Transense Technologies (TRT) H2 2025 earnings summary

Executive summary

• Revenue increased by 33% year-over-year to £5.55m, with strong growth across all business units and profits and cash conversion rising significantly, supporting aggressive growth plans in both SAWsense and Translogik.

• Profit before tax (PBT) rose 12% to £1.41m, and operating cash conversion reached 145% of PBT.

• SAWsense revenues surged 149%, driven by deepening relationships with existing customers and onboarding new ones, while Translogik revenues grew 18% as the business shifted toward a subscription model.

• Investments were made in production capacity, next-generation components, and expanding the management and engineering teams to support scaling.

• Net cash position remains healthy at £1.14m, with distributable reserves up to £4.8m.

Financial highlights

• Gross profit margin improved to just under 90%, with Translogik gross profit margin rising from 54% to 62% after bringing production in-house.

• Adjusted EBITDA increased 19% to £1.82m, though margin declined to 32.8% from 39.0% due to higher operating expenses.

• Operating cash flow improved by over 30% to £2.05m, with capex of £2.09m reflecting investment in scaling up operations.

• EBT rose 12% despite increased running costs.

• Cash flow before financing was slightly negative at £-0.04m, after share buybacks and other outflows.

Outlook and guidance

• FY 2026 started with a 23% increase in revenue from operating businesses in the first two months.

• SAWsense and Translogik order books have doubled, with Translogik now benefiting from subscription-based revenue.

• Capex is expected to remain at similar levels in FY26 to complete ongoing projects.

• To maintain profitability momentum, at least another £1m in revenue is targeted for FY 2026.

• Management remains cautious in forecasting due to the scale-up phase but is confident given a healthy pipeline and strong order book.