Last checked at 13 Jun 2014 07:00
13 June 2014
Transense Technologies plc("Transense" or the "Company")
Trading Statement
Transense provides the following update on current trading and expected performance for the year ending on 30 June 2014.
The Board has been greatly encouraged by the volume of sales activity during the current financial year and anticipates that final sales for the year will be not less than £3.5m, which will exceed last year by more than 130%. This figure is lower than that anticipated at the time of announcing the Company's interim figures in early 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 expectedEssentially 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 market opportunities for Transense's products remain large and attractive, with new distribution channels established or being established in China, Japan, Chile, Columbia and Malaysia in recent months, incorporating a direct presence via sales channel support.
The delays in placement of certain new orders is expected to result in an EBITDA loss for the current year, rather than the previously anticipated breakeven result. However, given the encouraging trends in the business including the strong top line growth, robust gross margins in line with expectations and better-than-expected overheads, the EBITDA loss for this financial year will be less than half that sustained in the previous year.
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. A further update on progress across all divisions will be given at the time of the full year results in September.
The Company's cash position remains strong at £3.2m and the Directors continue to believe that the business has sufficient capital required to pursue the business plan and deliver significant growth in the years ahead.
For more information please contact:
Transense Technologies plc Graham Storey, Chief Executive | Tel: +44 1869 238 380 |
N+1 Singer - Nominated Adviser & Broker Aubrey Powell Alex Wright |
Tel: +44 20 7496 3000 |
Newgate Threadneedle Caroline Forde, Robyn McConnachie |
Tel: +44 20 7653 9850 |
About Transense Technologies
Based in Oxfordshire, UK, Transense has developed patent-protected sensor systems and supporting technology for use in a variety of diverse high growth markets. Transense's Surface Acoustic Wave (SAW), wireless, battery-less, sensor systems offer significant advantages over legacy wireless sensor systems. Transense is targeting the global electrical Smart Grid applications market, the transport and mining industries, and the global torque, temperature and pressure sensing markets, via its three trading divisions, IntelliSAW, Translogik and the newly established SAWSense, respectively.
Transense's shares are admitted to trading on AIM, a market operated by the London Stock Exchange (AIM: "TRT").
Transense's sensors are also being used in the wind turbine monitoring industry. The Company is part of a consortium of nine companies ("IntelWind") that has begun development on a major EU funded project to improve the efficiency and reliability of wind turbines.
Transense's shares are admitted to trading on AIM, a market operated by the London Stock Exchange (AIM: "TRT").
www.transense.co.uk