TIDMUBI
RNS Number : 1246C
Ubisense Group PLC
27 September 2018
Ubisense Group plc
Interim results for the six months ended 30 June 2018
Ubisense Group plc ("Ubisense" or the "Group") (AIM: UBI), a
market leader in enterprise location intelligence solutions, is
pleased to announce its interim results for the six months ended 30
June 2018.
Overview * Orders received increased by 47% to GBP13.7m (H1
2017: GBP9.3m) including a GBP4.5m military training
SmartSpace contract with a similar order expected in
2019
* New myWorld and SmartSpace software product launches
extend the competitive advantage in both markets
* Increased investment in sales and marketing continues
to drive both the myWorld and SmartSpace pipelines
* Sale of Japanese third party geospatial services
business in line with strategy to focus on own
products
============= ==============================================================
Financial * Software revenue increased by 15%
highlights
* Maintenance and support revenues increased by 31% to
GBP1.1m (H1 2017: GBP0.8m)
* Software strategy producing increased gross margin
percentages in both business units delivered 41%
overall (H1 2017: 38%)
* Cash of GBP5.8m and net funds of GBP4.0m (31 Dec
2017: cash GBP9.1m and net funds GBP6.6m)
============= ==============================================================
Operational
highlights * Won new business with industry leaders in core
sectors of manufacturing, communications and
utilities
* Launched myWorld for Salesforce in the Salesforce
AppExchange as the first step in building a recurring
revenue stream and building business with Salesforce
customers
* Nominated as one of Daimler's suppliers of the year
for 2017
* Established new partner relationships to reinforce
existing target industry focus and explore adjacent
industry opportunities
============= ==============================================================
Richard Petti, Chief Executive Officer, commented,
"These results demonstrate the continued progress Ubisense has
made in recent periods in delivering its software-first strategy.
The actions we have taken have resulted in a go-to-market
capability that matches our two world class enterprise software
businesses. Our strategy of growing revenue from our own product
software solutions continues to deliver, and I am particularly
pleased with the large increase in our order book and the quality
of our pipeline. The second half has started strongly and we expect
revenues to increase for our own products, with improved gross
margins. These trends give the Board confidence in the outturn for
the full year."
Contact
Ubisense Group plc Tel: + 44 (0) 1223 535170
Richard Petti, Tim Gingell
finnCap Ltd Tel: + 44 (0) 20 7220 0500
Henrik Persson, Anthony Adams
(Corporate Finance)
Tim Redfern, Richard Chambers
(Corporate Broking)
Tulchan Communications LLP Tel: +44 (0) 20 7353 4200
James Macey White, Matt Low,
Deborah Roney
================================ =============================
About Ubisense
Ubisense (AIM: UBI), a global leader in Enterprise Location
Intelligence solutions, is a trusted adviser to some of the biggest
automotive, aerospace, communications and utility companies in the
world. Our solutions are based on powerful enterprise platforms,
supported by a range of customer-led applications, that use
location to deliver a real-time digital twin of our customer's
physical operations, proven to drive quality, increase
productivity, manage complexity and reduce costs. Founded in 2002,
Ubisense is headquartered in Cambridge, UK, with subsidiaries in
France, Germany, USA, Canada and Japan. For more information visit:
www.ubisense.net.
Chief Executive's Statement
Overview
In the first half of 2018, the Group continued to trade in line
with the Board's expectations. It is particularly pleasing that
this performance shows the progress the Company has made following
the GBP5.5m fundraise in November 2017. The proceeds allowed
Ubisense to invest in a high-quality sales and marketing
capability, creating a well-organised and effective route to market
for our industry leading enterprise software solutions. While the
sales cycle for enterprise software solutions can be long, Ubisense
has delivered a 47% increase in year-on-year orders. We have
created a strong pipeline across both existing customers and new
prospects, which shows significant investment in the digital
transformation of their businesses.
During the period, the Group won new business with industry
leaders in our core target sectors of communications, utilities and
manufacturing, as well as achieving significant sales in new
industries.
Strategy
Ubisense has and continues to develop the Group's activities as
two separate business units. This structure enables each unit to
develop and execute distinct sales and marketing strategies
designed to increase operational productivity across targeted
industries through its digital twin technology. The Geospatial
business unit (consisting of myWorld software and services, and
additionally services attached to third party products) is
concentrated on the communications and utilities industries, the
SmartSpace business unit focuses on automotive, commercial
vehicles, aerospace, defence and transport.
The Group is focused on the three-point strategy outlined in the
2017 annual report to achieve the performance goals of the
business:
Refocus the business
-- Target key industries and top 200 global companies
-- Develop customer driven product roadmaps
-- Manage out legacy third party software and service business
Improve sales execution
-- Strengthen go-to-market capabilities and geographic coverage
-- Deploy metric-driven CRM and Marketing Automation resources
-- Establish a broader, more consistent business pipeline
Reposition the product portfolio
-- Solve enterprise level business challenges
-- Create a modular architecture addressing known customer pain-points
-- Communicate the long-term value Ubisense products deliver to customers
Business development - myWorld
Opportunities for myWorld software sales remain strong with new
account wins and expansion of existing customers in the
communications industry in North America. The enhanced myWorld
Fiber Planning and myWorld Capture modules, and open platform
support for GIS systems, have been well received by prospects and
customers.
During the first half of 2018, the Group continued to invest in
its sales capability in Europe, and whilst still at an early stage,
has begun to develop its pipeline of opportunities which is
expected to deliver revenue in 2019.
The myWorld product line has also extended the recent Salesforce
relationship by launching a new "myWorld for Salesforce" app on the
Salesforce AppExchange. This unique app provides access to business
critical geospatial and engineering information through the
Salesforce ecosystem, increasing productivity and reducing
operating costs for utility and communication businesses. To
further develop this partnership, Ubisense is working actively with
the Salesforce partner team on a number of marketing and sales
enablement activities in the second half of 2018.
Business development - SmartSpace
In the first half of 2018 for our SmartSpace business, there
were notable orders from our major German and US automotive and
commercial vehicle customers, one of our long-standing North
American transit customers and the first customer order from a
European transit operator.
