TIDMUBI
RNS Number : 6838N
Ubisense Group PLC
11 September 2013
11 September 2013
Highlights
Ubisense Group plc
Interim results for the six months ended 30 June 2013
Ubisense Group plc ("Ubisense" or the "Company") (AIM: UBI), a
market leader in real-time location intelligence technology, has
announced its interim results for the six months ended 30 June
2013.
Delivering on * Business integrated into single "Real Time Location
our strategy Intelligence" offering to reflect increasing
convergence of Ubisense technology and to meet
customer demands
* Customer bookings in the period up 87% to GBP17.2
million
* Order book, up 38% year-on-year to GBP14.1 million as
at June 30, continues to provide good revenue
visibility
* New GBP5 million bank facility signed in August 2013
to provide capacity to meet future working capital
requirements
================ ================================================================
Financial * Revenue increased 3.6% to GBP12.4m (H1 2012:
highlights GBP12.0m)
* Recurring revenues up, representing 26.8% of total
revenues (H1 2012: 24.3%)
* Adjusted EBITDA* loss of GBP0.4m (H1 2012: GBP0.2m
loss) reflecting investment in product development
and marketing
* Reported operating loss of GBP1.5m (H1 2012: GBP0.8m
loss)
* Adjusted diluted loss per share** 5.4p (H1 2012: 3.1p
loss)
================ ================================================================
Operational
highlights * Significant orders during the period from leading
European telecoms network operator, the largest US
agricultural manufacturer, a Top-5 US Telecoms
operator and a leading US energy utility
* Appointed as Google Enterprise Partner
* All three German automotive groups deploying Ubisense
Smart Factory System
================ ================================================================
Richard Green, Chief Executive, commented,
"Ubisense continued to deliver during the first six months of
2013, evidenced by an increase in orders and deeper engagement with
our blue-chip customer base. I am confident that investments made
during the period in getting to production roll-out in global
manufacturing companies will be realised with accelerated future
orders from this sector. Meeting the emerging needs of our telecoms
and utility customers and our strategic efforts in emerging markets
and partnerships further contributes to our growth
opportunities."
* Measured as operating profit excluding depreciation,
amortisation, share-based payments charge and non-recurring costs
such as acquisition and reorganisation costs.
** Earnings measured as profit for the period excluding
amortisation on acquired intangible assets, share-based payments
charge and non-recurring costs such as acquisition and
reorganisation costs.
Contact
Ubisense Group plc Tel: + 44 (0) 1223 535170
Richard Green
Gordon Campbell
Canaccord Genuity Limited Tel: +44 (0) 20 7523 8000
(NOMAD)
Simon Bridges
Lucy Tilley
FTI Consulting Tel: +44 (0) 20 7831 3113
Jon Snowball
Tracey Bowditch
========================== ==========================
About Ubisense
Ubisense is a market leader of location-based smart technology
which enables companies to optimise their business processes. By
keeping track of key assets, Ubisense solutions bring clarity to
complex operations whilst also improving quality and reliability.
Ubisense Real-Time Location Intelligence Solutions are used by a
number of blue chip customers across the world, such as AGCO,
Airbus, Aston Martin, BMW, Cablevision, Daimler, Deutsche Telekom,
Duke Energy, John Deere, MINI and VW.
Ubisense is headquartered in Cambridge, UK, with offices in the
USA, Canada, France, Germany and Singapore. For more information
visit: www.ubisense.net.
Interim management report
Overview
The Group is delighted to report significant progress in the
first half of 2013. The strong momentum in the business is a
testament to the strategic changes we have implemented in how we
now manage the business and ultimately go to market with our
leading location technology.
While this is the first time we have reported the business under
a converged offering, the company has effectively been operating as
a combined business with one P&L for almost a year. The
significant customer traction achieved reflects the progress that
has been made as we invest in the future of the business.
Strategy
In recent years, there has been a significant demand from
customers requiring a single solution which combines indoor and
outdoor components as well as dynamic and static data. This overlap
of our traditional Geospatial and RTLS businesses enabled us to
integrate both divisions into a single Real Time Location
Intelligence (RTLI) business that brings together all of our
leading location based technologies.
The enterprise acceptance of our RTLI solutions has been
accelerated by several factors such as the consumerisation of maps
led by Google, the proliferation of smart devices and the growth in
cloud technologies. Ubisense's software products and services
capability benefits from these trends enabling enterprises across
the high value manufacturing, utility and telecommunications
sectors to deliver significant improvements in efficiency and cost
savings. This also opens up new, adjacent markets for Ubisense.
