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LONDON (Alliance News) - Transense Technologies PLC Friday said it now expects to post a loss before interest, tax, depreciation and amortisation for its current financial year, albeit a narrower loss than last year, after it experienced delays in getting some new orders.
In a statement, the company, which makes sensors like tyre pressure sensors for cars and trucks, said it expects its revenue in the year to end-June to be no less that GBP3.5 million, up from GBP1.5 million a year earlier, but that is lower that it had expected when it put out its interim results in February.
"At that time, management information indicated that growth in the second half of the year would enable full year expectations to be met. However, the length of the sales cycle has proven greater than expected. Essentially all of the unconverted sales prospects that formed the basis for market guidance remain active and we remain confident that we will continue to achieve substantial increases in turnover year-on-year," the company said.
The company had previously expected to breakeven at the Ebitda level in the current financial year, but said the revenue shortfall compared with previous expectations means it will now make a loss. Still, it expects that loss to be less than half the GBP2.2 million Ebitda loss in posted in fiscal 2013, helped by gross margins that are in line with its expectations and "better-than-expected overheads".
"The pipeline includes a number of substantial potential new orders at an advanced stage of discussion. As the installed base of customers continues to grow, Transense expects to benefit over the longer term from higher levels of repeat orders of replacement items such as its tyre probes. However, larger individual contracts may still continue to cause some volatility in reported results," it said.
Still, it said its cash position remains strong at GBP3.2 million and it thinks it has sufficient capital to pursue its business plan and deliver "significant" growth in the years ahead.
It will put out its results for the current financial year in September.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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