News: Rotherham firm working in partnership with four of the world's leading engine manufacturers
Innovative Rotherham firm, Tan Delta Systems, has reported on a frustrating financial year but say that the strategic groundwork is being laid with a tenfold increase in active trials.
Based at Dinnington, Tan Delta provides equipment monitoring technologies and solutions that use real time oil analysis to enable material reductions in maintenance costs, improve reliability and reduce carbon footprint. Tan Delta currently supplies a growing customer base of blue-chip multinationals and equipment operators.
The company joined the stock exchange in 2023, raising approximately £6m to be used for further expansion.
For the twelve months ended 31 December 2024, revenue of £1.22m was down 16% on the previous year. Chief exec Chris Greenwood said that this was primarily due to "extended timelines required to mature high-value customer opportunities, reflecting both the complexity and potential scale of our pipeline."
Tan Delta was co-founded in 2007 by Greenwood to develop the concept of real time oil condition analysis and to provide equipment operators with greater insight on the health and status of their equipment, thus allowing more efficient equipment operation.
Operators in a variety of industries, including power generation, mining, oil/gas and shipping, can reduce oil consumption by ensuring oil is not changed before it has reached the end of its life, and reduce breakdowns and associated costs by detecting issues before damage or failure occurs.
Tan Delta now has over 20 active trials and a commercial pipeline exceeding £35m, a tenfold increase from the end of 2023.
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Greenwood added: "Our challenge has not been a lack of opportunity - in fact, the scale and quality of engagements in our pipeline continue to grow. Conversion of trials to order and the time that takes has been frustrating at times and we have taken numerous steps in our customer engagement processes to standardise our approach to planning and executing trials to address this from which we are already seeing very early positive signs. Much of this is linked to the larger size and scale opportunities now being seen."
Highlights for the year include the signing of two new distribution agreements in the Middle East, growing the regional pipeline from zero to over £14m. Tan Delta also said that it was now working in active collaboration with four of the world's seven major engine manufacturers.
Engagements have been made with a global logistics firm monitoring tens of thousands of assets, two Middle East rental companies (each with over 2,000 fleet assets), and a UK utility trial monitoring critical gearboxes with potential to scale. Additionally, Tan Delta is collaborating with several major engine OEMs on multiple projects across marine and power generation applications.
With newly developed advanced AI analytics, predictive maintenance capabilities, and a cloud-based platform, Tan Delta aims to enable the transition from a sensor provider to a data-driven solutions business.
One new product is a new sensor for water-based fluids such as coolant, driven by demand from a major engine OEM who has co-funded the project.
Simon Tucker, chairman of Tan Delta, said: ""With minimal marketing, the company enjoys significant interest in its real time oil analysis based equipment monitoring solutions. The business enjoys a fundamental base for its position in the market which is its unique core technology and, after several years supplying small numbers to some notable entities such as SHELL, all important credibility. It has developed a focused pipeline of sales opportunities where and is now supporting multiple evaluations that range from the world's largest online retailer who operates hundreds of thousands of gearboxes, to operators of power generators across the middle east. The opportunity is very significant.
"By their nature the decision and planning to adopt Tan Delta and integrate it into their maintenance and operating plans are significant and long term commitments which require careful planning which takes time to come to fruition and a conversion into sale contracts that realise a customer with repeat sales for many years into the future. This is the reason for the build-up of the sales pipeline and the relatively slow conversion. Given the significant size of some of our opportunities, anyone of which is transformational for the business, the Board has actively guided the management team to focus on these to minimise closure times, before seeking to expand further, and we expect to start to see this happening in the near future."
Tan Delta website
Images: Tan Delta
Based at Dinnington, Tan Delta provides equipment monitoring technologies and solutions that use real time oil analysis to enable material reductions in maintenance costs, improve reliability and reduce carbon footprint. Tan Delta currently supplies a growing customer base of blue-chip multinationals and equipment operators.
The company joined the stock exchange in 2023, raising approximately £6m to be used for further expansion.
For the twelve months ended 31 December 2024, revenue of £1.22m was down 16% on the previous year. Chief exec Chris Greenwood said that this was primarily due to "extended timelines required to mature high-value customer opportunities, reflecting both the complexity and potential scale of our pipeline."
Tan Delta was co-founded in 2007 by Greenwood to develop the concept of real time oil condition analysis and to provide equipment operators with greater insight on the health and status of their equipment, thus allowing more efficient equipment operation.
Operators in a variety of industries, including power generation, mining, oil/gas and shipping, can reduce oil consumption by ensuring oil is not changed before it has reached the end of its life, and reduce breakdowns and associated costs by detecting issues before damage or failure occurs.
Tan Delta now has over 20 active trials and a commercial pipeline exceeding £35m, a tenfold increase from the end of 2023.
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Greenwood added: "Our challenge has not been a lack of opportunity - in fact, the scale and quality of engagements in our pipeline continue to grow. Conversion of trials to order and the time that takes has been frustrating at times and we have taken numerous steps in our customer engagement processes to standardise our approach to planning and executing trials to address this from which we are already seeing very early positive signs. Much of this is linked to the larger size and scale opportunities now being seen."
Highlights for the year include the signing of two new distribution agreements in the Middle East, growing the regional pipeline from zero to over £14m. Tan Delta also said that it was now working in active collaboration with four of the world's seven major engine manufacturers.
Engagements have been made with a global logistics firm monitoring tens of thousands of assets, two Middle East rental companies (each with over 2,000 fleet assets), and a UK utility trial monitoring critical gearboxes with potential to scale. Additionally, Tan Delta is collaborating with several major engine OEMs on multiple projects across marine and power generation applications.
With newly developed advanced AI analytics, predictive maintenance capabilities, and a cloud-based platform, Tan Delta aims to enable the transition from a sensor provider to a data-driven solutions business.
One new product is a new sensor for water-based fluids such as coolant, driven by demand from a major engine OEM who has co-funded the project.
Simon Tucker, chairman of Tan Delta, said: ""With minimal marketing, the company enjoys significant interest in its real time oil analysis based equipment monitoring solutions. The business enjoys a fundamental base for its position in the market which is its unique core technology and, after several years supplying small numbers to some notable entities such as SHELL, all important credibility. It has developed a focused pipeline of sales opportunities where and is now supporting multiple evaluations that range from the world's largest online retailer who operates hundreds of thousands of gearboxes, to operators of power generators across the middle east. The opportunity is very significant.
"By their nature the decision and planning to adopt Tan Delta and integrate it into their maintenance and operating plans are significant and long term commitments which require careful planning which takes time to come to fruition and a conversion into sale contracts that realise a customer with repeat sales for many years into the future. This is the reason for the build-up of the sales pipeline and the relatively slow conversion. Given the significant size of some of our opportunities, anyone of which is transformational for the business, the Board has actively guided the management team to focus on these to minimise closure times, before seeking to expand further, and we expect to start to see this happening in the near future."
Tan Delta website
Images: Tan Delta
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