TIDMLSAI
RNS Number : 9512Y
Location Sciences Group PLC
15 September 2020
Location Sciences Group PLC
("Location Sciences" or the "Company")
Half Year Results
Location Sciences Group PLC, (AIM: LSAI), the leading location
verification company, is pleased to announce its unaudited interim
results for the six months ended 30 June 2020.
Highlights
-- Revenue increased 43% to GBP650,385 (H1 2019: GBP454,872)
-- Verify revenues increased 39% to GBP157,526 (H1 2019: GBP113,536)
-- Administrative expenses reduced by 35% to GBP785,066 (H1 2019: GBP1,204,558)
-- EBITDA loss reduced by 63% to GBP334,630 (H1 2019: GBP908,970)
-- Cash reserves GBP1,652,969 as at 30 June 2020 (31 December 2019: GBP1,493,904)
The Company's partnership with X-Mode saw an additional
GBP190,713 of securitised Insights revenues recognised in H1 2020,
which represents revenues payable by X-Mode in the period from 1
July 2020 to 31 December 2021. These revenues have enhanced H1
2020's performance accordingly. Excluding the X-Mode securitisation
revenues referred to above, revenues for the six months ended 30
June 2020 were GBP459,672, being marginally ahead of the GBP454,872
in H1 2019 and the EBITDA loss was GBP525,343, representing a
like-for-like decrease of 42% compared to the EBITDA loss of
GBP908,970 in H1 2019.
As previously reported, our Verify revenues - which rely on
location advertising - were down significantly in comparison to
management's expectations in the first half of the year. While the
outlook remains uncertain, July and August saw Verify revenues on
an upward trajectory as more location-based advertising campaigns
resumed. The management team is encouraged by recent take up for
Verify Proximity by Aldi in the UK as well as ongoing trials with
some major brands in the US. The focus is now on turning these
trials into contracts.
This aligns with the Board's view that brands and agencies are
shifting their approach to targeting local markets (to match
post-pandemic consumer behaviour) and to brand safe campaigns which
both maintain brand image and enhance performance.
Group M's (the world's largest advertising agency) announcement
in July 2020 that location verification is part of the brand safety
guidelines is a good indicator of this.
The most significant news in the first half of 2020 was the
successful launch of Verify Audience in the US, which went live in
June 2020. Verify Audience is the first independent product
available in the digital advertising market which measures the
quality of the inventory being used for location-based marketing.
As previously announced, InMarket was the first contract win for
Verify Audience and they have since acquired assets from
NinthDecimal elevating them to become a leader in the US
location-based marketing industry. We are very much looking forward
to working with them and, with several tests underway with other
brands, agencies, and suppliers, the team is confident of securing
further contract wins over the coming months.
Commenting on the results, Mark Slade, Chief Executive of
Location Sciences, said:
"Although COVID has impacted our short-term revenues from
Verify, I'm encouraged by the medium-term strategic partnerships we
are working on with key agencies and suppliers, particularly in the
US. Launching our audience verification platform in the US
following successful trials, has been a critical milestone for the
business and we are optimistic this will start to have a meaningful
impact on revenues in the final quarter of the year. We hope
shareholders can appreciate the work going on behind the scenes to
build momentum and keep costs as low as possible. As part of our
drive to improve shareholder communications, we will also be
increasing our social media presence and welcome shareholders to
follow our progress and activity on Linkedin and Twitter."
A copy of this announcement and the Company's interim report are
available on the Company's website www.locationsciencesgroup.ai
For further information please contact:
Location Sciences Group PLC via Milk & Honey PR
Mark Slade, Chief Executive
Officer
David Rae, CFO and Commercial
Director
Shore Capital (Nominated Tel: +44 (0)20 7408 4090
Adviser and Joint Broker)
Tom Griffiths/David Coaten
Peterhouse Capital (Joint Tel: +44 (0) 20 7220
Broker) 9791
Charles Goodfellow
Eran Zucker
Tel: +44 (0)20 3637 7310
Milk & Honey PR
Kirsty Leighton
Jessica Ballinger
About Location Sciences Group PLC:
Location Sciences is the pre-eminent global location
verification provider to the $160 billion digital advertising
industry. Working in partnership with brands, media agencies and
suppliers to reduce ad-wastage and improve the effectiveness of
location-based advertising campaigns.
