TIDMLSAI
RNS Number : 6337S
Location Sciences Group PLC
18 March 2021
18 March 2021
This announcement contains inside information for the purposes
of Regulation 11 of the Market Abuse (Amendment) (EU Exit)
Regulations 2019/310With the publication of this announcement via a
Regulatory Information Service, this inside information is now
considered to be in the public domain.
Location Sciences Group PLC
("Location Sciences" or the "Company" or the "Group")
Final Results for the year ended 31 December 2020
Location Sciences (AIM: LSAI), the leading location data insight
and verification company, announces its audited results for the
year ended 31 December 2020.
Financial Performance
-- Revenue reduced by 10% to GBP1,080,742 (2019: GBP1,206,254)
-- Administrative costs excluding depreciation and amortisation
reduced by 40% to GBP1,535,906 (2019: GBP2,545,767)
-- Loss before exceptional items, amortisation and depreciation
reduced by 54% to GBP783,241 (2019: GBP1,712,986)
-- Loss per share from continuing operations decreased by 61% to 0.24p (0.61p in 2019)
Financial Position at Year End
-- Net assets were GBP2,645,507 (2019: GBP2,768,073)
-- Net current assets were GBP1,497,887 (2019: GBP1,475,972)
-- Cash and cash equivalents of GBP1,128,118 (2019: GBP1,325,739)
-- Borrowings were GBPNil (2019: GBP74,918)
-- Potential deferred tax asset of GBP3,840,000 (2019: GBP3,340,000)
Board Changes
As announced on 11 February 2021, in recognition of the need for
a leaner business going forward, the size of the Board has been
reduced with both Donald Williams and Niall Hogan stepping down
from the Board.
Business Review
Due to the performance of the Group in the last year, and the
Directors belief that Verify in particular will continue to face a
number of trading challenges in the foreseeable future, the Board
announced, on 11 February 2021, it was undertaking a business
review. This process continues and the Board will make further
announcements in due course.
Mark Slade, Chief Executive Officer of Location Sciences,
commented: " Like many businesses 2020 was extremely challenging
for Location Sciences. Our business is dependent on firstly the
movement of people and secondly location-based advertising spend.
Unfortunately, both these dependencies were hit adversely by
COVID-19 and subsequent lockdowns in our core markets of the UK and
US. Given these challenges the management team has kept expenditure
to an absolute minimum. Despite the weaker demand conditions, we
have kept on track with our software development and are pleased to
have expanded our insights platform as well as making a significant
number of updates to our location verification software."
"The announcement of a business review is the right thing for us
to do for shareholders given the ongoing uncertainty caused by the
COVID-19 pandemic and together with the Board, I will continue to
explore options for the Group and its products."
A copy of this announcement and the Company's report &
accounts are available on the Company's website
https://www.locationsciencesgroup.ai/investor-relations/
For further information please contact:
Location Sciences Group PLC via Milk & Honey PR
Mark Slade, Chief Executive Officer
David Rae, CFO and Commercial Director
Allenby Capital Limited (Nominated Adviser) Tel: +44 (0)20 3328 5656
David Hart
Peterhouse Capital (Broker) Tel: +44 (0) 20 7220 9791
Charles Goodfellow
Eran Zucker
Milk & Honey PR Tel: +44 (0)20 3637 7310
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
LOCATION SCIENCES GROUP PLC
CHAIRMAN'S REPORT FOR THE YEARED 31 DECEMBER 2020
2020 was a challenging period for Location Sciences, with the
business being significantly adversely impacted by the COVID-19
pandemic. The swift response from the management team, shifting the
Group's resources to revenue growth areas and reducing costs has to
a large extent mitigated the virus' impact on the Group's
operational and financial performance. However, the expected
progress in 2020 did not materialise and the Group's innovative
location verification products have suffered profoundly as result
of the restrictions imposed by governments globally on people's
movement imposed to limit the transmission of the virus.
