TAND Tan Delta Systems Plc

Tan Delta Systems plc

('Tan Delta', or the 'Company')

Interim results for the six months ended 30 June 2024

Tan Delta (AIM:TAND), a leading provider of intelligent monitoring and maintenance systems for commercial and industrial equipment is pleased to report its financial results for the six months ended 30 June 2024 ('H1 2024' or 'the Period').

Financial highlights:            

·      H1 revenue of £0.66m (H1 2023: £0.96m)

·      Gross profit margin of 61% (H1 2023: £61%)

·      Loss before tax of £0.53m (H1 2023: loss of £0.30m)

·      £3.62m cash as at 30 June 2024(H1 2023: £0.33m)

Commenting on the results, Chris Greenwood, Tan Delta CEO said:

"The year to date has been an exciting and fast-moving period of operational and sales development. The Company ends the period with £3.62m of cash, a significant and growing pipeline of new customers and contracts. Despite some frustration with the speed of conversion, included in our pipeline are four specific pending contracts worth £4.5m of which I am optimistic that at least £1.85m will close and be shipped during the current year."

For further enquiries:

Notes to editors

Tan Delta is an industrial-tech business that enables operators of commercial and industrial equipment reduce operating and maintenance costs and improve reliability. Our business is built around our unique proprietary core sensor technology that analyses lubrication oil in real time generating data rich with insight which with the application of analytics converts into actionable information for equipment operators that can enable oil consumption and associated cost savings of up to 50%. Our customers include operators of all types of equipment that rely upon engines and gearboxes, from the largest ships to mining trucks, generators, and wind turbines, applicable applications are ubiquitous and worldwide.

www.tandeltasystems.com

Statement of profit or loss and other comprehensive income

Statement of financial position

Statement of changes in equity

Statement of cash flows

Notes to the condensed interim financial statements

1.      General information

The interim financial statements were approved by the Board of Directors on the 27^th of September 2024.

2.      Basis of preparation

The interim financial statements of the Company are for the six months ended 30 June 2024.

The financial statements were prepared under International Financial Reporting Standards ('IFRS'). The comparative figures were audited and prepared in accordance to International Financial Reporting Standards ('IFRS') and the provisions of the Companies Act 2006.

The condensed interim financial statements for H1 2024 do not include all the information and disclosures required in the annual financial statements and have not been audited or reviewed by an auditor pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.  However, selected explanatory notes are included to explain events and transactions that are significant for an understanding of the changes in the Company's financial position and performance in the period.

The condensed interim financial statements for H1 2024 have been prepared based on the accounting policies expected to be adopted for the year ending 31 December 2024.  These accounting policies are drawn up in accordance with adopted International Accounting Standards ('IAS') and International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board and adopted by the EU.

AIM-listed companies are not required to comply with IAS 34 'Interim Financial Reporting' and accordingly the Company has taken advantage of this exemption.

IPO costs

On Admission to AIM on 18 August 2023, the Company issued 23,074,000 new ordinary shares, taking the number of ordinary shares in issue to 73,223,800. Total proceeds amounted to circa £6.0m.  The costs associated with the IPO, which were committed at 30 June 2023 amounted to £0.47m and at 30 December 2023 £0.74m. The costs were recognised as non-underlying expenses in the income statement.

6.      Income tax expense

No income has yet been recognised in H1 2024 in relation to R&D tax credits available from HMRC through the SME R&D relief scheme.

The calculation of basic earnings per share is based on the results attributable to ordinary shareholders divided by the number of ordinary shares outstanding as if the bonus issue and share split had occurred at the beginning of the earliest period presented. The earnings per share calculations for the period and prior period presented are based on the new number of shares.

The number of shares in issue at the end of the period is used as the denominator in calculating basic earnings per share.  As the Company is loss making the effect of instruments that convert into ordinary shares is considered anti-dilutive, hence there is no difference between the diluted and non-diluted loss per share.

During the period ended 30 June 2023, the Company completed a 110 for 1 bonus share issue and a subdivision of shares. Prior to the bonus issue there were 451,800 shares at £0.001, after the bonus issue there are 50,149,800 shares at £0.001. On Admission to AIM on 18 August 2023, the Company issued 23,074,000 new ordinary shares, taking the number of ordinary shares in issue to 73,223,800.

Banks loans comprise a Coronavirus Business Interruption Loan provided by Lloyds. The loan was taken out in August 2021 and fully repaid in August 2023.

Called up share capital

Called up share capital represents the nominal value of shares that have been issued.

All classes of shares have full voting, dividends, and capital distribution rights.

On 1 June 2023, the ordinary shares were subdivided from £0.01 to £0.001 (45,180 shares to 451,800 shares). Subsequently a bonus issue was made for all the shareholders holding 451,800 shares at that date.  The bonus issue offered 110 ordinary shares for every 1 ordinary share in issue, with a nominal value of £0.001 per share.  This increased the number of ordinary shares in issue by 49,698,000 to 50,149,800.

On Admission to AIM on 18 August 2023, the Company issued 23,074,000 new ordinary shares, taking the number of ordinary shares in issue to 73,223,800 from 50,149,800.

13.  Reserves

In anticipation of re-registering the Company as a public limited company ('plc'), at a general meeting of the Company on 1 June 2023, it was resolved that the Company would reduce its share premium account by an amount of £1.52m by crediting the Profit and Loss Account.

Share premium account.

This represents the excess value recognised from the issue of ordinary shares above nominal value.

Retained earnings.

This represents cumulative net gains and losses less distributions made.

14.  Post balance sheet events

No adjusting events have occurred between reporting date and the date of authorisation of the condensed interim report.

15.  Availability

Further copies of this interim announcement are available on the Tan Delta Systems plc website,

www.tandeltasystems.com.