The digital advertising market-place remains unregulated and
un-monitored, with an estimated $19 billion wasted on ad-fraud in
2018. Location Sciences has developed Verify, the world's first
independent location verification product. Utilising sophisticated
machine learning and pattern recognition technologies, Verify
detects location ad-fraud and shines a light on location data
inaccuracy with the aim of bringing back integrity, transparency
and trust to the market place.
Rule 26 website: www.locationsciencesgroup.ai
Verify website: www.locationsciences.ai
LinkedIn: https://www.linkedin.com/company/locationsciences
Twitter: @LocationSci
CHAIRMAN'S REPORT FOR THE PERIODED 30 JUNE 2020
Introduction
This has been a challenging period for Location Sciences, as it
has been for many businesses globally. I am proud of the way that
the team has responded to the COVID-19 pandemic, focusing on
revenue growth areas and helping to reduce costs where possible to
mitigate the virus' impact on the Company's operational and
financial performance.
Pleasingly, Insight product revenues in the period have
marginally outperformed management's expectations. This is due to
new contracts being secured to analyse the impact of COVID-19 on
people's movement across the UK. These contract wins, which should
continue for the foreseeable future, have outweighed some contract
losses with customers who have been hard hit by the pandemic.
Frustratingly the management team spent a lot of time and
resources in contacting the relevant UK Government departments in
respect to both track and trace and the use of location data to
track movements to inform government decisions. These efforts
unfortunately led to no material interest.
As previously reported, our Verify revenues - which rely on
location advertising - were down significantly in comparison to
management's expectations in the first half of the year. While the
outlook remains uncertain, July and August saw Verify revenues on
an upward trajectory as more location-based advertising campaigns
resumed. The management team is encouraged by recent take up for
Verify Proximity by Aldi in the UK as well as ongoing trials with
some major brands in the US. The focus is now on turning these
trials into contracts.
This aligns with the Board's view that brands and agencies are
shifting their approach to targeting local markets (to match
post-pandemic consumer behaviour) and to brand safe campaigns which
both maintain brand image and enhance performance.
Group M's (the world's largest advertising agency) announcement
in July 2020 that location verification is part of the brand safety
guidelines is a good indicator of this. The team are in active
communications with the Group M team to help support this
initiative.
The most significant news in the first half of 2020 was the
successful launch of Verify Audience in the US, which went live in
June 2020. Verify Audience is the first independent product
available in the digital advertising market which measures the
quality of the inventory being used for location-based marketing.
As previously announced, InMarket was the first contract win for
Verify Audience and they have since acquired assets from
NinthDecimal elevating them to become a leader in the US
location-based marketing industry. We are very much looking forward
to working with them and, with several tests underway with other
brands, agencies, and suppliers, the team is confident of securing
further contract wins over the coming months.
Trading performance
Unaudited underlying revenues (excluding X-Mode securitisation)
for the six months ended 30 June 2020 were
GBP459,672. This was marginally ahead of the GBP454,872 revenues
in H1 2019 despite the impact of COVID-19. Total reported revenues
(including X-Mode securitisation) were GBP650,385 being an increase
of 43% compared with H1 2019.
Verify revenues were adversely impacted by significantly reduced
advertising spend in Q2 2020. This led to Verify delivering
disappointing revenues of GBP157,526 albeit still 39% ahead of the
GBP113,536 delivered in H1 2019.
The Company's partnership with X-Mode saw an additional
GBP190,713 of securitised Insights revenues recognised in H1 2020,
which represents revenues payable by X-Mode in the period from 1
July 2020 to 31 December 2021. Excluding these revenues, the
underlying performance of the Insights business saw GBP302,146 of
revenues, which is an 11% reduction on the GBP341,336 delivered in
H1 2019. This is ahead of the original management expectations,
which were lower than the previous period in 2019, due to the sale
of the customer contracts as part of the X-Mode partnership which
also saw costs being removed from the Company.