On a more positive note, the Group launched, GeoProtect, which
allows brands, agencies and suppliers to check the validity of
location based derived audience segments, a review of historical
movements in contrast to Verify Proximity, which validates the real
time locations of mobile devices as digital advertising campaigns
are delivered. This broadens the appeal of the Verify product suite
to agencies, brands and suppliers, and gives Location Sciences
access to the audience segment industry, which is a significant
part of the overall location-based advertising market.
Since the US launch of GeoProtect in June 2020, Location
Sciences has secured two key customers:
InMarket, the US leader in 360-degree consumer intelligence and
real-time activation, has become the first-to-market in the US to
buy verified local audiences and optimise cross-channel campaigns.
The partnership allows InMarket to offer its customers
independently verified audience segments. The Verify third-party
seal of quality, ensures InMarket's customers have a high level of
confidence that their target audiences will be reached and
differentiates its product in a highly competitive marketplace.
Since the partnership was announced on 1 September 2020, InMarket
have since acquired assets from NinthDecimal elevating them to
become a leader in the US location-based marketing industry.
The Spoken Thought, Inc. (trading as Mira) is a high value
audience segment supplier to leading brands and media agencies
across the US. It will use the Location Sciences GeoProtect
platform to independently verify audience segments in order to
offer its customers a visibly differentiated premium product
compared to its competitors. The quality of the data used to build
audience segments matters to brands and agencies and can
dramatically impact the performance of their advertising campaigns.
In today's data marketplace, however, it is virtually impossible
for brands and agencies to distinguish between good and bad quality
audience data. Consequently, Location Sciences' third-party
independent certification is an excellent tool for suppliers of
audience segments to clearly and visibly demonstrate the quality of
their products in this crowded data marketplace.
These partnerships have both progressed well since being signed,
however, the impact of the COVID-19 pandemic has been profound on
our industry and significant revenue streams will only commence
when the effects of the pandemic on the location-based advertising
industry have dissipated.
2020 disappointingly also saw one of Verify's key customers,
Blis Global Ltd, threaten legal action following the Verify team
identifying and reporting data manipulation. The Group refuted the
claim as being baseless and thoroughly without merit and threatened
a counter claim. Blis Global Ltd has not followed up on its
threat.
It's also worth noting that the team has also been doing
everything possible to support the NHS since the COVID-19 pandemic
hit. In particular, our data insights products continue to help to
inform the ongoing response to COVID-19. Through its long-term
partnership with CACI, Location Sciences is supplying data to
support NHS England and members of the Scientific Pandemic
Influenza Group on Modelling (SPI-M) in their analysis of how
movement of individuals is impacting the reproduction number (R)
and growth rate of COVID-19 in the UK.
In addition, the team has developed a new product for the
financial services industry which it expects to launch on the
Bloomberg Enterprise Access point in the next few months. The
product will provide financial analysts with access to market
leading footfall data and insights for UK supermarkets to assist
them to better measure store performance.
Location Sciences was already well accustomed to remote working
with our commercial and technology teams spread across multiple
global locations, therefore the lockdowns had no impact on
operational efficiency. However the lack of any face-to-face
contact with colleagues and clients for such a long period has
undoubtedly caused strains. I should like to thank the entire team
for their continued commitment and achievements in such adverse
conditions. In recognition of the need for a leaner business going
forward, the size of the Board has been reduced following the year
end, with both Donald Williams and Niall Hogan stepping down. I
would like to record my personal gratitude for their efforts while
on the Board Their contributions were extremely valuable and have
helped tremendously over the last couple of years.
Due to the performance of the Group in the last year, and the
Directors belief that Verify in particular will continue to face a
number of trading challenges in the foreseeable future, the Board
announced, on 11 February 2021, it was undertaking a business
review. This process continues and the Board will make further
announcements in due course.
