Search
Regulatory Story
Company Transense Technologies PLC
TIDM TRT
Headline Final results for the year ended 30 June 2019
Released 07:00 26-Sep-2019
Number 6987N07

RNS Number : 6987N
Transense Technologies PLC
26 September 2019
 

26 September 2019

 

Transense Technologies Plc

("Transense", the "Company" or the "Group")

Final results for the year ended 30 June 2019

 

Transense Technologies Plc (AIM: TRT), the provider of sensor systems for industrial, mining and transportation markets, is pleased to report audited results for the year ended 30 June 2019 which are ahead of the Board's expectations.  The Translogik division revenues continue to expand, SAWSense activity remains high and the Board is confident of increased revenues and activity in the new financial year.

Highlights

 

 

·    Revenue up 9% to £2.23m (2018: £2.05m) 

·    iTrack II subscription revenue up 58% to £0.98m (2018: £0.62m)

·    Major commercial breakthroughs achieved in each business unit:

Licensee GE Aviation's T901-GE-900 engine incorporating a Transense Surface Acoustic Wave (SAW) sensor selected by the U.S. Army

Initial iTrack II order from Bridgestone Corporation, Japan

Global collaboration and financial support agreements signed with Bridgestone post year end

·    Net loss after taxation, ahead of expectations at £1.47m (2018: £1.89m)

·    Net cash used in operations reduced by 62% to £0.43m (2018: £1.11m)

·    Equity fund raise of £2.56m completed in April 2019

·    Net cash at end of period of £2.65m (2018: £1.59m)  

 

 

 

       

Executive Chairman of Transense Technologies, David Ford, said:

"I am pleased to report that 2019 has been a transformational year for the Group having made a number of breakthrough successes. These have included the selection of GE's engine by the U.S. Army, which includes our SAW sensor, the joint collaboration agreement with Bridgestone to develop the iTrack II system following Bridgestone Japan's initial iTrack II order. These milestones have been the culmination of several years of technical and commercial development activity.

"Looking forwards, the Company is well capitalised having completed a fundraising in April 2019 and has in place an interest free Loan with Bridgestone. This will provide a secure platform to support exciting future growth prospects."

 

 

For further information please visit www.transense.co.uk or contact:

 

Transense Technologies plc

Graham Storey, Chief Executive

 

Tel: +44 (0) 1869 238380

 

finnCap

Ed Frisby, Giles Rolls, Matthew Radley (Corporate Finance)

Tim Redfern, Tim Harper (ECM)

 

Tel: +44 (0) 20 7220 0500

 

 

About iTrack II

 

The iTrack II Mining system provides real-time data on the condition of the tyres, combined with live tracking of vehicle location and status. Our 24/7 Control Room monitors the pressures and temperatures live, and this information can, for example, be used to ensure tyres do not exceed critical heat thresholds, to detect incorrect load distributions, predict suspension failures and eliminate manual tyre pressure checks. The Directors believe that these benefits maximise the hours a truck is working (Truck Uptime) and improve productivity by minimising maintenance requirements and using data to identify underperforming trucks. www.trans-logik.com/itrack-2/ 

 

About Transense Technologies

Based in Oxfordshire, UK, Transense has developed patent-protected sensor systems and supporting technology for use in a variety of diverse high growth markets. The Directors believe that Transense's Surface Acoustic Wave (SAW), wireless, battery-less, sensor systems offer advantages over legacy wireless sensor systems. Transense is targeting the transport and mining industries, and the global torque, temperature and pressure sensing markets, via its trading divisions, Translogik and SAWSense. www.transense.co.uk

Transense's shares are admitted to trading on AIM (AIM: TRT).

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

 

 

 

Chairman's statement
 

 

In a transformational year for the Group, financial results are improved and major breakthrough announcements have been made relating to commercialisation of each of our core technologies.  The balance sheet has been strengthened by an equity fundraise which, together with the interest free Bridgestone loan received in August 2019, will provide a secure platform to support exciting future growth prospects.

The Chairman wishes to thank the whole Transense team for its contribution towards achieving the breakthroughs in both iTrack and SAWSense during the year.

