with expectations and better-than-expected overheads, the loss [before interest, tax, depreciation and amortisation] for this financial year will be less than half that sustained in the previous year," a statement from the group read.

Looking further ahead, the group believes it will benefit over the longer term from higher levels of repeat orders of replacement items such as its tyre probes, but said larger individual contracts "may still continue to cause some volatility in reported results".

It added that at £3.2m its cash position is strong and said it has "sufficient capital required to pursue the business plan and deliver significant growth in the years ahead".

Shares had declined 17.63% to 6.07p by 12:51.

NR

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