TIDMTRT
RNS Number : 3140P
Transense Technologies PLC
17 February 2021
This announcement contains inside information for the purposes
of Regulation 11 of the Market Abuse (amendment) (EU Exit)
Regulations 2019/310
Transense Technologies plc
("Transense" or the "Company")
Interim results for the six months ended 31 December 2020
& Investor Presentation
Transense Technologies plc, the developer of specialist sensor
systems, reports its interim results for the six months ended 31
December 2020. The Company has delivered positive net earnings, and
taken significant steps to enhance future growth potential in each
of its main activities.
Highlights:
-- Revenues from continuing operations increased threefold to GBP0.90m (FY20 H1: GBP0.28m)
-- iTrack royalty run rate increased more than 15% since
inception of Bridgestone licensing deal
-- Strong growth in revenues from both SAW and Translogik
-- EBITDA* of GBP0.06m (FY20 H1: loss of GBP0.39m)
-- Net profit after taxation of GBP0.05m (FY20 H1: loss of GBP1.19m)
-- Earnings per share of 0.29 pence (FY20 H1: loss of 3.49 pence)
-- Net Cash at end of period of GBP1.05m (30 June 2020: GBP1.19m)
-- Post period-end, completion of capital reduction to facilitate future distributions
*Earnings before interest, tax, depreciation and
amortisation
Commenting on the results and prospects, Executive Chairman of
Transense, Nigel Rogers, said:
"These results reflect the transformational change in the
business since the transactions completed last June, moving iTrack
from an operational business into a licence model last June. We
have every confidence that iTrack will continue to achieve
increased market penetration, and deliver royalty income at or
above our current expectations.
"The commercial prospects for our SAW technology have been
revitalised after strengthening the management team, and enlisting
the support of key opinion leaders through the SAWCAP initiative.
Whilst it may take some time to determine the true value potential
of this technology, we are encouraged by the early progress that is
being made. In addition, the Translogik range of tyre probes
continues to gain traction and is showing further potential for
healthy revenue growth.
"Accordingly, we consider that the outlook for the Company is
positive, and prospects for the Company and its shareholders are
more favourable than at any time in the Company's history."
Investor Presentation: 4pm today, Wednesday 17 February 2021
Nigel Rogers (Executive Chairman) and Melvyn Segal (Chief
Financial Officer) will provide a presentation on the Company and
its Interim Results at 4pm today, Wednesday 17 February 2021. The
presentation will be hosted through the digital platform Investor
Meet Company.
To attend the presentation, investors can sign up to Investor
Meet Company for free and select to meet Transense Technologies plc
via the following link:
https://www.investormeetcompany.com/transense-technologies-plc/register-investor
. Investors who have already registered and selected to meet the
Company will automatically be invited to the presentation.
Questions can be submitted before the event to
transense@walbrookpr.com or in real time during the presentation
via the "Ask a Question" function.
This interim results report will not be posted to shareholders
but will be available on the Company's website later today along
with the investor presentation.
For further information please visit www.transense.com or
contact:
Transense Technologies plc Via Walbrook PR
Nigel Rogers (Executive Chairman)
Melvyn Segal (CFO)
Allenby Capital (Nominated Adviser and Tel: +44 (0)20 3328
Broker) 5656
Jeremy Porter/James Reeve (Corporate Finance)
Tony Quirke (Equity Sales)
Walbrook PR Tel: +44 (0)20 7933
Tom Cooper/Nick Rome/Nicholas Johnson 8780
Transense@walbrookpr.com
Notes to Editors:
Transense is a developer of specialist wireless sensor systems
used to enable real-time data gathering and monitoring. Products
include the patent protected Surface Acoustic Wave (SAW) sensor
technology, used to improve equipment power, performance,
reliability and efficiency; iTrack, Transense's Tyre Pressure
Monitoring System, recently licensed to Bridgestone Corporation,
the world's largest tyre producer, under a ten-year deal; and a
range of intelligent tyre monitoring equipment under the Translogik
brand. Target sectors include automotive, aerospace, industrial,
green energy, rail and marine.
The Company's strategy is to maximise shareholder value through
the delivery of sustained revenue growth from all three principal
technologies - SAW, iTrack and Translogik probes - through
leveraging excellence in innovation, know-how in commercialising
technologies, industry partnerships and exposure to global growth
markets.
