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Highlights
- Revenue Growth: Total revenue for H1 FY25 increased by 37% year-on-year to £2.41m, surpassing the expected 30% growth.
- Strategic Investments: Increased headcount to 30 people, with key appointments across engineering, operations, and sales, aimed at building capacity for future growth.
- Outlook: Positive trajectory with continued growth expected, particularly in SAWsense, Bridgestone iTrack royalties, and Translogik, with further customer expansion anticipated in H2 FY25.
Transense Technologies Plc (LSE:TRT), a leading provider of specialist sensing solutions and measurement systems, has provided a trading update for the six months ended 31 December 2024, showing strong progress across all business segments. The company remains on track to meet market expectations for the full financial year ending 30 June 2025.
Strong Revenue Growth
The company reported a significant 37% increase in total revenue for the period, reaching £2.41 million, compared to £1.81 million in the same period last year. This exceeded the expected 30% full-year growth, driven by robust performance in key segments.
- SAWsense Royalties: Revenues from the SAWsense segment surged by 330%, far exceeding expectations.
- Bridgestone iTrack Royalties: Revenues from Bridgestone iTrack royalties grew by 28%.
- Translogik: Revenue growth in Translogik was more modest, up 7% year-on-year, reflecting steady growth from existing customers. However, new business conversion was slower than anticipated, though the company expects acceleration in the second half of the financial year.
Operational Investment
In line with its growth strategy, Transense has significantly increased investment in its operational capabilities during the period. The company’s headcount grew from 19 employees in December 2023 to 30 employees in January 2025, with key hires in engineering, operations, and sales & marketing. This expansion aims to build capacity to fulfill the growing pipeline of opportunities, and the company now has the team in place to drive future growth without significant additional salary costs.
While this strategic investment resulted in a 20% decrease in net earnings for the period compared to the prior year, the company views this as a necessary step to secure long-term growth. The temporary earnings compression is expected to be offset in the second half of the year, when the full benefits of these investments are realized.
Financial Position
As of 31 December 2024, the company reported net cash of £1.19 million, slightly down from £1.28 million at the end of June 2024. Additionally, quarterly royalty income from Bridgestone iTrack at the end of January 2025 is estimated to be £0.84 million, up from £0.70 million in June 2024, further strengthening the company's cash position.
Future Outlook
The directors are confident in the continued growth prospects for all three of the company’s business segments. The increased business opportunities in SAWsense, Bridgestone iTrack, and Translogik are expected to convert into significant revenue as the year progresses. The recruitment process is nearly complete, and Transense is also focusing on specifying production equipment and optimizing the supply chain to support long-term volume growth.
