REG - Tan Delta Systems - Trading update

Tan Delta SystemsAnnouncement

12/12/2024 07:30

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RNS Number : 8406P  Tan Delta Systems PLC  12 December 2024

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014 as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the
Company's obligations under Article 17 of MAR. Upon the publication of this
announcement, this inside information is now considered to be in the public
domain.

 

Tan Delta Systems plc

("Tan Delta" or the "Company")

 

Trading update

 

Tan Delta Systems plc (AIM:TAND), a leading provider of intelligent monitoring
and maintenance systems for commercial and industrial equipment announces a
trading update for the year ending 31 December 2024 ("FY 2024").

 

Due to a delay in some specific pipeline orders the Company's financial
results will be lower than market expectations, with revenue in FY 2024
expected to be approximately £1.2 million (FY 2023: £1.5 million), resulting
in an estimated loss before tax of approximately £1.2 million. As at year end
we expect to have cash of £3.0m, no debt, and stock of £0.7m (cost value)
which has been built up in preparation for short lead time order fulfilment.

 

The Company has built up, and continues to grow, a significant pipeline of
sales opportunities where we are working closely with customers to evaluate
and plan the implementation of our real time oil analysis systems. These
opportunities vary from very large equipment operators with several thousand
assets, to global oil and gas majors such as Shell, multi-national equipment
manufacturers such as Wartsila, to a global online retailer seeking to improve
reliability on tens of thousands of conveyor gearboxes in their fulfilment
warehouses. The sales process for each customer is similar, whereby there is a
phase of evaluation and quantification of their specific benefits and once
validated the logistics of physical implementation and integration with
existing maintenance systems and processes.

 

In the Middle East, there are four specific opportunities with equipment
operators worth in aggregate approximately $5.0 million where validation
trials have been ongoing. As previously reported in our interim results, the
trials and associated business cases has led to positive discussions around
the rollout of our systems across their equipment estates with commensurate
significant initial orders some of which were expected to be received and
delivered in the current financial year. However we now believe that these
will not be received in the current financial year.

 

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

 

"We are disappointed not to have realised our financial ambitions this year.
However, this belies the fact that we have made substantial progress with
developing new and existing sales opportunities. We are working closely with
customers to develop and plan their equipment maintenance strategies and
implementation plans with Tan Delta real time oil analysis and intelligent
equipment management at the core. I look forward to reflecting this groundwork
in our future financials."

 

 

 

For enquiries, please contact:

 Tan Delta Systems plc                                            +44 845 094 8710
 Chris Greenwood, CEO
 John Higginbottom, CFO

 Zeus (Nominated Adviser and Broker)                              +44 203 829 5000
 David Foreman, James Hornigold, Ed Beddows (Investment Banking)
 Nick Searle (Sales)

 

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