Kelvin Harrison, Chairman
LOCATION SCIENCES GROUP PLC
CHIEF EXECUTIVE'S REVIEW FOR THE YEARED 31 DECEMBER 2020
Like many businesses 2020 was extremely challenging for Location
Sciences. Our business is dependent on firstly the movement of
people and secondly location-based advertising spend.
Unfortunately, both these dependencies were hit adversely by
COVID-19 and subsequent lockdowns in our core markets of the UK and
US. Given these challenges the management team has kept expenditure
to an absolute minimum. Despite the weaker demand conditions, we
have kept on track with our software development and are pleased to
have expanded our insights platform as well as making a significant
number of updates to our location verification software.
Location Verification
As we entered 2020 as a management team, we were buoyed by the
momentum building around Verify which included being added to the
Group M technology partner list, trials with Starbucks, Unilever
and Horizon Media Inc. as well as deals with Phillip Morris
International and Dentsu Aegis.
Unfortunately, this momentum was halted by COVID-19. Reduced
media spends in location-based advertising resulted in a
significantly reduced number of campaigns for location
verification. More significant was the impact of media agencies on
our service offering. Due to pressures on their own business a new
layer of verification was something media agencies would not
promote given their need to spend and deliver revenues. In the UK,
preferred partner relationships between location suppliers and
their media agencies amplifies this challenge. The recent dispute
with Blis is evidence of how these relationships can override the
Verify platform findings.
It is the management team's belief that the Verify platform
needs a direct sales channel into brands and for the budget holders
to see the problem our products are solving. Although this is a
deeply opaque and unregulated part of digital advertising market,
more work is needed to educate brands on the inefficiencies caused
by poor data and the data quality and fraud issues omnipresent on
the location-based advertising supply chain.
Following the announcement of the business review the management
team is exploring options for our location verification products
that could support the brand direct channel strategy. It is the
management team's belief that with the right partners this can
still be a successful SAAS offering.
The Directors are confident that the Company's products solve a
significant problem in the ad-tech ecosystem. However, finding the
right partners which are committed to promoting transparency will
be a key next step. The recent changes in the ad-tech ecosystem
such as the loss of cookies and the move to real time context are
also creating some macro tail winds and scope for optimism.
Data and Insights
The data and insight side of the business has fared better
despite a drop in location events due to lack of movement from
lockdowns. Customers such as CACI, JC Decaux and the NHS have
relied on our data to show movement trends during the different
phases of the COVID-19 pandemic.
The supply of data which feeds our data business is under some
macro medium term pressure in terms of privacy changes by the main
operating systems. That said, the management team continues to
explore new supply relationships in order to maintain the data at a
level suitable for the level of insights we deliver.
As a management team we are excited about the launch of our new
insights products for the financial services industry, with the
first such product launching on the Bloomberg Enterprise Access
Point in the next few months - other market proof points suggest
footfall data can be an important part of the AltData space.
Outlook
There is still significant uncertainty ahead for Location
Sciences. The management team is optimistic that as COVID-19
restrictions are relaxed the brakes on the Location Sciences
business will be eased.
On 11 February 2021, the Company announced that, in part as a
consequence of COVID-19, the Company and in particular, Verify,
would continue to face a number of trading challenges. This is
despite the current relative strength of the Company's working
capital position. As made clear above, the key for Verify is to
find the right partners who are committed to promoting
transparency. In my view, this is imperative to deliver the value
of Verify to shareholders.
Together with the Board, I will continue to explore options for
the Company and its products with the aim of optimising the value
for shareholders in the long term.
Mark Slade, Chief Executive Officer
LOCATION SCIENCES GROUP PLC
CHIEF FINANCIAL OFFICER'S REVIEW FOR THE YEARED 31 DECEMBER
2020
Introduction
The COVID-19 pandemic has significantly adversely impacted the
performance of the Group during 2020. In particular, the progress
which had been made with our location verification products
faltered during the period due to the wider impact on our
customers, who have themselves in the main strove to cut costs and
focus on media delivery at the expense of transparency and
quality.
