Transense Tech's full year pre-tax profit falls but in line with expectations.

Transense Technologies, a provider of sensor systems for industrial, mining and transportation markets, reported a rise in full year revenue but a decrease in pre-tax profit, although it was trading in line with expectations.

For the year ended 30 June, revenue rose significantly to £5.12m from £1.25m last year and revenues - before the IntelliSAW related license fee from Emerson, which the company sold in October 2015 - increased by 67% to £2.08m.

The pre-tax profit fell almost 25% to £1.6m, which included the licence fee of £3.04m, before associated costs, and £2.76m after costs.

Revenue for the Translogik business grew by 79% to £1.63m, and revenue from the SAWSense business rose by 36% to £450,000 from design, development and low volume production activities.

Gross margins, excluding the licence fee, were 64%, down from 67% last year due to a slight change in the mix between business activities.

Profit attributable to shareholders also fell 63% to £1.15m which resulted in an earnings per ordinary share of 0.26p, down 1.11p last year. The board do not recommend a dividend payment.

Net cash balance at the end of June rose to £3.65m from £470,000.

Executive chairman David Ford said the company was in a robust financial condition and has the financial resources available to commit to building two distinct businesses, SAWSense and Translogik, with high growth potential.

He said the value of the surface acoustic wave (SAW) technology is becoming recognised, and addresses the increasing demands of its global partners in the industrial equipment, automotive, aerospace markets.

Ford added: “The board is confident that the longer term prospects for the company are promising, whilst maintaining a cautiously optimistic view of prospects for short term revenue growth and the achievement of break even.”

Transense is to launch Translogik’s iTrack II to the mining sector soon to meet the needs of increased productivity, cost control, asset management and safety, with customer trials expected to start towards the end of 2016, and to be with customers by early 2017.

The company is to propose to shareholders to reduce the share capital by cancelling deferred shares and the share premium account, which will result in the company having distributable reserves enabling the payment of dividends from income or return of capital to shareholders from licensing transactions or partial disposals in the future.

It also proposed that the ordinary share capital is subject to a 50 to one consolidation to mitigate the effect of prior dilutions on the price.

Shares in Transense Technologies were down 4.49% to 2.15p at 1102 BST.