With the business reorganised, the strategy of the Group is
to:
-- Continue to evolve as a Solutions-based business with Services capability
-- Develop next-generation applications that deliver ROI to customers
-- Focus direct business on Telecoms, Manufacturing and Utility enterprises
-- Use channel partners to reach other vertical markets at low cost of sale
Business development
A significant increase in customer bookings, nearly 90%
year-on-year, validates our new strategy focused on real time
location intelligence and the investment we have made in our next
generation platforms and sales and marketing infrastructure.
Considerable effort and investment in key strategic accounts in
both Europe and North America has resulted in Ubisense securing
contracts with three major manufacturing customers with global
presence and reach which will result in lower cost of sales and
increased profitability going forward. Furthermore, the Group now
has relationships with all three German auto manufacturers and is
targeting repeat orders across these groups in the coming months.
As announced separately today, we are pleased to report a new
production installation win with one of these German OEM's plants
located in Poland.
In our telecommunications and utility markets, new mobile
technologies, embodied in our myWorld product, have opened up new
business opportunities for our software products in real time
operational use, not traditionally an area of focus. Customer wins
for the period included a leading European telecoms network
operator, a Top-5 US Telecoms operator and a leading US energy
utility.
Partnerships
While our direct sales channel is receiving strong customer
traction, our channel partners have also contributed to the strong
customer bookings performance. Notably, we became an official
enterprise partner of Google in the period. Together with our
ongoing relationship with Atlas Copco, these relationships have
resulted in an increase in the number of pipeline deals. This gives
us confidence in achieving our goals for the second half.
Furthermore, developments in Asia Pacific have increased our
optimism with regards to the opportunities to significantly
increase the Company's presence in this key market.
Operating and financial review
Orders
The first half of 2013 saw a number of major new contract awards
and extensions to existing contracts resulting in record new orders
for the period of GBP17.2 million (H1 2012: GBP9.2 million). The
orders in the first half included a number of multi-year managed
services deals. Since the period-end this momentum has continued
and the business has announced further major RTLI Solutions deals
which are expected to drive second half performance.
As a result of the record customer orders in the period, the
order book as at 30 June 2013 stood at GBP14.1 million (H1 2012:
GBP10.2 million) - a 38% increase year-on-year. This continues the
trend of an increasing order book and gives the Company good
visibility on revenues for the rest of 2013 as well as into 2014
and beyond.
Revenue
Ubisense has two revenue streams:
-- Solutions - revenues driven from the Ubisense product suites
(Smart Factory System, netSolutions, myWorld, Verotrack), technical
expertise and exclusive reseller arrangements. A solution sale will
include a mixture of application software (licences in perpetuity
and subscription based), installation and commissioning services,
hardware and maintenance and support. Margins in any given period
will vary depending upon the make-up and phase of the given set of
Solutions being delivered. The Company sees this revenue stream as
critical to driving the growth and profitability of the
business.
-- Services - revenues not involving the Ubisense product suites
as defined above. These revenues are typically long-term managed
services contracts, consultancy and training. The Company generally
has good visibility on future revenue from services and believes it
is critical to driving customer loyalty and providing a customer
base into which it can sell its Solutions.
In the six month period under review, total revenues grew by
3.6% to GBP12.4 million (H1 2012: GBP12.0 million). RTLI Solutions
revenue grew to GBP5.8 million (H1 2012: GBP5.6 million), with
continued growth expected in the second half as has been the trend
in prior years as customers deploy their capital budgets later in
the year. RTLI Services revenue grew to GBP6.6 million (H1 2012:
GBP6.3 million) primarily as a result of large contract wins in the
US in the Utility and Telecoms markets. Recurring revenues,
comprising managed services and maintenance and support, grew to
GBP3.3 million (H1 2012: GBP2.9 million) or 26.8% of total revenues
(H1 2012: 24.3%) as the installed base of products increases and
more customers adopt our managed services offering.
Gross margin
The gross margin reduced to 28.7% from 34.7% for the same period
last year. This was the result of a number of factors: a small drop
in the proportion of RTLI Solutions revenues out of the total
revenues, which are generally higher margin than Services; a higher
proportion of lower margin installation and commissioning revenues
compared to higher margin hardware and software deliveries within
RTLI Solutions and the increasing use of contractors to deliver the
Services revenue whilst the Company recruits to meet the increased
capacity requirements.
