IQG.L Regulatory News (IQG)



21 January 2015

UBISENSE PLC - YEAR-END UPDATE

Ubisense Group PLC ("Ubisense" or the "Group") gives the following update on trading for its financial year ended 31 December 2014.

The second half of 2014 saw significant progress in moving the revenue mix towards a greater proportion of higher margin solutions sales. This has driven an encouraging increase in Adjusted EBITDA during the second half of the year. Second half revenues were marginally ahead of the first half, however were below the Board's expectations mainly as a result of slippage on two larger contracts now expected to sign in the first half of 2015. The Board nevertheless expects Adjusted EBITDA for 2014 be in line with its expectations.

During the second half, the Group incurred restructuring and further integration costs of approximately £0.7m relating both to the rationalisation of our services division headcount and the acquisition of Geoplan. These are exceptional items, and are non-recurring. Full year results will also reflect a non-cash charge of approximately £1.2m relating to the impairment of goodwill on certain non-core services division assets due to our changing focus towards IP we have developed ourselves and which will produce enhanced margins in the core business.

Cash balances at the year-end were approximately £3.7m, similar to last year's figure. The Group's net debt position was £3.2m at the year-end, from net cash of £0.75m at the half year, primarily as a result of an increase of approximately £4.5m in trade debtors, reflecting the sales profile over the period, and which is expected to reverse over the first quarter.

Given the healthy new orders intake, which comprises a higher proportion of solutions revenues and a consequent enhanced margin profile, the Group expects to fund its organic business growth through cash flow and bank facilities during 2015.

Ubisense CEO Richard Green, said: "We are making solid progress towards our goals, with margins and cash set to improve during 2015. Our shareholders have been very patient as we make the transition from being a Cambridge tech market newcomer to a focused, profitable enterprise software business, with very large international customers in growth markets. This is now well under way."

For further information contact

Ubisense Group plc +44 (0) 1223 535170

Richard Green, Chief Executive

Robert Parker, Chief Financial Officer

Numis Securities Limited +44 (0) 7260 1000

Simon Willis, James Lillywhite

(Corporate Finance)

Rupert Krefting

(Corporate Broking)

Montfort Communications +44 (0) 20 3514 0897

Nick Miles +44 (0) 7973 130669

About Ubisense

Ubisense is a market leader in real time location intelligence solutions that enable companies to optimise their business processes. By keeping track of key assets, Ubisense solutions bring clarity to complex operations while also improving quality and reliability. Ubisense 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, MINI and VW.

Ubisense is headquartered in Cambridge, UK, with offices in the USA; Canada; France; Germany; Japan; Korea; Philippines and Singapore. For more information visit: www.ubisense.net

For more information about Ubisense and Ubisense Smart Factory visit: www.ubisense.net