Transense Technlgy TRT Final Results and Notice of AGM

  Transense Technlgy (TRT) - Final Results and Notice of AGM

RNS Number : 7625N
Transense Technologies PLC
03 October 2012




03 October 2012

                                      

                          Transense Technologies plc

                                Final Results



Transense Technologies  plc  (AIM:TRT)  ("Transense" or  the  "Company"),  the 
provider of sensor systems for  the transportation and industrial markets,  is 
pleased to announce its final results for the 18 months ended 30 June 2012.



Highlights



· Both of the Company's trading divisions, Translogik and IntelliSAW, have
made significant strides in expanding sales and partner networks

· IntelliSAW starting pilots for its smart grid wireless sensor systems at
several major industrial sites with more pilots expected to follow

· Translogik, the transport industry  division, secured initial order  for 
iTrack from Kumba Iron Ore, a wholly owned subsidiary of Anglo American Plc

· Successful placing in June raising £1.76m



Graham Storey, CEO, commented: "We are extremely positive about the developing
opportunities to exploit Transense's  sensor expertise through IntelliSAW  and 
Translogik. The  new IntelliSAW  pilots  are at  major industrial  sites  and 
success at any of these could lead to volume orders for the IS485 system.



"The iTrack  order from  Kumba  represents the  first commercial  success  for 
Translogik's iTrack system in South Africa and we are hopeful that the  global 
exposure within  the  mining  industry  that  this  order  has  provided  will 
translate  into  further  commercial  successes  as  we  promote  the   global 
deployment of iTrack. We have  already seen an example  of this with the  new 
AutoRFID pilot and are confident that more will follow."

                       Notice of Annual General Meeting

The Company announces that its Annual General Meeting of shareholders will be
held at 3 Lloyd's Avenue, London, EC3N 3DS at 11:00 a.m. on 26 October 2012.

The Annual Report and Accounts for the 18 months ended 30 June 2012 and Notice
of Annual General Meeting will be posted today to those shareholders who have
requested hard copies.

Electronic copies will also be made available within the 'Investors' section
on the Company's website at www.transense.co.uk.

For further information, please contact:



Transense Technologies plc              Tel: +44 (0) 1869 238 380
Graham Storey, Chief Executive
N+1 Brewin - Nominated Adviser          Tel: +44 (0)20 3201 3710

Aubrey Powell, Robert Beenstock
Hybridan LLP - Broker                   Tel: +44 (0) 20 7947 4350
Claire Noyce,Deepak Reddy
Newgate Threadneedle                    Tel: +44 (0) 20 7653 9850
Caroline Evans-Jones, Robyn McConnachie





About Transense Technologies



Based in  Oxfordshire, UK,  Transense  has developed  patent-protected  sensor 
systems for use in diverse high growth markets. Developed in conjunction  with 
partners including McLaren Electronic Systems and General Motors,  Transense's 
Surface Acoustic  Wave (SAW),  wireless,  battery-less, sensor  systems  offer 
significant advantages over  legacy wireless  sensor systems.  Via two  wholly 
owned divisions, IntelliSAW  and Translogik, Transense  is targeting the  high 
growth global  electrical Smart  Grid applications  market and  the  transport 
industry respectively.



Transense's sensors  are  also  being  used in  the  wind  turbine  monitoring 
industry. The Company is part of a consortium of nine companies  ("IntelWind") 
that has  begun  development on  a  major EU  funded  project to  improve  the 
efficiency of wind turbines.



Transense's shares are admitted  to trading on AIM,  a market operated by  the 
London Stock Exchange (AIM: "TRT"). www.transense.co.uk







Chairman's Statement



As indicated  earlier this  year, our  year-end date  was changed  to 30  June 
2012. The Directors Report  & Financial Statements  cover, therefore, the  18 
month period to 30 June 2012.



In this 18 month period sales amounted  to £1,014,000 split as to £663,000  in 
the 12 months to 31 December 2011 and £351,000 in the 6 months to 30 June 2012
(6 Months to June 2011  - £249,000). The increased  post-tax loss for the  18 
months of £3,325,000 compared to the previous period reflects the extra  costs 
of funding the US overhead which has expanded to facilitate the potential  new 
business that is  now materialising at  our US operation  - IntelliSAW,  which 
commenced business more than a year ago  and is a provider of wireless  sensor 
systems for smart grid applications.



