TIDMUBI
RNS Number : 5290O
Ubisense Group PLC
20 September 2011
20 September 2011
Ubisense Group plc
Interim revenues up 41%, strong revenue visibility for H2
Ubisense Group plc (AIM: UBI, "Ubisense" "the Group"), the
market-leading location solutions company, has announced its
interim results for the six months ended 30 June 2011.
Financial highlights
-- Revenue increased 41% to GBP11.3m (H1 2010: GBP8.0m)
-- Adjusted EBITDA* of GBP0.4m (H1 2010: GBP0.5m)
-- Operating profit, excluding AIM admission costs, of GBP0.2m
(H1 2010: GBP0.2m)
-- Reported operating loss GBP0.1m (H1 2010: operating profit
GBP0.2m)
-- Adjusted diluted EPS** 2.6p (H1 2010: 2.7p)
-- Net cash of GBP8.1m
Other highlights
-- Initial public offering on AIM with substantially
oversubscribed fundraising raising GBP5.0m before expenses for the
Group and GBP3.7m for selling shareholders
-- BMW global licence and orders for Cowley, UK and Shenyang,
China
-- FPS sale to Deutsche Telekom
-- French subsidiary established
Richard Green, Chief Executive, said:
"We have delivered a robust set of results, our first, as a
listed company, with a strong increase in revenues, a substantial
order book and growing opportunity pipeline.
"Admission to AIM marked an important landmark in the Group's
development. It has provided us with a strong platform to support
the rapid growth of our business and to leverage existing customer
relationships with global leaders such as Aston Martin, Atlas
Copco, BMW, Deutsche Telekom and EADS.
"With good momentum in the business and a growing order book, we
remain confident that this robust performance will continue in the
second half of 2011."
* Measured as operating profit excluding depreciation,
amortisation, share-based payments charge and AIM listing
expenses.
** Earnings measured as profit for the period excluding
depreciation, amortisation, share-based payments charge and AIM
listing expenses.
Enquiries:
Ubisense www.ubisense.net
Richard Green, Chief Executive
Officer +44 (0) 1223 535170
Gordon Campbell, Chief Financial
Officer
College Hill +44 (0) 20 7457 2020
Adrian Duffield / Jon Davies
Canaccord Genuity
Simon Bridges/Henry Fitzgerald-O'Connor +44 (0) 20 7050 6500
Note to editors
Ubisense is the market-leading location solutions company,
delivering mission-critical enterprise asset tracking and
geospatial systems that bring visibility and control to previously
intractable business processes. The Group operates in two
divisions, RTLS and Geospatial.
Through its RTLS division, Ubisense is a world leader in
real-time location solutions allowing companies to track assets
(such as tools, people and vehicles) within factories and other
indoor environments in real time in three dimensions. Ubisense's
end-to-end Real Time Location System (RTLS) solutions provide
dynamic and precise indoor tracking of assets, helping its clients,
which are primarily in the automotive, aerospace and transportation
industries, to bring visibility and control to business processes
thereby helping to lower costs and drive logistical
efficiencies.
The Geospatial division uses Ubisense's expertise in location
solutions to help large infrastructure companies, such as utilities
and telecom companies, to map, plan, manage and optimise their
networks across large geographic areas.
Ubisense is headquartered in Cambridge, UK and has offices in
the USA, Canada, France, Germany, Singapore and Korea. For more
information please visit: www.ubisense.net
Overview
Ubisense is a world leader in providing end-to-end real-time
location solutions, including hardware, software and services, to
companies allowing them to track people and assets with a high
degree of accuracy.
The first half of the year to 30 June 2011 saw a number of
significant developments for the Group. The Group's revenues
increased by 41% to GBP11.3 million (2010: GBP8.0 million) as two
flagship customers (BMW and Airbus) started to roll out Ubisense's
RTLS solutions.
Ubisense was admitted to AIM on 22 June 2011 following an
over-subscribed placing with institutional investors which raised
GBP8.7 million before expenses. The proceeds of the placing provide
the Group with a strong platform to support the rapid growth of its
RTLS division and to take advantage of opportunities to develop the
Geospatial business, both organically and by acquisition.