Operating expenses
Operating expenses were steady at GBP5.0 million (H1 2012:
GBP5.0 million). Operating expenses includes Sales & Marketing,
Product Marketing, Product Development, General &
Administration and foreign exchange.
Gross expenditure on Product Development increased 23.8% to
GBP1.5 million (H1 2012: GBP1.2 million) reflecting increased
investment in our flagship Smart Factory and myWorld products.
Capitalised product development costs at GBP1.1 million (H1 2012:
GBP0.8 million) represented 72% of gross development spend whilst
amortisation of the capitalised development costs was GBP0.6
million (H1 2012: GBP0.4 million).
The Group incurred GBP0.1 million of costs, mainly comprising
professional fees, in connection with an acquisition which did not
proceed. The Board continues to evaluate suitable acquisition
opportunities in this area to enhance its geographical footprint,
product offerings, delivery capacity and customer base.
EBITDA and operating profit
Group Adjusted EBITDA for the period was a loss of GBP0.4
million (H1 2012: GBP0.2 million loss). Both the operating loss and
loss before tax for the period were GBP1.5 million (H1 2012: GBP0.8
million loss) including amortisation and depreciation charges of
GBP0.9 million (H1 2012: GBP0.6 million) which have increased as a
result of the increased amortisation on capitalised product
development costs.
Interest and tax
Net interest payable for the period was GBP6,000 (H1 2012:
GBP14,000 income) reflecting the lower average cash balances held
during the period and the draw down of the GBP2 million bank loan
in April 2013.
The Group has a net tax expense of GBP82,000 (H1 2012:
GBP46,000), almost entirely a result of non-cash deferred tax on
capitalised development costs and acquired intangible assets.
Management's best estimate of the effective current tax rate is nil
due to the availability of prior years' losses. The Group has
substantial tax losses carried forward and expects to benefit from
the Patent Box tax regime being introduced in the UK.
EPS and dividend
Adjusted diluted loss per share was 5.4 pence (H1 2012: 3.1
pence loss). Reported basic and diluted loss per share was 7.0
pence (H1 2012: 4.0 pence loss). The Board does not feel it
appropriate at this time to commence paying dividends.
Balance sheet, cash and cash flow
The Group has a robust balance sheet with Shareholder Funds at
30 June 2013 of GBP17.3 million (31 December 2012: GBP18.9
million).
In November 2012, the Group agreed a Sterling Base Rate loan of
GBP2.0 million to provide future working capital capacity. The loan
was drawn down in full in one tranche in April 2013 and remained
outstanding. Cash held in the balance sheet at 30 June 2013 was
GBP2.0 million (31 December 2012: GBP2.7 million).
The main components to the cash movements in the first six
months of 2013 include operating cash outflow of GBP1.6 million (H1
2012: GBP1.5 million outflow), capital investment in plant and
equipment and intangibles including product development of GBP1.2
million (H1 2012: GBP1.2 million) and the receipt of the new bank
loan of GBP2 million (H1 2012: nil).
Since the period end, in preference to renegotiating the renewal
of the existing facility, the Group agreed a GBP5.0 million
three-year term loan which will replace the existing GBP2 million
facility and thus provide an additional GBP3 million of future
working capital capacity. The business has yet to transition to and
draw on this facility.
Capital structure
The issued share capital at 30 June 2013 was 22,015,388
(December 2012: 21,919,744) ordinary shares of GBP0.02 each. The
increase of 95,644 shares relates entirely to share option
exercises by employees. In addition, 421,500 share options were
granted to employees on 19 April 2013 at an exercise price of
GBP2.055, being the share price at the time. The total number of
unexercised share options at 30 June 2013 was 2,380,911.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of
the business. The key risks that could affect the Group's medium
term performance, and the factors which mitigate these risks, have
not significantly changed from those set out on pages 22 to 33 of
the Group's Annual Report for 2012, a copy of which is available
from our website www.ubisense.net.
Current trading and outlook
Ubisense now meets the integrated service requirements of its
major customers, whose repeat orders drive the majority of the
order book and who are continuing to invest in essential
infrastructure projects. Ubisense has started the second half of
2013 with increasing momentum in the business and will continue to
pursue growth both organically and via selective acquisitions. With
improving economic conditions, Ubisense looks forward to the rest
of the year with confidence.