The Company has a significant licensing agreement with General
Electric Company ("GE") for the use of patented, wireless, passive
SAW technology in GE Aviation's T901-GE-900 engine for the U.S.
Army Engineering and Manufacturing Development ("EMD") phase of the
Improved Turbine Engine Program ("ITEP"), which is the programme to
replace more than 6,000 engines in its current fleet of Boeing
AH-64 Apache and Sikorsky UH60 Black Hawk helicopters, expected to
commence in 2024 reaching full volume in 2026.
Transense is headquartered in Oxfordshire, UK, and was admitted
to trading on AIM, a market operated by the London Stock Exchange
(AIM: TRT), in 1999.
For further information please contact
transense@walbrookpr.com
Transense Technologies plc
Chairman's Statement
I am pleased to report that the Company has made good progress
following the major changes that took place as a result of the
licensing of iTrack and the transfer of the operating iTrack
business to Bridgestone Corporation in June 2020. This is reflected
in a trend of improving results, and a strong financial position
from which to develop the business further.
Business strategy
The business strategy of the Company remains to develop
innovative sensing solutions across a range of applications, which
are commercialised either through the launch of products and
services to customers or by forming strategic alliances with
partner organisations. Value is realised through a combination of
commercial income, royalties, licensing income and capital gains on
disposals.
Operational review
iTrack royalty income
In June 2020, the Company granted an exclusive worldwide licence
to ATMS Technology Limited ("ATMS"), a wholly-owned subsidiary of
Bridgestone Corporation Japan, covering all current and future
iTrack technology for a period of ten years. Under the licence,
ATMS offers Bridgestone customers worldwide tyre monitoring systems
for all off-the-road (OTR) vehicles using iTrack technology.
Transense receives a quarterly royalty payment based upon the
number and classification of vehicles upon which the iTrack
technology is deployed over a ten year period, at the conclusion of
which ATMS will have the option to acquire the technology for a
nominal cash sum.
During the six months ended 31 December 2020 the iTrack
installed base increased by more than 15% despite some adverse
effects from the global pandemic, generating royalty income of
GBP0.37m (FY20 H1: GBPNil). The roll out of Bridgestone's new
MasterCore tyres for OTR mining vehicles is now underway, and
progress is evident in marketing iTrack technology to key accounts.
There are clear indications that further momentum is building which
will be realised in the second half of this financial year and
subsequent years.
Surface Acoustic Wave
Transense is a leader in the development of Surface Acoustic
Wave ("SAW") sensor systems. SAW resonators can be used to measure
torque, strain, pressure and temperature, and are compact and
rugged. They can be interrogated wirelessly on a real-time basis
without the need for a local power source. These features
facilitate unique benefits in applications where real-time values
for torque or other measurands can be fed back to control systems
and used to optimise performance, reduce emissions and manage
preventative maintenance programmes.
During the period, revenues increased to GBP0.11m and further
grant income was generated amounting to GBP0.05m. Much of this
revenue was generated from motor sport, where we see opportunities
to generate increasing revenues. There are further business
development initiatives underway for off-road recreational
vehicles, which are expected to advance further in coming months.
We aim to further develop these relationships to seek adoption of
SAW in the high performance road vehicle sector in future.
Work in support of tier one partners on the GE Improved Turbine
Engine Program ("ITEP") has also progressed on plan. The ITEP
successfully completed a Critical Design Review milestone during
the period, and is on track towards First Engine To Test in the
final quarter of 2021. Production is planned to commence in 2024,
reaching full scale volumes in 2026. We believe our technology will
benefit from the credibility and visibility that this project
provides, and has the potential to be adopted in other aircraft
applications in future as a consequence.
There have been significant changes in management and commercial
activity in recent months, including the engagement of a Commercial
Advisory Panel of prominent industry experts ("SAWCAP"). The aim of
SAWCAP is to assist with the development and delivery of commercial
strategy, focusing on industry sectors and prospective business
partners, licencees and customers which are likely to be receptive
to SAW technology.