Ubisense operates in two divisions:
-- The RTLS division uses Ubisense's proprietary ultra-wideband
technology to track assets, such as tools, people and vehicles, in
factories and other indoor environments to an accuracy of 15cm in
three dimensions, a degree of accuracy in places that
satellite-based systems cannot currently achieve.
Ubisense's RTLS technology has successfully been adopted within
the automotive industry by several large-scale manufacturers
(including BMW and Aston Martin) and within the aerospace industry
by the EADS Group (notably Airbus and Eurocopter).
-- The Geospatial division provides detailed mapping of network
assets, network management, planning and design for large
infrastructure companies, primarily in the utilities and telecom
sectors, and has particular expertise in GE Smallworld software and
solutions. Smallworld provides the foremost Geospatial solution for
sophisticated utility network applications. Integration, through
Smallworld, with software such as Google Maps and the ability to
operate Ubisense's myWorld application on smart phones and tablets
gives Ubisense a strong competitive position in a rapidly
developing market. Key customers of this division include Deutsche
Telekom, Swisscom, ExxonMobil and Duke Energy.
Strategy
Ubisense's business strategy is to build upon its existing
customer relationships and secure new customer relationships,
whilst expanding and diversifying its RTLS and Geospatial
offerings.
There is a significant opportunity to increase the penetration
of the Group's RTLS offering within the automotive sector by
leveraging both its existing customers and the strategic
partnership that Ubisense has developed with Atlas Copco, one of
the world's leading industrial tool manufacturers. Ubisense and
Atlas Copco have jointly developed a tool location system ("TLS")
which is fully integrated with the Atlas Copco Tools Talk system
and is marketed by Atlas Copco as part of its own product line.
Beyond the automotive industry, Ubisense is seeking to expand on
its existing relationship with Airbus and its ultimate parent
company EADS Group. Ubisense's RTLS solutions also have the
potential to be used extensively in a number of different areas for
example, in agriculture, military training, logistics and health
and safety.
The Geospatial division has a significant opportunity to
establish a leadership position in the Geospatial industry through
accretive investment in new geographic territories and
complementary intellectual property. In particular, the Geospatial
division is uniquely positioned to service the GE Smallworld
customer base as a number of key employees at Ubisense were
employees of Smallworld prior to its acquisition by GE Energy in
2000.
Divisional review
RTLS division
The RTLS division has continued to grow during the first half,
winning business from both new and existing accounts, which
resulted in record first half revenue of GBP3.9 million.
Ubisense, together with its partner IBS AG in Germany, signed a
global licence agreement with BMW to provide its RTLS solution to
all assembly plants across the BMW Group. BMW subsequently placed
orders to deploy the Ubisense solution in the Mini plant at Cowley,
UK, and at its Shenyang plant in China. Follow-on projects at
existing BMW plants in Regensburg, Germany, and Spartanburg, USA,
have also been won.
In 2010, the Group signed a master contract with EADS and began
a five year managed services agreement with Airbus to support the
manufacture of the A380 across four hangars in France, Germany and
the UK. Recently, the Group has received an order for a further
hangar as well as an order for the A350 plane.
The Chicago Transit Authority (CTA) became the Group's latest
large transit deal in the US, following the signing of a deal to
install the Group's Transit Yard Management (TYM) system at seven
depots in the city to deliver fast, reliable information about the
exact location of CTA's fleet of 1,700 buses.
The Group has invested in building its R&D and sales teams,
including establishing a subsidiary in France. The division
continues to explore opportunities for expansion in Asia. On 3
August 2011, the Group announced that its Series 7000 RTLS
industrial tags and sensors had been certified for use in China by
the country's stringent regulatory authorities. This development
opens up enormous commercial opportunities to the business,
particularly given China has a lucrative automotive market which
produced more than nine million passenger cars and commercial
vehicles in the first six months of 2011.
Geospatial division
The Geospatial division delivered significant growth in the
first half, led by the sale of a newly developed product - FTTx
Planning System (FPS) - to Deutsche Telekom. FPS generates
automatically a cost-optimised detailed network configuration
suitable for laying a fibre network, thereby enabling a reduction
in time-to-market for large scale FTTx roll-outs. The division is
making good progress in utilising its knowledge and experience to
further develop this product, as well as a range of applications
for the Geospatial market.
