**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 ยฃ5.2m, including ยฃ2.0m 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 ยฃ1.33m 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.
Below is an HTML table comparing the financial and debt-related metrics year-on-year based on the provided text. The table includes key figures such as revenue growth, cash balances, and royalty income for the periods mentioned.
### Explanation:
- **Group Revenue and Royalty Income**: The FY26 forecast is compared to previous expectations, showing a reduction in royalty income.
- **Cash Balance**: The cash balance increased from ยฃ1.14m at 30 June 2025 to ยฃ1.33m at 31 December 2025.
- **Revenue Growth**: SAWsense and Translogik revenue growth rates are provided for H1 FY26, with Translogik showing slower growth due to subdued demand.
- **Royalty Income**: Bridgestone iTrack royalty income decreased by 35% in H1 FY26 compared to the prior year, impacted by lower unit rates and adverse currency conversion. This table provides a clear comparison of key financial and debt-related metrics year-on-year.