Evaluation is underway of initial opportunities identified,
which are focused on performance optimisation, condition monitoring
and predictive maintenance across a range of sectors, and there is
some early stage engagement with potential partners. We are
optimistic that SAW technology can generate significant value over
the medium term, whilst maintaining a cautious approach to
investment and expenditure until prospects of future success are
more visible.
Translogik - probes
Our range of tyre tread depth probes provide extremely accurate
and reliable tyre data instantly, and is aimed towards service
providers and fleet managers in truck and bus markets. Our product
range is compatible with the tyre management systems of the world's
leading tyre producers.
The Translogik probe range continues to make a valuable
contribution to the Company's results and revenues grew by 71% to
GBP0.41m during the period (FY20 H1: GBP0.24m). Geographical
coverage is broad, with half of revenues generated from customers
outside Europe, and sales to three of the world's leading tyre
producers.
The new modular TLGX Series range was launched during the
period. There are four models in this new range, which complement
the well established TL-G1 probe and offer progressively enhanced
features at a variety of price points. Sales of the new models have
commenced well, and the increasing level of enquiries supports the
optimism for continuing success.
Financial review
Key performance indicators
The Board considers the following to be key performance
indicators:
FY 2021 FY 2020*
Interim Interim Full Year
(unaudited) (unaudited) (audited)
------------- ------------- -----------
GBP'000 GBP'000 GBP'000
------------------------ ------------- ------------- -----------
Turnover 895 271 603
------------- ------------- -----------
Gross Profit 695 174 332
------------- ------------- -----------
EBITDA 56 (391) (678)
------------- ------------- -----------
(Loss) before Taxation (53) (570) (1,265)
------------- ------------- -----------
Profit/(Loss) after
Taxation 48 (570) (1,090)
------------- ------------- -----------
EPS (pence) 0.29 (3.49) (6.68)
------------- ------------- -----------
Cash 1,050 1,519 1,193
------------- ------------- -----------
Net decrease in cash (143) (1,146) (1,454)
------------- ------------- -----------
* FY20 figures relate to continuing operations only
Reported results
Revenues for the six months from continuing operations increased
threefold to GBP0.90m (FY20 H1: GBP0.28m).
Royalty income generated by iTrack technology amounted to
GBP0.37m, which compares to the subscription income generated in
the corresponding period last year of GBP0.66m, which in turn led
to a net loss on discontinued operations relating to iTrack of
GBP0.62m. The installed base increased by more than 15% during the
period, although some of the benefit of this growth was diluted by
adverse foreign exchange movements. Royalty income is denominated
in US Dollars, which depreciated against Sterling by approximately
9% during the period. The stream of future royalty income can be
forecast with reasonable certainty, and this will become
increasingly predictable over time as the rate of growth becomes
more firmly established. The Board will consider using forward
foreign currency contracts to lock in future income at attractive
rates as suitable opportunities arise.
SAW revenues increased to GBP0.11m and we also received the
final installment of grant income from the Lloyd's Register
Foundation project which amounted to GBP0.05m. The Board, supported
by SAWCAP, continue to explore other grant funded opportunities.
Whilst SAW activities produced a net loss of GBP0.25m, management
continues to support the current level of technical and commercial
overhead.
Translogik probe revenues increased by 71% to GBP0.41m
generating a net profit contribution of GBP0.17m to the Company's
results.
Operating expenses in the period reduced to GBP0.79m (FY20 H1:
GBP0.86m) and the Company delivered EBITDA* from continuing
operations of GBP0.06m (FY20 H1: loss of GBP0.39m).
The net loss before taxation from continuing operations was
GBP0.05m (FY20 H1: loss of GBP0.57m) and, after recognition of the
R&D tax credit in the period, the net profit after taxation
attributable to shareholders was GBP0.05m (FY20 H1: loss of
GBP1.19m). Earnings per share amounted to 0.29 pence (FY20 H1: loss
of 3.49 pence).
As set out in Note 5, half of the previous year's R & D tax
credit is recognised in these interim accounts and the amount
included of GBP0.10m is broadly split evenly between the SAW
business and historical development work on iTrack.
*Earnings Before Interest, Depreciation and Amortisation as set
out in Note 4.
Cash flow and financial position
Net cash inflow from operating activities before movements in
working capital amounted to GBP0.08m (FY20 H1: outflow of
GBP0.76m).
