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19th February 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor. The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document. This document is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU ("MIFID II Directive"); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority's Conduct of Business Sourcebook). This document should not be relied upon as being an independent or impartial view of the subject matter. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments. In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority's Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as "relevant persons"). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority's Conduct of Business Sourcebook. Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world. Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests. This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP. Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX. * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Sorted Group (SORT.L) has joined AIM following Location Sciences Group Plc acquiring the entire issued share capital of Sorted Holdings Limited (Sorted). Market capitalisation upon Admission was £4.77m. Sorted operates a software-as-a-service (SaaS) business model providing delivery experience software which serves ecommerce retailers - from large, global enterprises to smaller, independent start-ups. Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: 12 January: The London Tunnels PLC announces its intention to seek Admission to the Standard Segment of the Official List and to trading on the Main Market of the LSE. The Company plans to restore, adaptively reuse and bring back to life the Kingsway Exchange Tunnels in Central London, originally built in the early 1940’s, and designed to shelter people during the London Blitz. The Company has successfully raised approximately £10m from investors and aims to admit its Ordinary Shares at a price of £2.00 per share to the Main Market. The Company is expected to have a market capitalisation of approximately £123m on Admission. Delayed: Expected Admission was before the end of January 2024. Reverse Takeovers: Change of Market: Our daily digest of news from UK Small Caps If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Hybridan Chefs research@hybridan.com Banquet Buffet*** ATOME Energy 51p £20.6m (ATOM.L) The Company targeting green fertiliser production with 445-megawatt of projects in Paraguay and a further pipeline of potential projects in Central America announces it has raised £1.8m before expenses through the issue of new ordinary shares at a price of 50 pence per share. The Placing price represents a discount of 10.7% to the closing price of 56 pence on 16 February. The Company will use the funds raised from the Fundraising to further expedite its growth and development of the green fertiliser Villeta Project in Paraguay including engineering and design works as well as for working capital. Aukett Swanke Group 1.15p £3.4m (AUK.L) The Group providing Smart Buildings, Architectural and Design Services announces its participation in a consortium to develop an AI-Based Recommender System for Smart Energy Saving. The lead consortium member is a commercial spin-out from a UK research university. The consortium will be awarded approximately £0.9m from Innovate UK towards total project costs of approximately £1.2m. The project has a 12-month duration commencing March 2024. Oracle Power 0.026p £1.2m (ORCP.L) An international project developer, together with its joint venture company, Oracle Energy Limited (Oracle Energy), announces the commencement of the Environmental & Social Impact Assessment (ESIA) for the Renewable Power plant on its project land site in Jhimpir, in the Sindh Province of Pakistan. The ESIA will cover a comprehensive study for 1.3GW renewable power encompassing 800MW solar project, 500MW wind project, and a 450MWh battery energy storage system. The ESIA methodology involves collection of baseline primary and secondary environmental data, and determination of sensitivities for prediction and evaluation of impacts. Oriole Resources 0.34p £13.2m ORR.L) The gold exploration Company focussed on West Africa provides an update on its Senala gold project in Senegal (Senala), where AGEM Senegal Exploration Suarl (AGEM), a wholly-owned subsidiary of Managem Group (Managem), has now completed a six-year earn-in period at the Project. Oriole's interest in Senala is held via its 85% interest in Stratex-EMC Sarl (Stratex-EMC), the holding vehicle for the Senala Exploration Licence. Managem has confirmed to the Company that, since the 2018 Option Agreement was signed (announcement dated 1 March 2018), AGEM has spent approximately US$5.8m on the Project. Oriole will shortly be undertaking a review of expenditure to confirm this percentage ownership. Petards Group* 6.7p £3.8m (PEG.L) The developer of advanced security and surveillance systems announces that its subsidiary, QRO Solutions, has been recently awarded an order worth around £0.35m for one of the UK's largest police forces, adding a new police force to QRO's list of customers. The order is for the supply of QRO's Q-Box Merlin IP in-vehicle ANPR solution with High Definition (HD) digital video recorders, which the end customer is fitting to a number of vehicles in its fleet. The Q-Box Merlin IP to be supplied has HD capability for two lanes of ANPR and manages wireless 4G/5G communications for onward transmission of data to the police force back office systems. This order is expected to be fully delivered during 2024. Physiomics* 1.35p £1.8m (PYC.L) A mathematical modelling and data science Company supporting the development of new therapeutics and personalised medicine solutions announces that it has been chosen by The University of Sheffield to support a grant funded project focused on an insect (Fruit fly) model of cancer treatment. The value of this work to Physiomics will be £45k and will commence in the second half of this calendar year. The work is in support of one of seven cancer-focused projects recently announced by the University (https://www.sheffield.ac.uk/news/future-cancer-research-yorkshire-receives-ps89-million-funding-boost), all