The highlight of the first half, and a clear success story with
a new market, was the award of a GBP4.5m contract win for a
military training application as part of a military training
contract for a founding NATO member. This win is confirmation of
the applicability of the digital twin solution in adjacent markets.
Violent storms in North America disrupted the initial delivery at
the end of June resulting in GBP1.1m revenue being deferred to July
and the second half of 2018. Without the storms, revenue growth for
the first half would have been significantly greater at 31% for
SmartSpace and 21% for total own products and would have resulted
in improved gross margins.
In the second half of 2018, Ubisense will be investing in sales
and marketing activities for the aerospace industry where
SmartSpace has a strong proposition for the MRO market (Maintenance
Repair Operations), as well as further building its hardware
agnostic solutions with inclusion of Bluetooth Low Energy products
from Quuppa.
Other matters and management team
Ubisense recruited three experienced professionals in some of
its key geographies to fill senior management roles in the first
half of 2018. The roles recruited include Christian Wirth European
General Manager based in Germany, Tatsya Yamaguchi General Manager
for Ubisense in Japan, and Steve Tongish Chief Marketing
Officer.
During the period, the board reflected on its corporate
governance model and has decided, given its size, to adopt the QCA
Corporate Governance Code rather than the UK Corporate Governance
Code. In line with the requirements of AIM notice 50, appropriate
adjustments to the Group's website have been made.
Current trading and outlook
The Group's strategy of increasing revenue from own product
software solutions globally via an effective, well-organised and
focused sales function, whilst still at an early stage, is
delivering improved performance. The 47% increase in orders is
demonstrative of the significant improvement in the pipeline and
the Company expects further progress in pipeline building in the
next period.
Whilst total revenue has been impacted by the planned and
managed decline in third party Geospatial services (including the
disposal of the Japanese business) and extreme weather impacted
deliveries in June, the focus on own product software sales has
improved the quality of the top line as reflected in the increase
in gross margin percentage. As the strategy continues to be
implemented, the Board expects gross margin and profitability to
improve further.
Investment in front line sales and marketing costs increased
costs in the first half which will continue into the second half,
but this is expected to be outweighed by increased sales of own
products and thereby increased gross margins going forward. The
sale of advanced software requires salespeople with a highly
specialised skill set and the Company is very excited by the
quality of the hires. While typical sales cycles are in the 18-24
month range, our activities are building a strong pipeline and
positioning Ubisense for future growth.
We expect cashflows to improve in the second half driven by the
delivery of order backlog and returns on the investments in
sales.
The Board expects that the Company will deliver full year
results in line with its expectations, showing progress in own
product revenue and gross margin.
Financial review
Financial Key Performance Indicators
H1 2018 H1 2017
GBPm GBPm
--------------------------- -------- --------
Bookings of new orders 13.7 9.3
Revenue 10.3 12.4
Own product revenue 7.1 6.8
Order-book backlog
to be recognised 12.3 10.2
Adjusted EBITDA (1.1) (0.2)
Cash and cash equivalents 5.8 6.5
Net cash/(debt) 4.0 3.2
--------------------------- -------- --------
Revenue
The Group is organised into two business units: SmartSpace and
Geospatial. Geospatial includes myWorld products and services, and
additionally services connected to third party products. SmartSpace
provides software solutions and services to enterprise customers,
and additionally hardware solutions.
The revenue composition by division is summarised in the table
below:
Own product revenue H1 2018 % of H1 2017 % of total Year on
GBP m total GBP m revenue year growth
revenue
-------- --------- -------- -----------
SmartSpace 4.6 65% 4.4 65% 6%
myWorld 2.5 35% 2.4 35% 5%
------------------------- -------- --------- -------- ----------- -------------
Total revenue generated
from own products 7.1 100% 6.8 100% 6%
------------------------- -------- --------- -------- ----------- -------------
Revenue composition by revenue stream is summarised in the table
below:
Revenue stream H1 2018 % of total H1 2017 % of total Year on
GBP m revenue GBP m revenue year growth
-------- ----------- -------- -----------
Software 1.2 12% 1.1 9% 15%
Maintenance and support 1.1 10% 0.8 7% 31%
Hardware 1.5 15% 1.9 15% (19)%
Services 3.3 32% 3.0 24% 11%
Total revenue generated
from own products 7.1 69% 6.8 55% 6%
-------- ----------- -------- -----------
Geospatial services from
third party products 3.2 31% 5.6 45% (43)%
-------------------------- -------- ----------- -------- ----------- -------------
Total revenue 10.3 100% 12.4 100% (17)%
-------------------------- -------- ----------- -------- ----------- -------------
The Group has shown growth in software revenues of 15% and
recurring maintenance and support contracts of 31%.
Revenue generated from the Group's own products has increased by
6% as the long-term strategy of the Group continues to be sales and
development of the SmartSpace and myWorld product suites.
Orders
Total bookings of new customer orders in the first half of 2018
increased by 47% to GBP13.7 million (H1 2017: GBP9.3 million).
GBP9.5 million of this related to SmartSpace (H1 2017: GBP3.1
million), GBP1.2 million related to myWorld (H1 2017: GBP3.3
million) and GBP3.0 million to Geospatial Services (H1 2017: GBP3.0
million).
SmartSpace bookings included a significant North American
contract win to a provider of military training solutions,
currently fulfilling a contract with a founding NATO member.
Similar sized follow-on orders are expected in 2019.
The order book backlog as at 30 June 2018 was GBP12.3 million
(30 June 2017: GBP10.2 million), most of which will be recognised
during 2018.
Gross margin
The Group gross margin was 41% for the six months ended 30 June
2018 (H1 2017: 38%).
Gross margin by division H1 2018 Gross H1 2017 Gross Gross margin
GBP m margin GBP m margin movement
% %
-------- -------- -------- --------
SmartSpace 1.8 38% 1.4 32% 6%
Geospatial 2.4 43% 3.3 41% 2%
-------------------------- -------- -------- -------- -------- -------------
Total gross margin 4.2 41% 4.7 38% 3%
-------------------------- -------- -------- -------- -------- -------------
The gross margin of the SmartSpace division has increased
compared to the first half of 2017 due to revenue mix with a higher
proportion of higher margin software revenue. The Geospatial
division's gross margin was improved as the myWorld revenue mix
increased compared to the first half of 2017.
