Transense swings to net loss as mining slump continues

Transportation and industrial sensor systems provider Transense Technologies reported results for the six months to 31 December on Wednesday, with revenues unchanged from the prior year at £1.04m.

The AIM-traded firm said its operating expenses increased to £1.61m from £1.32m, in support of launch of iTrack II.

Its loss before tax from continuing operations was £0.95m, widening from £0.62m, while its net loss for the period was £0.97m, swinging from a £1.70m net profit in 2015.

Net cash used in operations was £0.15m, reducing from £1.46m net cash generated in the prior year.

Transense said the net cash at the end of the period stood at £3.31m, down from £3.65m, and it confirmed its capital restructuring was complete, facilitating distributable reserves.

“Although the mining sector is still in the process of recovering from a very difficult period, we are pleased with the progress made in 2016,” said executive chairman David Ford.

“We attended MINExpo in September to showcase iTrack II which was very well received with high levels of interest from large potential customers across a broad geographical range.

“Trial operations are now ongoing at several sites.”

Ford said the board was also very pleased to secure a significant licensing agreement with GE for the use of the patented, wireless, passive Transense Surface Acoustic Wave technology, considered a major milestone for the company.

“We do not yet have sufficient transparency on timing or volume of new iTrack business and we have increased the running costs of our overseas iTrack offices.

“Consequently our expectations for H2 - excluding the GE licence fee in H1 of $0.5m and GE fee in H2 of $0.25m - are that the results will be marginally down on H1.”

Ford said the board remained convinced of the strength of its market offer, and the underlying value of the associated technology in each of its core businesses.

“Accordingly, we continue to look to the future with confidence.”