Interim income statement
For the six months ended 30 June 2013
Six months Six months 12 months
to to to
30 June 30 June 31 December
2013 2012 2012
unaudited unaudited audited
Notes GBP'000 GBP'000 GBP'000
------------------------------------- ------ ----------- ----------- -------------
Revenues 6 12,385 11,950 24,292
Cost of revenues (8,827) (7,799) (14,690)
===================================== ====== =========== =========== =============
Gross profit 3,558 4,151 9,602
Operating expenses (5,013) (4,995) (10,368)
===================================== ====== =========== =========== =============
Operating loss (1,455) (844) (766)
Analysed as:
Gross profit 3,558 4,151 9,602
Other operating expenses (3,958) (4,377) (8,445)
===================================== ====== =========== =========== =============
Adjusted EBITDA (400) (226) 1,157
Depreciation (130) (100) (227)
Amortisation of acquired intangible
assets (128) (128) (257)
Amortisation of other intangible
assets (643) (369) (953)
Share-based payments charge (40) (21) (63)
Acquisition costs (114) - -
Reorganisation costs - - (423)
Operating loss (1,455) (844) (766)
Finance income 6 15 38
Finance costs (12) (1) -
------------------------------------- ------ ----------- ----------- -------------
Loss before tax (1,461) (830) (728)
------------------------------------- ------ ----------- ----------- -------------
Income tax (82) (46) 90
------------------------------------- ------ ----------- ----------- -------------
Loss for the period attributable
to the equity shareholders of
the Company (1,543) (876) (638)
------------------------------------- ------ ----------- ----------- -------------
Earnings per share (pence)
------------------------------------- ------ ----------- ----------- -------------
Basic 7 (7.0p) (4.0p) (2.8p)
Diluted 7 (7.0p) (4.0p) (2.8p)
------------------------------------- ------ ----------- ----------- -------------
The notes 1 to 12 are an integral part of these condensed interim
financial statements.
Interim statement of comprehensive income
For the six months ended 30 June 2013
Six months Six months 12 months
to to to
30 June 30 June 31 December
2013 2012 2012
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
--------------------------------------------- ----------- ----------- -------------
Loss for the period (1,543) (876) (638)
Other comprehensive income:
Items that may be reclassified subsequently
to profit and loss
Exchange difference on retranslation
of net assets and results of overseas
subsidiaries (110) (30) 33
Total comprehensive income attributable
to equity shareholders of the Company (1,653) (906) (605)
--------------------------------------------- ----------- ----------- -------------
The notes 1 to 12 are an integral part of these condensed interim
financial statements.
Interim statement of changes in equity
For the six months ended 30 June 2013
Share Share Other Retained
capital premium reserves earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
=================================== ========= ========= ========== ========== =========
Balance at 1 January 2013
(audited) 438 22,251 606 (4,374) 18,921
=================================== ========= ========= ========== ========== =========
Loss for the period - - - (1,543) (1,543)
Exchange difference on
retranslation of net assets
and results of overseas
subsidiaries - - (110) - (110)
=================================== ========= ========= ========== ========== =========
Total comprehensive income
for the period - - (110) (1,543) (1,653)
Reserve credit for equity-settled
share-based payment - - 40 - 40
Issue of new share capital 2 - - - 2
Premium on new share capital - 18 - - 18
Transactions with owners 2 18 40 - 60
=================================== ========= ========= ========== ========== =========
Balance at 30 June 2013
(unaudited) 440 22,269 536 (5,917) 17,328
=================================== ========= ========= ========== ========== =========
Share Share Other Retained
capital premium reserves earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
=================================== ========= ========= ========== ========== =========
Balance at 1 January 2012
(audited) 433 22,031 510 (3,736) 19,238
=================================== ========= ========= ========== ========== =========
Loss for the period - - - (876) (876)
Exchange difference on
retranslation of net assets
and results of overseas
subsidiaries - - (30) - (30)
=================================== ========= ========= ========== ========== =========
Total comprehensive income
for the period - - (30) (876) (906)
Reserve credit for equity-settled
share-based payment - - 21 - 21
Issue of new share capital 3 - - - 3
Premium on new share capital - 25 - - 25
Transactions with owners 3 25 21 - 49
=================================== ========= ========= ========== ========== =========
Balance at 30 June 2012
(unaudited) 436 22,056 501 (4,612) 18,381
=================================== ========= ========= ========== ========== =========
The notes 1 to 12 are an integral part of these condensed interim
financial statements.
