The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

27 September 2022

Transense Technologies plc

("Transense" or the "Company")

Final results for the year ended 30 June 2022

& notice of investor presentation

Transense Technologies plc (AIM: TRT), the provider of specialist sensor systems, reports another year of strong financial results. The directors are pleased with the solid progress made in each of the Company's three business segments, and are confident of expanding on this in the current financial year.  Accordingly, they propose to invest a portion of internally generated cash flow in a new £650,000 share buy-back programme announced today.

Financial highlights:

•        Revenue up 49% to £2.63m (FY21: £1.77m)

•        iTrack royalty increased 88% to £1.56m (FY21: £0.83m)

•        Translogik probe revenue up 16% to £0.88m (FY21: £0.76m)

•        SAW revenue up 11% to £0.20m (FY21: £0.18m) with substantially increased customer engagement

•        Profit before taxation of £0.27m (FY21: loss of £0.16m)

•        Earnings per share up more than fivefold to 5.36 pence (FY21: 0.96 pence)

•        Cash and cash equivalents at year end of £1.06m (FY21: £1.05m)

•        Completed share buybacks of £0.30m (FY21: £Nil)

•        Distributable reserves at year end of £1.20m (FY21: £0.63m)

Executive Chairman of Transense, Nigel Rogers, said:

"The annualised rate of iTrack royalty income now exceeds £2m, which more than covers the fixed overhead costs of the Company, and Translogik probes revenues are approaching £1m per annum with ample scope for further growth.  We are now also achieving real traction with SAW technology across our target industry sectors, illustrated most recently with the collaboration with Meggitt in aerospace, supported by a growing pipeline of new potential customer engagements.

"The directors are confident that the Company's business model is resilient, that further increases in profitability and cash flow are deliverable, and that the long term prospects for the Company continue to build."

Investor Presentation: 4pm today, Tuesday 27 September 2022

Nigel Rogers (Executive Chairman) and Melvyn Segal (Chief Financial Officer) will provide a presentation to review the Company's results and prospects at 4pm on Tuesday 27 September 2022. The presentation will be hosted through the online platform Investor Meet Company.

To attend the presentation, investors can sign up to Investor Meet Company for free and select to meet Transense Technologies plc via the following link:https://www.investormeetcompany.com/transense-technologies-plc/register-investor. Investors who have already registered and selected to meet the Company will automatically be invited to the presentation.

Questions can be submitted before the event to [email protected] or in real time during the presentation via the "Ask a Question" function.

For further information please visit www.transense.com or contact:

Notes to Editors:

Transense is a developer of specialist wireless sensor systems used to enable real-time data gathering and monitoring.  Products include the patent protected Surface Acoustic Wave (SAW) sensor technology, used to improve equipment power, performance, reliability and efficiency; iTrack, Transense 's Tyre Pressure Monitoring System, licensed to Bridgestone Corporation, the world's largest tyre producer, under a ten-year deal in June 2020; and a range of intelligent tyre monitoring equipment under the Translogik brand. Target sectors include aerospace, electric motors & drives, industrial machinery and performance automotive. 

The Company's strategy is to maximise shareholder value through the delivery of sustained revenue growth from all three principal technologies - SAW, iTrack and Translogik probes - through leveraging excellence in innovation, know-how in commercialising technologies, industry partnerships and exposure to global growth markets.

Transense is headquartered in Oxfordshire, UK, and was admitted to trading on AIM, a market operated by the London Stock Exchange (AIM: TRT), in 1999.  www.transense.com

For further information please contact  [email protected] .

Chairman's statement for the year ended 30 June 2022

I am pleased to report another year of strong financial results and good further progress in the development of each of the company's three business segments.  The latest post year end monthly iTrack royalty income has an annualised rate of in excess of £2m, Translogik probes revenues are approaching £1m per annum with ample scope for further growth, and increased business development activities for Surface Acoustic Wave (SAW) sensor technology are building a pipeline of potential customers in our key target market sectors.

Business strategy

The business strategy of the Company remains to develop innovative sensing solutions across a range of applications, which are commercialised either through the launch of products and services to customers or by forming strategic alliances with partner organisations. Value is realised through a combination of commercial income, royalties, licensing income and capital gains on disposals.

There are currently three business segments comprising royalty income from iTrack, Translogik tyre monitoring equipment, and the commercialisation of Surface Acoustic Wave (SAW) sensor technology.

