Interim Results

Transense Technologies PLC 22 August 2002 Transense Technologies plc Chairman's Statement and Interim Results for the six months to 30 June 2002 Political and economic uncertainties and the high profile accounting irregularities in the US have combined to produce a very negative environment for equity markets worldwide. As far as your Board is concerned, nothing has changed that alters the fact that the development of our technology continues as projected. Following the commencement of volume production expected in early 2003, we believe that royalty income will start to accrue in material amounts during the course of next year, but the timing of cash receipts will be such that we anticipate continuing controlled cash outflow before going into positive territory during 2003. You will see from the results in front of you that we still have cash deposits of £2.5 million, which is equivalent to 18 months of our projected gross cash expenditures. Our recent experience has been that new licensing agreements are taking longer to conclude because many of the companies in negotiation with us are experiencing internal spending constraints resulting in more stringent and hence more time consuming sign-off requirements. However, we have had no indication from our existing customers that the downturn in world trade is holding back their enthusiasm for our wireless SAW measurement technology. I am pleased that we were able to announce last week that a limited licence agreement has been signed with Thales Microsonics, a division of the French defence electronics group Thales (formerly called Thompson-CSF), for the supply of special SAWs for tyre pressure monitoring. We anticipate making a further announcement on this arrangement when appropriate. The low turnover figures do not reflect the large increase in Company activity over the past six months, which includes a licence agreement with Honeywell to package the SAW sensors used in our tyre pressure monitoring technology. The first batch of these devices has now been shipped to our application licensee with further shipments expected in the last quarter of this year. After a delayed start due to further design improvements, we expect to be shipping prototype devices to our electric power steering licensee before the end of this year. These design improvements also apply to driveline torque measurement and we have a number of negotiations regarding this application. A further development from these improvements is the 'intelligent bearing' application, which we first disclosed last year and for which we now believe we have a viable solution that will enable us to proceed with an exclusive agreement with a major bearing manufacturer. As we approached volume products for our technology it was anticipated that we would have to boost our workforce. We now have 18 full time members on the team compared with 11 this time last year, which accounts for an extra £100,000 of costs in the period. In addition, our costs for registering new patent applications and maintaining those already granted are up to £87,000, a near 100% increase on the equivalent period last year. We now have five granted patents and 40 new applications, which is a clear indication of the innovative strength of the Transense development team. Whilst the timing of the outcome of our various negotiations is not completely within our control, the value of the Company will be primarily determined by the strength, applications and production of our technology in which we continue to have complete confidence. Sir Dominic Cadbury 22 August 2002 Chairman For further information, please contact: Jim Perry, Chief Executive 01869 238 380 Transense Technologies plc John Mellett / Graeme Bayley 020 7336 9000 HSBC Investment Bank plc Transense Technologies plc Consolidated Profit & Loss Account for the 6 months to 30 June 2002 6 months to 6 months to June 30, 2002 June 30, 2001 £000 £000 Turnover 37 43 Cost of Sales (21) (2) ----------------------- ----------------------- Gross profit 16 41 Administration expenses (678) (634) ----------------------- ----------------------- Operating Loss (662) (593) Interest income 56 55 ----------------------- ----------------------- Loss on ordinary activities before taxation (606) (538) Taxation 0 0 ----------------------- ----------------------- Loss on ordinary activities after taxation (606) (538) Minority interest 6 9 ----------------------- ----------------------- Loss on ordinary activities after minority interest (600) (529) ----------------------- ----------------------- Dividends --- --- Loss per share: Basic (1.2)p (1.1)p Fully diluted (1.1)p (1.0)p Consolidated Balance Sheet at 30 June 2002 June 30, 2002 December 31, 2001 £000 £000 Fixed Assets 1,345 1,167 Current assets: Debtors 235 317 Cash 2,504 3,177 -------------- -------------- 2,739 3,494 -------------- -------------- Current liabilities: Creditors 83 48 Accruals 17 23 -------------- -------------- 100 71 -------------- -------------- Net Current assets 2,639 3,423 ----------------------- ----------------------- Net assets 3,984 4,590 ----------------------- ----------------------- Capital & reserves: Share capital 5,046 5,046 Share premium 2,333 2,333 Profit & Loss account (3,383) (2,783) ----------------------- ----------------------- Shareholders' funds 3,996 4,596 Minority interest (12) (6) ----------------------- ----------------------- 3,984 4,590 ----------------------- ----------------------- Consolidated Cash Flow Statement for the 6 months to 30 June 2002 6 months to 6 months to June 30, 2002 June 30, 2001 £000 £000 Net cash outflow from operating activities (511) (662) Returns on investments and servicing of finance 56 55 Capital expenditure and financial investment (218) (128) ----------------------- ----------------------- Cash outflow before financing (673) (735) Management of liquid resources Receipts from/(payments to) short term deposits 730 (30) Financing Issue of new ordinary shares 0 760 ----------------------- ----------------------- Increase/(decrease) in cash in the period 57 (5) ----------------------- ----------------------- Reconciliation of operating loss to net cash outflow from operating activities Operating loss (662) (593) Depreciation & amortisation 40 26 Decrease/(increase) in debtors 82 (11) Increase/(decrease) in creditors 29 (84) ----------------------- ----------------------- (511) (662) ----------------------- ----------------------- Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash in the period 57 (5) Net funds at 1 January 47 26 ----------------------- ----------------------- Net funds at 30 June 104 21 ----------------------- ----------------------- In addition at 30 June 2002 £2,400,000 of cash was held on short term deposit (31 Dec 2001: £3,130,000) INDEPENDENT REVIEW REPORT to Transense Technologies plc Introduction We have been instructed by the Company to review the financial information for the six months ended 30 June, 2002 which is included in this document. We have read the information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' responsibilities The Interim Report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. Where a Company is fully listed, the directors are responsible for preparing the Interim report in accordance with the Listing Rules of the Financial Services Authority which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. The directors of Transense Technologies plc have voluntarily complied with this requirement in preparing the Interim report. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom by auditors of fully listed companies. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review, we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June, 2002. BDO Stoy Hayward 21 August 2002 Chartered Accountants Bromley, Kent BR1 3WA This information is provided by RNS The company news service from the London Stock Exchange

Companies

Transense Technologies (TRT)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today