Despite this trading loss, our business has made substantial progress.  Since 
we last reported in June this year with our interim figures, our iTrack system
has received its  first significant order  - from one  of the world's  largest 
mining companies in respect of one  of its South African mines. Other  mining 
companies are showing  interest in  our products,  whilst the  testing of  our 
systems by potential  customers takes  time, we anticipate  further orders  of 
significance.



IntelliSAW's sales are also showing an encouraging momentum. It has taken the
best part of a year since the  commencement of its business for IntelliSAW  to 
establish worldwide  distribution  arrangements within  the  power  generation 
industry, a feature which  much increased the  Group's monthly cash  outflow. 
The exercise has been worthwhile and we are now participating in a high growth
industry with  major  potential,  particularly in  fast  growing  Third  World 
countries. Quarter  on quarter  we are  seeing real  growth in  the intake  of 
orders, and requests for quotations.



We have also completed, since we last reported, the raising of £1.76m,  before 
expenses, by means of a Placing. This has enabled us to continue to fund  the 
continued expansion of the business.



All in all,  a really  meaningful 18 month  period of  progress, which  should 
enable us to report a  record level of sales for  Transense for the current  6 
month period to 31 December 2012.





D G Kleeman
Chairman

2^nd October 2012





Chief Executive's report



The first six months  of 2012 has  seen a continuation  in the solid  progress 
made during 2011 and it is anticipated that this progress will be reflected in
the figures to December  2012, and more so  throughout 2013. All key  projects 
have moved forward and our two trading divisions have made significant strides
in expanding their sales and partner networks, with IntelliSAW starting pilots
at several major industrial sites and Translogik securing its first commercial
order from Anglo American.



Transense



General Motors Flexplate



The flexplate project is progressing  well and Transense continues to  provide 
close engineering support  to the  General Motors  team. The  flexplate is  an 
integral part of the vehicle powertrain  control system and has the  potential 
to  improve  vehicle  driveability,   reduce  fuel  consumption  and   improve 
transmission shift quality. This  will be the first  time a propulsion  system 
has been able to measure engine torque 'live', enabling optimal control to  be 
maintained throughout a vehicle's life. Current torque management systems rely
on simulated models derived  from production engine  testing which can  differ 
from the actual engine torque output  over time. The new flexplate  technology 
provides  continuous  real-time  torque  measurement  allowing  actual  torque 
measurement on a per-vehicle basis for maximisation of engine efficiency.



McLaren



As part of the Joint Development Agreement (JDA) with McLaren signed in August
2011 and following on from the success  of the KERS project, Transense is  now 
manufacturing torque sensor  shafts for  Indycar. The shafts  are fitted  with 
Surface Acoustic Wave (SAW) torque sensors by Transense and extensively tested
and calibrated for use within the harsh motorsport environment. The shafts are
then supplied  to  McLaren  for  integration  with  the  sensor  interrogation 
electronics and shipment to the  customer. Modifications to the Indycar  shaft 
for  sensor  compatibility,  the  SAW  torque  sensor  and  the  interrogation 
electronics all contain Transense patented intellectual property.



Work on various other applications of Transense's SAW technology for measuring
torque, temperature and  pressure, such  as IntelWind,  continues to  progress 
towards commercialisation.



IntelliSAW



IntelliSAW  has   continued  to   see  strong   demand  for   its   innovative 
wireless/passive temperature monitoring  solutions. This has  resulted in  the 
recent commissioning of three new pilot installations of its IS485  electrical 
switchgear monitoring systems with major industrial companies.



The pilot  systems were  installed  at sites  owned  by Petrobras  in  Brazil, 
currently the fifth largest energy company in the world, Southern China  Grid, 
a major regional power company supplying  230 million people, and the  Gujarat 
State Electricity  Corporation  (GSECL)  in India,  which  runs  twelve  power 
stations. Until  now all  pilot installations  have been  carried out  by  the 
IntelliSAW technical team, however  the new pilot at  the Southern China  Grid 
site was carried out  by a regional partner.  As more of IntelliSAW's  channel 
partners gain expertise in the product this will allow for significant scaling
in the rate at which new sites can be added.