Interim statement of financial position
At 30 June 2013
At At At
30 June 30 June 31 December
2013 2012 2012
unaudited Unaudited audited
Notes GBP'000 GBP'000 GBP'000
------------------------------- ------ ----------- ----------- -------------
Assets
Non-current assets
Goodwill 7,418 7,418 7,418
Other intangible assets 8 3,244 2,550 2,901
Property, plant and equipment 564 476 621
=============================== ====== =========== =========== =============
Total non-current assets 11,226 10,444 10,940
=============================== ====== =========== =========== =============
Current assets
Inventories 1,330 1,115 862
Trade and other receivables 11,621 8,508 10,302
Cash and cash equivalents 2,038 3,324 2,716
=============================== ====== =========== =========== =============
Total current assets 14,989 12,947 13,880
=============================== ====== =========== =========== =============
Total assets 26,215 23,391 24,820
=============================== ====== =========== =========== =============
Liabilities
Current liabilities
Loans and borrowings (2,000) - -
Trade and other payables (6,157) (4,254) (5,246)
=============================== ====== =========== =========== =============
Total current liabilities (8,157) (4,254) (5,246)
=============================== ====== =========== =========== =============
Non-current liabilities
Deferred tax liability (730) (596) (653)
Other liabilities - (160) -
=============================== ====== =========== =========== =============
Total non-current liabilities (730) (756) (653)
=============================== ====== =========== =========== =============
Total liabilities (8,887) (5,010) (5,899)
=============================== ====== =========== =========== =============
Net assets 17,328 18,381 18,921
=============================== ====== =========== =========== =============
Equity
Equity attributable to owners
of the parent company
Share capital 9 440 436 438
Share premium 22,269 22,056 22,251
Other reserves 10 536 501 606
Retained earnings (5,917) (4,612) (4,374)
=============================== ====== =========== =========== =============
Total equity 17,328 18,381 18,921
=============================== ====== =========== =========== =============
The notes 1 to 12 are an integral part of these condensed interim
financial statements.
Interim statement of cash flows
For the six months ended 30 June 2013
Six months Six months 12 months
to to to
30 June 30 June 31 December
2013 2012 2012
unaudited unaudited audited
Notes GBP'000 GBP'000 GBP'000
-------------------------------------- ------ ----------- ----------- -------------
Loss before tax (1,461) (830) (728)
Adjustments for:
Depreciation 130 100 227
Amortisation 771 497 1,210
Loss on disposal of property,
plant and equipment - - 5
Share-based payments charge 40 21 63
Finance income (6) (15) (38)
Finance costs 12 1 -
Operating cash flows before working
capital movements (514) (226) 739
Change in inventories (469) 552 805
Change in receivables (1,536) 1,004 (839)
Change in payables 946 (2,798) (1,691)
-------------------------------------- ------ ----------- ----------- -------------
Cash generated by operations
before tax (1,573) (1,468) (986)
-------------------------------------- ------ ----------- ----------- -------------
Net income taxes (paid)/received (5) 1 203
-------------------------------------- ------ ----------- ----------- -------------
Net cash flows from operating
activities (1,578) (1,467) (783)
-------------------------------------- ------ ----------- ----------- -------------
Cash flows from investing activities
Acquisition of subsidiaries,
net of cash acquired - (200) (400)
Purchases of property, plant
and equipment (93) (210) (492)
Proceeds on disposal of property,
plant and equipment - - 1
Purchases of intangible assets (1,125) (789) (1,849)
Interest received 6 15 38
-------------------------------------- ------ ----------- ----------- -------------
Net cash flows from investing
activities (1,212) (1,184) (2,702)
-------------------------------------- ------ ----------- ----------- -------------
Cash flows from financing activities
Receipt of new bank loan 2,000 - -
Interest paid (12) (1) -
Proceeds from the issue of share
capital 9 20 28 225
-------------------------------------- ------ ----------- ----------- -------------
Net cash flows from financing
activities 2,008 27 225
Net increase in cash and cash
equivalents (782) (2,624) (3,260)
Cash and cash equivalents at
start of period 2,716 6,034 6,034
Exchange differences on cash
and cash equivalents 7 104 (86) (58)
-------------------------------------- ------ ----------- ----------- -------------
Cash and cash equivalents at
end of period 2,038 3,324 2,716
-------------------------------------- ------ ----------- ----------- -------------
The notes 1 to 12 are an integral part of these condensed interim
financial statements.
