Transense Technologies (TRT) H1 2025 earnings summary

Executive summary

• Revenue grew 36% year-over-year to £2.46m for the six months ended 31 December 2024, with strong performance across all business segments and strategic investments in team and production capabilities.

• Two main operating businesses: SAWsense (advanced sensor solutions) and Translogik (smart tire inspection tools), both targeting high-growth, blue-chip markets.

• Ongoing royalty income from the 2020 iTrack sale to Bridgestone provides financial stability, with about half of the 10-year royalty collected to date and a fivefold increase in installations since 2020.

• Expanded headcount from 18 to 31 to support future growth and capacity.

• Trading remains in line with market expectations, with the company positioned for further expansion.

Financial highlights

• Total revenue up 36% year-over-year to £2.46m; gross margin improved to 90% (up from 88% prior year); gross profit up 40%.

• Operating expenses rose 73% as headcount grew, supporting future growth; operating costs increased to £1.66m.

• Adjusted operating profit for H1 FY25 was £0.55m, down 11% year-over-year due to higher operating expenses; profit before tax was £0.55m, down 13%.

• EPS decreased 16% to 3.61p.

• Cash at period end was £1.19m, rising to £1.87m post-period after royalty receipt.

Outlook and guidance

• Expect near doubling of H1 revenue in H2 for both SAWsense and Translogik, based on strong pipeline conversion and new business wins.

• Directors expect to meet full-year market expectations for FY25, with accelerating revenue conversion in SAWsense and iTrack.

• Cost base is now set to support anticipated growth, with limited further increases expected.

• Research forecasts for FY2027: revenues over £7 million and PBT at £2 million.

• Significant capital expenditure planned (£2–2.5m over 12–18 months), funded by cash and asset-backed loans.