Operating expenses and adjusted EBITDA
Operating expenses were GBP6.9 million (H1 2017: GBP6.6 million)
and are summarised as follows:
H1 2018 H1 2017
GBP m GBP m
-------------------------------- -------- --------
Other operating expenses 5.4 4.9
Depreciation 0.6 0.2
Amortisation and impairment 1.0 1.2
Share option expense 0.1 0.2
Unrealised foreign exchange on
intercompany trading balances - 0.1
Non-recurring items (0.2) -
-------------------------------- -------- --------
Total operating expense 6.9 6.6
-------------------------------- -------- --------
Other operating expenses were GBP5.4 million (H1 2017: GBP4.9
million) and include sales, marketing, product development and
administration expenses. The Group has invested in go-to-market
capacity by recruiting quota-carrying sales and pre-sales personnel
during the period, which has resulted in the strengthening of the
order book and pipeline. This increase in expense has been
partially offset by the impact of IFRS 16 with operating lease
costs being accounted for as interest and amortisation rather than
part of other operating expenses as outlined in note 3.
Adjusted EBITDA excludes amortisation and impairment,
depreciation, share option expense, unrealised foreign exchange
gains/losses on intercompany trading balances and non-recurring
items and is reported as it reflects the performance of the Group.
Adjusted EBITDA loss for the period was GBP1.1 million loss (H1
2017: GBP0.2 million loss).
The operating loss for the period was GBP2.7 million (H1 2017:
GBP1.9 million).
EPS and dividends
Adjusted diluted loss per share was 3.9 pence (H1 2017: 2.7
pence loss). Reported basic and diluted loss per share was 3.8
pence (H1 2017: 3.3 pence loss). The Board does not feel it
appropriate at this time to commence paying dividends.
Impact of IFRS 15 and IFRS 16
IFRS 15 Revenue from Contracts with Customers has replaced IAS
18 Revenue. The new standard has been adopted from 1 January 2018.
IFRS 15 introduces a number of new concepts and requirements, and
also provides guidance and clarification on existing practice.
IFRS 16 Leases will replace IAS 17 and three related
interpretations. Leases will be recorded on the statement of
financial position in the form of a right-of-use asset and a lease
liability. The consolidated statement of comprehensive income will
be impacted through reduced operating expenses, and higher
depreciation and finance costs. The new standard is applicable from
1 January 2019 but the Group have adopted the standard from 1
January 2018.
The impact of the adoption of IFRS 15 and IFRS 16 on the results
for the period ended 30 June 2018 has been disclosed in detail
within note 3 to the financial statements. In summary,
implementation of IFRS 15 has had minimal revenue impact, whilst
the impact of IFRS 16 has been to reduce operating expenses and
increase adjusted EBITDA by GBP0.3 million for the 6 months ending
30 June 2018.
Balance sheet, cash and cash flow
Cash held on the balance sheet at 30 June 2018 was GBP5.8
million (31 December 2017: GBP9.1 million, 30 June 2017: GBP6.5
million) and net funds at 30 June 2018 were GBP4.0 million (31
December 2017: GBP6.6 million, 30 June 2017: GBP3.2 million).
The net cash outflows from operating activities were GBP1.3
million for the period to 30 June 2018 (H1 2017: inflow of GBP4.2
million).
Capital structure
The issued share capital at 30 June 2018 was 73,087,904 ordinary
shares of GBP0.02 each. Share options were granted to one employee
in the six-month period ended 30 June 2018, and the total number of
unexercised share options at 30 June 2018 was 6,583,722.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of
the business. The key risks that could affect the Group's
performance, and the factors which mitigate these risks, have not
significantly changed from those set out on pages 23 to 25 of the
Group's Annual Report for 2017 (a copy of which is available from
our website www.ubisense.net).
Consolidated income statement
For the six months ended 30 June 2018
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2018 2017 2017
unaudited unaudited audited
Notes GBP'000 GBP'000 GBP'000
------------------------------------ ------- ----------- ----------- -------------
Revenues 5 10,329 12,380 27,255
Cost of revenues (6,099) (7,676) (16,398)
==================================== ======= =========== =========== =============
Gross profit 4,230 4,704 10,857
Operating expenses (6,947) (6,621) (13,912)
==================================== ======= =========== =========== =============
Operating loss (2,717) (1,917) (3,055)
Analysed as:
Gross profit 4,230 4,704 10,857
Other operating expenses (5,373) (4,909) (10,492)
==================================== ======= =========== =========== =============
Adjusted EBITDA (1,143) (205) 365
Depreciation (605) (165) (417)
Amortisation of other intangible
assets (1,003) (1,253) (2,435)
Share option expense (159) (161) (316)
Unrealised foreign exchange
losses on intercompany trading
balances (54) (133) (252)
Non-recurring items 6 247 - -
==================================== ======= =========== =========== =============
Operating loss (2,717) (1,917) (3,055)
==================================== ======= =========== =========== =============
Net finance costs (84) (17) (79)
==================================== ======= =========== =========== =============
Loss before tax (2,801) (1,934) (3,134)
Income tax 9 61 61
------------------------------------ ------- ----------- ----------- -------------
Loss for the period (2,792) (1,873) (3,073)
------------------------------------ ------- ----------- ----------- -------------
Loss attributable to:
Equity shareholders of the
Company (2,792) (1,827) (3,055)
Non-controlling interest - (46) (18)
------------------------------------ ------- ----------- ----------- -------------
(2,792) (1,873) (3,073)
------------------------------------ ------- ----------- ----------- -------------
Loss per share attributable
to equity shareholders of
the parent (pence)
Basic 7 (3.8) (3.3) (5.2)
Diluted 7 (3.8) (3.3) (5.2)
The notes 1 to 12 are an integral part of these condensed interim
financial statements.
