Transense Regulatory News (TRT)

28 Sep 2007 07:03

Transense Technologies PLC28 September 2007 Transense Technologies plc ("Transense" or the "Company") Interim results Since the beginning of 2007 Transense has concentrated on working withHoneywell, our exclusive licensee for automotive powertrain torque sensing, onthree major torque projects, two for large US Original Equipment Manufacturers(OEMs) and one for a prestige European OEM. Each of these projects generatescash along with a royalty contribution, which has contributed to a revenueincrease to £138,000 compared with £17,000 during the equivalent period in 2006.With costs tightly controlled and below budgeted levels, the loss for theperiod has fallen from £809,000 to £762,000. Cash and cash equivalents at £1.36million remain similar to the end of last year. The two US powertrain projects are for engine flexplate torque sensing, whichhas the potential to improve fuel consumption, reduce CO2 emissions and improvethe shift smoothness of automatic transmissions - a key quality parameter in theUS. Although the production launch dates for these systems are not yet cast instone, the larger of the OEMs has indicated that, subject to our technologypassing critical gates, Surface Acoustic Wave (SAW) torque sensing will beutilised across their range of passenger vehicles from V8s to in-line 4s.Together these projects represent a substantial share of the US passengervehicle market. The European OEM project concerns driveshaft torque sensing, a key enabler for "torque vectoring", one of the latest techniques for enhancing vehicle stabilitywhen cornering. Transense met its project objectives, again proving technicallysuperior to the competing magneto-elastic technology. Honeywell are now engagedin commercial negotiations with the OEM. We are now receiving royalties from the supply chain to Michelin who continue tocommercialise our Tyre Pressure Monitoring System (TPMS) technology in its UStruck tyres. Dedicated systems using multiple TPMS sensors per tyre are alsobeing actively considered for off-highway vehicles. We continue to fine tune ourbatteryless TPMS technology for passenger vehicles and, although it is takinglonger than anticipated to bring to the OEM market, we are still confident thatour approach is both technically and environmentally superior to the firstgeneration battery powered or indirect Antilock Braking System (ABS) speedsensor based competition. We anticipate entry via the specialist after-marketsuppliers during the next twelve months. The recently announced agreement with Schott of Germany demonstrates our ongoingdevelopment of commercial partnerships. Together with our licensees, we arepro-actively seeking to broaden our SAW "pressure plus temperature" sensorapplication coverage to the medical, food processing, aeronautical andindustrial sectors. I thank the Transense team for their diligence and all shareholders for theircontinued support. Peter WoodsChairman28 September 2007 Transense Technologies plc Income Statement for the 6 months to 30 June 2007 6 months to 6 months to 30 June 2007 30 June 2006 £000 £000Continuing operationsRevenue 138 17Cost of sales (23) (14) Gross profit 115 3 Administrative expenses (Note 3) (914) (861) Operating loss (799) (858) Financial income 37 49 Loss before taxation (762) (809) Taxation - - Loss for the period attributable to equity holders of the Company (762) (809) Basic and diluted loss per share (1.3p) (1.4p) Balance Sheet at 30 June 2007 30 June 31 December 2007 2006 £000 £000Non current assetsProperty, plant and equipment 17 23Intangible assets 1,560 1,567Available for sale investments 65 65Loans receivable 25 25 1,667 1,680 Current assetsTrade and other receivables 194 639Cash and cash equivalents 1,362 1,390 1,556 2,029 Total assets 3,223 3,709 Current liabilitiesTrade and other payables (226) (267)Current tax (22) (21)liabilitiesTotal liabilities (248) (288) 2,975 3,421Net assets Capital and reservesShare capital 5,687 5,646Share premium 5,532 5,376Accumulated loss (Note 4) (8,244) (7,601) Shareholders' funds 2,975 3,421 Statement of changes in Equity for the six months to 30 June 2007 and the Year to 31 December 2006 Issued share Share premium Accumulated capital account deficit Total equity £000 £000 £000 £000At I January 2006 5,641 5,368 (6,635) 4,374Loss for the year - - (1,210) (1,210)Shares issued and share premium 5 8 - 13Share based transactions - - 244 244 At 31 December 2006 5,646 5,376 (7,601) 3,421Loss for the period - - (762) (762)Shares issued and share premium 41 156 - 197Share based transactions - - 119 119 At 30 June 2007 5,687 5,532 (8,244) 2,975 Cash Flow Statement for the 6 months to 30 June, 2007 6 months to 6 months to 30 June 2007 30 June 2006 £000 £000Cash flow from operating activities (762) (809) Loss before taxationAdjustments for:Depreciation of property, plant and equipment 6 10Amortisation of intangible assets 65 51Equity settled share based payment 119 126Financial income (37) (49) (609) (671) Operating cash flows before movements in working capitalDecrease in receivables 445 504Increase in payables (40) (104) Cash used in operations (204) (271) Investing activitiesInterest received 37 49Acquisition of intangible assets (58) (86)Acquisition of investments - (40) Net cash used in investing activities (21) (77) Financing activitiesProceeds from issue of equity share capital 41 5Share premium on issue of equity share capital 156 8 Net cash from financing activities 197 13 Net decrease in cash and cash equivalents (28) (335)Cash and cash equivalents at beginning of periods 1,390 2,399 Cash and cash equivalents at end of period 1,362 2,064 Notes to the Interim results for the six months to 30 June 2007 1. Basis of preparation The AIM Rules require that the next annual financial statements of the company,for the year ending 31 December 2007, be prepared in accordance withInternational Financial Reporting Standards (IFRSs) as adopted by the EU(adopted IFRSs). This interim financial information has been prepared on the basis of therecognition and measurement requirements of IFRSs in issue that either areendorsed by the EU and effective (or available for early adoption) at 31December 2007 or are expected to be endorsed and effective (or available forearly adoption) at 31 December 2007, the Company's first annual reporting dateat which it is required to use adopted IFRSs. The conversion to IFRS hasinvolved no impact on the income statement and cash flows of the Companyalthough there are a number of presentational differences and a reclassificationof a debtor to Loans Receivable in the Balance Sheet. The conversion has alsoinvolved no significant impact on the Company's existing accounting policies. The financial information set out above does not constitute the Company'sstatutory accounts for the year ended 31 December 2006. The statutory accountsfor 2006, which were prepared under UK GAAP, have been delivered to theRegistrar of Companies. The auditors reported on these accounts; their reportwas i) unqualified, ii) did not include references to any matters to which theauditors drew attention by way of emphasis without qualifying their reports andiii) did not contain statements under section 237 (2) or (3) of the CompaniesAct 1985. The interim financial information for the six months ended 30 June2006 has been restated in accordance with IFRS. The auditors gave anindependent review report on the UK GAAP financial information. 