FY2025: Big revenue step-up and profits holding firm
Transense Technologies has delivered a strong year. Total revenue rose 33% to £5.55m, helped by a sharp uplift at SAWsense, steady growth at Translogik, and a solid final year at the full iTrack royalty rate. Profit before tax increased 12% to £1.41m.
Note on definitions: the company reports “Total revenue” as product and services revenue plus grant income. Grants are non-dilutive funding from government programmes.
| Key numbers (year to 30 June 2025) | FY25 | FY24 |
|---|---|---|
| Total revenue | £5.55m | £4.18m |
| – SAWsense revenue | £1.12m | £0.45m |
| – Translogik revenue | £1.32m | £1.12m |
| – Bridgestone iTrack royalties | £3.11m | £2.61m |
| Gross margin | 89.9% | 87.6% |
| Profit before tax | £1.41m | £1.26m |
| Basic EPS | 9.25p | 10.13p |
| Operating cash flow | £2.05m | £1.56m |
| Invested in plant and development | £2.09m | £0.88m |
| Cash at year end | £1.14m | £1.28m |
| Net assets | £7.12m (47p/share) | £5.57m (37p/share) |
| Distributable reserves | £4.85m | £3.44m |
The slight drop in EPS reflects a £0.3m tax credit in FY24 that did not repeat. Underlying profit progression is intact.
SAWsense: pivot to full-service is working
SAWsense shifted from a pure licensing model to supplying full sensor solutions using Surface Acoustic Wave technology. That change is paying off. Revenue jumped 149% to £1.12m and the segmental operating loss narrowed 35% to £0.46m as utilisation improved.
Where the growth came from
- Production assemblies: £0.44m (FY24: £0.25m)
- Component sales: £0.07m (FY24: not disclosed/immaterial)
- Non-recurring engineering (NRE): £0.21m (FY24: £0.14m) – NRE is paid development work.
- Grant income: £0.39m (FY24: £0.05m)
- Royalty income: £0.01m (flat)
End market traction getting broader
- Aerospace: £0.39m (FY24: £0.12m) – deeper engagement with GE Aerospace on T901 and other engines.
- Motorsport: £0.44m (FY24: £0.26m) – partnership with Motion Applied continues to scale.
- Electric Motors & Drives: £0.27m (FY24: £0.06m) – working with global tier ones in automotive and eBike.
- Robotics: £0.02m (FY24: £0.01m) – early revenue, but the pipeline is described as strong.
To support scale, a pilot production line is being installed to demonstrate semi-automated, higher-volume processes, and SAWsense is designing next-generation components, including a new ASIC, with completion due during FY26. The order book (excluding grants) doubled to £0.24m at year end and has already risen to £0.47m early in FY26.
My take: the move to being a solutions provider reduces adoption risk for customers and increases Transense’s share of the value. Losses should continue to shrink if the current momentum converts into production programmes.
Translogik: margin upgrade and new routes to market
Translogik revenue grew 18% to £1.32m as the business expanded beyond tyre majors into fleets and software-linked subscriptions. Bringing assembly in-house lifted gross margin to 62% (from 54%), despite higher operating costs as the team and product roadmap were beefed up. Segmental operating profit was £0.37m, roughly flat, but the new cost base is designed to support higher volumes.
Sales mix is diversifying
- Global tyre majors: £0.65m (FY24: £0.63m)
- Software resellers: £0.41m (FY24: £0.23m)
- Distribution resellers: £0.09m (FY24: £0.06m)
- Fleets/service providers: £0.06m (FY24: £0.02m)
Management notes growth would have been more than 50% excluding a temporary pause from one tyre major. A revamped sales structure, new product variants and sharper pricing are in place. Importantly, Translogik now has a contracted subscription deal for FY26, adding visibility to what has historically been a transactional revenue stream.
My take: the shift towards recurring software-linked sales is strategically important. If the subscription model scales, this division could become a more predictable earner.
Bridgestone iTrack royalties: strong finish before a rate cut
Royalty income from iTrack rose 19% to £3.11m, with underlying volume growth of 24% partly offset by FX. New installations hit their highest level since the deal began, and the closing annualised royalty run-rate was US$4.03m.
However, this was the final year at the full royalty rate. The unit rate reduces by 40% from July 2025, and early FY26 trading shows royalty income down about 30% so far, despite higher unit volumes. Management has been clear: the plan is to offset an anticipated c.£1m reduction in FY26 royalty income with growth from SAWsense and Translogik.
Risk flag: customer concentration remains high. One customer (Bridgestone) accounted for 56% of total revenue in FY25. Diversification progress elsewhere is therefore crucial.
Cash, balance sheet and investment firepower
Operating cash flow was a healthy £2.05m, demonstrating 145% conversion of operating profit. Transense reinvested £2.09m into plant, equipment and development, which explains the small reduction in year-end cash to £1.14m.
Net assets climbed to £7.12m, or 47 pence per share. Distributable reserves increased to £4.85m, and the company holds £1.03m of treasury shares at an average cost of 84p. Management says it has the resources to fund growth and “consider further returns to shareholders”, though no specific distribution was announced.
Overall gross margin of 89.9% reflects the high-margin royalty stream. As iTrack’s rate steps down, the margin mix will likely normalise unless SAWsense and Translogik keep expanding at pace.
Outlook for FY26: what to watch next
- Early momentum: combined SAWsense and Translogik revenues are up 23% in the first two months of FY26.
- SAWsense delivery: order book at £0.47m (ex-grants) and a larger pipeline across aerospace, motorsport, EMD and robotics. Watch for production programme wins and progress on the pilot line and new ASIC.
- Translogik inflection: the new subscription deal and widened reseller network should lift visibility. New product variants and more competitive pricing are near-term catalysts.
- Bridging the royalty step-down: iTrack income will fall with the 40% rate cut. Management’s target is to maintain group profitability around current levels by growing the operating businesses.
- Cash discipline: with £1.14m year-end cash and rising investment, continued strong operating cash generation remains important.
My verdict: strategy on track, execution now key
Transense is doing the right things. SAWsense has moved from promise to tangible growth, Translogik has improved margins and broadened its customer base, and both units are building better visibility. The numbers show real progress – revenue up 33%, PBT up 12%, and net assets up to £7.12m.
The challenge for FY26 is straightforward: outperform the 40% iTrack rate cut. Early trading and the growing SAWsense and Translogik pipelines suggest it is achievable, but it requires sustained conversion, particularly in aerospace and EMD, and delivery of the new Translogik subscription model. If those levers pull through, the business can preserve profitability while tilting the mix towards owned products – a higher quality outcome for long-term investors.