Consolidated statement of comprehensive income
For the six months ended 30 June 2018
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2018 2017 2017
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
---------------------------------------- ----------- ----------- -------------
Loss for the period (2,792) (1,873) (3,073)
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 17 23 (33)
Total comprehensive income for
the period (2,775) (1,850) (3,106)
---------------------------------------- ----------- ----------- -------------
Consolidated statement of changes in equity
For the six months ended 30 June 2018
Share
based
Share Share payment Translation Retained Non-controlling
capital premium reserve reserve earnings Subtotal interest Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
=================== ========= ========= ========= ============ ========== ========= ================ =========
Balance at 1
January
2017 1,118 41,554 823 (2,025) (32,192) 9,278 473 9,751
=================== ========= ========= ========= ============ ========== ========= ================ =========
Loss for the
period - - - - (1,827) (1,827) (46) (1,873)
Exchange
difference
on retranslation
of net assets and
results of
overseas
subsidiaries - - - 28 - 28 (5) 23
=================== ========= ========= ========= ============ ========== ========= ================ =========
Total
comprehensive
income for the
period - - - 28 (1,827) (1,799) (51) (1,850)
Reserve credit for
equity-settled
share-based
payment - - 161 - - 161 - 161
Premium on new
share
capital - 1 - - - 1 - 1
Transactions with
owners - 1 161 - - 162 - 162
=================== ========= ========= ========= ============ ========== ========= ================ =========
Balance at 30 June
2017 (unaudited) 1,118 41,555 984 (1,997) (34,019) 7,641 422 8,063
=================== ========= ========= ========= ============ ========== ========= ================ =========
Loss for the
period - - - - (1,228) (1,228) 28 (1,200)
Exchange
difference
on retranslation
of net assets and
results of
overseas
subsidiaries - - - (40) - (40) (16) (56)
Total
comprehensive
income for the
period - - - (40) (1,228) (1,268) 12 (1,256)
Reserve credit for
equity-settled
share-based
payment - - 155 - - 155 - 155
Issue of new share
capital 344 - - - - 344 - 344
Premium on new
share
capital - 5,157 - - - 5,157 - 5,157
Share issue costs - (337) - - - (337) - (337)
Transactions with
owners 344 4,820 155 - - 5,319 - 5,319
=================== ========= ========= ========= ============ ========== ========= ================ =========
Balance at 31
December
2017 1,462 46,375 1,139 (2,037) (35,247) 11,692 434 12,126
=================== ========= ========= ========= ============ ========== ========= ================ =========
Adjustment on
initial
application of
IFRS
15 (net of tax) - - - - (13) (13) - (13)
=================== ========= ========= ========= ============ ========== ========= ================ =========
Adjusted balance
at 1 January 2018 1,462 46,375 1,139 (2,037) (35,260) 11,679 434 12,113
=================== ========= ========= ========= ============ ========== ========= ================ =========
Loss for the
period - -- - - (2,792) (2,792) - (2,792)
Exchange
difference
on retranslation
of net assets and
results of
overseas
subsidiaries - - - 17 - 17 - 17
Total
comprehensive
income for the
period - - - 17 (2,792) (2,775) - (2,775)
Reserve credit for
equity-settled
share-based
payment - - 159 - - 159 - 159
Acquisition of
non-controlling
interest - - - - 282 282 (434) (152)
Transactions with
owners - - 159 - 282 441 (434) 7
=================== ========= ========= ========= ============ ========== ========= ================ =========
Balance at 30 June
2018 (unaudited) 1,462 46,375 1,298 (2,020) (37,770) 9,345 - 9,345
=================== ========= ========= ========= ============ ========== ========= ================ =========
Consolidated statement of financial position
At 30 June 2018
At At At
30 June 30 June 31 December
2018 2017 2017
unaudited unaudited audited
Notes GBP'000 GBP'000 GBP'000
------------------------------- ------ ----------- ----------- --------------
Assets
Non-current assets
Intangible assets 8 2,812 3,187 2,962
Property, plant and equipment 9 3,157 650 493
Total non-current assets 5,969 3,837 3,455
=============================== ====== =========== =========== ==============
Current assets
Inventories 1,742 1,567 1,459
Trade and other receivables 7,602 7,028 10,544
Cash and cash equivalents 5,788 6,485 9,114
=============================== ====== =========== =========== ==============
Total current assets 15,132 15,080 21,117
=============================== ====== =========== =========== ==============
Total assets 21,101 18,917 24,572
=============================== ====== =========== =========== ==============
Liabilities
Current liabilities
Bank loans 10 (750) (750) (750)
Operating lease liability (817) - -
Trade and other payables (6,578) (6,765) (9,211)
=============================== ====== =========== =========== ==============
Total current liabilities (8,145) (7,515) (9,961)
=============================== ====== =========== =========== ==============
Non-current liabilities
Deferred income tax liability (500) (617) (516)
Trade and other payables (40) - (40)
Bank loans 10 (1,000) (2,500) (1,750)
Operating lease liability (1,928) - -
Other payables (143) (222) (179)
=============================== ====== =========== =========== ==============
Total non-current liabilities (3,611) (3,339) (2,485)
=============================== ====== =========== =========== ==============
Total liabilities (11,756) (10,854) (12,446)
=============================== ====== =========== =========== ==============
Net assets 9,345 8,063 12,126
=============================== ====== =========== =========== ==============
Equity attributable to owners
of the parent company
Ordinary share capital 11 1,462 1,118 1,462
Share premium 46,375 41,555 46,375
Share based payment reserve 1,298 984 1,139
Translation reserve (2,020) (1,997) (2,037)
Retained earnings (37,770) (34,019) (35,247)
=============================== ====== =========== =========== ==============
Equity attributable to owners
of the parent company 9,345 7,641 11,692
=============================== ====== =========== =========== ==============
Non-controlling interests - 422 434
=============================== ====== =========== =========== ==============
Total equity 9,345 8,063 12,126
------------------------------- ------ ----------- ----------- --------------
Consolidated statement of cash flows
For the six months ended 30 June 2018
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2018 2017 2017
unaudited unaudited audited
Notes GBP'000 GBP'000 GBP'000
====================================== ====== =========== =========== =============
Loss before tax (2,801) (1,934) (3,134)
Adjustments for:
Depreciation 605 165 417
Amortisation and impairment 1,003 1,253 2,435
Loss on disposal of property,
plant and equipment - 2 2
Revaluation of intercompany
balances 54 133 252
Share-based payment charge 159 161 316
Non-recurring items 6 (247) - -
Finance income (6) (16) (8)
Finance costs 90 33 87
====================================== ====== =========== =========== =============
Operating cash flows before
working capital movements (1,143) (203) 367
Change in inventories (283) (503) (395)
Change in receivables 2,785 6,196 2,678