The Group mitigated the loss of its location verification
revenues by enlarging and broadening its Data & Insights
customer base, including helping to inform the ongoing response to
COVID-19. These contract wins enabled the Data & Insights
business to perform relatively well during 2020, despite the
negative impact of the pandemic on some of the business' existing
customers.
Investment into the Group's core products continued throughout
2020, with some key updates being made to the Verify Proximity
platform at the end of April 2020, providing customers with a
clearer picture of how to obtain better value from their location
spend and how to drive better performance. Following this in June
2020, the Group launched its Verify Audience product "GeoProtect"
in the US. GeoProtect 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.
The financial position of the Group was improved though a
fundraise in the first quarter of 2020 whereby approximately
GBP1.05 million of new funds were raised before expenses.
Financial Performance
In 2020, revenue reduced to GBP1,080,742 (2019: GBP1,206,254)
representing a decrease in revenues of approximately 10%
year-on-year. Location data and insights delivered GBP762,170 of
revenue (2019: GBP710,700) with Verify contributing GBP318,572
(2019: GBP495,554).
The Group received GBP30,119 of grant income, including
GBP20,119 of furlough income from the UK's job retention scheme in
2020 (2019: GBP25,280). There is no grant income expected in the
foreseeable future.
In response to the COVID-19 pandemic the Board 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, closure of the London office and
staff being furloughed. In addition, with the exception of product
development, all operational expenses were reduced to the minimal
viable levels from April 2020 following the downturn in the
location-based advertising industry caused by the restrictions
imposed by governments globally.
These actions reduced the administrative costs for continuing
operations excluding depreciation and amortisation to GBP1,535,906
(2019: GBP2,545,767) a reduction of 40% compared to the prior
year.
The business delivered a loss before exceptional items,
amortisation and depreciation of GBP783,242 (2019: GBP1,712,986),
an operating loss of GBP1,400,019 (2019: GBP2,271,242) and a loss
after taxation of GBP1,239,268 (2019: GBP2,116,812).
Loss per share from continuing operations decreased from 0.61p
in 2019 to 0.24p in 2020.
Statement of Financial Position
As at 31 December 2020, the Group's net assets were GBP2,645,505
(2019: GBP2,768,073) of which GBP1,128,118 (2019: GBP1,325,739)
were cash and cash equivalents.
Net current assets were GBP1,497,887 as at 31 December 2020
compared to net current assets of GBP1,475,972 as at 31 December
2019.
Group borrowings were GBPNil as at 31 December 2020 compared to
GBP74,918 (representing finance lease agreements) as at 31 December
2019. The decrease in borrowings is due to the impact of IFRS 16
reporting standard and the ending of the Group's London office
lease obligations.
The Group's financial position is a reflection of the funding
received during the year and the Board's strategy of cost
reductions in light of the COVID-19 pandemic and its impact on the
Group's revenues.
Business Review
On 11 February 2021, the Board announced the commencement of a
business review. The rationale for the business review is that the
Board believes that, in part as a consequence of COVID-19, the
Group, and in particular Verify, will continue to face a number of
trading challenges. This is despite the current relative strength
of the Group's working capital position.
As a result, the Board is now exploring a number of options for
the Group and its businesses and further announcements will be made
as and when appropriate.
David Rae, Chief Financial Officer
LOCATION SCIENCES GROUP PLC
STRATEGIC REPORT FOR THE YEARED 31 DECEMBER 2020
The Directors present their strategic report for the year ended
31 December 2020.
Fair review of the business
The fair review of the business is set out in the Chief
Executive Officer's and Chief Financial Officer's reviews, which
describe in detail the financial results, overhead run rate and
future plans for Location Sciences.
The Board monitors progress on the overall Group strategy and
the individual strategic elements by reference to KPIs. The primary
measures are revenue, costs, EBITDA before exceptional items and
working capital levels.