Since the first half, the division secured a major new win to
implement GE's geospatial product suite for a large US electric and
gas utility. The products, including GE Smallworld Core Spatial
Technology, GE Smallworld Electric Office, GE Gas Distribution
Office and PowerOn, will be rolled out over a 14-month period. The
solution has been designed to support over 1,000 employees and
external contractors, and will enable the utility to improve
safety, service and reliability across its 6,000 square mile
service area.
In order to expand capacity and capability to deliver projects,
the division recruited nine new employees to bring headcount to 57,
including the first Geospatial employee in the UK.
Financial review
Group revenues in the six months to 30 June 2011 were GBP11.3
million, up 41% (2010: GBP8.0 million).
The RTLS division increased revenues by 83% to GBP3.9 million
(2010: GBP2.1 million), 35% of Group revenue. This increase is a
result of continued large-scale roll-outs of installations with BMW
and Airbus. The Geospatial division increased revenues by 26% to
GBP7.4 million (2010: GBP5.9 million), 65% of Group revenue.
Group gross profit increased by 42% to GBP3.6 million (2010:
GBP2.5 million). Gross margins increased to 32% (2011: 31%),
reflecting the increased proportion of higher margin revenues
generated by the RTLS division.
Excluding one-off AIM admission costs, administrative expenses
were GBP3.4 million (2010: GBP2.3 million) which reflects the
increase in headcount, focussed on commercial and technical roles
in both sales and marketing as well as R&D. Overall, permanent
headcount increased by 19 to 132 staff.
Adjusted EBITDA was GBP0.4 million (2010: GBP0.5 million).
Adjusted EBITDA excludes non-cash share-based payments and the
one-off GBP324,000 AIM Admission cost.
Operating profit, excluding AIM Admission costs, was GBP0.2
million (H1 2010: GBP0.2 million). Reported operating loss was
GBP0.1 million (H1 2010: operating profit GBP0.2 million).
The reported loss before tax was GBP0.3 million (2010: profit
GBP0.1 million), after the inclusion of the AIM admission
costs.
The Group has a net tax credit of GBP0.1 million as a result of
the receipt of R&D tax credits.
Adjusted diluted EPS was 2.6 pence (2010: 2.7 pence). Reported
diluted loss per share was 1.6 pence (H1 2010: earnings 0.9
pence).
The Board is not paying an interim dividend. The recently raised
cash will be used to fund growth, research and development and
potential acquisitions.
At the time of the Group's initial public offering on AIM, the
Group issued 2.8 million shares raising gross cash proceeds of
GBP5.0 million, enabling the repayment of the Group's debt,
facilitating capital investment in R&D and equipment and
providing the platform to fund organic and, potentially, inorganic
growth. At the same time, selling shareholders placed out GBP3.7
million of shares.
As a result of the fund-raisings earlier in November 2010, which
raised GBP4.8 million, and at the time of the admission to AIM in
June this year, the Group has a strong balance sheet. The Group's
cash balances at 30 June 2011 were GBP8.1 million (June 2010:
GBP1.0 million).
Current trading and outlook
The Board continues to evaluate acquisition opportunities to
accelerate the growth of the Group, particularly for its Geospatial
division, although it will remain prudent in considering any such
opportunities.
Ubisense enters the second half of 2011 with strong momentum in
the business. Revenue for the first half was 64% of the revenue for
the whole of 2010 financial year. With a strong order book and
pipeline, this performance is anticipated to continue in the second
half of 2011, in line with Board expectations.