Scheduling  pilots  at  such  large  and  complex  industrial  sites  presents 
significant  logistical  challenges,  as   the  costs  associated  with   lost 
operational time dictate  that installations  can only be  carried out  during 
scheduled periods of  downtime. In addition,  there are stringent  performance 
and safety targets to  meet given the critical  nature of monitoring such  key 
electrical assets  which  can result  in  extended periods  of  testing  being 
required. However, given these challenges, the Company has been encouraged  by 
the willingness of customers to undertake  these pilots and believe this is  a 
testament to the benefits the system provides.



Recent high-profile news stories relating to power grid failures in India  are 
serving to demonstrate the pressing need to maximise the capacity of  existing 
high capital cost infrastructure. The  IntelliSAW solution meets this  problem 
head-on, providing continuous real-time monitoring of switchgear temperatures,
the leading  indicator  of  potential  failure  in  the  switchgear  cabinets. 
Previously announced pilots are  continuing and the  Company looks forward  to 
these  leading  to  full  deployments  as  customer  testing  programmes   are 
successfully concluded.



Translogik



iTrack



Following recent successful field trials Translogik received an initial  order 
in August for its iTrack Tyre Temperature and Pressure Monitoring Systems  for 
mining and off-the-road vehicles ("iTrack")  from Kumba Iron Ore ("Kumba"),  a 
wholly owned subsidiary  of Anglo American  Plc. This first  batch of  systems 
will be installed  onto 29 large  haul trucks  at Kumba's Sishen  mine in  the 
country's Northern Cape Province, one of  the seven largest open-pit mines  in 
the world. It operates  around the clock,  twelve months a  year, and in  2010 
produced 41.3 million tons of iron ore.



Translogik now has a team member permanently based in South Africa who will be
responsible for training  Kumba's tyre  service provider  in the  installation 
process and ongoing support  of the system. It  is anticipated that the  South 
African Translogik team will  expand as further mines  sign up for the  iTrack 
system.



This order from Kumba represents the first commercial success for Translogik's
iTrack system in South Africa. Having a Company such as Kumba adopt the iTrack
system demonstrates the value of the system to the wider mining industry.  The 
ability to monitor the  tyre performance of mining  vehicles 24/7 and  receive 
instant notification of any potential hazardous situations allows operators to
achieve greater levels of safety and efficiency throughout their mines.



A further iTrack order was received from Translogik's Indonesian  distributor, 
AutoRFID Solutions Sdn Bhd. ("AutoRFID").  These systems will be installed  as 
part of a  pilot scheme  on three of  the 168  vehicles at the  ADARO mine  in 
Indonesia, one  of  AutoRFID's  clients.  The  ADARO  mine  is  expanding  its 
operations and expects  to be running  more than  300 vehicles by  the end  of 
2014.



Enhancements to the iTrack system continue to be made, including  Translogik's 
new mobile  application for  Android,  "MobiTrack". Running  on a  variety  of 
hand-held devices, the system allows tyre status to be read by the side of the
vehicle -  no  need  to  gain  access  to  the  cab.  It  also  allows  remote 
configuration of the iTrack  system and the ability  to update tyre  positions 
and adjust  settings such  as  wheel layout/numbering,  vehicle  registration, 
in-cab   warning   levels,   and   enabling/disabling   atmospheric   pressure 
compensation.



Inspection Tools



In a  major endorsement  of the  product, the  Translogik iProbe  was used  by 
Michelin during its  high-profile initiative  to improve the  safety of  buses 
during the London 2012  Olympics. The iProbe+ was  used to provide a  wireless 
non-contact method of reading data from the Michelin 'communicating' tyres  to 
monitor their condition.



By combining the Tyre  Pressure Monitoring System  (TPMS) and Radio  Frequency 
Identification chips (RFID), Michelin sought to enable London urban  transport 
operators to enhance the  safety of the tyres  fitted on their buses,  thereby 
immediately improving the mobility of both vehicles and transport users.