During the period the completion monies due from ATMS Technology
Limited in respect of the transfer of the iTrack operating business
in June 2020 were received amounting to GBP1.24m, and the final
part of the Bridgestone Corporation loan was repaid amounting to
GBP0.98m.
Net cash balances at the end of the period stood at GBP1.05m (30
June 2020: GBP1.19m) and net assets stood at GBP2.25m (30 Jun 2020:
GBP2.18m). The Board has assessed the financial and operational
needs of the business over the next twelve months taking into
account a range of contingencies, and the directors are satisfied
that the Company has access to adequate sources of finance.
Accordingly, the Board considers that the Company will have
sufficient resources to continue in operational existence for the
foreseeable future, and has adopted the going concern basis of
accounting.
At the Annual general Meeting of the Company held on 17 December
2020, the shareholders approved a Capital Reduction set out in the
Company's circular dated 23 November 2020. These proposals were
approved by the High Court on 26 January 2021 and became effective
on 28 January 2021 following registration of the court order and
statement of capital at Companies House. In order to be able to
utilise the Company's distributable reserves, the Company was
required to file unaudited accounts for the seven months ended 31
January 2021 with Companies House, which are summarised in note 7
below, and show that the Company has available distributable
reserves of GBP0.53m.
Covid - 19
The adverse effects of the pandemic are referenced above with
regards the growth in iTrack royalty income and, whilst the impact
on the Transense business as a whole has been minimal, the Board is
mindful that until the pandemic is fully under control there could
be further impacts on the Company's performance.
Brexit
The Brexit transition period ended on 31 December 2020 after
which the United Kingdom formally withdrew from the European Union.
The impact of Brexit will be relevant to the performance in the
second half of this financial year and subsequent trading periods.
As I write, the impact has been minimal and has focused on the
requirement to provide further information on documentation for
goods moving to Europe. There have been general concerns about the
flow of goods in and out of the UK, and again the Board is working
to ensure as little disruption as possible.
Outlook and prospects
These results reflect the transformational change in the
business since the transactions completed last June, moving iTrack
from an operational business into a licence model. We have every
confidence that iTrack will continue to achieve increased market
penetration, and deliver royalty income at or above our current
expectations.
The commercial prospects for our SAW technology have been
revitalised after strengthening the management team, and enlisting
the support of key opinion leaders through the SAWCAP initiative.
Whilst it may take some time to determine the true value potential
of this technology, we are encouraged by the early progress that is
being made. In addition, the Translogik probe range continues to
gain traction and is showing further potential for healthy revenue
growth.
Accordingly, we consider that the outlook for the Company is
positive, and prospects for the Company and its shareholders are
more favourable than at any time in the Company's history.
Nigel Rogers
Executive Chairman
17 February 2021
Transense Technologies plc
Condensed Consolidated Statement of Comprehensive Income
Half year to Half year to Full year to
31 Dec 20 31 Dec 19 30 Jun 20
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
------------------------------------------------------- ---- ------------- --- ------------- --- -------------
Continuing operations
Revenue 895 271 603
Cost of sales (200 ) (97) (271)
------------- ------------- -------------
Gross profit 695 174 332
Administrative expenses (790) (862) (1,703)
Operating loss (95) (688) (1,371)
Financial income - 4 5
Financial expense (6) (4) (17)
Other income 48 118 118
------------- ------------- -------------
Loss before taxation (53) (570) (1,265)
Taxation 101 - 175
Profit/(loss) for the period from continuing operations 48 (570) (1,090)
------------- ------------- -------------
Loss for the period from discontinued operations - (620) (1,452)
------------- ------------- -------------
Profit/(loss) for the period 48 (1,190) (2,542)
------------- ------------- -------------
Other comprehensive income:
Exchange difference on translating foreign operations - 18 -
------------- ------------- -------------
Other comprehensive income for the period - 18 -
Total comprehensive income/(expense) for the period
attributable to the equity holders of
the parent 48 (1,172) (2,542)
============= === ============= === =============
Transense Technologies plc
Condensed Consolidated Statement of Financial Position
31 Dec 20 31 Dec 19 30 Jun 20
(Unaudited) (Unaudited) (Audited)
