Transense Regulatory News (TRT)

29 Sep 2005 07:01

Transense Technologies PLC29 September 2005 Transense Technologies plc Interim Results In the six months to June 2005 the Company made a loss of £624,000 (2004:£629,000). Costs over the period at £686,000 have been maintained at a similarlevel to the prior year (2004: £681,000) while cash at bank has reduced to£908,000 (December 2004: £1,161,000). At our AGM four months ago we described in detail the strength and number ofprojects in our tyre pressure monitoring system ("TPMS"), electronic powerassisted steering ("EPAS") and powertrain product streams which gave usincreasing confidence over future shareholder returns. All three product streamscontinue to strengthen. Our funded projects are progressing well and a small increase in income wasregistered as a result. Royalties from the sale and manufacture of ourtechnology are still small but are expected to continue to increase next year. The Company's TPMS now remains focused as previously on the earliest possiblein-service date in the North American truck market. Road test and in-house testprogrammes are continuing and Transense has completed its engineering supporttasks for TPMS in this market. The Company also continues to progress well with the development of TPMS forpassenger cars. I am able to reveal that one of the major Tier 1 suppliers weare in discussions with has recently successfully demonstrated our TPMStechnology to two leading American automobile manufacturers. In addition, anumber of other demonstrations are planned which will further strengthen thesedevelopments and demonstrate the viability of our TPMS product. In summary, atotal of seven major automobile manufacturers are now showing a strong interestin our battery-less TPMS technology. I am pleased to report that on the torque side we have finished the first partof an engine programme we had been working on with another large Americanautomobile manufacturer and that this project has now been extended. Anotherdivision of this major company has also started a programme to exploreadditional applications of our technology. On EPAS we continue our dialogue and development with three USA/EU Tier 1suppliers for rack and column mounted steering systems. As I have emphasised previously, our licensees control launch timing on productsincorporating our technology. This approach significantly reduces our costs aswell as avoiding potential product liability. We constantly monitor our current and forecast working capital needs. TheCompany expects to receive upfront payments from new licensees in the shortterm, and we continue to carefully review the position. Given the expected expansion of Transense in the future we have decided tobroaden the broking responsibility of the Company by appointing KBC Peel Hunt toact as joint brokers alongside Bridgewell. We believe that this will enable usto widen further the institutional shareholder base of the Company. Bridgewellwill continue to act as our Nominated Adviser. We continue to approach our annual market of 1.2 billion tyres and 65 millionnew vehicles with confidence, vigour and comprehensive project and marketdevelopment. Peter WoodsChairman29 September 2005 PROFIT & LOSS ACCOUNT For the six months to 30 June 2005 6 months to 6 months to 30 June 2005 30 June 2004 £000 £000Turnover 52 48Cost of Sales (15) (25)Gross profit 37 23 Administration expenses (686) (681)Operating Loss (649) (658) Interest income 25 29Loss on ordinary activities before taxation (624) (629) Taxation 0 0Loss on ordinary activities after taxation (624) (629) Dividends --- --- Loss per share: (1.2)p (1.2)p BALANCE SHEET At 30 June 2005 30 June 2005 31 December 2004 £000 £000Fixed Assets 1,656 1,579 Current assets: Debtors etc 48 590 Cash 908 1,161 956 1,751 Current liabilities: Creditors 129 161 Accruals 19 81 148 242Net Current assets 808 1,509 Net assets 2,464 3,088 Capital & reserves: Share capital 5,376 5,376 Share premium 3,473 3,473 Profit & Loss account (6,385) (5,761) Shareholders' funds 2,464 3,088 Notes 1 The comparatives for the full financial year ended 31 December 2004 are not the Company's full statutory accounts for the year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain a statement under Section 237 (2)-(3) of the Companies Act 1985. 2 The interim financial information has been prepared on a going concern basis, which assumes that the Company will have adequate resources to continue in operational existence for the foreseeable future. In arriving at their decision to prepare the accounts on this basis, the directors have had regard to trading and cash forecasts and the ability to secure further funding if necessary by issuing a limited number of new shares for cash as agreed by shareholders at the last AGM. CASH FLOW STATEMENT For the six months to 30 June 2005 6 months to 6 months to 30 June 2005 30 June 2004 £000 £000Net cash outflow from operating activities (157) (554) Returns on investments and servicing of finance 25 29 Corporation tax received 0 0 Capital expenditure and financial investment (121) (61) Cash outflow before financing (253) (586) Management of liquid resources 215 550 Decrease in cash in the period (38) (36) Reconciliation of operating loss to net cash outflow fromoperating activities Operating loss (649) (658) Depreciation & amortisation 44 46 Decrease in debtors 542 12 (Decrease) / increase in creditors and accruals (94) 46 (157) (554) Reconciliation of net cash flow to movement in net debt Decrease in cash in the period (38) (36) Cash inflow from changes in liquid (215) (550) resources Movement in net funds in the period (253) (586) Net funds at 1 January 1,161 2,071 Net funds at 30 June 908 1,485 Analysis of net funds Liquid Cash Total resources £000 £000 £000 At 1 January 2005 1,100 61 1,161 Cash flow (215) (38) (253) At 30 June 2005 885 23 908 INDEPENDENT REVIEW REPORT to Transense Technologies plc Introduction We have been instructed by the Company to review the financial information forthe six months ended 30 June 2005 on pages 3 and 4. We have read the otherinformation contained in the interim report and considered whether it containsany apparent misstatements or material inconsistencies with the financialinformation. Our report has been prepared in accordance with the terms of our engagement toassist the company in meeting the requirements of the rules of the London StockExchange for companies trading securities on the Alternative Investment Marketand for no other purpose. No person is entitled to rely on this report unlesssuch a person is a person entitled to rely upon this report by virtue of and forthe purpose of our terms of engagement or has been expressly authorized to do soby our prior written consent. Save as above, we do not accept responsibility forthis report to any other person or for any other purpose and we hereby expresslydisclaim any and all such liability. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directorsare responsible for preparing the interim report in accordance with the rules ofthe London Stock Exchange for companies trading securities on the AlternativeInvestment Market. These rules require that the half yearly report be presentedand prepared in a form consistent with that adopted in the Company's annualaccounts having regard to the accounting standards applicable to such annualaccounts. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom by auditorsof fully listed companies. A review consists principally of making enquiries ofmanagement and applying analytical procedures to the financial information andunderlying financial data and based thereon, assessing whether the accountingpolicies and presentation have been consistently applied unless otherwisedisclosed. A review excludes audit procedures such as tests of controls andverification of assets, liabilities and transactions. It is substantially lessin scope than an audit performed in accordance with United Kingdom AuditingStandards and therefore provides a lower level of assurance than an audit.Accordingly we do not express an audit opinion on the financial information. Going concern In arriving at our review conclusion, we have considered the adequacy of thedisclosures made in the financial information concerning the adequacy of futurefunding of the Company. Due to the significance of the fact that the preparationof the financial information on the going concern basis assumes the successfulconclusion of this matter, we consider these disclosures should be brought toyour attention. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2005. BOD Stoy Hayward LLPRegistered AuditorsChartered AccountantsBromley, Kent BR1 3WA 29 September 2005 This information is provided by RNS The company news service from the London Stock Exchange