Outlook



We are  extremely  positive  about the  developing  opportunities  to  exploit 
Transense's sensor  expertise  through  IntelliSAW  and  Translogik.  The  new 
IntelliSAW pilots are at  major industrial sites and  success at any of  these 
could lead to volume orders for the IS485 system.



The iTrack  order  from Kumba  represents  the first  commercial  success  for 
Translogik's iTrack system in South Africa and we are hopeful that the  global 
exposure within  the  mining  industry  that  this  order  has  provided  will 
translate  into  further  commercial  successes  as  we  promote  the   global 
deployment of iTrack. We  have already seen  an example of  this with the  new 
AutoRFID pilot.





Graham Storey

CEO

2^nd October 2012

Consolidated Statement of Comprehensive Income

for the period ended 30 June 2012



                                              18 months ended  12 months ended
                                                      30 June      31 December
                                        Note             2012             2010
                                                         £000             £000
Revenue                                                 1,014              656
Cost of sales                                           (449)            (301)
                                                  
Gross profit                                              565              355
Administrative expenses                               (3,997)          (1,878)
                                                  
Operating loss                                        (3,432)          (1,523)
Financial income                                           34               14
Financial expenses                                          -                -
                                                  
Loss before taxation                                  (3,398)          (1,509)
Taxation                                                   73               55
                                                  
Loss for the period                                   (3,325)          (1,454)
                                                  
                                                  
Basic and fully diluted loss per share                 (2.24)           (1.39)
(pence)                                    2
                                                  















































Consolidated Balance Sheet

at 30 June 2012

                           18 months ended                12 months ended
                               30 June                      31 December
              Note            2012           2012            2010           2010
                              £000           £000            £000           £000
Non current
assets
Property,
plant and                      149                            114
equipment
Intangible                   1,188                          1,420
assets
Available
for sale                         -                             58
assets
                                     
                                            1,337                          1,592
Current
assets
Inventories                    140                             41
Corporation                     73                             55
tax
Trade and
other                          299                            400
receivables
Cash and
cash                           195                          2,066
equivalents
                                     
                                              707                          2,562
                                                    
Total                                       2,044                          4,154
assets
Current
liabilities
Trade and
other                        (254)                          (367)
payables
Current tax                   (33)                           (23)
liabilities
                                     
Total                                       (287)                          (390)
liabilities
                                                    
Net assets                                  1,757                          3,764
                                                    
Equity
Issued
share                                       8,591                          8,145
capital
Share                                       9,753                          8,956
premium
Warrant                                       430                            710
reserve
Accumulated                              (17,017)                       (14,047)
loss
                                                    
Total                                       1,757                          3,764
equity
                                                    





















Statement of Changes in Equity

Group

                Share         Share       Warrant                       Total
                                                      Cumulative
               capital       premium       reserve        losses        equity
                 £000          £000          £000          £000          £000
                                                                        
Balance          7,580         7,856             -      (12,608)         2,828
at 1
January
2010
Loss for             -             -             -       (1,454)       (1,454)
the year
Shares             565         1,100           710             -         2,375
and
warrants
issued
and
share
premium
Share                -             -             -            15            15
based
payments
            
As at 1          8,145         8,956           710      (14,047)         3,764
January
2011
            
Loss for             -             -             -       (3,325)       (3,325)
the
period
Shares
issued
and
share
premium            446           797             -             -         1,243
Transfer
between
reserves                                   (280)           280             -
Share                -             -             -            75            75
based
payments
            
Balance          8,591         9,753           430      (17,017)         1,757
at 30
June
2012
            
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        

Consolidated Cash Flow Statement

for the period ended 30 June 2012

                                 Note                 Group
                                      18 months ended 30 12 Months ended 31
                                               June 2012      December 2010
                                                    £000               £000
Loss before taxation                             (3,398)            (1,509)
Adjustments for:
Financial income                                    (34)               (14)
Depreciation                                          78                 42
Amortisation of intangible                           320                262
assets
Loss on disposal of fixed assets                      11                  -
Share based payment                                   75                 15
                                               