Progress in the development of each of these segments during the year, and plans for the future, are set out in the Operating and Financial Review.   The directors set out mid-term strategic goals for the Company's businesses in June 2020, immediately following the completion of the iTrack licence with Bridgestone.  Since that time, financial results have been in line with or ahead of expectations, and the directors continue to be pleased with progress.

Financial overview

Growth in revenue, profitability and cash generation were each delivered at rates consistent with those set in the strategic goals in June 2020.  This resulted in net earnings of 5.36 pence per share; a fivefold increase on the prior year level of 0.96 pence.

Net cash generation (before financing activities) in the year of £0.30m was re-invested in the purchase of Company shares (which were put into treasury) under the buy-back programme announced in February 2022.  At the end of the financial year, the Company had net assets of £3.09m (FY21: £2.34m), reserves stood at £1.50m, of which £1.20m are distributable (FY21: £0.63m), and net cash and cash equivalents of £1.06m (FY21: £1.05m).  The directors are confident of further progress in the upcoming financial year and propose to continue to re-invest a portion of internally generated cash flow in a new share buy-back programme of £0.65m announced today.

Corporate Governance, board structure and composition

The directors are committed to the framework and principles of the QCA Corporate Governance Code ("the Code") and seek to apply these wherever this is practicable.  Full application of the Code, with the implications that this may have on board and compliance costs, is counterbalanced by the scale of the Company and the relatively low risk profile of its operations.

The three directors who have served throughout the year each have many years' experience as both executive and non-executive directors of fully listed and AIM-quoted companies, and recognise the broader needs of shareholders and other stakeholders in all of their dealings.  During the year the Board was further strengthened by Nick Hopkins joining as Chief Operating Officer and Ryan Maughan (in a part time capacity) as Business Development Director.  At the time of their appointment in December 2021 it was also announced that the Board intends to appoint an additional independent non-executive director, and this process is currently underway.

The directors maintain constructive dialogue with major shareholders on the development of the business and associated governance matters and will continue to ensure that any feedback is addressed promptly and effectively.  Furthermore, there are opportunities for regular engagement with all shareholders with full details set out on the Company's website.

Share buyback programme

In February 2022, the Company announced the commencement of a programme to conduct market purchases of ordinary shares of 10 pence each in the Company up to maximum aggregate purchase value of £0.30m.  This programme was completed on 26 May 2022 with the Company having acquired 434,000 ordinary shares for treasury at an average price of 70 pence each.

During the financial year the share price fluctuated between 58.0 pence and 122.5 pence and averaged approximately 85 pence.  The directors consider that recent weakness in the share price reflects macro-economic and stock market driven concerns which are unrelated to the performance and prospects for the business.  Accordingly, the directors continue to view the Company's shares as undervalued and have today announced a new programme of market purchases on similar terms to the previous programme but with a maximum aggregate value of £0.65m, of which £0.50m is subject to the renewal of shareholder approval for such market purchases at the upcoming Annual General Meeting.

Current trading and outlook

In the first two months of trading since the end of the financial year the total revenues have increased year on year by 19%.

The royalty income stream from iTrack is proving reliable and continuing to grow strongly with the post year annualised royalty run rate now comfortably exceeding the fixed overheads of the whole Company. In addition, our commercial relationships in Translogik are continuing to strengthen and offer further growth potential as fleet managers seek to make cost savings. Finally, we are achieving real traction with SAW technology across a range of high growth industry sectors, illustrated most recently with the collaboration with Meggitt in aerospace, which provide a sound basis for optimism for the future.

Accordingly, the directors are confident that the Company's business model is sufficiently resilient to withstand the current challenging global economic outlook and look to the future with confidence.

Nigel Rogers

Executive Chairman

27 September 2022 

Strategic Report

Operating and Financial Review

Results for the year

Revenues for the year increased by nearly 50% to £2.63m (FY21: £1.77m), driven primarily by gathering momentum on royalty income from iTrack.  Gross margin improved to 84.9% of revenue (FY21: 78.3%) amounting to £2.23m (FY21: £1.39m).

Administrative expenses underwent a planned increase to £1.97m (FY21: £1.58m), mainly as a result of additional headcount and travel to support development of the SAW business. The Earnings before Interest, Taxation, Depreciation and Amortisation adjusted for the charge for share-based payments was £0.62m (FY21: £0.10m), and the net profit before taxation was £0.27m (FY21: net loss of £0.16m).

