Transense Technologies annual revenue falls on lower royalties
Overview
UK sensor systems provider's revenue fell 17% as Bridgestone iTrack royalties declined sharply
Company posted a pretax loss for the year, compared with a profit previously
SAWsense revenue rose 20%, offsetting some weakness in Translogik and royalties
Outlook
Transense targets FY27 revenue growth exceeding 25% year on year
Company says trading for first two months of FY27 is in line with expectations
Unit royalty rate from Bridgestone iTrack unchanged in FY27, with volume growth expected
Result Drivers
ITRACK ROYALTY CUT - Revenue and profits were primarily down due to a 40% reduction in contracted unit royalty rates from Bridgestone iTrack, further diluted by weaker USD conversion
SAWSENSE GROWTH - SAWsense revenue rose 20% as the business deepened relationships in aerospace and motorsport, and expanded into robotics and electric drives
TRANSLOGIK CUSTOMER MIX - Translogik revenues were marginally lower as subdued demand from legacy tyre manufacturing customers was offset by new customer wins and expanded reseller channels
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | GBP 4.23 mln | ||
FY EBIT | -GBP 86,000 | ||
FY Gross Profit | GBP 4.08 mln | ||
FY Loss Per Basic Share | GBP 0.007 | ||
FY Pretax Loss | GBP 105,000 |
Analyst Coverage
NOT AVAILABLENOT AVAILABLE
The average consensus recommendation for the entertainment production peer group is "buy."
Wall Street's median 12-month price target for Transense Technologies PLC is GBp251.00, about 477% above its September 21 closing price of GBp43.50
The stock recently traded at 56 times the next 12-month earnings vs. a P/E of 8 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)