Tan Delta Systems PLC on Tuesday said that its 2023 revenue would fall below expectations, as progress since its initial public offering has been ‘slower than originally envisaged’.

Tan Delta is a Sheffield, England-based provider of oil-quality monitoring and maintenance systems for commercial and industrial equipment.

Revenue for the 2023 full year is expected at around £1.4 million, down from £1.6 million in 2022. The group attributes this drop, which falls below management expectations, to delays in a number of mature trials planned for 2023 and now expected to roll out in the first half of 2024.

After floating on the AIM market of the London Stock Exchange in August, the group said it has struggled to recruit the right people for its ‘rapid scaling plans’. Delays to this process have resulted in a cost saving to its original budget, and Tan Delta anticipates an adjusted net loss of £400,000 for the full year in line with management expectations.

The company is still searching for a second independent non-executive director, but said that it remains ‘optimistic that an appropriate candidate will be appointed in due course’.

Tan Delta said that it is progressing discussions with a number of potential customers, including ‘one of the world’s largest ship engine manufacturers’. The group said that its systems are a ‘considered purchase’, and therefore expects to see the interest in its products translate into sales at the end of the first quarter.

Shares in Tan Delta were down 8.7% at 21.00 pence each in London on Tuesday morning. Its shares had floated at 26p.

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