 

Strategy

The business strategy of the Group continues to be the development of innovative sensing solutions across a range of applications, which are commercialised either through the launch of products and services to customers or by forming strategic alliances with partner organisations. Value is realised through a combination of commercial income, royalties, licensing income and capital gains on disposals.

Commercial developments

SawSense

SAWSense is a leader in the development of Surface Acoustic Wave ("SAW") wireless, batteryless, sensor systems that offer significant advantages over legacy systems in common use. The business continues to be involved in several projects in conjunction with major global industrial companies. 

In July 2016, SAWSense entered into a significant licensing agreement with General Electric Company ("GE") for the non-exclusive use of our patented, wireless, passive SAW technology. Initial license fees of US$0.75m were received following the agreement, and we are entitled to receive further significant royalty payments from GE in respect of unit sales anticipated in the future.

The likelihood of receiving future royalty payments took a step forward with the announcement in February 2019 that GE's engine, incorporating our SAW sensor, had been selected by the US Army for the Engineering and Manufacturing Development ("EMD") phase of the Improved Turbine Engine Program ("ITEP"), the U.S. Army's endeavour to re-engine its Boeing AH-64 Apaches and Sikorsky UH-60 Black Hawks. 

The U.S. Army intends to replace more than 6,000 engines installed in their current fleet of these two aircraft. The wider market for the T901 engine includes replacement engines for these aircraft in military forces outside of the U.S., as well as other military and commercial medium sized vertical take-off aircraft globally. This provides the prospect of an expected growing revenue stream as volumes of engines installed builds over time, this selection both demonstrates the ability of our SAW sensors to operate in extreme testing environments and that they can be manufactured in volume.  Our relationship with GE continues to deepen, with further applications being evaluated.

Progress continues with several other applications. Our Torque sensor is part of an innovative steering system which is due to start vehicle trials on off road sports vehicles in 2020. Our Joint Development Agreement with McLaren is exploring opportunities in other race formats and our participation in a Strain & Temperature related project with University of Southampton & Lloyds Register, which began earlier this year is progressing on schedule.

 

Translogik

Important advancements were made with the market traction of our iTrack II mining tyre monitoring systems.  The number of mine haul trucks fitted with the system increased during the year by more than 50% to 396, with annualised revenues at the end of the year exceeding £1.2m covering installations in 4 countries across 3 continents.

In February 2019, an initial order for 50 iTrack II units was received from Bridgestone Corporation, Japan ("Bridgestone") for installation in mines in North America. Bridgestone are a leading supplier of tyres to the mining off-the-road (OTR) marketplace and their decision to offer the iTrack system is a testament to the capabilities of Translogik and the iTrack system.

More recently in August 2019, the Company entered into a joint collaboration agreement with Bridgestone in respect of the iTrack II system and its future generations ("iTrack system") for an initial 18-month period with ability to extend.

 

Based on this joint collaboration agreement, Bridgestone has agreed to offer the iTrack system exclusively as a mining tyre monitoring system for tyres 57 inches and above for its OTR customers. In addition, the Company has agreed that it will not contract with any other tyre manufacturer for the provision of the iTrack system for tyres 57 inches and above for the term of the agreement, nor will it for a period of six months have discussions with any other party in relation to any transaction of a merger, acquisition or joint venture nature in respect of its iTrack business.

 

Since the year end, the total number of mine haul trucks fitted or agreed to be fitted with iTrack now exceeds 500. This includes 25 units being added at South Walker Creek in Australia. Pleasingly, Kal Tire, a corporation based in Canada and a substantial retailer and service provider in mining and OTR, has become a reseller for iTrack in Africa, and in August 2019 won a contract to supply 85 iTrack II mining tyre monitoring systems for haul trucks into a large multi-national mining company operating in Mozambique.


The selection of the iTrack system was the outcome of a competitive trial between iTrack and a number of other TPMS systems with the end user concluding that iTrack was the best overall solution, satisfying both Kal Tire, and the end user's very specific operational and information reporting requirements. Kal Tire has a large installed customer base throughout Africa and will be seeking to introduce additional iTrack systems into a number of their current and future on-site service operations.