of which will be funded by Yorkshire Cancer Research. Quartix Technologies 173.5p £84.0m (QTX.L) A supplier of subscription-based vehicle tracking systems, analytical software and services announces the appointment of Ian Spence as independent Non-Executive Director, effective from 19 February 2024. Ian will also Chair the Nomination Committee. Ian has more than 25 years' experience in researching and advising companies in the technology sector. He is the Executive Chairman and Founder of Megabuyte. SpaceandPeople 64p £1.2m (SAL.L) The retail, promotional and brand experience specialist issues a pre-close trading update for the year ended 31 December 2023 (FY23). Total unaudited revenue of £5.8m (2022 restated: £4.7m), slightly above market expectations due to particularly strong Brand Experience revenue, the launch of the Company’s Rock Up and Pop Up service and the continued recovery and expansion of its German retail business. As at 31 December 2023, the Group had cash of £1.9m (2022: £1.9m) with £1.1m of term loans (2022: £1.5m) and undrawn bank facilities of £0.7m (2022: £0.7m). Springfield Properties 78p £92.6m (SPR.L) A housebuilder in Scotland focused on delivering private and affordable housing announces that it has signed an agreement for the sale of approximately 11.2 acres of land for £8.7m. The land, which equates to 85 plots, is fully owned by the Group, such that the cash inflow to the Group will be £8.7m. The Group expects to receive £6.5m in the current financial year and the remainder in the following year. The proceeds from the sale will support the Group's ongoing target to reduce debt. Transense Technologies 104p £16.0m (TRT.L) The provider of specialist sensor technology and measurement systems reports its unaudited interim results for the six months ended 31 December 2023 (Period). Revenue increased by 10% to £1.81m (FY23 H1: £1.64m), and operating expenses in H1 reduced by 18% to £0.97m (FY23 H1: £1.18m). As a result EBITDA doubled to £0.74m (FY23 H1: £0.36m) and profit before taxation was up 146% to £0.63m (FY23 H1: £0.26m). The Company had net cash at 31 December 2023 of £1.31m. The Board believes the Company is well positioned to deliver medium and long term growth.
TRT SPR SAL QTX PYC PEG ORR ORCP AUK ATOM
Transense posted a positive H1 with PBT up 146% on revenues up by just 10% as a consequence of a temporarily lower cost base. Going forward the Company has invested in strengthening the sales team to stimulate future revenue growth and this increase in the cost base, coupled with some limited visibility to revenue streams has resulted in a reduction in the expected growth rate for FY24 and FY25. We see this is a modest reset to expectations but also expect a continuation of the growth path set in 2020 following the licence agreement with Bridgestone. Prospects for the Company are undiminished.
Transense Technologies PLC
In its AGM trading update today, Transense Technologies plc announced 13% yoy revenue growth in the first four months of the year to June 2024 and a threefold increase in PBT. Although showing encouraging yoy growth, revenue in the period was somewhat below management expectations, however, an improving outlook suggests an acceleration of revenue growth for the remainder of the financial year. Consequently, the Board expects to meet full year market expectations. The cash position is also robust with net cash balances of £1.7m.
25th September 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor. The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document. This document is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU ("MIFID II Directive"); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority's Conduct of Business Sourcebook). This document should not be relied upon as being an independent or impartial view of the subject matter. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments. In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority's Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as "relevant persons"). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority's Conduct of Business Sourcebook. Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world. Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests. This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP. Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX. *A corporate client of Hybridan LLP ** Arranged by most recent first *** Alphabetically arranged Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Kitchen is empty currently. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet*** Aurrigo International 125p £52.1m (AURR.L) The international provider of transport technology solution reports its interim results for the six months to 30 June 2023. Revenue was up 35% to £3.1m (H1 22: £2.3m), the adjusted EBITDA loss was £1.6m (H1 22 loss: £0.3m), reflecting the scale up of the autonomous and aviation division. The cash was £2.8m at the period end. A European Institute of Innovation and Technology grant of €275k for a project to deploy the Auto-Shuttle in Prague was announced in September 2023. The Company has completed the extended development of Auto-DollyTug mk3 which will be delivered to market during 2023. Caspian Sunrise 3.05p £66.4m (CASP.L) The UK-based oil and gas exploration and production company announced its interim results for the six months ended 30 June 2023. Total revenue was $17.3m, down 32% (1H22: $25.6m), including revenue from oil production of $12.5m (1H22: $24.4m). The profit after tax was $7.5m (1H22: $7.3m), thanks to a significantly reduced tax charge. While the international oil price is strong and looks set to remain so in the foreseeable future, the Company continues for Russian sanctions related reasons to sell at domestic / local mini refinery prices, which have changed little since the end of the period under review. The immediate focus is on increasing production, principally from the MJF structure. Coro Energy 0.29p £8.3m (CORO.L) The South East Asian energy company with a natural gas and clean energy portfolio announces its unaudited interim results for the six-month period ended 30 June 2023. The reduced loss