Change in payables (2,571) (1,252) 987
====================================== ====== =========== =========== =============
Cash used in operations before
tax (1,212) 4,238 3,637
====================================== ====== =========== =========== =============
Net income taxes received/(paid) (107) (7) (14)
====================================== ====== =========== =========== =============
Net cash flows from operating
activities (1,319) 4,231 3,623
====================================== ====== =========== =========== =============
Cash flows from investing activities
Purchases of property, plant
and equipment (247) (54) (140)
Payment of contingent consideration - (197) (197)
Expenditure on intangible assets (880) (842) (1,813)
Purchase of minority interest (152) - -
Sale of Japanese business 417 - -
Interest received 6 16 8
====================================== ====== =========== =========== =============
Net cash flows from investing
activities (856) (1,077) (2,142)
====================================== ====== =========== =========== =============
Cash flows from financing activities
Repayment of borrowings (750) - (750)
Interest paid (59) (56) (110)
Principal payments under capital (273) - -
lease obligations
Proceeds from the issue of
share capital - 1 5,165
====================================== ====== =========== =========== =============
Net cash flows from financing
activities (1,082) (55) 4,305
====================================== ====== =========== =========== =============
Net (decrease)/increase in
cash and cash equivalents (3,257) 3,099 5,786
Cash and cash equivalents at
start of period 9,114 3,498 3,498
Exchange differences on cash
and cash equivalents (69) (112) (170)
====================================== ====== =========== =========== =============
Cash and cash equivalents at
end of period 5,788 6,485 9,114
====================================== ====== =========== =========== =============
The notes 1 to 12 are an integral part of these condensed
interim financial statements.
Notes to the interim consolidated 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 and improve productivity.
The Group has operations in the UK, USA, Canada, France, Germany
and Japan, selling mainly to customers 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 26 September
2018.
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 2017 were approved by the Board of Directors on 14 March
2018 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain a
material uncertainty related to going concern 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 New Standards adopted as at 1 January 2018
The Group has adopted the new accounting pronouncements which
have become effective this year, and are as follows:
IFRS 9 'Financial Instruments'
IFRS 9 sets out requirements for recognising and measuring
financial assets, financial liabilities and some contracts to buy
or sell non-financial items. This standard replaces IAS 39
Financial Instruments: Recognition and Measurement.
The adoption of IFRS 9 which became effective from 1 January
2018 and has therefore been adopted does not have a significant
impact on the Group's financial results or position.
IFRS 15 'Revenue from Contracts with Customers'
IFRS 15 Revenue from Contracts with Customers has replaced IAS
18 Revenue. The new standard is applicable from 1 January 2018.
IFRS 15 introduces a number of new concepts and requirements
relating to revenue recognition and also provides guidance and
clarification on existing practice. The new Standard has been
applied retrospectively without restatement, with the cumulative
effect of initial application recognised as an adjustment to the
opening balance of retained earnings at 1 January 2018. In
accordance with the transition guidance, IFRS 15 has only been
applied to contracts that are incomplete as at 1 January 2018.
In applying IFRS 15, hardware and certain software revenues
within the SmartSpace division are deferred until the customer is
in control of both the hardware and software components provided by
Ubisense. As at 30 June 2018 there were significant ongoing
customer contracts and due to adverse weather conditions delaying
delivery of hardware, the associated hardware and software revenues
on these contracts were deferred into the second half of 2018.
The conclusion of management's assessment of the adoption of
IFRS15 on contracts which were incomplete as at 1 January 2018 is
as follows:
-- In applying IFRS 15 to contracts with were incomplete as at 1
January 2018, revenue of GBP15,000 which had been previously
reported within the 2017 financial year is deferred into the six
month period ended 30 June 2018 due to the timing of delivery of
hardware within the SmartSpace division.
-- Hardware costs of GBP2,000 associated with SmartSpace
contracts which were incomplete as at 1 January 2018, are deferred
into the six month period ended 30 June 2018.
-- No adjustment has been made to defer the incremental costs of
obtaining customer contracts, such as commission payments, as these
costs would be amortised over a period of one year or less.
Management have applied the practical expedient permitted under
IFRS 15 in reaching this conclusion.
-- As a result of these adjustments, GBP13,000 has been
recognised as an adjustment to the opening balance of retained
earnings at 1 January 2018. Within the results for the six months
ended 30 June 2018, revenues have increased GBP15,000 and cost of
sale has increased by GBP2,000.
The Group's revenue policies under IFRS 15 are as follows:
For sales within the SmartSpace division, the Group contracts
with customers to provide software, maintenance & support,
hardware or services. For sales within the Geospatial division, the
Group contracts with customers to provide software, maintenance
& support, or services. The contractual arrangements may be to
provide one of these elements on a standalone basis or to provide a
combination of the above. For sales including a combination of some
or all of the above, the distinct performance obligations are
identified and revenue is allocated. Regardless of if the elements
are sold on a standalone basis or as part of a combination, the
timing of revenue recognition is as follows:
Software - SmartSpace division
SmartSpace operates as standalone software that can be used to
identify and manage assets in real time through the collection of
data. Smartspace integrates with Ubisense's own hardware or can be
used alongside third party products. Smartspace software is sold
under a perpetual licence arrangement and is recognised when the
software is made available to the customer for use.
Additionally, the Group sells software that is required to allow
Ubisense's own hardware to operate. Accordingly, this software is
only sold alongside hardware. Revenue is recognised at the point
that the software has been made available to the customer and as
the associated hardware becomes under the control of the customer,
which is generally on delivery to the customer's premises.
Software - Geospatial division
Revenue earned from myWorld software sales under perpetual
licence agreements with maintenance and support is recognised when
the software is made available to the customer for use. Revenue
earned from myWorld software sold as a subscription is recognised
over the period of the contract, which is generally one year,
commencing from when the software is available for use.