To mitigate the impact of the pandemic, the Company's directors
implemented a cost reduction programme. The team is pleased to
report that administrative expenses have been significantly reduced
in the period to GBP785,066. This compares with GBP1,204,558 in H1
2019 (a reduction of 35%).
The combination of the impact of the X-Mode partnership and the
cost reductions implemented by the Board has led to a much-improved
EBITDA loss of GBP334,630 in the period. Excluding the
securitisation of X-Mode revenues the comparative EBITDA loss was
GBP525,343, representing a like for like decrease of 42% compared
to 2019 (H1 2019: EBITDA loss GBP908,970).
The gross margin in the period of 66% was in line with
management's expectations. This was again impacted by the X-Mode
partnership and compares favourably to the 59% reported for H1
2019. Verify remains a higher gross margin business than Insights
and the gross margin is expected to improve as the sales mix shifts
towards Verify in H2 2020.
Cash resources
In March 2020, the Company raised approximately GBP0.975 million
(before expenses) through an equity placing, which comprised the
issue and allotment of 111,430,000 new ordinary shares and an
additional approximately
GBP0.07 million was raised through the issue and allotment of
74,057,996 new ordinary shares pursuant to the issue of
warrants.
The combination of the GBP1.05 million of capital raised,
together with the 35% reduction in administration expenses,
resulted in the Company having cash reserves of GBP1,652,969 at 30
June 2020 (31 December 2019: GBP1,493,904). Furthermore, I can
report that as of 31 August 2020 the Company's cash reserves were
approximately GBP1.4 million, which the Board believes should be
sufficient for the Company's requirements into Q2 2021.
Importantly, the Company continued investing into its products
during the period, with approximately GBP0.22 million of this
investment capitalised in H1 2020, compared with GBP0.15 million in
H1 2019.
Swift action taken to mitigate the impact of Covid-19
It has been a challenging time for location-based advertising -
particularly within sectors that rely on people's movement, such as
retail and QSR. In the last few months, however, with strict
lockdowns being eased in the UK and the US, the Company has seen
signs that advertisers are beginning to spend again. While the
levels of spend are unlikely to reach 2019 levels, the Board
expects the focus on local advertising to be a positive driver for
the Company's media verification revenues in H2 2020 and
particularly in Q4 when the majority of the Company's Verify
revenues should be secured.
While Verify revenues were negatively impacted, the team worked
hard to replace these revenues. The Company won a number of new
Insights contracts predominantly for COVID-19 data analysis. This
only had a modest impact on H1 2020 with the main benefits of these
contract wins to be seen in H2 2020. The performance of the
Insights business was buoyed in H1 2020 with the securitisation of
the X-Mode partnership revenues, allowing the Company to report
GBP492,859 Insight revenues for H1 2020 compared to GBP341,336 for
H1 2019.
The Board also made swift cost reductions to mitigate the impact
of the downturn in revenues. These included salary reductions for
the Board and senior members of the team, a hiring freeze and staff
being furloughed. In addition, with the exception of product
development, all operational expenses were reduced to the minimal
viable levels during April, May and June 2020 when the UK and US
saw their strictest lockdown measures being implemented. As
reported above, these actions offset the impact of the lower
revenues on the cash runway of the business.
Verify progress
As announced in its COVID-19 update on 23 March 2020, the
Company launched an updated version of its Verify Proximity
platform at the end of April 2020. This gives its customers a
clearer picture of how to obtain better value from their location
spend and how to drive better performance. New potential clients
began testing the Verify Proximity platform in H2 and the Board
expects further progress in the coming months as advertisers begin
to promote their products and services again.
In June 2020, Location Sciences launched its Verify Audience
product in the US. Verify Audience allows brands, agencies and
suppliers to check the validity of location based derived audience
segments. It also enables a review of historical movements in
contrast to proximity which validates the real time locations as
digital advertising campaigns are delivered. It is worth noting
that the audience verification platform requires significant
operational set up for both the agencies and suppliers and,
therefore, will take time to scale. The management team are however
confident that once established into workflows the product and
service will be extremely sticky and has potential to outstrip
media verification revenues.