after tax from continuing operations of $2.5m (restated H1 2022: $3.8m) was mainly due to a reduction in net finance expense. Coro has a strong funding position from a combination of its cash balance of approximately US$0.7m (as at 30 June 2023), and more recently supported by the post balance sheet events of the sale of shares in ion Ventures Holding Ltd and a further advance of Italy sale proceeds. Getech Group 7.6p £5.1m (GTC.L) The locator of subsurface resources announces its unaudited interim results for the six months to 30 June 2023. H1 2023 revenues were £1.9m (H1 2022: £2.7m including a one-off £0.7m transfer payment), reflecting lower sales volumes in oil and gas. The orderbook value was £4.4m (30 June 2022: £4.8m) with £1.4m expected to convert in H2 2023, and a further £1.5m due in 2024. The cash balance was £2.0m at 30 June 2023 (31 December 2022: £4.3m). The proposed sale of Kitson House is progressing. Helium One Global 6.35p £59.8m (HE1.L) The primary helium explorer in Tanzania announces that the Tai-3 well commenced drilling on 25 September 2023, expecting to reach a total depth (TD) of approximately 1,100m two weeks from spud. The drilling is targeting multiple reservoir targets in the Lake Bed Formation, the Karoo Group and Basement. Baker Hughes wireline equipment and personnel are onsite to test equipment ahead of running wireline once TD has been reached. The whole process from spud to completion of logs and initial analyses is expected to take approximately four weeks. Invinity Energy Systems 50p £95.5m (IES.L) The global manufacturer of utility-grade non-lithium energy storage announces its unaudited results for the six months ended 30 June 2023. The Company reported £14.8m in total (including sales revenue and project-related grant income), a 10x increase year-on-year (H1 2022: £1.5m). The gross loss was £3.3m, reflecting previously disclosed and accounted for contract losses on Canadian and Australian projects (H1 2022: loss £2.1m). The loss from operating activities was £12.6m (H1 2022 loss: £12.1m). The period-end cash position was £12.9m (H1 2022: £16.1m). Ondine Biomedical 9.25p £18.0m (OBI.L) The Canadian life sciences company developing non-antibiotic photodisinfection therapies to prevent and treat healthcare-associated and drug-resistant infections announces its unaudited results for the six months ended 30 June 2023. Revenues were $0.43m, up 63% (H1 2022: $0.26m), reflecting the additional hospital clinical deployments. The loss from operations was $8.03m (H1 2022: $8.41m), largely due to the costs associated with clinical and regulatory efforts for the US market, public company-related costs, and expanding commercialisation reach. Cash, cash equivalents and restricted cash were $4.59m as at 30 June 2023 (31 December 2022: $13.27m). The Company is in discussions with the FDA on its Phase 3 protocol, and is coordinating the site and other details with its partner HCA Healthcare. Saietta Group 38p £39.1m (SED.L) The electric vehicle drivetrain (eDrive) specialist provides a trading update ahead of its AGM to be held on 26 September 2023. Turnover (sales and grant income) increased 40% to £6.0m (2022: £4.3m). The statutory loss before tax was £23.8m (2022: £11.3m) accounting for all write downs and discontinued activities. Cash as at 31 March 2023 period end was £7.3m (2022: £18.4m) and at end of August 2023 was £1.2m. With the cash resources and additional sums receivable from key customers and JV partners, the Board is confident that the Company has sufficient funding to meet its current requirements for the AFT eDrive production plan. Spectra Systems 165p £74.8m (SPSY.L) The leader in machine-readable high speed banknote authentication, brand protection technologies and gaming security software announces its interim results for the six months ended 30 June 2023. Revenue was $11.6m (1H22: $9.3m) up 25%. The increased revenues are derived principally from pre-production development contracts as well as larger demand for banknotes. Adjusted EBITDA was up 55% to $5.9m (1H22: $3.8m). The Company has a strong, debt-free balance sheet, with cash of $16.6m at 30 June 2023. The Company is on track to achieve record earnings and meet market expectations for the full year. Transense Technologies 106.5p £16.5m (TRT.L) The provider of specialist sensor systems announces its final results for the year ended 30 June 2023. Revenue was up 34% to £3.53m (FY22: £2.63m), and adjusted profit before taxation was £1.09m (FY22: £0.27m). Cash and cash equivalents at the year end was £0.98m (FY22: £1.06m). During the year, the Company completed share buybacks of £0.40m (FY22: £0.30m). The Company has achieved the strategic objectives set out in 2020, and now sets out commercial and financial goals for the medium term to 2028. If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Hybridan Chefs research@hybridan.com
TRT SPSY HE1 GTC CASP AURR
Transense Technologies plc, the developer, manufacturer and licensor of sensor technology and equipment, announced full year results to June 2023 in line with our forecasts, delivering growth across all three revenue generating streams. We believe the Company is fast approaching an inflection point whereby the growth potential within its two active business segments, Translogik and SAW, will be sufficient to drive revenues and cash over and past the period when royalty income from iTrack reaches its peak in June 2025. Opportunities in both businesses are huge and both now have experienced management teams to deliver on this potential. Consequently, we continue to believe that forecast profits and cash can support a share price of 150p
Transense Technologies plc, the developer, manufacturer and licensor of sensor technology and equipment, published a trading update for the year ended 30 June 2023. Results were in line with market expectations with strong year-on-year (yoy) momentum from SAWsense and Translogik. Royalty income from iTrack increased by 30% yoy, somewhat below management’s initial expectations as indicated at the half year. However, growth in installed units was consistent with previous years, but Q4 weighted. Cash balances were maintained at £1m after £0.4m of buybacks in the year.