2. Going concern The interim financial information has been prepared on a going concern basis,which assumes that the Company will have adequate resources to continue inoperational existence for the foreseeable future. 3. Share options Administrative expenses includes a charge of £119,000 (2006: £126,000) aftervaluation of the Company's employee share option schemes in accordance withIFRS2 Share-based payments. Under this standard, the fair value of the optionsat the grant date is spread over the vesting period. These items have beenadded back in the Statement of Changes in Equity. 4. Deferred tax No deferred tax asset is recognised in these financial statements in respect oftrading losses to date. Statement of directors' responsibilities The directors of Transense Technologies plc ('the directors') have acceptedresponsibility to prepare these Interim Financial Statements for the six monthperiod ended 30 June 2007 on the basis set out in note 1 to the InterimFinancial Statements. In preparing these Interim Financial Statements, the directors have: • selected suitable accounting policies and then applied them consistently; • made judgments and estimates that are reasonable and prudent; and • prepared the Interim Financial Statements on the going concern basis as they believe that the entity will continue in business. The directors have general responsibility for taking such steps as arereasonably open to them to safeguard the assets of the entity and to prevent anddetect fraud and other irregularities. Report of KPMG Audit Plc to Transense Technologies plc We have audited the Interim Financial Statements of Transense Technologies plcfor the 6 month period ended 30 June 2007 which comprise Income statement,Balance sheet, Statement of changes in equity, Cash flow statement and therelated notes. The Interim Financial Statements have been prepared for thereasons and on the basis of the accounting policies set out in note 1 to theInterim Financial Statements. Our report was designed to meet the agreed requirements of the Companydetermined by the Company's needs at the time. Our report should not thereforebe regarded as suitable to be used or relied on by any party wishing to acquirerights against us other than the Company for any purpose or in any context. Anyparty other than the Company who obtains access to our report or a copy andchooses to rely on our report (or any part of it) will do so at its own risk. Tothe fullest extent permitted by law, KPMG Audit Plc will accept noresponsibility or liability in respect of our report to any other party. Respective responsibilities of directors and KPMG Audit Plc As described above, the directors of Transense Technologies plc have acceptedresponsibility for the preparation of these Interim Financial Statements inaccordance with the basis of preparation as set out in note 1 to the InterimFinancial Statements. Our responsibility is to audit the Interim Financial Statements in accordancewith the terms of our engagement letter dated 18 July 2007 and having regard toInternational Standards on Auditing (UK and Ireland). Under the terms of engagement we are required to report to you our opinion as towhether the Interim Financial Statements have been properly prepared inaccordance with the basis of preparation set out in note 1 to the InterimFinancial Statements. We also report to you if, in our opinion, we have notreceived all the information and explanations we require for our audit. We read the other information accompanying the Interim Financial Statements andconsider whether it is consistent with the audited Interim Financial Statements.We consider the implications for our report if we become aware of any apparentmisstatements or material inconsistencies with the Interim Financial Statements.Our responsibilities do not extend to any other information. Basis of audit opinion We conducted our audit having regard to International Standards on Auditing (UKand Ireland) issued by the Auditing Practices Board. An audit includesexamination, on a test basis, of evidence relevant to the amounts anddisclosures in the Interim Financial Statements. It also includes an assessmentof the significant estimates and judgements made by the directors in thepreparation of the Interim Financial Statements, and of whether the accountingpolicies are appropriate to the entity's circumstances, consistently applied andadequately disclosed. We planned and performed our audit so as to obtain all the information andexplanations which we considered necessary in order to provide us withsufficient evidence to give reasonable assurance that the Interim FinancialStatements are free from material misstatement, whether caused by fraud or otherirregularity or error. In view of the purpose for which these Interim FinancialStatements have been prepared, however, we did not evaluate the overall adequacyof the presentation of the information which would have been required if we wereto express an audit opinion under International Standards on Auditing (UK andIreland). Opinion In our opinion the Interim Financial Statements of the Company for the periodended 30 June 2007 have been properly prepared in accordance with the basis ofpreparation set out in note 1 to the Interim Financial Statements. KPMG Audit Plc Chartered AccountantsArlington Business ParkThealeReading RG7 4SD 28 September 2007 Enquiries: Transense Technologies plc Tel: 01869 238 380James Perry, Chief ExecutivePaul Vickery, Commercial Manager Noble & Company Limited Tel: 020 7763 2200John Llewellyn-Lloyd, CEOGraeme Bayley, Director This information is provided by RNS The company news service from the London Stock Exchange