Consolidated income statement
For the six months ended 30 June 2011
Six months Six months
to to 12 months to
31 December
30 June 2011 30 June 2010 2010
unaudited unaudited audited
Notes GBP'000 GBP'000 GBP'000
Revenue 6 11,255 7,990 17,697
Cost of sales (7,684) (5,483) (11,762)
Gross Profit 3,571 2,507 5,935
Administrative expenses (3,719) (2,267) (5,308)
Operating (loss)/profit 6 (148) 240 627
Analysed as:
Adjusted EBITDA 415 454 1,041
Depreciation (67) (55) (97)
Amortisation (164) (148) (299)
Share-based payments
charge (8) (11) (18)
AIM listing expenses (324) - -
Operating (loss)/profit 6 (148) 240 627
Finance income 7 8 1 5
Finance costs 7 (180) (110) (237)
(Loss)/profit before tax (320) 131 395
Income tax 8 66 (21) 3
(Loss)/profit for the
period attributable to
the equity shareholders
of the Company (254) 110 398
Earnings per share
(pence)
Basic 9 (1.6p) 0.9p 3.3p
Diluted 9 (1.6p) 0.9p 3.2p
Consolidated statement of comprehensive income
For the six months ended 30 June 2011
Six months Six months
to to 12 months to
31 December
30 June 2011 30 June 2010 2010
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
(Loss)/profit for the period (254) 110 398
Other comprehensive income:
Exchange difference on
retranslation of net assets
and results of overseas
subsidiaries 66 (59) (29)
Total comprehensive income
attributable to equity
shareholders of the Company (188) 51 369
Consolidated statement of changes in equity
For the six months ended 30 June 2011
Share Share Other Retained
capital premium reserves earnings Total
GBP0'000 GBP0'000 GBP0'000 GBP0'000 GBP0'000
Balance at 1
January 2010
(audited) 235 9,773 961 (4,670) 6,299
Profit for the
period - - - 110 110
Exchange difference
on retranslation
of net assets and
results of
overseas
subsidiaries - - (59) - (59)
Total comprehensive
income for the
period - - (59) 110 51
Reserve credit for
equity-settled
share-based
payment - - 11 - 11
Issue of new share
capital 1 - - - 1
Premium on new
share capital - 16 - - 16
Transactions with
owners 1 16 11 - 28
Balance at 30 June
2010 (unaudited) 236 9,789 913 (4,560) 6,378
Profit for the
period - - - 288 288
Exchange difference
on retranslation
of net assets and
results of
overseas
subsidiaries - - 30 - 30
Total comprehensive
income for the
period - - 30 288 318
Reserve credit for
equity-settled
share-based
payment - - 7 - 7
Equity component of
loans - - 3 - 3
Issue of new share
capital 68 - - - 68
Premium on new
share capital - 4,957 - - 4,957
Share issue costs - (196) - - (196)
Transactions with
owners 68 4,761 10 - 4,839
Balance at 31
December 2010
(audited) 304 14,550 953 (4,272) 11,535
Loss for the period - - - (254) (254)
Exchange difference
on retranslation
of net assets and
results of
overseas
subsidiaries - - 66 - 66
Total comprehensive
income for the
period - - 66 (254) (188)
Reserve credit for
equity-settled
share-based
payment - - 134 - 134
Equity component of
loans - - (502) 502 -
Issue of new share
capital 129 - - - 129
Premium on new
share capital - 7,968 - - 7,968
Share issue costs - (591) - - (591)
Transactions with
owners 129 7,377 (368) 502 7,640
Balance at 30 June
2011 (unaudited) 433 21,927 651 (4,024) 18,987
A reconciliation of the components of Other reserves is given
in note 12.