22 February 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor. The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document. This document is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU ("MIFID II Directive"); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority's Conduct of Business Sourcebook). This document should not be relied upon as being an independent or impartial view of the subject matter. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments. In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority's Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as "relevant persons"). This document must not be acted on or relied up on by persons who are not relevant persons. 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Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX. *A corporate client of Hybridan LLP ** Arranged by most recent first *** Alphabetically arranged Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** PanGenomic Health Inc, currently traded on the Canadian Securities Exchange market. intends to dual list on the AQSE Growth Market, as a springboard to expand footprint of its personalised and self-care digital health platforms in the UK/EU markets. The Company has three platforms: Nara App, Mindleap.com and the PlantGx Platform. PanGenomic Health Inc is currently traded on the CSE. 88.6% of the total issued shares will be floated. Admission is delayed. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet*** Angling Direct 31p £24.0m (ANG.L) The omni-channel specialist fishing tackle and equipment retailer, provides a unaudited trading update in relation to the financial year ended 31 January 2023 (FY23). Revenue for the Group increased marginally by 2.2% to £74.1m (FY22 £72.5m) and expects pre-IFRS 16 EBITDA of £2.2m. The total number of stores increased from 42 to 45 in the year, with new openings in Washington, Coventry and Stockton-on-Tees. The Group has net cash position at FY23 of £14.1m (FY22: £16.6m). Trading is in line with the Board's expectations. Avingtrans 375p £120.9m (AVG.L) The international engineering group which designs, manufactures and supplies equipment, systems and aftermarket services to the energy, medical and industrial sectors, announces its interim results for the six months ended 30 November 2022. Group revenue increased by 12.3% to £50.0m (2022 H1: £44.5m), gross margin reduced marginally to 32.6% (2022 H1: 33.9%) and adjusted EBITDA increased by 11.4% to £6.4m (2022 H1: £5.7m). Strong order intake and timing of contract revenue recognition has provided management with good visibility over H2 2023 revenue and profits, on-going supply chain disruptions notwithstanding. The Board remains confident in achieving full year market expectations. Conroy Gold and Natural Resources 20.25p £9.1m (CGNR.L) The gold exploration and development company focused on Ireland and Finland, announce the discovery of a new area of gold mineralisation in the Longford-Down Massif in Ireland. Visible gold was observed at two locations within the new discovery area. Assay results, from five quartz samples, located on or close to the surface, returned values of 123.0 g/t Au, 76.7 g/t Au, 44.1 g/t Au, 35.2 g/t Au and 12.8 g/t Au, respectively. The first three assay results are the highest gold results returned since the Company began exploration in the Longford–Down Massif. The discovery indicates the potential for the district to become a Tier 1 gold area. Global Connectivity* 1.75p £6.5m (AQSE:GCON) A company focused on communication services and technologies that enhance connectivity, announces a trading update in relation to their investment strategy post the £75m investment from Tiger Infrastructure Partners. The Group holds a 15% ownership interest in Rural Broadband Solutions Holdings Limited where Tiger made the investment. Since the investment, significant progress has been made with respect both to the building of the Company's first fibre network in Shropshire and also in identifying further target areas for expansion within the UK. The Board is now looking for opportunities in technically based businesses, that enhance connectivity either between consumers or businesses that provide services to consumers where enhanced connectivity is essential. Kinovo 36.5p £22.7m (KINO.L) The specialist property services Group that delivers compliance and sustainability solutions, announces that it has been awarded a new contract worth £12m over five years by The Hyde Group (Hyde), an existing client. The contract comprises electrical testing and associated works for both Hyde's domestic and communal properties. Kinovo has also been ranked in first position for a number of sustainability lots. The lots, relating to the Greater London, Southeast and East regions, comprise part of the Net Zero Carbon Works, including planned maintenance, Net Zero Carbon and Passive Fire Safety Works. The potential value of the framework to be worth £200m nationally. RWS Holdings 361.2p £1,406.8m (RWS.L) The provider of technology-enabled language, content, and intellectual property services is holding its Annual General Meeting today at which Andrew Brode, the Chairman will provide a company update. The latest Group-compiled view of analysts' expectations for FY 2023 gives a range of £771.8m-£782.6m for revenue; and a of £133.3m for the adjusted profit before tax. The Group continues to focus on delivering its medium-term strategy, despite the continuing macroeconomic challenges and the Group expects full year outlook remaining in line with market expectations. Science in Sport 13.5p £23.3m (SIS.L) The performance nutrition company serving elite athletes, sports enthusiasts, and the active lifestyle community, announces a pre-close trading update for the financial year ended 31 December 2022. Group revenue growth of 1.5% to £63.5m (FY2021: £62.7m) was achieved. The new Blackburn site has been delivering significant logistics efficiencies, resulting in stronger margin performance in H2. The Group performed broadly in-line with expectations. Seeing Machines 7.53p £312.7m (SEE.L) The advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, announces a trading update for the six months to 31 December 2022 (H1 2023). The Company expects to report revenue for H1 2023 of US$24.4m (H1 2022: US$15.8m), representing a 54% increase. Total connected Guardian units were 46,018, securing annualised recurring revenue of US$12.7m (H1 2022: US$11.9m). Cash position at 31 December 2022 of US$52.7m (FY 2022: US$41.0m). The Company is fully funded to deliver on its current business plan and the Group are confident of continued growth and meeting FY2023 expectations. Synectics 130p £23.1m (SNX.L) A leader in advanced security and surveillance systems, announces its audited final results for the year ended 30 November 2022. The Group’s revenue increased by 6.8% to £39.1m (2021: £36.6m), underlying operating profit before tax improved by 140% to £1.2m (2021: loss £0.5m). The Group's cash balance was £4.3m (2021: £4.6m ) with no bank debt and undrawn bank facilities of £3.0m. Synectics believes the outlook for the industry is favourable and it is well-placed to benefit from upcoming opportunities. The Board is confident of further profitable growth this year. Transense Technologies 89p £14.1m (TRT.L) The developer of specialist sensor systems, reports its unaudited interim results for the six months ended 31 December 2022. Revenues increased by 37% to £1.64m (FY22 H1: £1.20m); royalty income generated by iTrack technology, a tyre monitoring system increased by 47% to £0.97m (FY22 H1: £0.66m) and Surface Acoustic Wave sensor (SAW) revenues doubled to £0.14m (FY22 H1: £0.07m). EBITDA increased by 82% to £0.36m (FY22 H1: £0.20m), and net profit before tax was £0.26m (FY22 H1: £0.08 m). The Board expects the Company to meet its expectations for the financial year. If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Chef: Emily Liu 0203 764 2344 emily.liu@hybridan.com Chef: Sacha Morris 0203 764 2345 sacha.morris@hybridan.com
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Transense Technologies plc, the developer, manufacturer and licensor of sensor technology and equipment, published positive interim results which highlighted encouraging progress in both the SAW business and Translogik probes. iTrack royalty income also grew in the period. Importantly, all three revenue streams enjoy strong sales pipelines which will help drive second half growth. The Board expects full year results will be in line with market expectations, consequently, our forecasts remain unchanged.
Transense Technologies’ encouraging AGM statement indicates that revenues in the first five months of the financial year were in line with the Board’s expectations and are ahead by approximately 33% against the same period last year. The Board adds that trading in the period has continued to be profitable with net cash at 30 November of c.£0.8m. We make no changes to forecasts.
Transense Technologies plc, the developer, manufacturer and licensor of sensor technology and equipment, has announced full year results in line with our forecasts with iTrack royalties moving up to £1.56m, an 88% yoy increase. iTrack revenues will continue to underpin cash generation for the Company for the next 8 years and we have estimated that the discounted future cash flows from iTrack are equivalent to a net present value of 95p per share. This, in our opinion, emphasises the significant current undervaluation of Transense and the attractiveness of a Company which has a proven record of developing and commercialising its proprietary technology.
Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their existing bank. Fiinu's technology arm manages and develops the platform, using open banking, and once the platform is fully operational will also look to develop secondary revenue streams by licensing Fiinu's intellectual property rights. Capital to be raised £8.01m. Target Mkt Cap c.£53m. Due 8 July. LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends to join AIM. LifeSafe has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. At the centre of the Group's product range is the FER1000 extinguishing fluid, which has been developed by LifeSafe to extinguish five different types of fire: electrical, paper, textiles, cooking oil, and petrol and diesel. The Group's best-selling product using this patent pending extinguishing fluid is the StaySafe 5-in-1 fire extinguisher. It was launched on Amazon Prime in the UK in August 2021 and subsequently became Amazon Prime's top selling fire extinguisher in the UK in the same month. In n the year ended 31 December 2021, the Group generated revenues of £670k and a loss post taxation of £1.5m. £3m to be raised. Anticipated Mkt Cap £16.58m. Due 6 July 2022. MicrosSalt, a portfolio company of Tekcapital Plc (AIM: TEK), is eyeing a listing on the London market in 2023. MicroSalt is the U.S. operating subsidiary of Salarius, Ltd. With MicroSalt®, companies can make full flavour snacks with the same saltiness as traditional snacks yet with half of the sodium. MicroSalt has recently executed its first bulk B2B MicroSalt order in the US. This progress follows on the heels of the expansion of MicroSalt's SaltMe brand of low-sodium potato chips into over 3,000 retail stores nationwide in the U.S., up from 2,400 stores last quarter. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet Atalaya Mining 305p £426.5m (ATYM.L) The mining and development company producing copper concentrates and silver by-product announced the results of the first 22 exploration drill holes on the Campanario Trend, one of several mineralised zones comprising Proyecto Masa Valverde (PMV) in southern Spain. The initial drilling results confirm PMV's continued exploration potential and the possibility to quickly define a shallow mineral resource. Drilling to date has focused around the historical Campanario workings, which only represents approximately 10% of the entire strike length of the mineralised structure. Intersected mineralisation includes massive and semi-massive sulphides as well as stockwork-type material, consistent with the Masa Valverde and Majadales deposits. These results demonstrate the significant exploration potential of Atalaya's strategic land package in the world-class Iberian Pyrite Belt. CML Microsystems 365p £58.1m (CML.L) The mixed-signal, RF and microwave semiconductors company announces its results for the year ended 31 March 2022: revenue up by 27% to £16.96m, gross profit up by 35% to £12.80m due to improved product mix. Profit before tax was £1.74m (2021: £0.01m) after accounting for share-based payments and net finance income. Net cash totaled £25.04m (2021: £31.9m) after a £9.0m dividend to shareholders. The company is proposing to pay a dividend of 5p per ordinary share. Cordel Group 4.5p £7.7m (CRDL.L) The artificial intelligence company in transport corridor analytics, announced that it has been awarded a 12-month contract to deliver its LiDAR-based solutions to One Rail Australia. Cordel has delivered to One Rail Australia a solution for ballast profile analysis to automate processing for over 2,000km of freight railway. The solution consists of a LiDAR (Light Detection and Ranging) captured Digital twin of the entire Tarcoola to Darwin rail network, which runs through the centre of Australia. Cordel's automated analysis measures ballast deficiency, depth and volumes, with materials estimation to replenish deficient areas. Equals Group 87p £157.2m (EQLS.L) The fintech payments group focused on the SME marketplace provided a trading update for the six months ended 30 June 2022 (H1-2022). Its revenue increased by 84% to £31.3m, a record high level. Gross profits for the period have been estimated at £15.0m, up 47% on H1-2021. Gross profit margins were, in the aggregate, 48.2%, compared to 50.6% in H2-2021. Cash balance rose to £15.1m (30 June 2021: £10.1m). International payment accounted for 51% of its revenue in H1-2022. Kitwave Group 151.3p £105.9m (KITW.L) The wholesaler and distributer specializing in impulse products such as confectionery announce its interim results for the six months ended 30 April 2022 (H1 2022). Revenue up 51.8% to £223.3m as trading back to pre-pandemic levels. Profit after tax was £4.4m (H1 2021: loss after tax £3.4m). Trading post period has been significantly ahead of expectations, leading the company to revise its financial expectations upwards for the year ended 31 October 2022. The Board has declared an interim dividend of 2.50p per share for the financial year ending 31 October 2022. Its growth to date has been achieved both organically and through acquisitions of smaller, predominantly family-owned, complementary businesses in the fragmented UK grocery and foodservice wholesale market. Mast Energy Developments 2.9p £5.5m (MAST.L) The UK-based multi-asset owner and operator in the reserve power market announced an update with regards to its current flagship producing asset, the 9 MW Pyebridge Synchronous Gas-powered Standby Generation Facility (Pyebridge) that was acquired in August 2021. Pyebridge generated a revenue of c. £130k for the 3-month period March to May 2022, with an output of 371 MWh and at an average selling price of c. £354 per MWh. This average selling price is around 5x higher than the average at the time of the company's IPO in April 2021. Although the associated generation gas cost also increased during this time, there is a positive net variance that will add to Pyebridge's profitability. Mortgage Advice Bureau 869p £495.5m (MAB1.L) The UK-based specialist appointed representative networks for mortgage intermediaries announced that the intended acquisition of approximately 75% of Project Finland Topco Limited (Fluent) has received change in control approval from the FCA. This acquisition was announced in March 2022 for a total cash payment of c.£73m, funded from renewed and increased debt facilities, existing cash resources, and a successful share placing of £40m (before expenses). The deal is expected to occur on or around Monday 11 July 2022. Supreme 87.5p £102.0m (SUP.L) The manufacturer, supplier and brand owner of fast-moving consumer products announced its results for the year ended 31 March 2022 (FY22). Revenue was £130m, up 7% supported by growth in vaping products and nutrition and welling products. The net debt was £4.0m exiting FY22 (FY21: £7.6m), alongside a new £25m facility with HSBC in March 2022 for acquisitions. For FY23, the company expects revenue and EBITDA to be lower than Y22 levels and below previous market expectations, driven by a recent marked decline in the Lighting category following a slow-down in sales compounded by customer overstocking in FY22. Transense Technologies 67.5p £10.8m (TRT.L) The developer of specialist sensor systems provided a trading update for the financial year ended 30 June 2022. Revenue for the year has increased by almost 50% to around £2.6m, in line with market expectations. Net earnings may exceed market expectations as a consequence of an increased tax credit arising from extending the recognition of deferred tax assets arising from prior years' losses. Net cash balances at 30 June 2022 amounted to £1.05m (FY21: 1.04m). The top line growth was underpinned by 75% loyalty income increase to US$2m in the iTrack, a tyre management solutions for the off-the-road (OTR) market. Quiz 10.5p £13.0m (QUIZ.L) The omni-channel fashion brand announces its results for the year ended 31 March 2022 (FY22). Sales were £78m, up 97% year-over-year due to the removal of social restrictions. Operating profit was £0.9m (FY21: 9.4m loss). Operating cash inflows of £5.3m (2021: outflow of £2.5m). The company does not plan to pay dividends for the year as it hopes to strengthen its balance sheet. Its net cash was £4.4m ended in FY22 (FY21: 1.5m in net cash). The company has achieved sales of £27.3m during the first quarter of its FY23 (three months to 30 June 2022), consistent with the period prior to the pandemic on a like-for-like basis.
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Transense Technologies plc, the developer, manufacturer and licensor of sensor technology and equipment, has announced H1 results which confirm the definitive transition from perennial losses to sustainable and significant future profit growth.