Operating cash flows before
movements in
working capital                                 (2,948)            (1,204)
Decrease/(increase) in                               101              (263)
receivables
(Decrease)/increase in payables                   (113)              (101)
(Increase)/decrease in                              (99)                (8)
inventories
                                               
Cash used in operations                          (3,059)            (1,576)
Taxation recovered                                    65                169
                                               
Net cash used in operations                      (2,994)            (1,407)
                                               
Investing activities
Interest received                                     34                 14
Proceeds from disposal of fixed                       72                  -
and investment ssets
Acquisitions of property, plant                    (112)                (5)
and equipment
Acquisitions of intangible                         (114)              (188)
assets
                                               
Net cash used in investing                         (120)              (179)
activities
                                               
Financing activities
Proceeds from issue of equity                       1243               2375
share capital and warrants
                                               
Net cash from financing                            1,243              2,375
activities
                                               
Net (decrease)/increase in cash                  (1,871)                789
and cash equivalents
Cash and equivalents at the                        2,066              1,277
beginning of year
                                               
Cash and equivalents at the end                      195              2,066
of year
                                               





Notes to the results for the period ended 30 June 2012



1. The financial  information set  out above is  an extract  of the  company's 
statutory accounts for the financial period  for the 18 months ending 30  June 
2012, and were prepared in accordance with Adopted IFRS as adopted by the  EU. 
The statutory  accounts have  been  finalised by  the  directors and  will  be 
delivered to the Registrar of Companies in due course.



2. Basic loss per share is calculated  by dividing the loss after taxation  of 
GBP3,325,000 (2010: GBP1,454,000) by the weighted average number of ordinary
shares in issue during the year of 147,859,462 (2010: 132,207,136).



Options over  the ordinary  shares  are not  included  in the  calculation  of 
diluted loss per share as their effect is anti-dilutive.



3. A  successful fund  raising was  carried out  in June  2012 and  a  further 
GBP1.76m was raised producing GBP1.6m net of costs received in two tranches in
July and August 2012.



4. The financial statements have been prepared on a going concern basis, which
the Directors believe to be appropriate for the reason below.



At 30 June 2012, the Group had net assets of £1.8m and a positive cash balance
of £195,000. However  following the successful  fund raising in  June 2012  a 
further £1.76m  was  raised producing  £1.6m  net  of costs  received  in  two 
tranches in July  and August  2012. The  Group meets  its day  to day  working 
capital requirements through  existing cash  reserves and  does not  currently 
have an overdraft facility.  The Directors have  prepared cash flow  forecasts 
for the  period  to  31  December  2013. These  forecasts  make  a  number  of 
operational assumptions,  the most  significant of  which is  a  substantially 
increased level  of  sales reflecting  recently  announced orders  and  future 
anticipated orders.



The forecast indicates that, assuming the anticipated increased level of sales
are achieved, the Group will continue to be able to operate within its current
cash resources for the foreseeable future.



However, were the  timing of those  sales to  be delayed, then  the group  may 
require additional  funding. In  this event,  the Directors  believe that  it 
would be  necessary  and  possible  to  arrange  bank  facilities  to  provide 
sufficient funding in anticipation of the operations becoming cash generative.



The Directors  have considered  controllable mitigating  actions available  to 
them to extend the period during which it can operate with the remaining  cash 
reserves. However, the ability to  do this may be  limited. On the basis  that 
the expected proceeds from the forecast increased level of sales  materialises 
(or that  appropriate  bank  facilities are  made  available),  the  Directors 
consider that the Group will continue to meet its liabilities as they fall due
for the foreseeable future. However, there can be no certainty in relation  to 
all these matters.



The  Directors  have  concluded  that  the  achievement  and  timing  of   the 
anticipated orders and also the potential requirement, and ability, to  obtain 
external  financing  both  represent  material  uncertainties  that  may  cast 
significant doubt upon the Group's ability to continue as a going concern. The
Group may,  therefore,  be  unable  to continue  realising  their  assets  and 
discharging their liabilities in the normal course of business. The  financial 
statements do not include any adjustments that would result from the basis  of 
preparation being inappropriate.









                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


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