Consolidated statement of financial position
At 30 June 2011
At 30 June At 30 June At 31 December
2011 2010 2010
unaudited unaudited audited
Notes GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Goodwill 6,069 6,069 6,069
Other intangible assets 693 471 525
Property, plant and
equipment 358 231 279
Total non-current
assets 7,120 6,771 6,873
Current assets
Inventories 784 236 364
Trade and other
receivables 7,774 5,031 6,900
Cash and cash equivalents 8,077 1,034 7,130
Total current assets 16,635 6,301 14,394
Total assets 23,755 13,072 21,267
Liabilities
Current liabilities
Loans and borrowings 10 - (2,206) (2,372)
Trade and other payables (4,587) (3,051) (5,974)
Total current liabilities (4,587) (5,257) (8,346)
Non-current liabilities
Loans and borrowings 10 - (1,310) (1,246)
Deferred tax (181) (127) (140)
Total non-current
liabilities (181) (1,437) (1,386)
Total liabilities (4,768) (6,694) (9,732)
Net assets 18,987 6,378 11,535
Equity
Equity attributable
to owners of the parent
company
Share capital 111 433 236 304
Share premium account 21,927 9,789 14,550
Other reserves 12 651 913 953
Retained earnings (4,024) (4,560) (4,272)
Total equity 18,987 6,378 11,535
Consolidated statement of cash flows
For the six months ended 30 June 2011
Six Six
months months 12 months
to to to
31
30 June 30June December
2011 2010 2010
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
(Loss)/profit before tax (320) 131 395
Adjustments for:
Depreciation 67 55 97
Amortisation 164 148 299
Share-based payments charge 8 11 18
Finance income (8) (1) (5)
Finance costs 180 110 237
Foreign exchange differences 19 78 (12)
Operating cash flows before
working capital movements 110 532 1,029
Change in inventories (420) 28 (100)
Change in receivables (880) (1,374) (3,244)
Change in payables (1,844) 123 3,009
Cash generated by operations
before tax (3,034) (691) 694
Net income taxes received/(paid) 107 (13) 32
Net cash flows from operating
activities (2,927) (704) 726
Cash flows from investing
activities
Purchases of property, plant
and equipment (146) (124) (218)
Purchases of intangible assets (340) (195) (400)
Interest received 8 1 5
Net cash flow from investing
activities (478) (318) (613)
Cash flows from financing
activities
Proceeds from the issue of
borrowings - - 150
Repayment of borrowings (892) (167) (255)
Interest paid (42) (53) (108)
Proceeds from the issue of
share capital 5,238 17 4,846
Net cash flows from financing
activities 4,304 (203) 4,633
Net increase in cash and cash
equivalents 899 (1,225) 4,746
Cash and cash equivalents
at start of period 7,130 2,396 2,396
Exchange differences on cash
and cash equivalents
7 48 (137) (12)
Cash and cash equivalents
at end of period 8,077 1,034 7,130
Notes to the interim financial statements
1. General information
Ubisense Group plc ('the Company') and its subsidiaries
(together, 'the Group') deliver mission-critical enterprise asset
tracking and geospatial systems.
The Group has operations in the UK, US, Canada, France, Germany,
Korea and Singapore and sells mainly in the US and Europe.
The Company is a public limited company which is listed on the
Alternative Investment Market ('AIM') of the London Stock Exchange
(UBI.L) and is incorporated and domiciled in the UK. The address of
its registered office is St. Andrew's House, 90 St. Andrew's Road,
Chesterton, Cambridge, CB4 1DL.
The condensed consolidated interim financial statements were
approved by the Board of Directors for issue on 19 September
2011..
The condensed consolidated interim financial statements do not
comprise statutory accounts within the meaning of section 434 of
the Companies Act 2006. Statutory accounts for the year ended 31
December 2010 were approved by the Board of Directors on 21 April
2011 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under section 498 of the Companies Act 2006.
The condensed consolidated interim financial statements have
been reviewed, not audited.
2. Basis of preparation
The condensed consolidated interim financial statements should
be read in conjunction with the annual financial statements of the
Group and are prepared in accordance with IFRSs as adopted by the
European Union.
Going concern basis
The Group's forecasts and projections, taking account of
reasonably possible changes in trading performance, support the
conclusion that there is a reasonable expectation that the Company
and the Group have adequate resources to continue in operational
existence for the foreseeable future, a period of not less than
twelve months from the date of this report. The Group therefore
continues to adopt the going concern basis in preparing its
condensed consolidated interim financial statements.
3. Accounting policies
The accounting policies adopted in the preparation of the
condensed consolidated interim financial statements are consistent
with those followed in the preparation of the Group's consolidated
financial statements for the year ended 31 December 2010.
Exceptional items are disclosed and described separately in the
financial statements where it is necessary to do so to provide
further understanding of the financial performance of the Group.
They are material items of income or expense that have been shown
separately due to the significance of their nature or amount.
The operations of the Group are not subject to significant
seasonality.
4. Estimates
The preparation of interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
In preparing these condensed consolidated interim financial
statements, the significant judgements made by management in
applying the group's accounting policies and the key sources of
estimation and uncertainty were the same as those that applied to
the consolidated financial statements for the year ended 31
December 2010.
