Transense Technologies PLC (LSE:TRT) Q4 2024 Earnings Call Transcript Highlights: Strong ...

GuruFocus Research
5 min read

In This Article:

  • Revenue: Up 18% year on year, just short of GBP4.2 million.

  • Profit Before Tax: Up 20% at over GBP1.3 million.

  • Earnings Per Share: Increased by 15%, over 10p for the first time.

  • Cash: Ended the year at just under GBP1.3 million, rose to around GBP1.5 million in August.

  • Royalty Revenue: iTrack royalty revenue grew 30% in FY24.

  • Translogik Revenue: Up 9% year on year.

  • SAWsense Revenue: Fell back 8% year on year.

  • Revenue Momentum: Overall revenues grew by over 30% from H1 to H2.

  • iTrack Revenue: Grew from GBP1.23 million to GBP1.38 million from H1 to H2.

  • Translogik Revenue (H2): Increased by nearly 30%, from just under GBP0.5 million to GBP630,000.

  • SAWsense Revenue (H2): Nearly a five-fold increase.

  • Projected Profit Before Tax (FY25): GBP1.6 million, 26% up on FY24.

  • iTrack Revenue Projection (FY25): GBP2.95 million, 13% increase year on year.

  • Translogik Revenue Projection (FY25): GBP1.5 million, 34% increase year on year.

  • SAWsense Revenue Projection (FY25): GBP1 million, 120% increase year on year.

  • Cash Flow from Operations: GBP1.56 million generated, net cash retained of GBP300,000.

  • Share Buybacks: Totaled GBP320,000 in the year.

  • R&D, Plant and Equipment Investment: Nearly GBP900,000.

  • Tax Losses: GBP21 million available for carry forward against future profits.

  • Current Trading: Revenues increased by more than 60% ahead of the same period in the prior year.

  • Net Cash (August): Increased to GBP1.5 million.

Release Date: September 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Transense Technologies PLC (LSE:TRT) reported an 18% year-on-year increase in revenues, reaching nearly GBP 4.2 million.

  • Profit before tax rose by 20%, surpassing GBP 1.3 million.

  • The company achieved a 30% growth in royalty revenue from its iTrack business, with a compound annual growth rate of over 40% since 2020.

  • Translogik business saw a 9% increase in revenue, and SAWsense experienced a nearly five-fold increase in the second half of FY24.

  • The company has expanded its customer base, including new key accounts like Hankook and partnerships with major companies such as Airbus and Protean.

Negative Points

  • SAWsense revenue fell by 8% year-on-year, despite the strong second-half performance.

  • The company faces challenges in scaling up production capacity and supply chain readiness, requiring significant capital investment.

  • The iTrack royalty rate is set to decrease in FY26 and again in FY28, potentially impacting future revenue streams.

  • The integration of new non-executive directors and the retirement of long-serving board members may pose transitional challenges.

  • Economic uncertainties and market dynamics, such as currency fluctuations, could affect financial performance and projections.

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