22nd Sep 2006 07:01
Transense Technologies PLC22 September 2006 Transense Technologies plcInterim Results 2006 In the six months to June 2006 the Company loss was £809,000 (2005 amended:£672,000). This reflects the impact of FRS 20, now requiring a charge foremployee share options of £126,000 (2005 £48,000) and the 2005 figure is amendedappropriately. The share option charges have no effect on the balance sheet.Turnover for the same period only totalled £17,000 (£52,000) but as in the pasttwo years the second-half will show a considerably higher turnover figure thanthis. Excluding this option scheme adjustment the loss was £683,000 (2005: £624,000). Actual costs rose from £686,000 to £735,000 explained by an increasing depletioncharge on patent costs, and higher staff travelling costs, reflecting Tier 1requests for Transense to increase support for front line development. Cash atbank at the end of June was £2.1 million. I am delighted to announce that, after many months of negotiations, Transensehas signed a non-exclusive licence agreement with Lear Corporation, a $19billion turnover Tier 1 Group. Lear already supplies 10 million battery tyrepressure sensor systems in the US and Far East, which equates to over 15% of thetyre pressure monitoring system (TPMS) market in America alone. Under terms ofthe agreement, Transense and Lear will work closely together over the nexttwelve months to integrate Transense's batteryless TPMS that will also use ourSAW sensor technology to communicate with Lear's remote keyless entry receiver(RKE) technology. Having been a pioneer in the market, Lear is the world's leading supplier of RKEsystems, with an estimated 50% of that market. Many of the current battery TPMSsuppliers' sensors operate with Lear's transceivers that are needed to collectand display data from their individual tyre pressure monitors. As a result,Lear has an in-depth knowledge of the competition and price, as well as thetechnology that is already out there, and is in an ideal position to capture alarge part of the fast growing TPMS market place. I reported at the AGM earlier this year that the launch of our TPMS would takeplace in the last quarter of 2006. Although as you are well aware we do notcontrol the timing, I am pleased to report that we understand that this is stillon track. We are looking forward to the publicity it receives and therecognition it gives to our breakthrough technology. The volume of sales reported in the first six months of 2006 bears littlereflection on the actual amount of activity that has been going on at Transense.For instance, our engineers have been fully extended working on new torquesystems for two of the largest automotive manufacturers in the world. Havingdelivered systems to each of these companies for initial testing, they havequickly placed orders for further systems to be delivered in the second half ofthis year. We are very proud of our small team for the effort that they have put in to makethe testing of these initial systems such a resounding success. Your Board hasno hesitation in saying that, led by our Technical Director, Dr Ray Lohr, theyhave achieved a major breakthrough in measuring in-vehicle, engine torque whichwas not thought possible before. Although this does not signal a raft of large orders in the short term, thepositive responses it has received bodes extremely well for the medium to longterm future success of Transense and its ability to commercialise the Company'soutstanding technology. Peter WoodsChairman22 September 2006 Profit & Loss Account for the 6 months to 30 June, 2006 6 months to 6 months to 30 June 2006 30 June 2005 (restated see Note 3) £000 £000Turnover 17 52Cost of sales (14) (15)Gross profit 3 37 Administrative expenses (Note 3) (861) (734)Operating Loss (858) (697) Interest income 49 25Loss on ordinary activities before taxation (809) (672) Taxation 0 0Loss for the period (809) (672) Loss per share: (1.4p) (1.3p) Balance Sheet at 30 June, 2006 30 June 2006 31 December 2005 £000 £000Fixed assets 1,730 1,665 Current assets: Debtors 94 598 Cash 2,064 2,399 2,158 2,997 Current liabilities: Creditors 128 175 Accruals 56 113 184 288Net current assets 1,974 2,709 Net assets 3,704 4,374 Capital and reserves: Share capital 5,646 5,641 Share premium 5,376 5,368 Profit and Loss account (7,318) (6,635) Shareholders' funds 3,704 4,374 Notes: 1 The comparatives for the full financial year ended 31 December 2005 are not the Company's full statutory accounts for the year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain a statement under Section 237 (2) - (3) of the Companies Act 1985. 2 The interim financial information has been prepared on a going concern basis, which assumes that the Company will have adequate resources to continue in operational existence for the foreseeable future. 3 Administrative expenses includes a charge of £126,000 (2005 £48,000) after valuation of the Company's employee share option schemes in accordance with Financial Reporting Standard 20. The 2005 comparative figures have been adjusted accordingly. These items will be added back in the Statement of Total Recognised Gains and Losses in the annual financial statements. There are no other recognised gains or losses for the current and prior period. 4 No deferred tax asset is recognised in these financial statements in respect of trading losses incurred to date. Cash Flow Statement for the 6 months to 30 June, 2006 6 months to 6 months to 30 June 2006 30 June 2005 (restated Note 3) £000 £000Net cash outflow from operating activities (271) (157) Returns on investments and servicing of finance 49 25 Corporation tax 0 0 Capital expenditure and financial investment (126) (121) Cash outflow before management of liquid resourcesand financing (348) (253) Management of liquid resources Receipts from short term deposits 375 215 Financing Issue of new ordinary shares 13 0Increase / (decrease) in cash in the period 40 (38) Reconciliation of operating loss to net cash outflow fromoperating activities Operating loss (858) (697) Depreciation and amortisation 61 44 Decrease in debtors 504 542 Decrease in creditors and accruals (104) (94) Charge on share option schemes 126 48 (271) (157) Reconciliation of net cash flow to movement in netdebt Increase / (decrease) in cash in the 40 (38) period Cash inflow from changes in liquid (375) (215) resources Movement in net funds in the period (335) (253) Net funds at 1 January 2,399 1,161 Net funds at 30 June 2,064 908 Analysis of net funds Liquid Cash Total resources £000 £000 £000 At 1 January 2,300 99 2,399 2006 Cash flow (375) 40 (335) At 30 June 1,925 139 2,064 2006 INDEPENDENT REVIEW REPORT To Transense Technologies plc Introduction We have been instructed by the Company to review the financial information forthe six months ended 30 June 2006 which comprises the profit and loss account,balance sheet, cash flow statement, and related notes. We have read the otherinformation contained in the interim report and considered whether it containsany apparent misstatements or material inconsistencies with the financialinformation. This report is made solely to the company in accordance with the terms of ourengagement. Our review has been undertaken so that we might state to thecompany those matters we are required to state to it in this report and for noother purpose. To the fullest extent permitted by law, we do not accept orassume responsibility to anyone other than the company for our review work, forthis report, or for the conclusions we have reached. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. The directorsare responsible for preparing the interim report in accordance with the AIMRules which require that the interim report must be presented and prepared in aform consistent with that which will be adopted in the company's annual accountshaving regard to the accounting standards applicable to such annual accounts. Review work performed We conducted our review having regard to the guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the UK. A review consistsprincipally of making enquiries of management and applying analytical proceduresto the financial information and underlying financial data and based thereon,assessing whether the accounting policies and presentation have beenconsistently applied unless otherwise disclosed. A review excludes auditprocedures such as tests of controls and verification of assets, liabilities andtransactions. It is substantially less in scope than an audit performed inaccordance with International Statements on Auditing (UK and Ireland) andtherefore provides a lower level of assurance than an audit. Accordingly, we donot express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2006. KPMG Audit PlcChartered Accountants 22 September 2006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Transense