If contracts include performance obligations which result in
software being customised or altered, the software cannot be
considered distinct from the labour service. Revenue recognition is
dependent on the contract terms and assessment of whether the
performance obligation is satisfied over time. If the conditions of
IFRS15 are not satisfied, revenue is deferred until the software is
available for customer use.
Maintenance and support - Geospatial and SmartSpace business
units
Maintenance and support is recognised on a straight-line basis
over the term of the contract, which is typically one year. Revenue
not recognised in the consolidated income statement is classified
as deferred revenue on the consolidated statement of financial
position.
Hardware - SmartSpace business unit only
Revenue is recognised at the point that the hardware supplied
becomes under the control of the customer. This is generally on
delivery to the customer's premises.
Services - Geospatial and SmartSpace business units
Services revenue includes consultancy, installation of hardware
and training. Services revenue from time and materials contracts is
recognised in the period that the services are provided on the
basis of time worked at agreed contractual rates and as direct
expenses are incurred.
Revenue from fixed price, long-term customer specific contracts
is recognised on the stage of completion of each assignment at the
period end date compared to the total estimated service to be
provided over the entire contract where the outcome can be
estimated reliably. If a contract outcome cannot be estimated
reliably, revenues are recognised equal to costs incurred, to the
extent that costs are expected to be recovered. An expected loss on
a contract is recognised immediately in the income statement.
IFRS 16 'Leases'
IFRS 16 Leases will replace IAS 17 and three related
interpretations. Leases will be recorded on the statement of
financial position in the form of a right-of-use asset and a lease
liability. The consolidated statement of comprehensive income will
be impacted through reduced operating expenses, and higher
depreciation and finance costs. The new standard is applicable from
1 January 2019 with an option to adopt it early.
The Group has early adopted IFRS 16 effective from 1 January
2018.
The Group's accounting policies under IFRS 16 are as
follows:
The policy applies to properties and cars where the Group has
substantially all of the economic benefits from use of the asset.
On adoption of the standard, a right-of-use asset and lease
liability has been created.
The right-of-use asset is depreciated over the lease-term and if
necessary impaired in accordance with applicable standards. The
lease liability is subsequently measured by increasing the carrying
amount to reflect interest on the lease liability (application of
the effective interest method) and by reducing the carrying amount
to reflect the lease payments made.
In the event that lease incentives are received to enter into
operating leases, such incentives are recognised as a liability.
The aggregate benefit of incentives is recognised as a reduction of
rental expense on a straight-line basis, except where another
systematic basis is more representative of the time pattern in
which economic benefits from the leased asset are consumed.
The standard allows two options for adoption - fully
retrospective and modified retrospective. The Group has elected to
take the modified retrospective approach. As a result of this the
Group has:
-- recognised a lease liability at 1 January 2018 for leases
previously classified as operating leases applying IAS 17. The
Group has measured lease liabilities at the present value of the
remaining lease payments, discounted using the Group's incremental
borrowing rate at the date of initial application.
-- recognised a right-of-use asset at 1 January 2018 for leases
previously classified as operating leases applying IAS 17. The
Group has chosen to measure right-of-use assets at an amount equal
to the lease liabilities, adjusted by the amount of any prepaid or
accrued lease payments relating to those leases recognised in the
statement of financial position as at 31 December 2017.
-- 2017 comparatives are left unchanged, and any opening
adjustment to net assets was recognised on 1 January 2018.
The modified retrospective approach also allows a number of
practical expedients which the Group has made use of:
-- Application of a single discount rate to a portfolio of
leases with reasonably similar characteristics, being 3.5%.
-- Reliance on an assessment of whether a lease is onerous by
applying IAS 37 Provisions, Contingent Liabilities and Contingent
Assets immediately before the date of initial application as an
alternative to performing an impairment review using the principles
in IAS 36 Impairment of Assets.
As noted above, no comparatives are given for the adoption of
IFRS 16. The Group has calculated that the right of use asset
recognised and corresponding liability as at 1 January 2018 is
GBP3.0m. The impact on adoption within the results for the six
months ended 30 June 2018 is as follows:
-- Finance costs have increased by GBP0.1m due to interest charges on the lease liability.
-- Depreciation expense has increased by GBP0.5m due to
depreciation of the right-of-use asset.
-- EPS has decreased by 0.3p per share.
-- Adjusted EBITDA has improved by GBP0.3m due to reduction of rental expense.
The lease commitments as at 1 January 2018 were as follows;
Land
and buildings Other Total
GBP,000 GBP,000 GBP,000
--------------------------------- --------------- ---------- ----------
No later than one year 681 94 775
Less than one year and no later
than five years 1,513 10 1,523
Later than five years 982 - 982
--------------------------------- --------------- ---------- ----------
Total 3,176 104 3,280
--------------------------------- --------------- ---------- ----------
The opening lease liability is reconciled to the table of lease
commitments as follows:
Total
GBP,000
------------------------------------ ---------
Lease commitment as at 1 January
2018 3,280
Interest to be unwound over the
lease term (381)
Dilapidations provision recognised 103
Opening lease liability and right
of use asset at 1 January 2018 3,002
------------------------------------ ---------
4 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 2017, except for the effects of
applying IFRS 9, IFRS 15 and IFRS 16.
The operations of the Group display a degree of seasonality with
stronger performance typically seen in the second half of the year.
This is due to customers' budgetary cycles and the capital nature
of the products sold by the Group.
5 Segmental information
5.1 Operating segments
Management has determined the operating segments to be the
Group's business units based on the information reported to the
Chief Operating Decision Maker (CODM) for the purpose of assessing
performance and allocating resources. The CODM is the Chief
Executive Officer.
The SmartSpace division takes real-time location data from
Ubisense's own sensing hardware, or from standards based
integration with third party hardware, and transforms this data
into high value spatial event information, delivering highly
reliable, automatic, adaptive asset identification, precise
real-time location and spatial-monitoring to offer meaningful
insights that help businesses make smarter decisions.