---------------------------- ---- ------------- --- ------------- --- -----------
GBP'000 GBP'000 GBP'000
Non current assets
Property, plant and equipment 248 909 290
Intangible assets 815 1,033 844
------------- ------------- -----------
1,063 1,942 1,134
------------- ------------- -----------
Current assets
Inventory 61 730 63
Corporation tax receivable 100 - 175
Trade and other receivables 403 988 1,677
Cash and cash equivalents 1,050 1,519 1,193
------------- ------------- -----------
1,614 3,237 3,108
------------- ------------- -----------
Total assets 2,677 5,179 4,242
------------- ------------- -----------
Current liabilities
Trade and other payables (225) (1,290) (854)
Borrowings - - (976)
Lease liabilities (63) (59) (61)
Provisions - (50) -
------------- ------------- -----------
Total liabilities (288) (1,399) (1,891)
Non current liabilities
Lease liabilities (136) (204) (168)
------------- ------------- -----------
Total liabilities (424) (1,603) (2,059)
------------- ------------- -----------
Net assets 2,253 3,576 2,183
------------- ------------- -----------
Capital and reserves
Share capital 5,451 5,451 5,451
Share premium 2,591 2,591 2,591
Share based payments 63 41 41
Translation reserve - 41 -
Accumulated loss (5,852) (4,548) (5,900)
------------- ------------- -----------
Shareholders' funds 2,253 3,576 2,183
------------- ------------- -----------
Transense Technologies plc
Condensed Consolidated Statement of Changes in Equity (Unaudited)
Issued share Share premium Translation Share based Accumulated
capital account Reserve payments deficit Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
July 2019 5,451 2,591 23 41 (3,358) 4,748
Comprehensive income for the year:
Loss for the
year - - - - (2,542) (2,542)
Other comprehensive income for the year:
Currency
movement on
subsidiary
reserves - - - - - -
Total
comprehensive
expense for
the year: - - - - (2,542) (2,542)
Translation
reserve
recycled on
disposal (23) - - (23)
Balance at 30
June 2020 5,451 2,591 - 41 (5,900) 2,183
Comprehensive income for the period:
Loss for the
period - - - - 48 48
Other comprehensive income for the period:
Translation of
foreign entity - - - - - -
Total
comprehensive
income for the
period: - - - - 48 48
Share based
payments 22 - 22
Balance at 31
December 2020 5,451 2,591 - 63 (5,852) 2,253
-------------- -------------- -------------- -------------- -------------- -------------
Transense Technologies plc
Condensed Consolidated Statement of Cash Flows
Half year to 31 Dec 20 Half year to 31 Dec 19 Full year to 30 Jun 20
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Cash flow from operating
activities
Loss for the period 48 (1,190) (2,542)
Adjustments for:
Taxation (101) - (171)
Loss on disposal of trade
and assets - - 72
Net financial expense 6 - 9
Depreciation of property,
plant and equipment 43 211 538
Loss on disposal of fixed
assets - - 18
Amortisation and impairment
of intangible assets 60 216 504
Share based payments 22 - -
Operating cash flows before
movements in working
capital 78 (763) (1,572)
-------------------------- -------------------------- --------------------------
Change in receivables 37 (199) (177)
Change in payables (628) 583 477
Change in inventories 2 (164) (582)
Cash used in operations (511) (543) (1,854)
Taxation recovered/(paid) 176 - (4)
-------------------------- -------------------------- --------------------------
Net cash used in operations (335) (543) (1,858)
-------------------------- -------------------------- --------------------------
Cash flows from investing
activities
Interest received - 4 8
Acquisition of property,
plant & equipment (1) (300) (764)
Acquisition of intangible
assets (31) (303) (513)
Proceeds from disposal of
trade and assets (net of
cash) 1,236 - 772
-------------------------- -------------------------- --------------------------
Net cash used in investing
activities 1,204 (599) (497)
-------------------------- -------------------------- --------------------------
Cash flows from financing
activities
Loans advanced - - 1,585
Loans repaid (976) - (609)
Interest paid (6) (4) (17)
Payment of lease
liabilities (30) - (58)
-------------------------- -------------------------- --------------------------
Net cash used for financing
activities (1,012) (4) 901
-------------------------- -------------------------- --------------------------
Net decrease in cash and
cash equivalents (143) (1,146) (1,454)
Unrealised currency
translation gain - 18 -
Cash and cash equivalents
at beginning of period 1,193 2,647 2,647
-------------------------- -------------------------- --------------------------
Cash and cash equivalents
at end of period 1,050 1,519 1,193
-------------------------- -------------------------- --------------------------
Notes to the Interim results for the six months to 31 December
2020
1. Reporting Entity and Basis of Preparation
Transense Technologies plc ( "the Company") is a company
incorporated in the United Kingdom under the Companies Act 2006.