There was a credit for taxation of £0.61m (FY21: £0.31m) arising from the increase in the deferred taxation asset relating to the use of previous years' tax losses in future.  As the Board has growing confidence in the future profitability, the deferred taxation asset now reflects a forecast period of two years rather than the use of one year previously.  In total, the Company has UK tax losses available to carry forward at 30 June 2022 in excess of £22m, which are available for offset against future profits subject to HMRC agreement, of which approximately £2.58m is currently recognised for deferred taxation purposes (FY21: £0.19m).

The resulting net total comprehensive income attributable to equity shareholders was £0.88m (FY21: £0.16m) resulting in earnings per share of 5.36 pence (FY21: 0.96 pence).

Segmental review

iTrack royalty income

Royalty income from iTrack generated income of £1.56m during the year, representing an increase of 88% over the level in the first year of the licence to 30 June 2021 (FY21: £0.83m).  By the end of the year, the installed base had risen to more than 2.75 times that which prevailed at the outset of the licence, and the annualised royalty run rate had increased to £1.88m, compared with £1.12m at 30 June 2021, and £0.64m at inception in June 2020.

Royalty income is denominated in United States Dollars (US$).  The rate of exchange changed adversely in the first year of the licence as Sterling strengthened against the US$, however in the year to 30 June 2022 this reversed to close in the Company's favour. During the year the directors implemented a policy of hedging forward around 80% of estimated future income by up to one year to take advantage of this opportunity and achieved an average rate around USD1.20 to GBP1 which compared very favourably with the opening rate at the time of the deal being USD1.25 and the peak rate during the financial year being just under USD1.4. However since securing these rates the directors note that GBP has fallen by a further 10% against USD.

Bridgestone Corporation, Japan, continues to indicate that iTrack is a key strategic component of their mobility solutions business and expresses confidence in the future growth potential for this technology.

Translogik tyre monitoring

Our range of tyre monitoring equipment marketed under the Translogik brand generated revenue of £0.88m; an increase of almost 16% over the prior year (FY21: £0.76m), and the segmental result was up by a third to £0.36m (FY21: £0.27m).

The modular TLGX range is now firmly established and this has facilitated the decision to phase out the TL-G1 range which is now well underway.  This process has provided many opportunities to up-sell products with more sophisticated features, which together with favourable exchange rates increased gross margins in this segment from 50.4% of revenue in FY21 to 55.7% in FY22.

The Directors believe that working closely with the leading global tyre manufacturers has resulted in the Translogik probe becoming a tool of choice to diagnose mandatory commercial vehicle tyre safety and condition inspection data for their fleet management systems, and this has substantially increased sales opportunities.  The technology has been shown to deliver reduced costs and improved collection of data which helps commercial vehicle fleets comply with safety inspection regulations and manage the significant costs of their tyres more effectively, again, key objectives for the future. As market penetration continues to build, we are also becoming increasingly aware of opportunities for additional features and enhanced software compatibility to maintain leadership in this market sector.  This process further cements our relationships with major tyre manufacturers. The business has continued to expand beyond these important clients, and has new relationships in the fleet management arena, including software developers and manufacturers of complementary hardware products.

Surface Acoustic Wave (SAW)

SAW generated revenue of £0.20m (FY21: £0.18m) and operating overheads for the segment increased slightly from £0.92m to £1.14m, reflecting increased headcount adding new senior people to both business and technical development.  Revenue was derived mainly from low volume production of instrumented shafts either for motorsport or for customer evaluation projects, whilst increased headcount was required to manage new business opportunities and technical support which are yet to deliver revenue.

There is a broad range of potential market applications for SAW technology which have been explored fully, especially over the past two years with the support of the commercial advisory panel (SAWCAP).  Our market focus for SAW technology has now settled on four sectors in which there are applications with clear differentiated benefits.

Target market sectors for SAW technology:

Aerospace

The measurement of torque is common practice in all types of aerospace engines, and is used to improve safety, pilot control and engine reliability.  Our SAW technology offers advantages in these applications due to its accuracy over other technologies.  Our sensor system is robust, and compact in size and weight.  Its ability to measure or compensate for temperature fluctuations, and immunity from background electromagnetic interference, make it the ideal choice.

The case for using SAW in aerospace applications was proven in 2016 by the specification of SAW sensor technology under licence from Transense on the GE ITEP programme to re-engine Apache and Blackhawk helicopters for the US Army.  The First Engine to Test under this programme was built successfully earlier this year, and low volume production is planned to commence in 2024/25.