 

 

Sales of tyre tread depth probes reduced by 46% to £0.45m (2018: £0.84m).  This followed a year of particularly strong growth in 2017/18, when the probe was selected by Goodyear USA for their new tyre management system called 'Tire Optix' which incorporates the Translogik tyre probe.  The take up rate has been somewhat slower than we had anticipated.

Our probes are also specified for use in Bridgestone's corresponding 'Toolbox' and 'Total Tyre Care' systems as well as Continental's 'Fleetfox' system, underpinning our belief that they represent an industry standard.

It is likely that the revenue reduction during the year was partly a result of reduced marketing effort, especially on-line.  We have recently recommenced advertising in this way, and are beginning to see a corresponding increase in sales orders, which is encouraging.  

Financial results and condition

 

Revenues for the year increased by 9% to £2.23m (2018: £2.05m). Recurring subscription revenues generated by Translogik from users of the iTrack II system increased by 58% to £0.98m (2018: £0.62m). We anticipate these revenues will continue to grow significantly over the coming year as the iTrack installed base significantly increases.

Gross margin increased to 80.5% of revenues (2018: 62.9%) reflecting the higher proportion of income from subscriptions, and also ad hoc fees to support new trials. The associated costs of the subscription income is included in depreciation charges, included within administrative expenses, which totalled £0.31m in the year (2018: £0.16m).         

Net operating expenses were £3.60m (2018: £3.21m) and the net loss before taxation from continuing operations reduced to £1.73m (2018: £1.91m).

The total comprehensive loss for the period reduced to £1.47m (2018: £1.89m), reflecting a tax credit of £0.27m (2018: £0.03m).

Net cash used in operations reduced by 62% to £0.43m (2018: £1.11m).  Offering iTrack II to customers on a subscription basis results in a short-term cash outlay and requires investment in the initial months of each contract. The net investment in fixed assets for such contracts in the period amounted to £0.38m (2018: £0.42m) and as Translogik's iTrack II installed base increases there will continue to be a need to invest in fixed assets.

In March and April 2019, the Company issued additional equity to new and existing shareholders raising £2.56m to provide additional working capital and fund further product development costs for the iTrack II system. 

The Group closed the year with net cash and cash equivalents of £2.65m (2018: £1.59m). ).  In August 2019 the Company received an interest free loan of $0.75m (£0.62m) from Bridgestone as part of the Joint Collaboration Agreement with them to be used to support the accelerated rate of growth that is anticipated from this relationship. 

Prospects

The breakthrough successes achieved in recent months have been the culmination of several years of technical and commercial development activity.  Each of the Group's business units are now closely aligned with global companies that are acknowledged to be leaders in their respective fields.

There remains much to be done to ensure that we, together with our commercial partners, are able to fully exploit the opportunities made possible by our technologies.  We are firmly committed, and well positioned, to provide the resources required to unlock potential for very exciting future growth.

 

 

David M Ford

Chairman

 

25 September 2019

 

 

 

Strategic Report

 

Financial Review

Results for the year

Revenues totalled £2.23m (2018: £2.05m). The pre-tax loss totalled £1.73m (2018: £1.91m).

Translogik revenues grew by 11% to £2.11m, and SAWSense generated £0.12m of revenues (2018: £0.15m). Gross margin improved to 80.5% (2018: 62.9%) reflecting the continual increase in the subscription base. The depreciation on capitalised iTrack kit, included in administrative expenses, increased to £0.31m (2018: £0.16m).

Administrative expenses for the year, before depreciation, amortisation and interest, amounted to £2.84m compared with £2.65m in the prior year.

The increase in Translogik revenues reflects the good growth in new iTrack subscription services following the launch of iTrack II in September 2016 and despite a 46% reduction in Probe sales during the period following a record year of sales in 2018.

The Earnings per share (EPS) are set out below (in Pence):

 

2019

2018

 

 

 

EPS (Loss)

(11.11)

(19.68)

 

 

Taxation 

The Company has UK tax losses available to carry forward at 30 June 2019 of approximately £21m, subject to HMRC agreement.