These unaudited condensed consolidated interim financial statements
of the Company as at and for the six months ended 30 December 2020
comprise the Company and its subsidiaries (together referred to as
"the Group" and individually as "Group entities" although the
current period only reflects the holding company's trading as all
the trading subsidiaries were transferred to ATMS as part of the
iTrack transaction). These condensed consolidated interim financial
statements are presented in pounds sterling, rounded to the nearest
thousand.
The consolidated financial statements of the Group are available
upon request from the Company's registered office or at
www.transense.com
2. Going Concern
The Board has considered the financial position and future plans
of the Company and is satisfied that the Company will have adequate
resources to continue in operational existence for the foreseeable
future. Accordingly, these interim financial statements have been
prepared on a going concern basis.
3. Accounting policies
The Condensed Consolidated Financial Statements for the half
yearly report for the six months ended 31 December 2020 have been
prepared using accounting policies and methods of computation
consistent with those set in Transense Technologies plc's Annual
Report and Financial Statements for the year ended 30 June 2020.
There has been no change to any accounting policy since the date of
that report.
4. Segmental analysis
Continuing Revenue by region
Half year Half year Full year
to 31 Dec to 31 Dec to 30 Jun
20 (Unaudited) 19 (Unaudited) 20 (Audited)
GBP'000 GBP'000 GBP'000
---------------- ---------------- --------------
North America 111 128 282
---------------- ---------------- --------------
South America 38 50 83
---------------- ---------------- --------------
Australia 17 5 5
---------------- ---------------- --------------
UK & Europe 261 64 148
---------------- ---------------- --------------
Rest of the World 94 24 85
---------------- ---------------- --------------
Royalty income 374 - -
---------------- ---------------- --------------
Total 895 271 603
---------------- ---------------- --------------
Following the sale of the iTrack business in June 2020, the
income model for this activity now comprises royalty income, with
an associated reduction in administrative and management expenses.
The Board now reviews segmental information on a new basis as set
out below. There are no direct comparatives for this information as
a consequence of this change in circumstances.
Half Year to 31 IT Royalties SAW Probes Admin Total
Dec 2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Turnover 374 114 408 - 896
------------------ ------------------- ------------------- ----------------- -------------------
Gross profit 374 109 212 - 695
------------------ ------------------- ------------------- ----------------- -------------------
Admistrative
expenses - (383) (60) (244) (687)
------------------ ------------------- ------------------- ----------------- -------------------
Other income - 48 - - 48
------------------ ------------------- ------------------- ----------------- -------------------
EBITDA* 374 (226) 152 (244) 56
------------------ ------------------- ------------------- ----------------- -------------------
Depreciation
and
amortisation (22) (78) (2) - (102)
------------------ ------------------- ------------------- ----------------- -------------------
Finance
expenses - (7) - - (7)
------------------ ------------------- ------------------- ----------------- -------------------
Profit/(loss)
before
taxation 352 (311) 150 (244) (53)
------------------ ------------------- ------------------- ----------------- -------------------
Taxation 50 51 - - 101
------------------ ------------------- ------------------- ----------------- -------------------
Profit/(loss)
after
taxation 402 (260) 150 (244) 48
------------------ ------------------- ------------------- ----------------- -------------------
*Earnings before interest, tax, depreciation and
amortisation
5. Corporation tax and deferred tax
The Company is entitled to a Corporation Tax credit in respect
of expenditure on Research and Development. In January 2021, the
Company received GBP0.20m R & D tax credit from HMRC in respect
of the Financial Year 2020. The benefit of this credit will be
recognised in the current year, with half having been recognised in
these interim financial statements. The benefit of R & D tax
credits has historically been recognised on a cash basis, however a
sustainable track record of successful claims has been established,
and it is now considered appropriate that the potential claim in
respect of the current year may be taken to income and accrued at
the year end.