As previously announced, Verify Audience has already secured its
first customer win, InMarket, a leader in 360-degree consumer
intelligence in the US. It was pleasing to secure the partnership
with InMarket so soon after launch which, importantly, shows how
the Company is broadening the appeal of its Verify product suite to
agencies, brands and suppliers. InMarket's recent acquisition of
assets from NinthDecimal broadens the scope of this opportunity
further for the Company.
iOS 14 - Changing the Location Landscape
Apple's latest iOS update (iOS 14) is now due to be released in
October 2020 and will see users being given the choice of sharing
an approximate location as an alternative to their precise location
or no location at all. The announced change to the IDFA (the unique
identifier for advertisers), whereby the choice to share the IDFA
will be elevated to a per App setting in contrast to a system wide
setting (where it currently resides), has been delayed until early
2021 to give advertisers time to adapt.
This new operating system update will add greater consumer
choice and transparency features that will have a significant
impact on location advertisers - particularly when it comes to
behavioural audiences and precise location targeting at scale.
The Board expects that these changes will be welcomed by
consumers which will, as a result, increase the volume of location
data being shared - albeit the increase in volume is likely to be
driven by the sharing of approximate location (rather than not
sharing at all). This should provide further positive momentum to
the growth of Verify.
Outlook
Whilst the future remains uncertain, the action the Company has
taken to manage and mitigate the impact of COVID-19 has provided
the opportunity to continue to invest in our Verify product suite.
Our objective continues to be to become the default location
verification company for the $160 billion global mobile advertising
industry.
The promising reception of Verify Audience from potential
customers is encouraging, with further contract wins likely in H2
2020. The Company is also targeting further contract wins for
Verify Proximity in the coming months with the aim of delivering
significant year on year growth for Verify in 2020.
While the cash runway has been maintained to Q2 2020, it is
worth noting that further funds will be required to bring the
Company to positive cash flow generation. The Board will explore
all available options in due course with the objective to optimise
shareholder value prior to deciding on a particular funding
route.
I would like to thank the team for their commitment and
resilience and all shareholders for their continued support during
these unprecedented times.
Kelvin Harrison Chairman
LOCATION SCIENCES GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE PERIODED 30 JUNE
2020
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2020 2019 2019
Unaudited Unaudited Audited
Note GBP GBP GBP
Revenue 4 650,385 454,872 1,206,254
Cost of sales (219,287) (187,728) (398,753)
----------- ----------------- -------------
Gross profit 431,098 267,144 807,501
Grant income 10,000 28,000 25,280
Other income 9,338 250 -
Administrative expenses (785,066) (1,204,558) (2,545,767)
Amortisation and depreciation (301,807) (232,925) (558,256)
----------- ----------------- -------------
Operating loss 4 (636,437) (1,142,089) (2,271,242)
Finance income 95 112 229
Finance expense (2,810) - (12,707)
----------- ----------------- -------------
Loss before tax (639,152) (1,141,977) (2,283,720)
Taxation 60,000 92,474 166,908
----------- ----------------- -------------
Loss for the financial
year attributable to owners
of the company (579,152) (1,049,503) (2,116,812)
----------- ----------------- -------------
Earnings per share
Loss per share - basic
and diluted (0.12p) (0.31p) (0.61p)
The above results were derived from continuing operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARED
30JUNE 2020
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2019 2019 2019
Unaudited Unaudited Audited
GBP GBP GBP
Loss for the year (579,152) (1,049,503) (2,116,812)
Foreign currency translation gains/(losses) (7,006) - (3,370)
----------- ------------- -------------
Total comprehensive income for
the year attributable to owners
of the company (586,158) (1,049,503) (2,120,182)
----------- ------------- -------------
CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2020
30 June 30 June 31 December
2020 2019 Audited
Unaudited Unaudited 2019
Note GBP GBP GBP
Non-current assets
