Download Interim Results (Acrobat PDF)

Chairman's Statement

In the six months to 30 June 2009, turnover amounted  to GBP350K (6 months to 30 June 2008 - GBP104K) resulting in a trading loss of GBP564K (2008 - GBP535K before adjusting for the exceptional credit of GBP452K arising from the write-back of the value of notional benefits attributable under IFRS 2 to previous directors' options benefits). The cash held by the Group as at 30 June amounted to GBP2,091K, which was in line with budget.

Income generated in the first half of 2009 reached levels never previously achieved by the Company. This is a direct consequence of the change in strategy initiated by the new board some eighteen months ago. The decision to pursue near term revenues in addition to our longer term objectives has resulted in a number of commercial successes. Our joint development programme with McLaren Electronic Systems has progressed, with our technology performing well within the extremely demanding Motorsport environment. The income derived from this project, in combination with  our new minimum royalty agreements, has provided a base upon which to build as we work towards our primary objective of becoming a profitable business.

We are particularly pleased with the progress in our relationship with Vectron/SenGenuity who are introducing our technology to industrial manufacturers requiring wireless interrogation of SAW (Surface Acoustic Wave) sensors. As highlighted in my previous report, our reader electronics can be used with a wide variety of SAW sensors, not just our own.

We have also formed a new subsidiary, Translogik Limited, which has been granted global distribution rights for a range of tyre tread depth and pressure probes, RFID (Radio Frequency Identification) tags and patches, RFID readers and associated software for Truck and Off-the-Road  (OTR) applications. Prior to the  formation of Translogik, we had been working with Pneu-Logic to integrate our SAW sensor technology into their product range. During this development process it became apparent that the respective complimentary technology provided an opportunity for Transense to use the existing Pneu-Logic products as a "readymade" delivery platform for our sensor technology, both in terms of the physical product and the established distribution network. Translogik now provides a further point of entry for our technology into the market. A vindication of  this decision has already been received in the form of our exclusive distribution agreement with FEC International and the minimum  USD $600K of revenue this agreement has secured over the next two years. Translogik are currently in discussions with several other potential distribution partners, and are hopeful that further agreements will follow.

As part of our continuing effort to develop new markets for our technology, presentations have been made recently to several major tyre OEM's,  distributors, retreaders and fleet management and distribution companies in Malaysia, China and Japan. These discussions were encouraging, and agreements have been signed with FEC International and Mesnac. There appears to be significant appetite for cutting edge technology in this region, as these expanding companies seek competitive advantages through innovation. In order to  maintain a continuing presence  in the region we have engaged a local agent with expert knowledge of both the global sensor market and our SAW and RFID technology to promote our interests.

Central to the continued success of both Transense and Translogik, is the ongoing development of our technology and the patents to protect it. I  was therefore delighted to welcome David Ford as a non-executive member of the Board. In the short time David has been working with us he has demonstrated considerable technical appreciation of our technology, and his extensive experience of Intellectual Property law will be of much benefit.

In summary, I am encouraged by the solid progress of the last six months, revenues are growing, new partnerships are being forged, and existing projects continue to develop towards commercialisation. It is key however, that we continue to drive development for further applications of our  patented technology and explore new market opportunities wherever they arise. A concerted marketing effort and continuing investment programme will require a modest increase in overheads but this should be more than compensated by increased income.

Chief Executive's Report

The first half of 2009 has seen further progress in the process of transforming Transense from being a purely research and development focused Company, to one that is able to additionally provide  product development and production engineering support.

We are working closer than ever with our licensees and partners to push our technology into production, and in order to further facilitate this we have established a full clean room and sensor calibration facility at our offices in Upper Heyford. These new facilities have allowed us to bridge the gap between ourselves and our partners during the technology transfer process. Transense are now manufacturing to a  production standard rather than producing prototypes for evaluation. A clean room is essential  for the assembly of SAW production intent devices that are susceptible  to performance changes due to contamination by moisture or particles. As part of the change to supplying production parts and quantities it was also necessary to design and build a calibration bench capable of calibrating large numbers of TPMS sensors. This fully automated rig will be used to supply calibrated TPMS sensor to other licensees.

In my last report I outlined a number of projects that we were working on. Below is a brief list of operational highlights: