**Summary**
Transense Technologies PLC (AIMTRT) released a trading update for the six months ended 31 December 2025 and provided an outlook for the full financial year ending 30 June 2026 (FY26). The company reported that while both core divisions, SAWsense and Translogik, continue to grow revenues, the pace is below market expectations due to delays in customer onboarding and a 10% reduction in expected royalty income from Bridgestone iTrack.
**Key Points**
1. **Financial Performance**
Group revenue for FY26 is expected to be not less than £5.2m, including £2.0m in royalty income.
Composite revenue growth from SAWsense and Translogik is projected at not less than 30% for FY26.
Profitability for FY26 is expected to be materially below market expectations due to lower-than-anticipated revenues.
The company was profitable and cash generative in the first half, with a cash balance of £1.33m at 31 December 2025.
2. **Division Performance**
**SAWsense** Revenue growth exceeded 70% in the first half, driven by new and existing customers. However, new customer onboarding is slow due to technical, commercial, and budgetary considerations, exacerbated by geopolitical and economic uncertainties.
**Translogik** Revenue grew by 13% in the first half, despite subdued demand from major tyre producers. A strong pipeline of new business is expected to drive step increases in revenue in coming months.
3. **Royalty Income**
Bridgestone iTrack royalty income in the first half was 35% below the prior year, reflecting lower unit rates and slightly slower volume growth.
4. **Management Commentary**
Executive Chairman Nigel Rogers expressed disappointment with the slowdown in new business conversion but remains confident in the long-term growth prospects of both divisions.
5. **Interim Results and Investor Presentation:**
Interim results will be announced on 17 February 2026, followed by a live investor presentation at 4pm GMT via Investor Meet Company.
**Conclusion**
Transense Technologies faces short-term challenges due to slower-than-expected customer onboarding and reduced royalty income, leading to lower profitability forecasts for FY26. However, management remains optimistic about the growth potential of SAWsense and Translogik, supported by strong pipelines and strategic partnerships.