Intangible assets 1,156,227 1,251,119 1,185,237
Property, plant and
equipment 56,668 17,422 106,864
1,212,895 1,268,541 1,292,101
---------------------- ------------------------- --------------------
Current assets
Trade and other
receivables 556,769 436,746 407,321
Current tax asset 60,000 328,197 166,909
Cash and cash
equivalents 1,652,969 1,493,904 1,325,739
---------------------- ------------------------- --------------------
2,269,738 2,258,847 1,899,969
---------------------- ------------------------- --------------------
Current liabilities
Trade and other payables (234,388) (297,250) (349,079)
Current portion of
borrowings (24,118) (152) (74,918)
(258,506) (297,402) (423,997)
---------------------- ------------------------- --------------------
Net current assets 2,011,232 1,961,445 1,475,972
---------------------- ------------------------- --------------------
Net assets 3,224,127 3,229,986 2,768,073
Capital and reserves
Called up share capital 5 14,263,288 13,735,564 14,008,033
Share premium reserve 19,250,749 18,214,502 18,508,593
Merger relief reserve 11,605,556 11,605,556 11,605,556
Capital reserve 209,791 209,791 209,791
Other reserves (9,204,463) (9,225,108) (9,225,108)
Retained earnings (32,900,794) (31,310,319) (32,338,792)
---------------------- ------------------------- --------------------
Total equity 3,224,127 3,229,986 2,768,073
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIODED 30
JUNE 2020 EQUITY ATTRIBUTABLE TO THE PARENT COMPANY
Share Merger Retained
Share premium relief Capital Other reserves earnings Total
capital reserve reserve
GBP GBP GBP GBP GBP GBP GBP
At 1 January
2019 13,713,498 18,168,965 11,605,556 209,791 (9,225,108) (30,284,972) 4,187,730
Loss for the
period - - - - - (1,049,503) (1,049,503)
Issues of
shares 22,066 45,537 - - - - 67,603
Share based
transfer - - - - - 24,156 24,156
------------ ------------ ------------ ------------ --------------- ------------------ ---------------
At 30 June
2019 13,735,564 18,214,502 11,605,556 209,791 (9,225,108) (31,310,319) 3,229,986
At 1 January
2019 13,713,498 18,168,965 11,605,556 209,791 (9,225,108) (30,284,972) 4,187,730
Loss in year - - - - - (2,116,812) (2,116,812)
Other
Comprehensive
Income - - - - - (3,370) (3,370)
Issues of
shares 294,535 339,628 - - - - 634,163
Share based
payments - - - - - 48,036 48,036
Transition
adjustment
upon
application
of IFRS
16 - - - - - 18,326 18,326
------------ ------------ ------------ ------------ --------------- ------------------ ---------------
At 31 December
2019 14,008,033 18,508,593 11,605,556 209,791 (9,225,108) (32,338,792) 2,768,073
At 1 January
2020 14,008,033 18,508,593 11,605,556 209,791 (9,225,108) (32,338,792) 2,768,073
Loss for the
period - - - - - (579,152) (579,152)
Other
comprehensive
income - - - - - (7,006) (7,006)
Issue of
shares 255,255 742,156 - - - - 997,411
Share based
payments - - - - - 24,156 24,156
Shares to be
issued - - - - 20,645 - 20,645
------------ ------------ ------------ ------------ --------------- ------------------ ---------------
At 30 June
2020 14,263,288 19,250,749 11,605,556 209,791 (9,204,463) (32,900,794) 3,224,127
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIODED 30 JUNE
2020
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2020 2019 2019
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows from operating
activities
Loss for the year (579,152) (1,049,503) (2,116,812)
Adjustments to cash flows
from non-cash items
Depreciation and amortisation 301,807 232,895 558,256
Foreign exchange (gains)
/ losses (7,006) (7,056) (3,370)
Finance income (95) (112) (229)
Finance costs 2,810 - 12,707
Share based payment transactions 24,156 91,759 48,036
Income tax expense (60,000) (92,474) (166,908)
Shares issued other than
for cash 97,568 - 67,604
------------------- ------------------- -------------------
(219,912) (824,491) (1,600,716)
Working capital adjustments
Increase in trade debtors (149,448) (70,426) (48,057)
Decrease in trade creditors (114,691) (73,124) (21,294)
------------------- ------------------- -------------------
Cash used in operations (484,051) (968,041) (1,670,067)
Income taxes received 166,909 - 235,722
------------------- ------------------- -------------------
Net cash used in operating
activities (317,142) (968,041) (1,434,345)
------------------- ------------------- -------------------
Cash flows from investing
activities
Interest received 95 112 229
Acquisitions of tangible
assets (1,277) (8,371) (8,371)
Acquisition of intangible
assets (221,324) (145,251) (306,415)
------------------- ------------------- -------------------