Notes to the interim financial statements
1 General information
Ubisense Group plc ('the Company') and its subsidiaries
(together, 'the Group') deliver mission-critical location-based
smart technology which enables companies to optimise their business
processes.
The Group has operations in the UK, USA, Canada, France, Germany
and Singapore and sells mainly in the Americas, Europe and Asia
Pacific.
The Company is a public limited company which is listed on the
Alternative Investment Market ('AIM') of the London Stock Exchange
(UBI) and is incorporated and domiciled in the UK. The address of
its registered office is St. Andrew's House, St. Andrew's Road,
Chesterton, Cambridge, CB4 1DL.
The condensed consolidated interim financial statements were
approved by the Board of Directors for issue on 10 September
2013.
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 2012 were approved by the Board of Directors on 18 March
2013 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 unchanged
from those set out in the Group's consolidated financial statements
for the year ended 31 December 2012. These policies have been
consistently applied to all the periods presented.
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 2012.
5 Risks and uncertainties
An outline of the key risks and uncertainties faced by the Group
was described in the 2012 financial statements, including exposure
to foreign exchange rate fluctuation, in particular the strength of
Sterling relative to the US dollar and Euro. Risk is an inherent
part of doing business and the strong cash position and order book
leads the Directors to believe that the Group is well placed to
manage business risks successfully.
6 Segmental Information
IFRS 8 requires operating segments to be identified on the basis
of internal reports about components of the Group that are
regularly reviewed by the Chief Executive Officer to allocate
resources and assess performance. Segment results are reported
according to the internal management reporting structure at the
reporting date. In the final quarter of 2012, the management
structure of the group was realigned as a single business run on a
global basis reflecting the convergence of the Group's
technologies, customer base and management including the
centralisation of the sales, marketing and product development
functions. The Group has therefore determined that it has only one
reportable segment. Within this segment, the Board and Management
Team consider the business to have two revenue streams with
differing characteristics, as described in the Interim Management
Report on page 4.
6.1 Revenue by nature
Six months Six months 12 months
to to to
30 June 30 June 31 December
2013 2012 2012
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
---------------- ----------- ----------- -------------
Solutions 5,802 5,645 12,537
Services 6,583 6,305 11,755
---------------- ----------- ----------- -------------
Total Revenues 12,385 11,950 24,292
---------------- ----------- ----------- -------------
In addition, the Board and Management Team also review the
revenues on a geographical basis, based around the regions where
the Group has its significant subsidiaries or markets.
6.2 Revenue by geography
Six months Six months 12 months
to to to
30 June 30 June 31 December
2013 2012 2012
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
---------------- ----------- ----------- -------------
United Kingdom 609 614 1,441
Europe 5,451 5,738 10,533
Americas 6,090 5,187 9,585
Asia Pacific 235 411 2,733
Total Revenues 12,385 11,950 24,292
---------------- ----------- ----------- -------------
7 Earnings per share
Six months Six months 12 months
to to to
30 June 30 June 31 December
2013 2012 2012
unaudited unaudited audited
---------------------------------- ----------- ----------- -------------
Earnings
Loss for the period (GBP'000) (1,543) (876) (638)
================================== =========== =========== =============
Loss for the purposes of diluted
earnings per share (GBP'000) (1,543) (876) (638)
================================== =========== =========== =============
Number of shares
Basic weighted average number
of shares ('000) 21,953 21,725 27,764
Effect of dilutive potential
ordinary shares:
- Share options ('000) 1,281 1,527 1,383
- Warrants ('000) - 15 -
================================== =========== =========== =============
Diluted weighted average number
of shares ('000) 23,234 23,267 23,147
================================== =========== =========== =============
Basic loss per share (pence) (7.0p) (4.0p) (2.8p)
================================== =========== =========== =============
Diluted loss per share (pence) (7.0p) (4.0p) (2.8p)
================================== =========== =========== =============
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 and warrants. Options have no dilutive effect in
loss-making years, and hence the diluted loss per share for the
periods ended 30 June 2013 and 2012 and 31 December 2012 is the
same as the basic loss per share.
The Group also presents an adjusted diluted earnings per share
figure which excludes amortisation on acquired intangible assets,
share-based payments charge and non-recurring expenditure such as
acquisition and reorganisation costs from the measurement of profit
for the period.