Certain elements of development expenditure undertaken by the Company are eligible for enhanced research and development tax relief which generally relates to salary costs of technical staff. The accounting treatment adopted is to recognise the R & D tax credits on a cash basis due to the uncertain nature of the claim. During the year the Company received R & D tax credits totalling £283,000 in respect of the two years ended 30 June 2018.

 

Cash flow and financial position

There was a net cash inflow of £1.06m (2018: outflow of £0.93m) during the year, arising from trading and £2.34m of net proceeds arising from the issue of equity share capital during 2019 (2018: £0.92m).

Net cash used in operations amounted to £0.43m (2018:  £1.11m).

At 30 June 2019 the Group had net cash balances of £2.65m (2018: £1.59m).

The forward looking cash flow forecasts based on the anticipated level of activity indicates that the Group should have sufficient funds available for the short to medium term. The Board note that part of the effect of increased demand for iTrack services has been funded by Bridgestone after the year end. 

Going Concern

 

The financial statements have been prepared on the going concern basis. The Group has made a loss for the year of £1.47m (2018: loss of £1.89m). The Group has accumulated losses of £3.36m (2018: £1.89m). The balance of cash and cash equivalents at 30 June 2019 is £2.65m (2018: £1.59m).

 

The Group's cash used in operations during the year was £0.43m (2018: £1.11m).

 

The Group meets its day to day working capital requirements through existing cash reserves and does not currently have an overdraft facility. The directors have prepared cash flow forecasts for the period to 31 December 2020. These forecasts indicate that the Group should continue to be able to operate within its current cash resources for the foreseeable future.

 

 

 

Melvyn Segal

Finance Director

 

25 September 2019

 

 

 

Consolidated Statement of Comprehensive Income

For the year ended 30 June 2019

 

 

Year ended

30 June

Year ended

30 June

 

 

 

2019

 

2018

 

 

 

£'000

 

£'000

Continuing operations

 

 

 

 

 

Revenue

 

 

2,226

 

2,050

Cost of sales

 

 

(435)

 

(761)

 

 

 

----------------------------------------------

 

----------------------------------------------

Gross profit

 

 

1,791

 

1,289

 

 

 

 

 

 

Administrative expenses

 

 

(3,603)

 

(3,208)

 

 

 

----------------------------------------------

 

----------------------------------------------

Operating loss

 

 

(1,812)

 

(1,919)

Financial income

 

 

2

 

5

Other income

 

 

79

 

-

 

 

 

----------------------------------------------

 

----------------------------------------------

 

 

 

 

 

 

Loss before taxation

 

 

(1,731)

 

(1,914)

Taxation

 

 

266

 

26

 

 

 

----------------------------------------------

 

----------------------------------------------

Loss for the year

 

 

(1,465)

 

(1,888)

 

 

 

==============================================

 

==============================================

Basic and fully diluted loss per share (pence)

 

 

(11.11)

 

(19.68)

 

 

 

==============================================

 

==============================================

 

 

 

 

 

 

Loss for the year

 

 

(1,465)

 

(1,888)

 

 

 

----------------------------------------------

 

----------------------------------------------

Other comprehensive income:

 

 

 

 

 

Exchange difference on translating foreign operations

 

 

2

 

-

 

 

 

----------------------------------------------

 

----------------------------------------------

Other comprehensive income for the year

 

 

2

 

-

Total comprehensive income for the year attributable to the equity holders of the parent

 

 

(1,463)

 

(1,888)

 

 

 

==============================================

 

==============================================

 

 

Consolidated Balance Sheet

at 30 June 2019

 

at 30 June

at 30 June

 

2019

2019

2018

2018

 

£'000

£'000

£'000

£'000

Non current assets

 

 

 

 

Property, plant and equipment

529

 

474

 

Intangible assets

946

 

909

 

 

----------------------------------------------

 

----------------------------------------------

 

 

 

1,475

 

1,383

Current assets

 

 

 

Inventories

566

 

685

Trade and other receivables

789

 

698

Cash and cash equivalents

2,647

 

1,592

 

----------------------------------------------

 

----------------------------------------------

 

 

 

