Transense reports robust first-half growth
By Josh White
Date: Monday 19 Feb 2024
(Sharecast News) - Transense Technologies reported robust first-half growth in its interim results on Monday, with revenue climbing 10% year-on-year to £1.81m.
The AIM-traded firm said its operating expenses in the six months ended 31 December narrowed 18% to £0.97m, while EBITDA more than doubled to £0.74m.
Profit before tax surged 146% to £0.63m, and earnings per share saw a substantial increase of 73% to 4.32p.
Additionally, the company reported a healthy net cash position of £1.31m as of 31 December, which increased further to £1.91m by the end of January.
Translogik, a key division of Transense, saw continued demand from established sales channels and embarked on new business development initiatives, generating a promising pipeline of opportunities for the 2025 financial year.
Engagement with new partners, including tyre manufacturers, maintenance software providers, and fleet operators in the UK, had expanded the company's sales channels significantly.
Product demonstrations garnered strong interest, particularly in the benefits of accurate and rapid digital capture of tyre inspection data.
Meanwhile, SAWsense, another division of Transense, reported significant progress in its development projects, with contracts secured from a record number of high-quality customers.
The aerospace sector in particular had shown strong interest, with traction across multiple applications such as measuring torque, force, and temperature in critical components.
Collaborations with industry giants like GE had led to new project opportunities, underscoring the company's expanding business potential.
SAWsense also made strides in demonstrating the benefits of its technology in electric drive systems, with patent applications underway.
The company said it had a healthy pipeline of potential customers, indicating sustained growth prospects.
"The company has continued to make progress in the period, increasing revenue by 10% and net profit before taxation by 146%," said executive chairman Nigel Rogers.
"Revenue visibility is now much clearer for Bridgestone iTrack, and the increasing pipeline activity at Translogik is expected to provide a clear growth trajectory.
"Visibility of SAWsense revenue is also beginning to improve as the customer base expands and programmes mature, and the concentration risk is reduced."
Rogers said the board considered it appropriate to proceed with planned increases in overhead in the second half of the year to ensure that the generation and delivery of planned revenue growth was properly resourced.
"Pipeline activity across both Translogik and SAWsense provides confidence that this is deliverable in coming months, although there is an inherent element of timing risk.
"Accordingly, whilst it is appropriate to manage a modest reduction in short term profit expectations due to the carry-over of this investment cost into the following financial year, the board believes the company is increasingly well positioned to deliver medium and long term growth."
At 1136 GMT, shares in Transense Technologies were up 2.2% at 104.75p.
Reporting by Josh White for Sharecast.com.
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