Transense Technologies Plc (LON:TRT) Chief Executive Officer Graham Storey caught up with DirectorsTalk for an exclusive interview to discuss the sale of its IntelliSAW division for $5 million and how they intend to use those funds
Q1: You’ve announced the sale of your IntelliSAW division for $5 million, could you give us a bit more background to the transaction and the decision to sell?
A1: Essentially, this was originally an IP deal, a licencing deal that we did with an American company called Dover Corporation. Their focus changed as they moved forward into other areas and we realised that it was a very good application for our technology so we actually took on the role of developing the business which became IntelliSAW. The decision to sell that now, and it shouldn’t really be viewed as a sale, it’s more of an IP licencing deal because we have licenced Emerson to use the strict application of our technology that IntelliSAW requires so the real value of the deal is obviously cash up front, reducing our cash draw which makes a significant difference to us, it’s circa £100,000 a month which is very significant, and also the value going forward for us is that we now have a huge conglomerate which is commercialising, on a significant scale, our core IP. I think there is very likely to be other opportunities for us to licence other uses of our IP to companies like Emerson and to some of the other companies that we’ve announced that we’re already dealing with and others that we’re not at liberty to do so, both in automotive and industrial.
Q2: Following the sale and the recent fund raise, you now have a strong balance sheet. Can you tell us where the focus of Transense will be going forward and how you intend to use those funds?
A2: Very much focussed on increasing sales through developing new channels. We have different models in different territories, for example in Australia with the iTrack system that we sell, that Translogik sell, we have a channel that we’re using there, we’ve got a distributor and in Chile we employ our own staff so depending on which territory, it’ll be about developing new channels or increasing sales staff and obviously increasing marketing.
Q3: You mentioned the mining sector is important to you, how are finding that sector at the moment?
A3: Obviously the sector is having all sorts of difficulties given the fall in commodity sales but actually that’s been a good thing for us because the miners are very focussed on saving money and that’s exactly what our iTrack system does. So conversely it’s a good time for us because people are very much keener than they were 2 or 3 years ago in maximising tyre life, increasing production which is, as I say, exactly what iTrack does so a good time for us.