The Company has approximately GBP23m of Corporation Tax losses
which, subject to agreement by HM Revenue and Customs, are
available for offset against future profits of the same trade.
There is no expiry date for tax losses, however there is an annual
restriction of GBP5m plus half of the surplus above GBP5m. An
appropriate asset will be recognised when the Group can demonstrate
a reasonable expectation of sufficient taxable profits to utilise
the temporary differences.
Accordingly, no deferred tax asset is recognised in these
interim financial statements in respect of trading losses to
date.
6. Earnings per share
31 December 31 December 30 June
2020 2019 2020
Shares Shares Shares
----------------------------------- ------------ ------------ -----------
Weighted average number of shares
in the period 16,307,282 16,307,282 16,307,282
------------ ------------ -----------
Basic and diluted Earnings per
share
------------ ------------ -----------
From continuing operations 0.29p (3.49)p (6.68)p
------------ ------------ -----------
From total profit/(loss) for
the period 0.29p (7.30)p (15.59)p
------------ ------------ -----------
7. Post Balance Sheet Event - Capital Reduction and unaudited accounts to 31 January 2021
At the Annual general Meeting of the Company held on 17 December
2020, the shareholders approved a Capital Reduction set out in the
Company's circular dated 23 November 2020. These proposals were
approved by the High Court on 26 January 2021 and became effective
on 28 January 2021 following registration of the court order and
statement of capital at Companies House.
On 17 February 2021, the Company filed unconsolidated and
unaudited accounts for the seven months ended 31 January 2021 with
Companies House, which are summarised below. This enables
recognition of the Company's distributable reserves for the Company
to be able to utilise them and accordingly, the Company now has
distributable reserves amounting to GBP525,000 based on the 31
January 2021 balance sheet.
Transense Technologies plc
Condensed Statement of Comprehensive Income
For the seven month period ended 31 January 2021
7 Months to 12 Months to
31 January 2021 30 June 2020
(Unaudited) (Audited)
GBP'000 GBP'000
Continuing operations
Revenue 1,005 603
Cost of sales ( 227 ) ( 271 )
------------------------ -------------
Gross profit 778 332
Administrative expenses ( 891 ) ( 1,703 )
------------------------ -------------
Operating loss ( 113 ) ( 1,371 )
Financial Expense (Net) ( 7 ) ( 12 )
Other income 48 118
------------------------ -------------
Loss before taxation ( 72 ) ( 1,265 )
Taxation 119 175
------------------------ -------------
Profit /(loss) for the period from continuing operations 47 ( 1,090 )
Loss for the period from discontinued operations - ( 1, 659)
------------------------ -------------
Total comprehensive income/(expense) for the period attributable to
the equity holders of
the parent 47 ( 2, 749)
======================== =============
Transense Technologies plc
Condensed Statement of Financial Position as at 31 January 2021
31 January 2021 30 June 2020
(Unaudited) (Audited)
GBP'000 GBP'000
Non current assets
Property, plant and equipment 243 290
Intangible assets 812 844
---------------- -------------
1,055 1,134
---------------- -------------
Current assets
Inventory 48 63
Corporation tax receivable 0 175
Trade and other receivables 296 1,677
Cash and cash equivalents 1,318 1,193
1,662 3,108
---------------- -------------
Total assets 2,717 4,242
---------------- -------------
Current liabilities
Trade and other payables ( 295 ) ( 854 )
Borrowings 0 ( 976 )
Lease liabilities ( 61 ) ( 61 )
Total liabilities ( 356 ) ( 1,891 )
Non current liabilities
Lease liabilities ( 140 ) ( 168 )
---------------- -------------
Total liabilities ( 496 ) ( 2,059 )
---------------- -------------
Net assets 2,221 2,183
---------------- -------------
Capital and reserves
Share capital 1,631 5,451
Share premium 0 2,591
Share based payments 65 41
Retained earnings/(Accumulated loss) 525 ( 5,900 )
Shareholders' funds 2,221 2,183
---------------- -------------
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END
IR FZGMZMVRGMZZ
(END) Dow Jones Newswires
February 17, 2021 02:00 ET (07:00 GMT)
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