4,002

 

2,975

 

 

----------------------------------------------

 

----------------------------------------------

Total assets

 

5,477

 

4,368

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

(604)

 

(316)

 

Current tax liabilities

(55)

 

(66)

 

Provisions

(70)

 

(100)

 

 

----------------------------------------------

 

----------------------------------------------

 

Total liabilities

 

(729)

 

(482)

 

 

----------------------------------------------

 

----------------------------------------------

Net assets

 

4,748

 

3,876

 

 

==============================================

 

==============================================

Equity

 

 

 

 

Issued share capital

 

5,451

 

5,025

Share premium

 

2,591

 

682

Translation reserve

 

23

 

21

Share based payments

 

41

 

41

Accumulated loss

 

(3,358)

 

(1,893)

 

 

----------------------------------------------

 

----------------------------------------------

 

 

4,748

 

3,876

 

 

==============================================

 

==============================================

 

 

Consolidated Statement of Changes in Equity

For the year ended 30 June 2019

Group

Share

capital

Share

premium

Translation reserve

Share based payments

Cumulative

losses

Total

equity

 

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 July 2017

4,766

22

21

-

(5)

4,804

Comprehensive income for the year:

 

 

 

 

 

 

Loss for the year

-

-

-

-

(1,888)

(1,888)

Total comprehensive income for the year

-

-

-

-

(1,888)

(1,888)

Share based payments

-

-

-

41

-

41

Shares issued and share premium

259

660

-

-

-

919

 

------------------------------------------

----------------------------------------------

----------------------------------------------

----------------------------------------------

----------------------------------------------

----------------------------------------------

Balance at 30 June 2018

5,025

682

21

41

(1,893)

3,876

 

------------------------------------------

----------------------------------------------

----------------------------------------------

----------------------------------------------

----------------------------------------------

----------------------------------------------

Comprehensive income for the year:

 

 

 

 

 

 

Loss for the year

-

-

-

-

(1,465)

(1,465)

Other comprehensive income for the year:

 

 

 

 

 

 

Currency movement on subsidiary reserves

-

-

2

-

-

2

Total comprehensive income for the year

-

-

2

-

(1,465)

(1,463)

Shares issued and share premium

426

1,909

 

-

-

2,335

 

------------------------------------------

----------------------------------------------

----------------------------------------------

----------------------------------------------

----------------------------------------------

----------------------------------------------

Balance at 30 June 2019

5,451

2,591

23

41

(3,358)

4,748

 

=========================================

==============================================

==============================================

==============================================

==============================================

==============================================

               

 

 

Consolidated Cash Flow Statement

For the year ended 30 June 2019

 

 

Group

 

Year ended

30 June

2019

Year ended
30 June

2018

 

£'000

£'000

Loss from operations

(1,465)

(1,888)

Adjustments for:

 

 

Taxation

(266)   

-    

Financial income

(2)

(5)

Depreciation

369

227

Amortisation of intangible assets

396

332

Share based payments

-

41

 

----------------------------------------------

----------------------------------------------

Operating cash flows before movements in working capital

(968)  
 

(1,293)
 

Increase in receivables

(91)  

(203)

Decrease/(increase) in payables

247   

(169)

Decrease in inventories

119

300

Decrease in trade lease receivables

-   

266   

 

----------------------------------------------

----------------------------------------------

Cash (used)/generated in operations

(693)  

(1,099)

Taxation (paid)/recovered

266  

(7)

 

----------------------------------------------

----------------------------------------------

Net cash used in operations

(427)

(1,106)

 

----------------------------------------------

----------------------------------------------

Investing activities

 

 

Interest received

2

5

Acquisitions of property, plant and equipment

(424)

(443)

Acquisitions of intangible assets

(433)

(303)

 

----------------------------------------------

----------------------------------------------

Net cash used in investing activities

(855)

(741)

 

----------------------------------------------

----------------------------------------------

Financing activities

 

 

Proceeds from issue of equity share capital

2,335

919

 

----------------------------------------------

----------------------------------------------

Net cash from financing activities

2,335

919

 

----------------------------------------------

----------------------------------------------

Net decrease in cash and cash equivalents

1,053

(928)

Unrealised Currency translation gain

2

-

Cash and equivalents at the beginning of year

1,592

2,520

 

----------------------------------------------

----------------------------------------------

Cash and equivalents at the end of year

2,647

1,592

 

==============================================

==============================================

 

 

NOTES RELATING TO THE GROUP FINANCIAL STATEMENTS

 

BASIS OF PREPARATION

The group financial statements have been prepared and approved by the Directors in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU and with those parts of the Companies Act 2006 applicable to companies reporting under adopted IFRS.

