LONDON (ShareCast) - (Sharecast News) - Transense Technologies said in an update on Tuesday that it has delivered strong underlying growth so far this financial year, driven by a sharp increase in SAWsense revenues and steady demand at Translogik, although overall group revenue was affected by a previously-agreed reduction in royalty income from Bridgestone's iTrack system.
The AIM-traded company said revenue at SAWsense had more than doubled compared with the same period last year, while Translogik sales were broadly unchanged.

Excluding the iTrack royalty, composite revenue growth over the past four months was about 20%.

The group said it continued to feel the impact of a contractual 40% reduction in unit royalty rates from iTrack, though that had been partially offset by higher installation activity and a stronger dollar.

Gross margins remained above 85%, and the company said it continued to operate profitably and generate cash, supported by disciplined cost control.

Transense said demand was building across high-value sectors that benefit from its proprietary sensing technologies.

Adoption of SAWsense in aerospace and motorsport production is "accelerating", and the pipeline of projects in robotics and electric propulsion systems was described as particularly strong.

Management said the areas offered significant long-term opportunities as industries underwent electrification, automation and the integration of advanced performance controls.

Government-backed development programmes were said to be progressing well and were expected to support future revenue streams as Transense's technology is incorporated into next-generation platforms.

At Translogik, the group recently launched its Smart Tyre Inflator and planned further enhancements later in the year.

While revenue from existing tyre-major customers had not returned to previous levels, new business conversion was improving, including an agreement with another global tyre manufacturer and trials with fleet operators and service centres.

Those initiatives, the company said, should underpin medium-term growth.

Its board said current-year market expectations assumed more than 50% revenue growth excluding the iTrack royalty component.

It said it believed the target "remains achievable" and said Transense was well positioned to benefit from long-term structural trends in electrification and automation.

Management said a strong technology portfolio, expanding customer base and healthy cash resources provided confidence in delivering sustainable growth and shareholder value.

At 1539 GMT, shares in Transense Technologies were down 3.27% at 118.5p.

Reporting by Josh White for Sharecast.com.

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