Reporting on the KPI targets set for 2020:
1. The number of new brands which had adopted Verify at the end
of 2020 was 105, compared to the target set for 2020 of 100 new
brands;
2. The number of Verified ad impressions at year end was 0.6
billion, compared to the target of two billion for the year;
and
3. The number of location advertising suppliers accredited by
the Group during the year was one, versus a target of three for
2020.
The impact of the COVID-19 pandemic is evident in the lack of
progress against the Company's KPIs during the year. There is still
widespread uncertainty throughout the global location-based
advertising industry and as such the Board is cautious on the
outlook of its location verification solutions over the next 12
months.
Moving forward the Board has updated its KPI targets for 2021 to
the following:
1. To launch the footfall to performance insight product into
the financial services industry;
2. To grow Verify following the lockdown restrictions being
eased by governments; and
3. To add two additional GeoProtect customers.
Going forward the Board believes that completion of these new
KPI targets will deliver significant value to shareholders.
Principal risks and uncertainties
The principal and commercial risks to the Group are as
follows:
Description The Group does not achieve sufficient commercial success
before existing competitors or new entrants enter the
market.
Impact The current plans of the Group may not be realised,
and the Group may have to re-evaluate its business
plan.
Mitigation The Board considers the know-how, existing products
and customer relationships to be already in place.
This creates a significant barrier to entry for new
competitors, and for existing competitors to threaten
the Group's market position.
Description Location Sciences Group PLC continues to be in a cash
consumption phase.
Impact There is a risk that the Group may face working capital
and cash flow challenges if the business plan is not
delivered as expected. Going concern has been carefully
considered and details are provided in the Corporate
Governance Report below and in note 2 of the Group's
financial statements.
Mitigation The Group is debt free and raised approximately GBP1
million in new funds from existing and new investors
during the 2020 financial year. Notwithstanding the
actions already taken, there are a number of options
available to the Group, which include structuring sales
contracts beneficially, and requiring payment up-front,
as well as making cost reductions, if required. Historically,
Location Sciences Group PLC has continued to meet obligations
through debt and equity fund raises.
Description Changes in regulation negatively impact the Group's
market.
Impact The Group may find the demand for its products reduced
and / or the Group may be forced to change or stop
selling one or more of its products.
Mitigation The Board takes account of commentators and industrial
bodies as to the direction of policy change. The Group
has also diversified its product range, reducing any
potential legislative impact on the business going
forward. Currently, the Board sees the new Privacy
regulations as an opportunity for Locations Sciences
to grow, especially through its Verify product as awareness
of publisher bad practice grows amongst media agencies
and advertisers.
Description The impact of the COVID-19 pandemic on existing and
potential customers
Impact The Group may find the demand for their products reduce,
especially its location verification solutions which
rely to a large extent on people's movement.
Mitigation The Board is monitoring the ongoing impact of the COVID-19
pandemic and national vaccination programmes. Meanwhile
the Board has delivered a substantial cost reduction
programme and shifted focus of the business towards
the data and insights solutions which are more resilient
to effects of the pandemic.
The Board meets regularly to review specific and general risks
that face the Group. The Board strives to position the Group in a
way that any risks can be minimised and met, should the need
arise.
The Group's performance is dependent on its products and
solutions keeping pace with market. This includes technological
developments, frequent introduction of new services and products
and evolving industry standards. Advances in technology may result
in changing customer preferences for products and services and
delivery formats. Any such change in preferences may be rapid.
The Group manages this risk by a commitment to research and
development, combined with ongoing dialogue with key industry
players and engagement with the regulatory landscape. This includes
monitoring requirements and compliance for privacy regulations.