 

IFRS and IFRIC are issued by the International Accounting Standards Board (the IASB) and must be adopted into European Union law, referred to as endorsement, before they become mandatory under the IAS Regulation.

 

1        SEGMENT INFORMATION

The Group has two reportable segments being the unique trading divisions, SAWSense and Translogik, which make use of technology developed by the Group to measure and record temperature, pressure and torque.

The business revenues include royalties, engineering support and sale of product in relation to this technology.

Information regarding the Group's segments is included in the primary statements and notes to the financial statements. Revenue and EBITDA are the Group's key focus and in turn is the main performance measure adopted by management.

 

The tables below sets out the Group's revenue split and operating segments.

Revenue

 

Year ended

30 June 2019

Year ended

30 June 2018

 

£'000

£'000

 

 

 

North America

743

322

Chile

670

660

Australia

398

400

UK & Europe

192

362

Japan

31

160

Rest of the World

192

146

 

----------------------------------------------

----------------------------------------------

 

2,226

2,050

 

=============================================

=============================================

 

 

Translogik

£'000

SAWSense

£'000

Admin

£'000

Total

£'000

Year ended 30 June 2019

 

 

 

 

Sales

2,106

120

-

2,226

 

=====================

=====================

=====================

====================

Gross profit

1,678

113

-

1,791

Other Income

-

79

-

79

Overheads

(1,227)

(472)

(1,902)

(3,601)

 

-----------------------------

------------------------------

------------------------------

-----------------------------

Profit/(loss) before taxation

451

(280)

(1,902)

(1,731)

 

 

 

 

 

Taxation

108

158

 

266

 

-------------------------------

-------------------------------

-------------------------------

-------------------------------

Profit/(loss) for the year

559

(122)

(1,902)

(1,465)

 

======================

======================

======================

======================

 

 

Translogik

£'000

SAWSense

£'000

Admin

£'000

Total

£'000

Year ended 30 June 2018

 

 

 

 

Sales

1,903

147

-

2,050

 

=====================

=====================

=====================

====================

Gross profit

1,173

116

-

1,289

Overheads

(978)

(482)

(1,743)

(3,203)

 

-----------------------------

------------------------------

------------------------------

-----------------------------

Profit/(loss) before taxation

195

(366)

(1,743)

(1,914)

 

 

 

 

 

Taxation

26

-

-

26

 

-------------------------------

-------------------------------

-------------------------------

-------------------------------

Profit/(loss) for the year

221

(366)

(1,743)

(1,888)

 

======================

======================

======================

======================

 

During the year ended 30 June 2019 there were 3 (year ended 30 June 2018: 3) customers whose turnover accounted for more than 10% of the Group's total revenue as follows:

Year ended 30 June 2019

Revenue

 £'000

Percentage of total

 

 

 

Customer A

466

21%

Customer B

429

19%

Customer C

397

18%

 

 

 

Year ended 30 June 2018

Revenue

£'000

Percentage of total

 

 

 

Customer A

400

20%

Customer B

365

18%

Customer C

262

13%

 

 

2        FINANCIAL INCOME AND EXPENSE

Recognised in profit or loss

 

Year ended

30 June 2019

Year ended

30 June 2018

 

£'000

£'000

 

 

 

Finance income

2

5

 

             

             

Total finance income

2

5

 

3        TAXATION

Recognised in the statement of comprehensive income

 

 

Year ended

30 June 2019

Year ended
30 June 2018

 

£'000

£'000

Current tax expense

 

 

Current year

-

-

Adjustment for previous year

(266)