Six months Six months 12 months
to to to
30 June 30 June 31 December
Adjusted diluted earnings per 2013 2012 2012
share unaudited unaudited audited
-------------------------------------- ----------- ----------- -------------
Loss for the purposes of diluted
earnings per share (GBP'000) (1,543) (876) (638)
Adjustments
Reversal of amortisation on acquired
intangible assets (GBP'000) 128 128 257
Reversal of share-based payments
charge (GBP'000) 40 21 63
Reversal of aborted acquisition
costs (GBP'000) 114 - -
Reversal of reorganisation costs
(GBP'000) - - 423
====================================== =========== =========== =============
Net adjustments (GBP'000) 282 149 743
-------------------------------------- ----------- ----------- -------------
Adjusted earnings (GBP'000) (1,261) (727) 105
-------------------------------------- ----------- ----------- -------------
Adjusted diluted (loss)/earnings
per share (pence) (5.4p) (3.1p) 0.5p
-------------------------------------- ----------- ----------- -------------
8 Other intangible assets
At At At
30 June 30 June 31 December
2013 2012 2012
Unaudited Unaudited audited
Net book amount GBP'000 GBP'000 GBP'000
--------------------------------- ----------- ----------- -------------
Capitalised product development
costs 2,597 1,583 2,110
Software 166 229 182
Acquired software products 220 396 308
Acquired customer relationships
and backlog 261 342 301
--------------------------------- ----------- ----------- -------------
Total other intangible assets 3,244 2,550 2,901
--------------------------------- ----------- ----------- -------------
9 Share capital
At At At
30 June 30 June 31 December
2013 2012 2012
Allotted, called-up and fully unaudited unaudited audited
paid GBP'000 GBP'000 GBP'000
------------------------------- ----------- ----------- -------------
Ordinary shares of GBP0.02
each 440 436 438
------------------------------- ----------- ----------- -------------
At At At
30 June 30 June 31 December
2013 2012 2012
unaudited unaudited audited
Movement in number of shares GBP'000 GBP'000 GBP'000
------------------------------------- ------------- ------------- --------------
Number of shares at beginning
of period 21,919,744 21,657,698 21,658,698
------------------------------------- ------------- ------------- --------------
Issued under share-based
payment plans 95,644 144,269 154,937
Issued on exercise of warrants - - 107,109
===================================== ============= ============= ==============
Change in number of shares
in period 95,644 144,269 262,046
===================================== ============= ============= ==============
Number of shares at end of
period 22,015,388 21,801,967 21,919,744
------------------------------------- ------------- ------------- --------------
During the period, the Company issued 95,644 shares increasing
the total number of shares in issue from 21,919,744 to 22,015,388
as a result of options exercised with a weighted average exercise
price of GBP0.21 per share for total cash consideration of
GBP20,000.
10 Other reserves
Share-based
payment Translation
reserve reserve Total
GBP'000 GBP'000 GBP'000
-------------------------------------- ------------ ------------ ---------
Balance at 1 January 2013 (audited) 654 (48) 606
-------------------------------------- ------------ ------------ ---------
Exchange difference on retranslation
of net assets and results of
overseas subsidiaries - (110) (110)
Reserve credit for equity-settled
share-based payment 40 - 40
Balance at 30 June 2013 (unaudited) 694 (158) 536
====================================== ============ ============ =========
Share-based
payment Translation
reserve reserve Total
GBP'000 GBP'000 GBP'000
-------------------------------------- ------------ ------------ ---------
Balance at 1 January 2012 (audited) 591 (81) 510
-------------------------------------- ------------ ------------ ---------
Exchange difference on retranslation
of net assets and results of
overseas subsidiaries - (30) (30)
Reserve credit for equity-settled
share-based payment 21 - 21
Balance at 30 June 2012 (unaudited) 612 (111) 501
====================================== ============ ============ =========
11 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.
12 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, St.
Andrew's Road, Chesterton, Cambridge, CB4 1DL. The interim
financial statements 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 2013 which comprises the Interim Income Statement,
Interim Statement of Comprehensive Income, Interim Statement of
Changes in Equity, Interim Statement of Financial Position, Interim
Statement of Cash Flows and related notes (1 to 12). 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. The financial
information in the half-yearly report has been prepared in
accordance with the basis in Note 2.
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 2013
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
10 September 2013
This information is provided by RNS
The company news service from the London Stock Exchange
END
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