Net cash used in investing
activities (222,506) (153,510) (314,557)
------------------- ------------------- -------------------
Cash flows from financing
activities
Proceeds from issue of ordinary
shares, net of issue costs 920,488 - 566,558
Payments to finance lease
creditors - - (152)
IFRS 16 liability repayment (53,610) - (107,220)
------------------- ------------------- -------------------
Net cash generated from financing
activities 866,878 - 459,186
------------------- ------------------- -------------------
Net increase/(decrease) in
cash and cash equivalents 327,230 (1,121,551) (1,289,716)
Cash and cash equivalents
at beginning of period 1,325,739 2,615,455 2,615,455
------------------- ------------------- -------------------
Cash and cash equivalents
at end of period 1,652,969 1,493,904 1,325,739
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIODED 30 JUNE
2020
1 General information
Location Sciences Group PLC and its subsidiaries Location
Sciences AI Limited and Location Sciences (US), Inc. (together the
"Group") specialise in providing two core solutions to its
customers, namely: 1) Location data and insights - this is a SaaS
where customers query Location Sciences' UK data lake for, inter
alia, advertising, location planning, attribution, competitor
analysis and forward looking financial metrics; and 2) Location
verification - utilising sophisticated machine learning and pattern
recognition technologies Verify detects location ad-fraud and
checks the accuracy and quality of location signals used to improve
the performance of digital advertising.
The Company is a public limited company which is quoted on the
AIM market of the London Stock Exchange and is incorporated and
domiciled in the United Kingdom.
2 Basis of preparation
The financial information has been prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted by
the European Union, IFRIC interpretations and with those parts of
the Companies Act 2006 applicable to companies reporting under
IFRS. The accounting policies adopted are consistent with those of
the financial statements for the year ended 31 December 2019, as
described in those financial statements.
The figures for the six-month periods ended 30 June 2020 and 30
June 2019 have not been audited. The figures for the year ended 31
December 2019 have been extracted from, but do not constitute, the
consolidated financial statements of Location Sciences Group PLC
for that year. Those financial statements have been delivered to
the Registrar of Companies and included an unqualified auditors'
report, with an emphasis of matter paragraph in relation to going
concern and did not contain a statement under Section 498(2) or
Section 498(3) Companies Act 2006.
3 Loss per share
Six months
Six months ended Year ended
ended 30 June 31 December
30 June 2020 2019 2019
Unaudited Unaudited Audited
Loss attributable to shareholders (579,152) (1,049,503) (2,116,812)
No. No. No.
Weighted average number of
shares (basic) 465,892,712 341,546,384 348,073,166
The calculation of basic loss per share of 0.12p (June 2019:
0.31p) is based on loss after taxation and the weighted average
number of ordinary shares in issue during the period.
4 Segmental analysis
Operating segments are based on internal reports about
components of the Company, which are regularly reviewed and used by
the Board of Directors being the Chief Operating Decision Maker
("CODM") for strategic decision making and resource allocation, in
order to allocate resources to the segment and to assess its
performance.
During the first half of 2020 the Group has operated through its
trading companies, Location Sciences AI Limited and Location
Sciences (US), Inc. The business has two core solutions to its
customers, namely: 1) Location data and insights - this is a SaaS
where customers query Location Sciences' UK data lake for, inter
alia, advertising, location planning, attribution, competitor
analysis and forward looking financial metrics; and 2) Location
verification - utilising sophisticated machine learning and pattern
recognition technologies Verify detects location ad-fraud and
checks the accuracy and quality of location signals used to improve
the performance of digital advertising.
It should be noted that a segmental analysis of the Consolidated
Statement of Financial Position is not part of routine management
reporting and, consequently, no segmental analysis of assets is
shown here. The US subsidiary is not yet trading at a materially
significant level and thus geographical reporting is not
reported.