In May 2022, an amending agreement was signed between Transense and GE Aviation to extend the scope of the field of use of their licence to encompass work for the Hybrid Electric Altitude Testbed flight demonstrator (HEAT) Programme. This programme covers the build of a SAW torque measurement system for evaluation in both test laboratory and flight test conditions. Although there is no current intention for this programme to directly enter commercial production, Transense is involved in the development phase over the period to 2024 to provide technical know-how, limited supply of critical components and the provision of calibration services at agreed commercial rates.

More recently, in September 2022, the Company entered into an important collaboration with Meggitt SA, the leading designer and manufacturer of complete condition monitoring, vibration monitoring and measurement solutions for the aerospace and energy markets.  Under a new Memorandum of Understanding, the Company will support Meggitt's evaluation of potential future market opportunities in the aerospace sector.  Meggitt has indicated that our SAW technology has the potential to become a great addition to its Engine Sensing portfolio as part of its strategy to support global engine OEM customers.  There is a shared aim to enter into a licensing agreement prior to 31 December 2023 covering one or more fields of use in aerospace.

Electric Motors and Drives (EMD)

As the market for electrified vehicle powertrain develops rapidly, the quest to deliver improved efficiency and performance in electric drive systems is paramount.  Maximising vehicle range for a given battery capacity is a key target of every powertrain development programme, alongside maintaining and improving the safety integrity of the powertrain system.

The present state of the art is to use advanced torque estimation techniques based on electrical current and rotational speed measurements.  Accurate torque measurement is desirable but has not been possible using competing torque measurement systems. Using SAW sensors eliminates the need for estimation and gives reliable torque and temperature measurement from the motor rotor that can be used to improve both motor efficiency and safety.

In May 2022, the Company secured a place on the Advanced Propulsion Centre (APC) Technology Developer Accelerator Programme (TDAP) in a competitive process.  Alongside grant funding of up to £0.13m, this programme provides access to advice and support from the APC and their delivery partners focusing on product development, market strategy, intellectual property management and networking.  The initial phase of this work is underway and it will progress through the current financial year.  Grant income of £0.02m was recognised in the year ended 30 June 2022, and the remaining available funding is expected to be realised in the year to 30 June 2023 and 2024.

EMD also has links into the other sectors with increasing electrification in aerospace and industrial machinery.

Industrial Machinery (including Off-Highway Vehicles, Heavy Industrial Engines and Robotics)

Industrial Machinery provides the backbone of many sectors, from mining and construction to agriculture, materials handling and logistics. Industrial machines are becoming increasingly complex with more features and controls and are being developed to do more work for a given amount of power.  There is also a clear drive to partly or fully automate machinery and deploy more robotics in industry.

The propulsion systems in off-highway vehicles and other machines transmit drive forces through a rotating shaft to drive the wheels or other systems such as hydraulic pumps and gas turbines.  The demanding nature of these heavy-duty applications means that implementing traditional torque sensor technology is difficult and it is more common to rely on shaft speed data as an alternative.

The use of SAW sensing of torque and/or temperature can improve accuracy, efficiency and power distribution, all of which can also contribute to the ability to operate such machines remotely or on a fully autonomous basis.  Transense SAW sensor technology is under ongoing trial by a major producer of agricultural machinery.  The project is progressing on schedule and is expected to strengthen the business case for the use of SAW in this sector.

The global market for industrial robotics is expanding rapidly and is accelerated by the advent of lower cost collaborative robots that are easier and less costly to deploy. These robots have a position and torque sensing system embedded into every joint to allow automated control and safe operation, which are generally reliant on strain gauge or displacement sensors.  Whilst these sensors are low cost and suitable for simple applications, they lack the robustness required in some harsh environments and can be susceptible to electromagnetic interference.  Furthermore, each of these existing technologies requires an element of twist or flex in the robot's joints, which means that the robotic arm will flex in operation, limiting performance and repeatability, yet increasing safety and reliability.

Transense SAW sensor technology can provide an improved way to measure torque, rotation and temperature in a robotic system, virtually eliminating flex and creating high performing and more repeatable robots with more compact joints than has been possible previously.

Motorsport and high-performance vehicles

Transense SAW technology has been in use for several years in premium motor sport driveline applications to measure delivered torque in race vehicle drivetrain for monitoring and regulatory compliance purposes.  In September 2021, the Company entered into a five-year Joint Collaborative Agreement (JCA) with McLaren Applied Ltd to further develop non-contact torque products for this sector.  Under the JCA. McLaren has exclusive access to the technology for the premium motor sport market in exchange for meeting minimum target revenues on an annual basis over five years.  Progress under the JCA has been in line with our initial expectations and a number of new customer opportunities are in development.