Transense Technologies plc, the developer, manufacturer and licensor of sensor technology and equipment, has reported full-year results in line with our forecasts (upgraded in February 2021) with a positive EBITDA and profit after tax. Net cash was in line at c.£1m but did not include iTrack royalties for Q4 end July. We are optimistic that progress will continue in each of the Company’s three divisions and have upgraded revenue and gross profit expectations for 2022 and 2023. This additional income is expected to be selectively invested in the SAW business leaving PBT forecasts overall, unchanged. We see fair value at 150p.
Transense Technologies plc, the developer, manufacturer and licensor of sensor technology and equipment, has reported in a year end trading update that trading for the full year to June 2021 was in line with market expectations (as upgraded in February 2021) with revenues of c.£1.8m and a positive EBITDA and profit after tax. Overall the Board is satisfied with the Company’s progress and looks forward to providing further details in the full year results expected to be released in late September.
Transense Technologies plc, the developer, manufacturer and licensor of sensor technology and equipment, has reported strong growth from its continuing activities for H1 2020/21. The results are essentially the first to be announced since the transformational change to the business model brought about by the exclusive licensing and transfer of its iTrack technology to ATMS (a subsidiary of Bridgestone) in June 2020. A strong performance from the other divisions (SAW and Translogik) have combined to produce an encouraging start to the financial year and we are reflecting this in an initial modest increase to our earnings forecast for FY2021. We continue to anticipate further strong growth from all three revenue streams in FY2022 and 2023 the forecasts for which, due to COVID and Brexit uncertainties, remain unchanged at this stage.
Transense Technologies plc is a developer, manufacturer and licensor of sensor technology and equipment. It has gained significant traction through the recent licensing of its iTrack technology and the transfer of the operating business and cost base to ATMS (a Bridgestone subsidiary) in an agreement that will generate an increasing royalty revenue stream for the Company over the next ten years. As a result, Transense should become virtually self-financing. Management’s focus will now move towards monetising the substantial IP within its SAW division which has already concluded a significant licensing deal with GE that will provide an annuity royalty stream for many years to come. We believe our forecasts to be conservative but even on this basis the shares trade at just 4.4x EV/EBITDA for FY23 and 6.6x earnings offering an attractive long-term investment opportunity.
Transense Technologies (Transense) is a developer and manufacturer of sensor technology and equipment. The recent transfer of the assets and licensing of iTrack IP is game changing as far as the future is concerned and leaves Transense with two existing sensor divisions, plus a royalty income stream which we conservatively forecast to grow from a current run rate of c.£0.6m pa to £2.3m in FY2023 and strong cash generation. Q1 2021 results indicate a near breakeven position and having reached an important inflexion point in its development we consider Transense to be an extremely attractive investment opportunity at the current share price.
FY results are in line with expectations for continuing operations, with the group significantly altered by the recent iTrack transaction and licence deal with Bridgestone. This eliminates significant iTrack operating losses and provides the group with a growing iTrack royalty stream and greater focus on commercialising SAW technology and tyre probes. We have made minimal changes to forecasts, with the shares still not reflecting the substantial medium-term upside offered by the iTrack royalty stream, coupled with existing operations.
The group has announced a ‘win-win’ agreement with ATMS (a Bridgestone subsidiary), having signed an exclusive worldwide licence agreement for the use of iTrack IP for 10 years, giving TRT regular quarterly royalties. iTrack’s operating business was also transferred to ATMS. Bridgestone provides iTrack with a pre-eminent route to market, which greatly enhances iTrack’s ability to expand substantially coverage in the mining sector far beyond the level TRT could realistically achieve. David Ford and Graham Storey transfer with iTrack to become ATMS management along with the rest of the iTrack team, thus substantially reducing overheads. Nigel Rogers becomes Exec Chair of TRT, which generates royalty income and continues to develop its SAWSense and Translogik products. The trading update points to trading in line, with little COVID effect.
Transense Technologies (TRT): Corp
Tracsis (TRCS): Corp Positive trading update | Transense Technologies (TRT): Corp Interim results: Important commercial signals
Transense Technologies PLC Tracsis plc
Interim results highlight that commercial traction continues to gain pace, with a 50% growth in iTrack subscriptions. The exclusive relationship with Bridgestone recently reaffirmed, and the resultant potential customer trials running at a high level, have however produced higher near-term customer support costs. Boardroom changes highlight the increased focus on iTrack operational developments and strategic opportunities. We have adjusted forecasts to reflect a longer sales cycle and higher customer support costs.
Full-year results were slightly ahead of expectations, with a strong improvement in numbers, albeit from a small base, but crucially boosted by a pivotal acceleration in commercial traction. iTrack II has following an initial order from Bridgestone signed a significant Joint Collaboration Agreement. In the same year the SAW sensor has taken a major step forward with the GE engine being selected by the US Army for the future replacement of engines on its fleets of Apache and Black Hawk helicopters. No change to forecasts.
The company has announced a Joint Collaboration Agreement with Bridgestone. Bridgestone is one of the world’s largest tyre manufacturers and the largest supplier of tyres to the mining OTR market and follows extensive product testing of the iTrack II system. This is a highly significant agreement and a milestone in the company’s commercialisation as Bridgestone will act as sales agent for TRT in the mining large-haul market. We see this as a huge boost to Transense, both in terms of a technical endorsement but also once sales start to accrue. We make no change to our forecasts as yet until we understand the rate of sales build up. This provides much greater confidence in the commercial success of the company. Investors should recognise just how momentous this agreement is. We reiterate our upside potential, with a 140p price target.
