AGM Statement & Trading Update

596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018.

Transense Technologies plc

("Transense", or "the Company")

AGM Statement and Trading Update

Transense Technologies plc, the provider of specialist sensing solutions and measurement systems, announces the following trading update for the first four months of the financial year to 30 June 2024 (the "Period") ahead of its Annual General Meeting to be held at 10:00 a.m. today.

Trading Update

Revenues in the Period were 13 per cent higher than in the comparable period last year. The unaudited profit before taxation increased threefold on that generated in the comparable period, assisted by a temporary reduction in operating costs following the team reorganisation.

Although well ahead of the prior period, revenue in the Period was below the Board's expectations. Royalty income from iTrack continued to rise, although more slowly than the historic run rate. Revenues from Translogik and SAWsense were substantially unchanged from the prior period, with a return to strong growth expected towards the second half of the financial year. The short-term order book and opportunity pipeline for both SAWsense and Translogik indicate an upturn in trading, and therefore the Board expects to meet market expectations for the full year.

Operating cashflow is robust, and the net cash balance at 31 October 2023, following the receipt of Q1 iTrack royalties, was approximately £1.72m (30 June 2023: £0.98m).

To drive further revenue growth, market awareness, and accelerate pipeline conversion across its divisions, the Company is actively recruiting. An additional senior mechanical engineer joined this month, and offers of employment have been accepted by four further team members: a Business Development Director for Translogik, and three experienced engineering and project management professionals, to support the delivery of new projects and industrialisation activity in SAWsense. The Company is also hiring a dedicated marketing lead to support the business development teams across both divisions. These new members of the team will be joining early in the new year with a full workload.

As well as supporting a growing blue-chip customer base, R&D activity in the Period has led to significant progress towards industrialisation of the SAWsense technology. This meets the objective of being able to better support customers by demonstrating a clear pathway to scale-up manufacturing, as well as improving low volume production capacity and capability. Transense has also expanded functionality and delivered enhancements to the Translogik product in response to customer requests that will open up new market potential. This R&D activity has also led to the Company making its first new patent applications in ten years, significantly extending the SAWsense IP base. Details of these new patents will be released in due course.

Transense signed an MOU last year with Meggitt SA, with the joint aim of concluding a licence for SAW technology in the aerospace sector by 31 December 2023. The acquisition of Meggitt by Parker since then opens up new potential to expand the current working relationship between both parties, but the resulting organisational changes within their business have impacted their ability to progress licence discussions. Whilst the pace of progress has been measured, the Board continues to value the relationship with Parker Meggitt. Transense does not expect to conclude a licence by 31 December and will provide further updates in due course.

Independently, Transense has made excellent progress in the broader aerospace market, where the Company is now engaged directly with a number of additional engine and air frame manufacturers.

Since the announcement of a £0.65m share buyback programme on 27 September 2022, the Company has acquired 528,000 shares to be held in treasury at a total cost of £0.47m. The remainder of £0.18m is available for further such purchases, subject to shareholder approval at today's AGM. The Board may announce a further programme during the year if this is considered appropriate.

The Board is pleased with the momentum in the ongoing commercial pipeline, both for SAWsense and Translogik, which provides confidence in the prospects for the current financial year and beyond.

Online access to the AGM

Shareholders who wish to view the AGM remotely should register for the event in advance via the following link:

https:www.investormeetcompany.com/transense-technologies-plc/register-investor