The motorsport market offers limited scale as a consequence of the relatively low number of vehicles in operation but is a proving ground for new automotive technology which may subsequently be adopted in mainstream vehicles. There is strong overlap with EMD as high volume performance vehicles are increasingly being developed using electric drivetrain.

Business development activities

In view of the positive indications for the development of applications in which SAW offers benefits over other methods of torque measurement, and with clear target market sectors in view, it became appropriate during the year to inject additional business development resource.  Ryan Maughan joined the Board in a part-time role as Business Development Director in December 2021, and his involvement has generated a growing pipeline of potential customer engagements which can be summarised as follows:

Number of potential customers by sector as at 26 September 2022 (July 2021)

There is now a healthy and growing pipeline of active customer engagement, where the minimum requirements for an enquiry to be considered active are met.  These include pre-qualification that the project is technically feasible, and is known to be supported by decision makers and budget holders in the customer organisation.

There will normally be a significant time lag in progressing enquiries from stage 1 to stage 4, and much more work to be done.  It is also more than likely that timescales can be extended, and that some will not mature into revenue.  Nevertheless, the progress made in recent months provides indication of future growth potential, and a number of projects are close to moving from enquiry stage to some form of paid engineering project, which will increase the revenue of this segment with no significant additional costs.

Operations and engineering activities

Nick Hopkins, who joined the Company to lead the SAW business during the reorganisation phase in 2020, became Chief Operating Officer and joined the Board in December 2021. 

In parallel with the opening up of new commercial opportunities, resources have been applied in developing the technical and operational capabilities that will be required to satisfy increasing customer demand for chargeable development projects, leading into engineering support for transfer of SAW into production.

Unlike some alternative torque and temperature sensing devices, SAW components require a degree of customisation in order to unlock their unique benefits specific to each application and are therefore not sold "out of the box".  This calls for detailed application engineering, covering for example the methods for bonding components to OEM equipment, and calibrating the output signal for accuracy and repeatability across the temperature cycle. 

To advance our knowledge and experience in these areas, Andy Bullock joined the Company in July 2022 in the newly created role of Technical Director.  He brought a proven record of leading the design and development of complex electronic solutions and associated manufacturing processes.  The primary focus is to build the engineering capability of the business to meet customer demand for practical support in application of SAW technology, both in-house for proto-typing, development and pilot production, and through the provision of technology transfer to potential licencees.

Working in partnership

It has been an important feature of the Company's business model to work closely with some of the world's largest and most respected companies in collaborative partnerships to facilitate market access that would otherwise challenge the financial resources of a specialist innovator.  This has led to the successful licensing of SAW technology to GE and Emerson, and the iTrack licence granted to Bridgestone in 2020.

This approach is maintained in our recent announcement of the new collaboration with Meggitt in the aerospace sector. The directors consider that working alongside a company of Meggitt's stature will expand our capacity to develop customers in this rapidly changing sector and will continue to support this partnership approach in other segments where suitable opportunities arise to increase access to markets, customers, supply chain and/or engineering and production capabilities.

Prospects for SAW

Taken as a whole, there has been much progress during the year and clear signs of traction across high value growth markets.  The level and quality of customer engagement has increased substantially, and the engineering tasks required to enable customers to apply our technology in a more accessible manner are underway. 

It will remain a time consuming process to convert qualified enquiries into development projects, and transition these through to full production, and doubtless not all will mature.  The directors consider, however, that the prospects of future commercial success for SAW are building.

Financial position and cash flow

The Company's financial position strengthened further during the year with net assets increasing to £3.09m (FY21: £2.34m) as a result of the retention of net profits after taxation.  Net available cash balances amounted to £1.06m (FY21: £1.05m), and the final quarter royalty income on iTrack receivable on 31 July 2022 stood at £0.47m (FY21: 0.26m).

Net cash generated from operations amounted to £0.41m (FY21: net cash used of £0.25m).  This was re-invested in capital expenditure of £0.10m (FY21: £0.05m) and in the share buy-back programme during the final quarter of the year totaling £0.30m, leaving net cash balances unchanged over the year. 

