Transense shares slide after company warns on full-year profits

30th Jan 2026 10:32

(Sharecast News) - Transense Technologies shares were sliding on Friday, after it said full-year profitability would fall materially below market expectations, as delays in customer onboarding and weaker-than-expected royalty income weighed on revenue growth in the first half of its financial year.

The AIM-traded sensing and measurement systems group said both core divisions, SAWsense and Translogik, continued to deliver rising revenues, but the pace of growth had been slower than anticipated as new customer conversions took longer to complete.

In addition, expected royalty income from Bridgestone's iTrack product was now forecast to be around 10% lower than previously expected.

As a result, Transense said it now expected group revenue for the year ending 30 June to be no less than £5.2m, including £2m of royalty income.

Revenues from the two operating businesses were expected to deliver composite growth of at least 30% for the year.

While gross margins had been maintained, the company said the lower-than-anticipated revenue base meant profitability for the 2026 financial year would be materially below current market expectations.

The company said it was profitable and cash-generative in the first half.

Composite revenue growth excluding Bridgestone iTrack royalties improved to 38% in the six months to 31 December, compared with around 20% growth in the first four months of the year.

Royalty income from iTrack in the first half was 35% lower year-on-year, reflecting a 40% reduction in unit rates, slightly weaker-than-expected volume growth and an adverse US dollar exchange rate impact.

Net cash at the end of December stood at £0.92m after asset-backed financing, with an available cash balance of £1.33m, up from £1.14m at the June year end.

SAWsense delivered revenue growth of more than 70% in the first half, supported by both new and existing customers, although management said on-boarding timelines remained extended due to technical, commercial and budgeting processes amid geopolitical and economic uncertainty.

Translogik revenue rose 13% in the period despite subdued demand from major tyre producers, with momentum improving towards the end of the half year and into January.

Executive chairman Nigel Rogers said the board had taken a more cautious view on the timing of growth.

"Naturally I am disappointed that a general slowdown in new business conversion has caused us to re-evaluate the outturn for the current year, and to take a more prudent view of the period of time required to meet the trajectory previously anticipated," he said.

"Notwithstanding this caution, the board remains confident that both SAWsense and Translogik are progressing well and will deliver sustainable growth in future."

Transense said it expected to publish its interim results for the six months ended 31 December on 17 February.

At 1013 GMT, shares in Transense Technologies were down 35.11% at 73p.

Reporting by Josh White for Sharecast.com.