5. Risks and uncertainties
An outline of the key risks and uncertainties faced by the Group
was described in the 2010 financial statements, including exposure
to foreign exchange rate fluctuation, in particular the strength of
Sterling relative to the US dollar and Euro. It is anticipated that
the risk profile will not significantly change for the remainder of
the year. Risk is an inherent part of doing business and the strong
cash position of the Group as a result of the fund raising and
admission to AIM on 22 June 2011 along with the strong order book
leads the Directors to believe that the Group is well placed to
manage business risks successfully.
6. Operating segments
Management has determined the operating segments to be the
Group's two divisions based on the reports reviewed by the Chief
Operating Decision Maker.
The Real-Time Location Systems division ("RTLS") delivers
mission-critical enterprise asset tracking solutions utilising
ultra-wideband ("UWB") technology to locate people and assets in
3D, bringing visibility and control to industrial business
processes.
The Geospatial division delivers core location based solutions,
typically to blue chip utility and communications companies, to
allow them to better plan and maintain their dispersed network of
assets.
Centrally incurred costs not directly attributable to business
segments are reported under 'Central'.
Each of these operating segments is managed separately as each
deal with different technologies and predominantly different
customer bases. The performance of the operating segments is
assessed on a measurement of adjusted EBITDA. The measurement basis
excludes depreciation, amortisation, share-based payments charge,
non-recurring expenditure, finance income and expense and income
taxes.
Other administrative expenses for the periods ended 30 June and
31 December 2010 have been reclassified to be consistent with
current internal management reporting. The effect on the period
ended 30 June 2010 was to decrease administrative expenses for RTLS
by GBP358,000 and increase Geospatial and Central by GBP36,000 and
GBP322,000 respectively. The effect on the period ended 30 December
2010 was to decrease administrative expenses for RTLS by GBP727,000
and increase Geospatial and Central by GBP66,000 and GBP661,000
respectively.
Six months ended 30 June 2011
RTLS Geospatial Central Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 3,888 7,367 - 11,255
Cost of sales (1,951) (5,733) - (7,684)
Gross Profit 1,937 1,634 - 3,571
Other administrative
expenses (1,892) (292) (972) (3,156)
Adjusted EBITDA 45 1,342 (972) 415
Depreciation - - (67) (67)
Amortisation (164) - - (164)
Share-based payments
charge - - (8) (8)
AIM listing expenses - - (324) (324)
Operating (loss)/profit (119) 1,342 (1,371) (148)
Finance income - - 8 8
Finance costs - - (180) (180)
Loss/(profit) before
tax (119) 1,342 (1,543) (320)
Six months ended 30 June 2010
RTLS Geospatial Central Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 2,123 5,867 - 7,990
Cost of sales (1,041) (4,442) - (5,483)
Gross Profit 1,082 1,425 - 2,507
Other administrative
expenses (1,212) (115) (726) (2,053)
Adjusted EBITDA (130) 1,310 (726) 454
Depreciation - - (55) (55)
Amortisation (148) - - (148)
Share-based payments
charge - - (11) (11)
Operating (loss)/profit (278) 1,310 (792) 240
Finance income - - 1 1
Finance costs - - (110) (110)
Loss/(profit) before
tax (278) 1,310 (901) 131
12 months ended 31 December 2010
RTLS Geospatial Central Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 5,729 11,968 - 17,697
Cost of sales (2,520) (9,242) - (11,762)
Gross Profit 3,209 2,726 - 5,935
Other administrative
expenses (3,168) (229) (1,497) (4,894)
Adjusted EBITDA 41 2,497 (1,497) 1,041
Depreciation (2) - (95) (97)
Amortisation (299) - - (299)
Share-based payments
charge - - (18) (18)
Operating (loss)/profit (260) 2,497 (1,610) 627
Finance income - - 5 5
Finance costs - - (237) (237)
Loss/(profit) before
tax (260) 2,497 (1,842) 395
7. Finance income and costs
Six months Six months
to to 12 months to
31 December
30 June 2011 30 June 2010 2010
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
Interest income from cash
and cash equivalents 8 1 5
Finance income 8 1 5
Six months Six months
to to 12 months to
31 December
30 June 2011 30 June 2010 2010
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
Interest payable - bank (21) (13) (43)
Interest payable - other
loans (159) (97) (194)
Finance costs (180) (110) (237)
Finance costs for the six months ended 30 June 2011 includes an
imputed non-cash amount of GBP138,000 relating to accelerated
interest as a result of conversion of the Convertible Loans into
shares and exercise of the warrants attaching to the bank loan (see
note 10).