The Geospatial division delivers myWorld software solutions that
integrate data from any source - geographic, real-time asset, GPS,
location, corporate and external cloud-based sources - into a live
geospatial common operating picture, empowering all users in the
customer's organisation to access, input and analyse operational
intelligence to proactively manage their networks, respond quickly
to emergency events and effectively manage day-to-day operations.
Additionally services are provided in connection with third party
products.
Each operating segment is managed separately by a business unit
leader as each deals with different technologies and predominately
a different customer base. The performance of the operating
segments is assessed on a measure of contribution, being gross
profit less sales and business unit marketing expenditure. Assets
and liabilities are not presented to the CODM on a divisional
basis.
Costs incurred centrally or not directly attributable to either
the SmartSpace or Geospatial business units are reported in the
Central division. The results of each segment are prepared using
accounting policies consistent with those of the Group as a whole.
No intra-segmental transactions are reported.
6 months ended 30 June SmartSpace Geospatial Central Total
2018 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ ------------ ------------ ---------- ----------
Revenue 4,630 5,699 - 10,329
Cost of sales (2,869) (3,230) - (6,099)
============================== ============ ============ ========== ==========
Gross profit 1,761 2,469 - 4,230
Sales and marketing costs (1,692) (1,182) - (2,874)
============================== ============ ============ ========== ==========
Contribution 69 1,287 - 1,356
============================== ============ ============ ========== ==========
Other operating costs (2,499) (2,499)
Adjusted EBITDA (2,499) (1,143)
Amortisation and impairment
of intangibles (1,003) (1,003)
Depreciation (605) (605)
Share option expense (159) (159)
Unrealised foreign exchange
losses on intercompany
trading balances (54) (54)
Non-recurring items 247 247
Operating loss (4,073) (2,717)
Net finance costs (84) (84)
============================== ============ ============ ========== ==========
Loss before tax (4,157) (2,801)
============================== ============ ============ ========== ==========
6 months ended 30 June SmartSpace Geospatial Central Total
2017 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ ------------- ------------ ---------- ----------
Revenue 4,372 8,008 - 12,380
Cost of sales (2,975) (4,701) - (7,676)
============================== ============= ============ ========== ==========
Gross profit 1,397 3,307 - 4,704
Sales and marketing costs (1,412) (894) - (2,306)
============================== ============= ============ ========== ==========
Contribution (15) 2,413 - 2,398
============================== ============= ============ ========== ==========
Other operating costs (2,603) (2,603)
Adjusted EBITDA (2,603) (205)
Amortisation and impairment
of intangibles (1,253) (1,253)
Depreciation (165) (165)
Share option expense (161) (161)
Unrealised foreign exchange
losses on intercompany
trading balances (133) (133)
Operating loss (4,315) (1,917)
Net finance costs (17) (17)
============================== ============= ============ ========== ==========
Loss before tax (4,332) (1,934)
============================== ============= ============ ========== ==========
12 months ended 31 December SmartSpace Geospatial Central Total
2017 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ------------- ------------ ---------- ----------
Revenue 10,796 16,459 - 27,255
Cost of sales (6,310) (10,088) - (16,398)
================================ ============= ============ ========== ==========
Gross profit 4,486 6,371 - 10,857
Sales and marketing costs (3,062) (2,004) - (5,066)
================================ ============= ============ ========== ==========
Contribution 1,424 4,367 - 5,791
================================ ============= ============ ========== ==========
Other operating costs (5,426) (5,426)
Adjusted EBITDA (5,426) 365
Amortisation and impairment
of intangibles (417) (417)
Depreciation (2,435) (2,435)
Share option expense (316) (316)
Unrealised foreign exchange
losses on intercompany
trading balances (252) (252)
Operating loss (8,846) (3,055)
Net finance costs (79) (79)
================================ ============= ============ ========== ==========
Loss before tax (8,925) (3,134)
================================ ============= ============ ========== ==========
5.2 Revenue by geography
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.
The Group's revenue from external customers in the Group's
domicile, the UK, and its major worldwide markets have been
identified on the basis of the customers' geographical
location.
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2018 2017 2017
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
-------------------- ----------- ----------- -------------
United Kingdom 28 251 383
Germany 2,095 3,902 8,218
France 65 201 303
Europe other 815 253 554
USA 4,540 4,917 10,954
Canada 1,011 922 2,845
Japan 1,675 1,737 3,545
Asia Pacific other 98 43 187
Rest of World 2 154 266
Total revenues 10,329 12,380 27,255
---------------------- ----------- ----------- -------------
6 Non-recurring items
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2018 2017 2017
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
Sale of Japanese business 247 - -
Total non-recurring items 247 - -
-------------------------- ----------- ----------- -------------
On 30 March 2018, the group concluded the sale of its Japanese
third party geospatial services business including the Geoplan
brand name for a gross consideration of JPY 100m (GBP0.7m).
Alongside this transaction, Ubisense agreed to acquire the 23%
minority interest of Geoplan Company Limited. The acquisition of
this non-controlling interest gave the Group 100% ownership of its
remaining Japanese operations. Geoplan Company Limited has been
renamed Ubisense Japan K.K.
7 Earnings per share
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2018 2017 2017
unaudited unaudited audited
---------------------------------- ----------- ----------- -------------
Earnings
-----------
Loss for the period (GBP'000) (2,792) (1,827) (3,055)
Loss for the purposes of diluted
earnings per share (GBP'000) (2,792) (1,827) (3,055)
=================================== =========== =========== =============
Number of shares
Basic weighted average number
of shares ('000) 73,088 55,883 58,479
Effect of dilutive potential
ordinary shares:
- Share options ('000) 230 230 215
Diluted weighted average number
of shares ('000) 73,318 56,113 58,694
=================================== =========== =========== =============
Basic loss per share (pence) (3.8) (3.3) (5.2)
=================================== =========== =========== =============
Diluted loss per share (pence) (3.8) (3.3) (5.2)
=================================== =========== =========== =============
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. Options have no dilutive effect in loss-making
years, and hence the diluted loss per share for the periods ended
30 June 2018 and 2017 and 31 December 2017 is the same as the basic
loss per share.