Strategic risks
In 2020 the Group responded to the COVID-19 pandemic with a
substantial cost reduction programme and shifted focus of the
business towards the data and insights solutions which are more
resilient to effects of the pandemic. In addition, the Group
launched a new verification product, GeoProtect, which allows
brands, agencies and suppliers to check the validity of location
based derived audience segments, a review of historical movements
in contrast to Verify Proximity, which validates the real time
locations of mobile devices as digital advertising campaigns are
delivered. This, importantly, broadens the appeal of the Verify
product suite to agencies, brands and suppliers, and gives Location
Sciences access to the audience segment industry, which is a
significant part of the overall location-based advertising
market.
This report, in conjunction with the Chief Executive Officer's
Report, form the Strategic Report for the purposes of s414A of the
Companies Act 2006.
Section 172 statement
The Directors believe that they have effectively implemented
their duties under section 172 of the Companies Act 2006 through
adherence to the Quoted Companies Alliance Corporate Governance
Code, as disclosed below and as published on our website:
www.locationsciencesgroup.ai/investor-relations/board-governance.
The Chairman's Report and Chief Executive's Review details the
Group's future plans to achieve its long-term strategy.
The Group is committed to maintaining an excellent reputation
and strives for high standards, while maintaining an awareness of
the environmental impact of the work that it does and strives to
reduce its carbon footprint.
The Directors recognise the importance of the wider stakeholders
in delivering their strategy and achieving sustainability within
the business; in ensuring that all our stakeholders are considered
as part of every decision process we believe we act fairly between
all members of the company.
David Rae, Chief Financial Officer
LOCATION SCIENCES GROUP PLC
CORPORATE GOVERNANCE
The application of the UK Corporate Governance Code ("Code") and
corporate governance during the period 1 January 2020 to 31
December 2020 ("Year").
The Board recognises the importance of good corporate governance
in order to protect and build upon the substantial investments made
by our diverse shareholder base. We have chosen to apply the Quoted
Companies Alliance Corporate Governance Code (the 'QCA Code'),
which was developed by the QCA in consultation with a number of
significant institutional small company investors, as an
alternative corporate governance code applicable to AIM companies.
The underlying principle of the QCA Code is that "the purpose of
good corporate governance is to ensure that the company is managed
in an efficient, effective and entrepreneurial manner for the
benefit of all shareholders over the longer term". The Board
anticipates that whilst the Company will continue to comply with
the QCA Code, given the Group's size and plans for the future, it
will also endeavour to have regard to the provisions of the UK
Corporate Governance Code as best practice guidance to the extent
appropriate for a company of its size and nature.
An explanation of how these principles have been applied is set
out both below and in the Directors' remuneration, Audit Committee
and internal control sections of this report.
Certain information required under the QCA code is included
within the Strategic report and the Directors Remuneration
Report.
Name Date Appointed Role Committees
Kelvin Harrison 15/02/2017 Chairman Remuneration, Nomination,
Audit
Mark Slade 24/07/2017 CEO -
Benjamin Chilcott 21/03/2018 Non-Executive Director Remuneration, Nomination,
Audit
David Rae 12/02/2018 CFO/COO -
Niall Hogan 01/05/2019 Non-Executive Director -
Donnie Williams 23/05/2019 Non-Executive Director -
The Board is responsible to the shareholders for the proper
management of the Group through setting the overall strategy of the
business and to review the people, performance, policies and
budgets of the Group. The Board typically meets bi-monthly and also
meets for any other extraordinary matters as they may arise.
Detailed information on matters to be discussed during the meetings
are circulated in advance of the meeting to ensure non-executive
directors can contribute in an educated manner.
Independence of Chairman and Chief Executive Officer
The roles of the Chairman, Kelvin Harrison, and the Chief
Executive Officer, Mark Slade, have a formal division. The Chairman
is responsible for overseeing the Board and ensuring no individual
or group takes control of the Board's decision making and that all
non-executive directors are fully briefed on matters and their
responsibilities. The Chief Executive Officer has the
responsibility of executing the strategy of the Board and running
the day-to-day activities of the business.
