Transense Technologies (AIM:TRT) shares fell around 35% on Friday after telling investors it expects group revenue for the year ending 30 June 2026 to be at least £5.20 million, and that royalties from Bridgestone iTrack would be some 10% less than previously forecast.
Royalties from Bridgestone iTrack were now expected at around £2 million, it said.
Moreover, it cautioned investors that revenue for its two trading divisions, SAWsense and Translogik, is expected to have grown by at least 30%, but overall profitability would be 'materially below market expectations'.
"Naturally, I am disappointed that a general slowdown in new business conversion has caused us to re-evaluate the outturn for the current year, and to take a more prudent view of the period of time required to meet the trajectory previously anticipated," executive chair Nigel Rogers said in a statement.
"Notwithstanding this caution, the board remains confident that both SAWsense and Translogik are progressing well and will deliver sustainable growth in future."
Giving more detail, the Oxfordshire-based sensors and measurement specialist said in the first half of the year, SAWsense revenue rose by more than 70%, and Translogik revenue was up 13% maintained an upward trend into January. Royalty income from Bridgestone iTrack, meanwhile, had been seen to fall some 35% year-over-year amidst a 40% decline in unit rates.
Transense told investors it remained profitable and cash generative in the first half, ending December with £0.92 million of net cash.