8. Income tax
Income tax is recognised based on management's estimate of the
weighted average annual income tax rate expected for the full
financial year.
The income tax credit for the period principally arises due to
the receipt of R&D tax credit relief in respect of the prior
year. The Group's policy is to recognise tax credits resulting from
R&D claims on a cash received basis. A tax credit has not been
recognised in respect of the claim expected to be made for the 2011
financial year.
9. Earnings per share
Six months Six months
to to 12 months to
31 December
30 June 2011 30 June 2010 2010
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
Earnings
(Loss)/profit for the period
(GBP'000) (254) 110 398
Effect of dilutive potential
ordinary shares:
Convertible Loans (GBP'000) 159 - -
Earnings for the purposes of
diluted earnings per share
(GBP'000) (95) 110 398
Number of shares
Basic weighted average number
of shares ('000) 16,182 11,773 12,034
Effect of dilutive potential
ordinary shares:
Share options ('000) 313 430 444
Convertible Loans ('000) 1,446 - -
Warrants ('000) 70 - 107
Diluted weighted average number
of shares ('000) 18,011 12,203 12,585
Basic earnings per share (pence) (1.6p) 0.9p 3.3p
Diluted earnings per share (1.6p) 0.9p 3.2p
(pence)
Basic earnings per share is calculated by dividing profit for
the period attributable to ordinary shareholders of the Company by
the weighted average number of ordinary shares outstanding during
the period. For diluted earnings per share, the weighted average
number of shares is adjusted to allow for the effects of dilutive
share options, Convertible Loans and warrants. The Group also
presents an adjusted diluted earnings per share figure which
excludes depreciation, amortisation, share-based payments charge,
and non-recurring expenditure from the measurement of profit for
the period.
Adjusted diluted earnings per share
At 30 June At 30 June At 31 December
2011 2010 2010
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
Earnings for the purposes
of diluted earnings per
share (GBP'000) (95) 110 398
Adjustments
Reversal of depreciation
(GBP'000) 67 55 97
Reversal of amortisation
(GBP'000) 164 148 299
Reversal of share-based
payments charge (GBP'000) 8 11 18
Reversal of AIM listing
expenses (GBP'000) 324 - -
Net adjustments 563 214 414
Adjusted earnings (GBP'000) 468 324 812
Adjusted diluted earnings 2.6p 2.7p 6.5p
per share (pence)
10. Loans and borrowings
At 30 June At 30 June At 31 December
2011 2010 2010
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
Non-current
Bank loan - 535 492
Convertible Loan - 775 754
Total non-current loans
and borrowings - 1,310 1,246
Current
Bank loan - 288 398
Convertible Loan - 1,918 1,974
Total current loans and
borrowings - 2,206 2,372
Total loans and borrowings - 3,516 3,618
During the period, the bank loan was repaid in full. Of the
Convertible Loan, GBP2,364 was repaid with the remainder converted
into ordinary shares (see note 11).
11. Share capital
At 30 June At 31 December
At 30 June 2011 2010 2010
unaudited unaudited audited
Allotted, called-up and
fully paid GBP'000 GBP'000 GBP'000
Ordinary shares of GBP0.02
each 433 236 304
At 30 June At 30 June At 31 December
2011 2010 2010
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
Movement in number of shares
Number of shares at beginning
of period 15,211 11,755 11,755
Share issue 2,778 - 3,401
Issued under share-based
payment plans 374 27 27
Issued on conversion of
Convertible Loan 3,177 - 28
Issued on exercise of warrants 115 - -
Change in number of shares
in period 6,444 27 3,456
Number of shares at end of
period 21,655 11,782 15,211
During the period, the Company issued 6,444,208 shares
increasing the total number of shares in issue from 15,211,490 to
21,655,698.
