Pipeline of opportunities boosts confidence at industrial tech business

Sheffield-based industrial technology company, Tan Delta, says it has completed investments to increase its production capacity, in a trading update for the six months to 30 June 2024.

The business says these investments, alongside increased sales activity have resulted in a significant pipeline of prospects with an aggregate value of over £14m, up from £2.5m at the end of December 2023.

Tan Delta, which provides intelligent monitoring and maintenance systems for commercial and industrial equipment, adds it looks forward to commercialising prospects during the second half of 2024 and beyond. It notes it is currently in active negotiations with prospects valued at nearly £6m (of the £14m).

Chris Greenwood, CEO, said: “We have experienced a considerable increase in enquiries and the size and quality of our new prospects pipeline during the period.

“This is indicative of the global trend to actively monitor and manage commercial and industrial equipment to reduce cost.

“The advent of AI also means that with the right data the possibilities for these benefits are even greater.

“Given the capabilities of our core oil analysis technologies, our blue-chip customer references, and quality of our current pipeline of prospects, we look forward with confidence to the remainder of this financial year and the years ahead.”

The firm says its primary focus has been to complete the expansion of its existing production facility, a process which is now complete.

And it has begun to migrate production to a much larger external sub-contract facility, which will allow the company to assemble much larger volumes as well as support production of new high-volume sensors in the future, targeting smaller equipment in both industrial and automotive markets.

The company expects to report unaudited revenues of £0.65m in half one 2024, with gross margin of 61%, generating operating losses of about £0.5m. Cash remains healthy with £3.6m as of 30 June 2024.

Tan Delta confirmed its successful IPO and admission to trading on AIM in August last year, raising gross proceeds of about £6m.