The group’s post year-end trading update is extremely encouraging, showing strong commercial traction, with 2H sales growth greater than expected resulting in revenue being about £0.2m, (or 10.8%) better than our forecast and resulting in EBITDA and post-tax earnings better than expected. It’s very pleasing to see good momentum in subscriptions revenues, which provides a strong ongoing and predictable base to future revenues. We continue to see strong upside to the shares – the market cap at just £7.3m offers potentially an order of magnitude on the upside with further commercial traction and new OEM orders anticipated.
Amino Technologies (AMO): Corp 24i Media collaboration | Gateley (GLTY): Corp Delivering additional value | Transense Technologies (TRT): Corp Better than expected year-end update
Transense Technologies PLC Gateley (Holdings) Plc
Three substantial contracts in recent weeks shows accelerating commercial momentum and positioning the company on the brink of profitability with rising subscription-based revenues. The company has raised £2.555m via a placing, with greater balance sheet strength providing new customers greater confidence and allowing for additional working capital for growth. The current market cap is no where close to representing the company’s current prospects, even after the recent positive reaction to the announcements
Two game-changing contracts in the space of two weeks should be a catalyst to catapult the shares, turning Transense from a development company into a validated commercial operation. The company has announced a significant initial order for 50 iTrack II systems by an unnamed customer for use in North American mines. Two weeks ago, GE Aviation’s T901 engine was selected by the US Army to re-engine its Apache and Black Hawk helicopters. Transense’s SAW sensor will be used by GE on this huge programme. We see this as a massive technical endorsement by one of the world’s largest industrial companies. The current market cap is nowhere close to representing the company’s current prospects, even after the recent positive reaction to the announcements.
Overall, the group achieved a solid result, with good progress made as seen in the pick-up in iTrack II subscription revenues as well as the strong increase in probe sales. Encouragingly, the current year has started well with an increase in sales in the first two months and a progressive reduction in monthly operating loss. Cash stands at £1.6m with reduced monthly cash burn likely to be offset by increased capex investment in further iTrack II kits as momentum accelerates in subscription-based services that also generate ongoing revenues with good visibility.
Interim results were satisfactory, with a strong uplift in trading revenues as both the tyre probe and iTrack II mine haul trucks gained traction. With an increasing proportion of rental units, Translogik has a rising level of secured revenue into the second half. While forecasts remain under review for the time being, prospects appear more promising, with a stronger 2H expected.
Results are in line with expectations. The increased loss is driven by increased investment and product marketing to support the iTrack II and probes. Commercial traction has seen a marked pick-up for both the iTrack II and the probe, which has carried through into Q1. The recent dip in the share price seems at odds with the improved commercial momentum being displayed.
While sales were flat and losses increased, the group has continued to make decent progress in certain areas, most notably with the launch of the iTrack II, which now has 12 customer trials. Forecasts are reduced to build in additional overheads to support these trials, while flat revenues conservatively do not factor in any success with the new iTrack II in the current year. We remain positive on the investment case; the minerals sector is in early-stage recovery, while GE and the other large industrial customer should also provide progress in H2 and thereafter.
Full-year results were in line with forecasts. Translogik’s revenues continue to be held back by difficult conditions in the mining sector, although tyre probes have been stronger in H2. SawSense is generating encouraging licence fee receipts with Emerson and GE, and we expect further licence fee agreements to realise hidden value. No change to forecasts. The shares have appreciated recently but still offer significant upside.
Interims results show decent underlying progress in the period, supplemented by the one-off licence income received as part of the disposal of IntelliSAW. Conditions in the mining sector have taken a further step-back, which has resulted in customers taking longer to commit to new contracts and necessitating a more cautious view of forecasts. Nevertheless, good progress is being made across a number of customer trials.
Full-year results were as expected, following the pre-close update and after deducting IntelliSAW’s trading. While trading has remained tough in the mineral market, commercial progress has started to regain traction with a couple of noteworthy new customer agreements. Losses should be progressively eliminated. We make no change to our forecasts. After a period of underperformance, there is significant scope for the shares to stage a recovery over time.
Transense Technologies*: iTrack contract win (CORP) | Ithaca Energy: H1 financial results (BUY) | International Ferro Metals: Q2 results (U/R)
Transense Technologies PLC International Ferro Metals
The group has raised £2.0m via a placing, with an offer for subscription pending, to strengthen the balance sheet and invest in the rental model. The group has recently achieved some notable contracts, with Bosch, Rema, BHP Billiton and Glencore. Its new rental business model is better suited to current market conditions for mining equipment, where sales have been affected of late by the soft minerals markets, which has reversed the revenue progress achieved previously. The share price has severely underperformed, nevertheless, we believe the group has good commercial potential and the current valuation discounts current uncertainties.
Transense Technologies*: Placing, board appointment and change of brokership (CORP) | IS Solutions*: 15-month results (CORP)
Transense Technologies PLC Celebrus Technologies PLC
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