-- 2,777,778 shares as a result of new share subscriptions at
GBP1.80 per share for total cash consideration of GBP5,000,000,
with share issue costs of GBP591,000 written off against the share
premium account and listing expenses of GBP324,000 charged to the
income statement. Included in the share issue costs written off
against the share premium account is an amount of GBP126,000
relating to share-based payments in respect of warrants granted to
professional advisers in lieu of fees;
-- 374,308 shares as a result of options exercised with a
weighted average exercise price of GBP0.35 per share for total cash
consideration of GBP133,819;
-- 3,176,772 shares as a result of the Convertible Loans being
converted at GBP0.90 per share for total loan value converted of
GBP2,859,095;
-- 115,350 shares as a result of exercise of warrants entitled
under the bank loan at GBP0.90 per share for cash consideration of
GBP103,815.
12. Other reserves
Equity component Share-based
of convertible payments
loans and warrants reserve Translation Total
GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January 2010
(audited) 499 528 (66) 961
Exchange
difference on
retranslation of
net assets and
results of
overseas
subsidiaries - - (59) (59)
Reserve credit for
equity-settled
share-based
payment - 11 - 11
Balance at 30 June
2010 (unaudited) 499 539 (125) 913
Exchange
difference on
retranslation of
net assets and
results of
overseas
subsidiaries - - 30 30
Reserve credit for
equity-settled
share-based
payment - 7 - 7
Equity component
of loans 3 - - 3
Balance at 31
December 2010
(audited) 502 546 (95) 953
Exchange
difference on
retranslation of
net assets and
results of
overseas
subsidiaries - - 66 66
Reserve credit for
equity-settled
share-based
payment - 134 - 134
Equity component
of loans (502) - - (502)
Balance at 30 June
2011 (unaudited) - 680 (29) 651
13. Cautionary statement
This document contains certain forward-looking statements with
respect of the financial condition, results, operations and
businesses of Ubisense Group plc. These statements and forecasts
involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future. There are a
number of factors that could cause the actual results or
developments to differ materially from those expressed or implied
by these forward looking statements and forecasts. Nothing in this
document should be construed as a profit forecast.
14. Copies of Interim Financial Statements
Copies of the interim financial statements are available from
the Company at its registered office at St. Andrew's House, 90 St.
Andrew's Road, Chesterton, Cambridge, CB4 1DL. The interim
financial information document will also be available on the
Company's website www.ubisense.net.
Independent review report to Ubisense Group plc
Introduction
We have been engaged by the Company to review the financial
information in the half-yearly financial report for the six months
ended 30 June 2011 which comprises the Consolidated Income
Statement, Consolidated Statement of Comprehensive Income,
Consolidated Statement of Changes in Equity, Consolidated Statement
of Financial Position, Consolidated Statement of Cash Flows and
related notes (1 to 14). We have read the other information
contained in the half yearly financial report and considered
whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of
financial statements.
This report is made solely to the Company in accordance with
guidance contained in ISRE (UK and Ireland) 2410, 'Review of
Interim Financial Information performed by the Independent Auditor
of the Entity'. Our review work has been undertaken so that we
might state to the Company those matters we are required to state
to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company, for our review work, for this
report, or for the conclusion we have formed.
Directors' responsibilities
The half yearly financial report is the responsibility of, and
has been approved by, the Directors. The AIM rules of the London
Stock Exchange require that the accounting policies and
presentation applied to the financial information in the half
yearly financial report are consistent with those which will be
adopted in the annual accounts having regard to the accounting
standards applicable for such accounts. As disclosed in Note 2, the
annual financial statements of the Group are prepared in accordance
with IFRSs as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the financial information in the half yearly financial report based
on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity', issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the financial information in the half
yearly financial report for the six months ended 30 June 2011 is
not prepared, in all material respects, in accordance with the
basis of accounting described in Note 2.
Grant Thornton UK LLP
Chartered Accountants
Registered Auditor
Cambridge
19 September 2011
This information is provided by RNS
The company news service from the London Stock Exchange
END
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