Transense Technologies (TRT) Trading Update summary

Trading performance and financials

• Revenue for H1 FY25 rose 37% to £2.41m, outpacing the expected 30% full-year growth rate.

• SAWsense and Bridgestone iTrack royalties grew 330% and 28% respectively; Translogik revenue up 7%.

• Gross margin remained above 87%; operating expenses increased due to strategic hiring and investment.

• Net earnings for the period are expected to be about 20% below the prior period, reflecting upfront investment.

• Net cash at 31 Dec 2024 was £1.19m, with further cash inflow expected from Bridgestone iTrack royalties.

Operational developments and investments

• Headcount increased from 19 to 30, with key hires in engineering, operations, and sales & marketing.

• SAWsense expanded into new aerospace projects and is investing over £2m in production and ASIC redesign.

• Translogik completed in-house production transition, improved product quality, and expanded distribution.

• Bridgestone iTrack royalty run rate reached £3.34m; 30% of H2 income hedged, with future rates unhedged.

• Royalty per installation will decrease by 40% from July 2025, but volume growth is expected to offset this.

Strategic outlook and guidance

• All business segments report increased new business opportunities and strong pipelines.

• Investments in people and infrastructure are expected to support long-term growth.

• Recruitment and production equipment specification are largely complete.

• Interim results will be announced on 18 Feb 2025, with a live investor presentation scheduled.

• Cavendish Capital Markets appointed as new nominated adviser and broker.