Transense Technologies plc, the provider of sensor systems for the industrial, mining and transportation markets, reports the results for the six months ended 31 December 2019.
• Group revenues of £0.97m (Dec 2018: £0.93m)
• iTrack subscription revenue up 50% to £0.66m (Dec 2018: £0.44m)
• iTrack subscription revenue run rate at period end up 24% to £1.40m (Jun 2019: £1.12m, Dec 2018: £0.87m)
• Joint Collaboration Agreement (“JCA”) signed with Bridgestone Corporation in August 2019 by which the iTrack system is offered exclusively by Bridgestone to their customers for large mine haul trucks
• Significant working capital, R&D and overhead investment made in preparation for strong growth potential, funded partly by drawdown of US$0.75m (£0.58m) loan under the JCA
• Net loss after taxation for the period of £1.19m (Dec 2018: £0.78m) reflecting additional overhead spend
• Cash used in operations of £0.54m (Dec 2018: £0.50m)
• Net Cash* at end of period of £1.52m (30 June 2019: £2.65m)
• Minimum duration of JCA extended post period end until 12 February 2022 at the earliest
* Excludes the impact of IFRS 16 and the Bridgestone Loan of $0.75m
Non Executive Chairman of Transense Technologies, Nigel Rogers, said:
“I am pleased to be taking responsibility as Chairman of Transense at a pivotal time in the commercialisation of our leading technologies. The results for the first half of the financial year reflect the substantial investment in infrastructure, working capital and overhead costs required to take full advantage of our technical excellence, with the financial and commercial support of market leading partners.
There has been a transformational change in the scope and commercial reach of the iTrack system, and the business has the potential to deliver a significant breakthrough in market penetration. Our relationships with Bridgestone are strong at all levels, and we anticipate that our collaboration will continue to provide a firm basis for mutual success.
As this success becomes apparent, our leading technologies in Surface Acoustic Wave and tyre tread depth probes will increasingly come into focus, as we evaluate investment priorities. There are clear opportunities for technology led growth in each of these areas, and accordingly we look forward with growing confidence.”