Transense Technologies (LON: TRT) swung to a £105,000 statutory loss for the year to the 30th of June, from a £1.408m profit a year earlier, as total revenue fell 17% to £4.63m. The company released its final results earlier today.
Shares in Transense closed yesterday at 43.5p. They opened today at 43p and were last quoted at 41.5p, down 4.6%.
The revenue decline was driven chiefly by a scheduled 40% cut in the unit royalty rate Bridgestone pays under its 2020-2030 iTrack licence, which pulled royalty income down 34% to £2.04m even though underlying tyre-tracking volumes grew around 7%. Bridgestone accounted for 44% of total revenue in the year, down from 56% in FY25.
That masked a more encouraging picture in the company’s two operating divisions. SAWsense revenue grew 20% to £1.33m, while Translogik revenue slipped 5% to £1.26m.
Adjusted profit before tax was £0.02m, down from a prior-year figure the release states as £1.53m in one section and £1.55m in another. Gross margin held at 88.1% of revenue, only slightly below the prior year’s 89.9%, and cash rose to £1.50m from £1.14m. Net assets were broadly flat at £7.14m, or 47p a share. The board is not recommending a dividend, saying it is prioritising reinvestment into SAWsense, where a pilot production line is now running at the company’s Weston on the Green site.
Executive Chairman Nigel Rogers said the year had tested the business but that recurring revenue was being built for the longer term.
These results reflect a challenging year for the business. We have met these challenges with determination, striving to continue building sustainable recurring revenue streams. The Board believes that future success is increasingly underpinned by effective market sector positioning and engagement with leading global companies in both businesses.
Nigel Rogers, Executive Chairman, Transense Technologies plc
The board is guiding to total revenue growth of more than 25% in the year ahead, citing new business wins at Translogik and SAWsense. The Bridgestone royalty rate stays unchanged for that year before a further 33% cut in 2028 and the licence’s termination in June 2030. Management said trading in the first two months of the new financial year was in line with expectations.