Transense Technologies (TRT) investor relations material

Executive summary

• Revenue increased by 33% year-over-year to £5.55m, with profits and cash conversion also improving significantly.

• Profit before tax (PBT) rose 12% to £1.41m, and operating cash conversion reached 145% of PBT.

• Both SAWsense and Translogik segments delivered strong growth, with SAWsense revenue up 149% and Translogik up 18%.

• Investments focused on scaling production, next-generation components, and expanding the management and engineering teams.

• Net cash position remains healthy at £1.14m, with distributable reserves up to £4.8m.

Financial highlights

• Gross profit margin improved to 89.9%, with Translogik's margin rising from 54% to 62% after bringing production in-house.

• Adjusted EBITDA increased 19% to £1.82m, though margin declined to 32.8% due to higher operating expenses.

• Operating cash flow improved by over 30% to £2.05m, with capex of £2.09m reflecting investment in scaling up operations.

• Cash balances remain above £1 million, with additional asset financing secured.

• Cash flow before financing was slightly negative at £-0.04m, after share buybacks and other outflows.

Outlook and guidance

• FY26 started with a 23% increase in revenue from operating businesses in the first two months.

• SAWsense order book doubled since July 2025; Translogik entered FY26 with a subscription-based order book for the first time.

• Management targets at least another £1 million revenue growth in FY26 to maintain momentum.

• Capex is expected to remain at similar levels in FY26 to complete ongoing projects.

• Healthy pipeline and order book support a confident outlook, though management remains cautious due to the scale-up phase.