Business
Trading Update
Trading Update.
About this update from Tan Delta Systems Plc
[{"type":"text","content":"\n\nTan Delta Systems plc\n(\"Tan Delta\", or the \"Company\")\n \nTrading Update\nTan Delta (AIM:TAND), a leading provider of intelligent monitoring and maintenance systems for commercial and industrial equipment, announces an update on its trading for the six months to 30 June 2024 (\"H1-24\") as well as its outlook for the six months to 31 December 2024 (\"H2-24\").\nThe Board is pleased with progress achieved in H1-24, with investment completed to increase production capacity, which alongside increased sales activity which has resulted in a significant pipeline of prospects with an aggregate value of over £14.0m, up from £2.5m at the end of December 2023. We look forward to commercialising these prospects during H2-24 and beyond and note the Company is currently in active negotiations with prospects valued at nearly £6.0m (of the £14.0m).\nThe Company expects to report unaudited revenues of £0.65m in H1-24, with gross margin of 61%, generating operating losses of approximately £0.5m. Cash remained healthy with £3.6m as at 30 June 2024. Increasing levels of trading, together with the substantially increased pipeline of prospects, provide the Board confidence to reaffirm market expectations for FY-24, including revenue of £2.8m.\nOperationally, our primary focus has been to complete the expansion of our existing production facility, a process which is now complete and enables us to manufacture and supply up to 1,500 units per month, translating into revenue in excess of £12.0m. Additionally, we have started on the path to migrate production to a much larger external sub-contract facility which will allow us to assemble much larger volumes as well as support the production of new high-volume sensors in the future, targeting smaller equipment in both industrial and automotive markets.\nManagement has purposely kept marketing lean during the period, as the Company continues to organically generate a very healthy level of enquiries as knowledge and reputation of our systems has spread alongside pre-existing opportunities under discussion and/or testing. However, we have continued to expand our sales resources and activities, resulting in the increased pipeline of over £14.0m. The value of individual opportunities within this pipeline range from £20k up to £3.0m, and include:\n· a leading, large s...