(26)

 

----------------------------------------------

----------------------------------------------

Tax credit in statement of comprehensive income

(266)

(26)

 

=============================================

=============================================

Reconciliation of effective tax rate

 

Year ended

30 June 2019

   Year ended
30 June 2018

 

£'000

£'000

Loss before tax

(1,731)

(1,914)

 

=============================================

=============================================

 

 

 

Tax calculated at the average standard UK corporation tax rate of 19.00% (2018: 19.00%)

(329)

(364)

Expenses not deductible for tax purposes

12

3

Additional deduction for R&D expenditure

(120)

-

Current year losses for which no deferred tax asset was recognised

391

357

Adjustment to deferred tax average rate of 19%

46

-

Adjustment for overseas profits

-

4

Prior year adjustment

(266)

(26)

 

----------------------------------------------

----------------------------------------------

Total tax (credit)/charge

(266)

(26)

 

=============================================

=============================================

A deferred tax asset has not been recognised in respect of the following item:

 

 

 

 

 

Tax Losses

3,760

3,345

 

=============================================

=============================================

 

 

 

 

The applicable UK corporation tax rate is 19% throughout the reporting period.

 

The Group has tax losses, subject to agreement by HM Revenue and Customs, in the sum of £20.7m (2018: £19.7m), which are available for offset against future profits of the same trade. There is no expiry date for tax losses. An appropriate asset will be recognised when the Group can demonstrate a reasonable expectation of sufficient taxable profits to utilise the temporary differences.

 

The rate of Corporation Tax will reduce to 17% with effect from 1 April 2020.

 

The effective tax rate used to calculate the current tax for the period ended 30 June 2019 was 19.00% (2018: 19.00%).

 

 

 

4        EARNINGS PER SHARE

Basic loss per share is calculated by dividing the loss after taxation of £1.47m (2018: loss of £1.89m) by the weighted average number of ordinary shares in issue during the year of 13,184,581 (2018: 9,595,825). Unexercised options over the ordinary shares are not included in the calculation of diluted loss per share as they are anti-dilutive.

 

 

Year ended 30 June 2019

   Year ended
30 June 2018

 

Number

Number

 

 

 

Weighted average number of shares - basic

13,184,581

9,595,825

Share option adjustment

-

-

 

----------------------------------------------

----------------------------------------------

Weighted average number of shares - diluted

13,184,581

9,595,825

 

=============================================

=============================================

 

          Basic and fully diluted loss per share (continued)

 

Year ended 30 June 2019

Year ended
30 June 2018

 

£'000

£'000

 

 

 

Loss from operations

(1,465)

(1,888)

 

 

 

 

----------------------------------------------

----------------------------------------------

Basic (loss)/earnings per share

(11.11)

(19.68)

 

=============================================

=============================================

 

 

 

Earnings attributable to shareholders

 

 

Basic (loss)/earnings per share

(11.11)

(19.68)

 

 

 

 

=============================================

=============================================

There are 665,000 share options at 30 June 2019 (2018: 665,000) that are not included within diluted earnings per share because they are anti-dilutive.

 

5        CASH AND CASH EQUIVALENTS

 

 

Group

 

30 June 2019

30 June 2018

 

£000

£000

 

 

 

Cash and cash equivalents per balance sheet

2,647

1,592

 

             

             

Cash and cash equivalents per cash flow

 statements

2,647

1,592

 

6        STATUTORY ACCOUNTS

 

The Financial information set out in this preliminary announcement does not constitute the Company's Consolidated Financial Statements for the financial years ended 30 June 2019 or 30 June 2018 but are derived from those Financial Statements.  Statutory Financial Statements for 2018 have been delivered to the Registrar of Companies and those for 2019 will be delivered following the Company's AGM.  The auditors Grant Thornton UK LLP have reported on those financial statements.  Their reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under Section 498(2) or (3) of the Companies Act 2006 in respect of the Financial Statements for 2019 or 2018.

 

The Statutory accounts are available on the Company's website and will be posted to shareholders who have requested a copy and thereafter by request to the Company's registered office.

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
FR SEUFMIFUSEIU
London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.