The directors anticipate that the Company will continue to be cash generative for the foreseeable future and will accumulate further cash balances well in excess of the buy-back programme currently proposed.

Going concern

The Company meets its day to day working capital requirements through existing cash reserves and does not currently require an overdraft or other borrowing facility.  The directors have prepared cash flow forecasts for the period to 30 June 2024 which indicate that there is a reasonable expectation that the Company will continue to operate within current and future cash resources throughout this period   Accordingly, these financial statements have been prepared on the going concern basis.

Nigel Rogers                                                 Melvyn Segal

Executive Chairman                                     Chief Financial Officer

27 September 2022                                       27 September 2022

Consolidated Statement of Comprehensive Income

For the year ended 30 June 202

Consolidated Balance Sheet

At 30 June 2022

Consolidated Statement of Changes in Equity

For the year ended 30 June 2022

Consolidated Cash Flow Statement

For the year ended 30 June 2022

NOTES RELATING TO THE COMPANY FINANCIAL STATEMENTS

BASIS OF PREPARATION

Both the Parent Company financial statements and the Company financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the United Kingdom ("Adopted IFRSs") and those parts of the Companies Act 2006 that are relevant to companies preparing accounts under IFRS. On publishing the Parent Company financial statements here together with the Company financial statements, the Company is taking advantage of the exemption in s408 of the Companies Act 2006 not to present its individual statement of comprehensive income and related notes that form a part of these approved financial statements.

1          SEGMENT INFORMATION

The Company had three reportable segments being the unique trading divisions, SAW and Translogik, which make use of technology developed by the Company  to measure and record temperature, pressure and torque, and the iTrack royalty activity in respect of income from licensed technology.

Revenue and EBITDA are the Company's key focus and in turn is the main performance measure adopted by management.

The tables below set out the Company's revenue split and operating segments. These disclose information for continuing operations and in view of their relative size, information for discontinued operations. The disposal of iTrack operations will result in future royalty income replacing direct sales income and costs.

Revenue

iTrack Royalty                                                              1,557                832

            Note: comparatives are restated as they were shown incorrectly last year.

            Segments        

Note: Adjusted EBITDA (excluding share based payments)                                                      621

During the year ended 30 June 2022 there were 2 customers (2021: 2) whose turnover accounted for more than 10% of the Company's total continuing revenue as follows:

2          TAXATION

Recognised in the statement of comprehensive income in respect of continuing operations

Reconciliation of effective tax rate

The applicable UK corporation tax rate is 19% throughout the reporting period. The Group has tax losses, subject to agreement by HM Revenue and Customs, in the sum of £22.8m (2021: £23.1m), which are available for offset against future profits of the same trade. There is no expiry date for tax losses. An appropriate deferred tax asset is being recognised as the Group is able to demonstrate a reasonable expectation of sufficient future taxable profits arising in order to utilise the losses.

The Finance Act 2020 maintained the rate of UK Corporation Tax at 19% and in May 2021 the Finance Act 2021 was substantively enacted with a rate of 25% to apply from April 2023. Recognised and unrecognised deferred tax balances at 30 June 2022 have been calculated using a rate of 19% for reversals expected in the period to April 2023 and 25% for reversals after that date (2021: 25%) as this was the substantively enacted rate at the year end date. The recent budget on 23 September 2022, the Chancellor of the Exchequer announced that the corporation tax rate would not increase to a maximum of 25% however this has not been enacted as at year end nor at the time of signing the financial statements.

3          EARNINGS PER SHARE

Basic profit per share is calculated by dividing the profit by the weighted average number of ordinary shares in issue during the year of 16,365,640 (2021: 16,307,282). This excludes treasury shares held by the Company.

There are 1,594,500 share options and no warrants in place at 30 June 2022 (1,435,085 share options and 130,458 warrants at 30 June 2021). 

4          STATUTORY ACCOUNTS

The Financial information set out in this announcement does not constitute the Company's Consolidated Financial Statements for the financial years ended 30 June 2022 or 30 June 2021 but are derived from those Financial Statements.  Statutory Financial Statements for 2021 have been delivered to the Registrar of Companies and those for 2022 will be delivered following the Company's AGM.  The auditors Cooper Parry Group Limited have reported on the 2021 and 2022 financial statements.  Their reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under Section 498(2) or (3) of the Companies Act 2006 in respect of the Financial Statements for 2020or 2019.

The Statutory accounts are available on the Company's website and will be posted to shareholders who have requested a copy and thereafter by request to the Company's registered office.