The Group also presents an adjusted diluted earnings per share
figure which excludes share-based payments charge, unrealised
foreign exchange gains/losses on intercompany trading balances and
non-recurring expenditure from the measurement of profit for the
period.
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2018 2017 2017
Adjusted diluted earnings per share unaudited unaudited audited
----------------------------------------- ----------- ----------- -------------
Loss for the purposes of diluted
earnings per share (GBP'000) (2,792) (1,827) (3,055)
Adjustments
Reversal of share-based payments
charge (GBP'000) 159 161 316
Reversal of unrealised foreign exchange
gains/losses on intercompany trading
balances 54 133 252
Sale of Japanese business (247) - -
----------------------------------------- ----------- ----------- -------------
Net adjustments (GBP'000) (34) 294 568
----------------------------------------- ----------- ----------- -------------
Adjusted earnings (GBP'000) (2,826) (1,533) (2,487)
----------------------------------------- ----------- ----------- -------------
Adjusted diluted loss per share (pence) (3.9) (2.7) (4.3)
----------------------------------------- ----------- ----------- -------------
8 Intangible assets
At At At
30 June 30 June 31 December
2018 2017 2017
unaudited unaudited audited
Net book amount GBP'000 GBP'000 GBP'000
================================= =========== =========== =============
Capitalised product development
costs 2,628 3,028 2,716
Software 184 159 246
Total intangible assets 2,812 3,187 2,962
----------------------------------- ----------- ----------- -------------
9 Property, plant and equipment
At At At
30 June 30 June 31 December
2018 2017 2017
unaudited unaudited audited
Net book amount GBP'000 GBP'000 GBP'000
============================== =========== =========== =============
Fixtures and fittings 473 486 342
Computer equipment 172 164 151
Capitalised operating leases 2,512 - -
Total property, plant and
equipment 3,157 650 493
-------------------------------- ----------- ----------- -------------
10 Bank loans
In October 2016, an GBP8.0 million HSBC working capital facility
was restructured, becoming a GBP4.0 million repayment loan with
GBP0.75 million repayable each year. GBP0.75 million of this
facility was repaid in each of December 2016, December 2017 and
January 2018.
This loan is secured on the fixed and floating assets of the
Group, attracts an interest charge of LIBOR + 3% and is subject to
an operating covenant linked to "operating cash flow" performance
(profit or loss before tax adding back any non-recurring items,
finance costs, foreign exchange costs, share based payments,
depreciation, amortisation or capitalisation of product
development). Following the placing in November 2017, the terms of
the operating covenant were agreed as follows: 2018 - GBP2 million
negative; 2019 - GBP1 million negative, 2020 and beyond -GBP1m
positive.
The covenants require future repayments of GBP187,500 each
quarter starting on 31 March 2019.
11 Share capital
At At At
30 June 30 June 31 December
2018 2017 2017
Allotted, called-up and fully unaudited unaudited audited
paid GBP'000 GBP'000 GBP'000
------------------------------- ----------- ----------- -------------
Ordinary shares of GBP0.02
each 1,462 1,118 1,462
--------------------------------- ----------- ----------- -------------
At At At
30 June 30 June 31 December
2018 2017 2017
unaudited unaudited audited
Movement in number of shares GBP'000 GBP'000 GBP'000
------------------------------- ------------ ----------- -------------
Number of shares at beginning
of period 73,087,904 55,883,154 55,883,154
--------------------------------- ------------ ----------- -------------
Issued under placing to
institutional shareholders - - 17,187,500
Issued under share-based
payment plans - 7,500 17,250
Change in number of shares
in period - 7,500 17,204,750
================================= ============ =========== =============
Number of shares at end
of period 73,087,904 55,890,654 73,087,904
--------------------------------- ------------ ----------- -------------
12 Share options
On 14 December 2016 Ubisense Group plc implemented a long-term
incentive share option plan for Executive Directors and key
management. Ubisense Group plc granted 5,600,000 options of two
pence each in the Company with an exercise price set at the nominal
value. The options vest if the Company's share price exceeds 70p
for 60 consecutive calendar days between the 2nd and 3rd
anniversary of issue and the period of employment continues for
over three years.
During the first half of 2018, 350,000 share options were issued
at market value. The new share options were valued using a
Black-Scholes valuation model. The expected life is the expected
period from grant to exercise based on management's best estimate
of the effects of non-transferability, exercise restrictions and
behavioural considerations. The risk-free return is an average
yield on the zero-coupon UK Government Bond in issue at the date of
grant with a similar life to the option.
At 30 June 2018, the Group had the following share-based payment
arrangements.
Awards
outstanding Granted Exercised Forfeited Awards Awards
at 1 during during during outstanding exercisable
Award Exercise Jan the the the at 30 at 30
date Vests Expires price 2018 year year year Jun 2018 Jun 2018
Arrangement Year Years Year GBP Number Number Number Number Number Number
============= ======= ========= ========= ========= ============ ======== ========== ========== ============ ============
Options
2010 2011-13 2020 0.140 322,672 - - (1,000) 321,672 321,672
2011 2012-14 2021 1.050 108,700 - - (7,000) 101,700 101,700
2012 2013-15 2022 2.125 75,500 - - (5,000) 70,500 70,500
2013 2014-16 2023 2.055 93,600 - - (8,750) 84,850 84,850
2014 2015-17 2024 2.250 65,000 - - (10,000) 55,000 55,000
2016 2017-19 2026 0.020 5,600,000 - - - 5,600,000 -
2018 2019-21 2028 0.555 - 350,000 - - 350,000 -
------- --------- ----------------------- --------- ------------ -------- ---------- ---------- ------------ ------------
Total 6,265,472 350,000 - (31,750) 6,583,722 633,722
============================================ ========= ============ ======== ========== ========== ============ ============
Weighted average exercise
price (GBP) 0.123 0.555 - 1.846 0.138 0.946
======================================================= ============ ======== ========== ========== ============ ============
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 2018 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 the
related explanatory notes. 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
financial report has been prepared in accordance with the basis of
preparation 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 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 2018
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
26 September 2018
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LIFEEARIDFIT
(END) Dow Jones Newswires
September 27, 2018 02:02 ET (06:02 GMT)
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