An analysis of operating revenue
is as follows: Six months Six months
ended ended Year ended
30 June 30 June 31 December
2020 2019 2019
Unaudited Unaudited Audited
GBP GBP GBP
Location data and insights 492,859 341,336 495,554
Verify 157,526 113,536 710,700
--------------------- -------------------- -------------------
650,385 454,872 1,206,254
An analysis of EBITDA is as follows:
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2020 2019 2019
Unaudited Unaudited Audited
GBP GBP GBP
Location data and insights (253,581) (682,091) (1,009,199)
Verify (81,049) (226,879) (703,787)
--------------------- -------------------- -------------------
(334,630) (908,970) (1,712,986)
An analysis of loss before tax
is as follows:
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2020 2019 2019
Unaudited Unaudited Audited
GBP GBP GBP
Location data and insights (430,741) (856,483) (1,345,445)
Verify (208,411) (285,494) (938,275)
--------------------- -------------------- -------------------
(639,152) (1,141,977) (2,283,720)
5 Share capital
30 June 30 June 31 December
2020 2019 2019
Unaudited Unaudited Audited
GBP GBP GBP
570,368,300 ordinary shares of 0.1p
(June 2019 - 343,250,994 of 1p,
December 2019 - 370,497,894 of
1p) each 570,369 3,432,511 3,704,979
1,040,712,398 deferred shares of
0.99p each (June 2019: 0.99p, December
2019: 0.99p 10,303,053 10,303,053 10,303,054
376,651,734 New Deferred shares
of 0.9p (June 2019: nil, December 3,389,866 - -
2019: nil)
--------------------- -------------------- -------------------
14,263,288 13,735,564 14,008,033
Share issue
On 20 January 2020 6,153,840 ordinary shares of 1p each were
issued at 1.25p per share to settle professional fees.
On 26 March 2020, the Company's share capital was reorganised to
sub-divide the Existing Ordinary Shares to create two classes of
shares: New Ordinary Shares with a nominal value of 0.1 pence and
New Deferred Shares with a nominal value of 0.9 pence. The
proportion of the issued ordinary share capital of the Company held
by each Shareholder immediately before and after the Sub-division
remained unchanged. The New Deferred Shares arising on completion
of the Sub-division were in addition to the Existing Deferred
Shares.
On 26 March 2020, 114,858,571 ordinary shares of 0.1p were
issued at 0.875p pursuant to a placing, with a nominal value of
GBP114,859 for aggregate consideration of GBP1,005,012 before
costs. 3,428,571 shares were issued to settle professional fees in
relation to the placing.
At the same time warrants were issued to those subscribing in
the share placing, with every placee receiving two warrants for
every three placing shares subscribed. Total warrants were issued
giving the holders the right to subscribe for 74,057,995 ordinary
shares. The warrants were exercisable at 0.1p during the period
from admission of the placing shares until 30 June 2020, with any
unexercised warrants lapsing following this date. They were
exercised on the following dates:
-- 15,457,332 exercised on 20 April 2020;
-- 21,980,655 exercised on 06 May 2020;
-- 1,524,000 exercised on 01 June 2020;
-- 23,667,332 exercised on 16 June 2020; and
-- 11,428,666 exercised on 30 June 2020.
On 6 May 2020 4,800,000 ordinary shares of 0.1p each were issued
at 0.625p per share to settle professional fees in relation to the
placing.
Share rights
Ordinary shares have attached to them full voting, dividend and
capital distribution (including on winding up) rights; they do not
confer any rights of redemption.
Deferred shares have attached to them no voting, dividend or
capital distribution (including on winding up) rights; they do not
confer any rights of redemption.
Warrants in Issue
Mike Staten holds 5,583,522 share warrants at an exercise price
of 16.92 pence per share. For comparison the closing share price on
10 September 2020 was 0.51 pence per share. The fair value of the
warrants is not material for adjustment.
6 Availability of half-year report
Copies of the half-year report are available on request from the
Company's registered office at 20 Eastbourne Terrace, Paddington,
London, W2 6LG and can also be viewed at:
https://www.locationsciencesgroup.ai/investor-relations/reports-presentations
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END
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September 15, 2020 02:00 ET (06:00 GMT)
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