Business
Trading Statement
Trading Statement.
About this update from Transense Technologies Plc
[{"type":"text","content":"\n \nRNS Number : 5364J Transense Technologies PLC 13 June 2014 \n\n13 June 2014\nTransense Technologies plc\n(\"Transense\" or the \"Company\")\nTrading Statement\nTransense provides the following update on current trading and expected performance for the year ending on 30 June 2014.\nThe Board has been greatly encouraged by the volume of sales activity during the current financial year and anticipates that final sales for the year will be not less than £3.5m, which will exceed last year by more than 130%. This figure is lower than that anticipated at the time of announcing the Company's interim figures in early February. At that time, management information indicated that growth in the second half of the year would enable full year expectations to be met. However, the length of the sales cycle has proven greater than expectedEssentially all of the unconverted sales prospects that formed the basis for market guidance remain active and we remain confident that we will continue to achieve substantial increases in turnover year-on-year.\nThe market opportunities for Transense's products remain large and attractive, with new distribution channels established or being established in China, Japan, Chile, Columbia and Malaysia in recent months, incorporating a direct presence via sales channel support. \nThe delays in placement of certain new orders is expected to result in an EBITDA loss for the current year, rather than the previously anticipated breakeven result. However, given the encouraging trends in the business including the strong top line growth, robust gross margins in line with expectations and better-than-expected overheads, the EBITDA loss for this financial year will be less than half that sustained in the previous year.\n The pipeline includes a number of substantial potential new orders at an advanced stage of discussion. As the installed base of customers continues to grow, Transense expects to benefit over the longer term from higher levels of repeat orders of replacement items such as its tyre probes. However, larger individual contracts may still continue to cause some volatility in reported results. A further update on progress across all divisions will be given at the time of the full year results in September.\nThe Company's cash position remains strong at £3.2m and the Directors co...