Last checked at 7 Aug 2018 07:00
7 August 2018
Ubisense Group plc
Trading Update
Software orientated strategy delivering continued progress
Ubisense Group plc ("Ubisense" or the "Company") (LON:UBI), a market leader in enterprise location intelligence solutions, announces an update on current trading following the close of the Company's first half ended 30 June 2018.
Ubisense has made good progress in the period executing its stated strategy of growing revenue from own product enterprise software solutions. This has benefitted from improved sales execution, a focus on target verticals and continued development of highly relevant products to solve our customers' challenges.
Financial Performance
Financial performance in the first half is expected to show a greater than 40% increase in year-on-year orders received for a total in excess of £13 million (H117: £9.4 million). The Company also expects to deliver increased "own product" revenue of approximately £7 million (H117: £6.7 million) with order backlog in excess of £5 million (2017: £4.1 million). Total revenue is expected to be approximately £10 million (H117: £12.4 million) reflecting the anticipated decline in non-core Geospatial business following the disposal of the Japanese Geospatial third party services unit and the managed decline in non-core Geospatial third party services business. The Board expects to report an increase in net cash to £4.1 million (2017: £3.2 million net funds).
SmartSpace
Within the SmartSpace division, the order book grew significantly with the military training order in excess of £4.5 million, announced in June, together with orders from across the division. These included 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.. Our pipeline of opportunities continues to grow based on our software-led and hardware-agnostic strategy.
Geospatial
The Geospatial division traded in line with expectations and, having invested in its sales organisation, has delivered a better revenue mix, with further scope for improvement in the second half of the year. Product development activities delivered the launch of the myWorld for Salesforce.com partnership product, as well as the myWorld Capture product adding significant capability to field force operations. Having added key sales resources, the division continues to make progress in identifying new software opportunities in all regions particularly with telecoms operators in Europe and the US, and via our Japanese reseller.
The Company continues to trade in line with Board expectations
Richard Petti CEO said "In the second half of 2017 we invested in our global sales and marketing capability with the objective of growing our own-product pipeline. We are pleased to see this decision is paying off and resulting in significant increases in orders taken. The boost in orders confirms that our strategy is working well in our target markets."
The Company expects to announce its results for the 6 months ending 30 June 2018 in September 2018.
For further information contact:
Ubisense Group plc +44 (0) 1223 535170
Richard Petti
Tim Gingell
finnCap Ltd +44 (0) 20 7220 0500
Henrik Persson, Anthony Adams (Corporate Finance)
Tim Redfern, Richard Chambers (Corporate Broking)
Tulchan Communications LLP +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 and has subsidiary companies in Germany, USA, Canada and Japan. For more information visit: www.ubisense.net.