LONDON (Alliance News) - Transense Technologies PLC said Monday it narrowed pretax losses in its recent half year, as revenues increased following investments in research and development and its worldwide partner and distribution network.
For the full year ended June 30, the company posted a pretax loss of GBP2.4 million, narrowed from a pretax loss of GBP3.3 million in the 18 months to June 30, 2012. Extracting comparable periods from management accounts, Transense said losses before interest, tax, depreciation and amortisation narrowed to GBP2.16 million from GBP2.34 million in the prior 12 months.
Revenues increased to GBP1.5 million from GBP765,000. The company's original model was to license patents, of which it currently has 40, but slow uptake in the automotive industry caused the company to rethink its strategy.
Asking shareholders to fund technology which was still a few years away was a tall ask, Chief Executive Officer Graham Storey told Alliance News. The company instead decided to switch to producing near-term revenues, although the longer term options were still there for patent licensing.
The move towards a more commercial approach has taken time, capital and effort to roll out, Transense said, which led to extensive trading losses in the past. However, those efforts are now coming to fruition, it said.
"It's a significant market we are attacking here," Storey told Alliance News, "Its a great opportunity for us in a huge growth market."
The group said that the year had been the most successful in terms of revenues in its history, and that it is confident about the coming years.
Going forward, the company is looking to increase its headcount in territories where it already has traction, said Storey.
The sensor systems company's shares were trading down 0.04 pence at 8.09p Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Transense (TRT)