Transense Technologies PLC on Monday said it considered share buybacks as more tax efficient than dividends, as it reported a surge in annual profit.

The Bicester, Oxfordshire-based developer of specialist sensor systems for vehicles said pretax profit in the financial year to June 30 rose to £866,000 from £268,000 a year prior. Revenue climbed 34% to £3.5 million from £2.6 million.

The company said that share buybacks are considered more flexible and tax efficient than dividends, deciding against payouts. In financial 2023, it completed share buybacks of £400,000, up 33% from £300,000 in financial 2022.

Transense said in the first two months of its new financial year, revenue has risen 16% annually, with its commercial pipeline in Translogik and SAWsense expanding.

Executive Chair Nigel Rogers said: ‘We have visibility of several exciting growth opportunities for Translogik and are now adding an experienced and successful business development leader with sole focus on the delivery of greater scale and reach. There has been a rapid expansion of market awareness at SAWsense, and an increasing intensity of funded development projects. Taken together with the potential to add depth, breadth and longevity to the intellectual property portfolio of this segment, the directors are confident of achieving a financially self-sustaining business model with substantial strategic value.’

Transense Technologies shares were 4.0% higher at 104.00 pence each on Monday afternoon in London.

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