Board Balance
A minimum of 50% of the Board will always consist of
non-executive directors including the Chairman. All non-executive
directors are independent of the management team and are not
involved in any other business or relationship, both as an
executive or non-executive, which may impair their independent
nature and judgement.
Nomination Committee
The Group's nomination committee is responsible for reviewing
and making proposals to the Board on the appointment of Directors
and meets as necessary. The Group's nomination committee consists
of Kelvin Harrison, who acts as Non-Executive Chairman of the
committee, and Benjamin Chilcott.
Performance Evaluation and Re-election
The Board has continued to evaluate its effectiveness and
performance during the year, taking into account the Financial
Reporting Council's Guidance on Board Effectiveness. Director
appraisals will be performed during 2021 to ensure that their
performance is, and continues to be, effective, that where
appropriate they maintain their independence and that they are
demonstrating continued commitment to the role. The Directors will
be evaluated internally based on their responsibilities to the
Board. New Directors resign and stand for re-election at the
Group's first AGM following their appointment. One-third of
continuing Directors stand for re-election on an annual basis.
The Directors carry out continued professional development
throughout the year where appropriate and each Director keeps up to
date with market changes through the use of market articles and
industry contacts.
Remuneration Committee
The Group's remuneration committee is responsible for the
specific remuneration and incentive packages for each of the
company's executive directors, senior executives and managers. The
Group's Remuneration Committee consists of Benjamin Chilcott and
Kelvin Harrison, who acts as Non-Executive Chairman of the
committee. Further details of the Committee's remit are contained
in the Directors' Remuneration Report.
Relations with Shareholders
The Group encourages two-way communication with both its
institutional and private investors and responds promptly to all
queries received. The CEO and CFO communicate regularly with the
Group's institutional shareholders and ensure that their views are
communicated fully to the Board. The Board recognises the Group's
AGM as an important opportunity to meet with the Group's private
shareholders. The Directors are available to listen to the views of
shareholders informally immediately following the AGM. The
Directors have also organised various events throughout the year
(presentations, seminars, webinars) for existing and potential
shareholders to gain a greater understanding of the Group's
strategy, products and market.
Annual General Meeting
The Annual General Meeting of the Group provides shareholders
with the opportunity to be updated on the Group's progress and to
ask questions of the Board.
Financial Reporting and Internal Control
The Company has established policies covering the key areas of
internal financial control and the appropriate procedures,
controls, authority levels and reporting requirements which must be
applied throughout the Group.
The key procedures that have been established in respect of
internal financial control are:
-- An annual budget set by the Board
-- Monthly management accounts with comparisons to budget
-- Monthly forecast updates with comparisons to budget
-- Monthly cashflow forecasts with comparisons to budget
-- Dual bank signatories and separation of creation and approval
of online bank payments
-- Weekly meetings of the Executive Directors and Senior
Management to review priorities and issues
-- Restriction of user access to systems, including but not
limited to Financial, HR and Technology.
The above controls have been established to support the growth
of the business and to protect against future risks.
Corporate Culture
It is the Board's view that the Group's corporate culture is
consistent with its objectives, strategy and business model. The
Board is aware that the culture set by the Board will greatly
impact all aspects of the Group and the way that employees behave.
The Board invites employees to provide feedback on their peers and
management. Quarterly one-to-ones are held between managers to
gather feedback and to review current performance against their
objectives. Quarterly staff events are undertaken for management to
feedback on the overall progress of the business and to assess the
culture of the Group.
Consolidated Accounts
The aforementioned Financial Reporting and Internal Controls
apply to all subsidiaries. The accounts of all subsidiaries are
combined with those of the Company to form consolidated accounts
each month. The Chief Financial Officer is responsible for
producing the consolidated accounts, including the elimination of
intercompany transactions and balances.
Audit Committee
The Group's audit committee is responsible for ensuring the
financial performance of the Group is properly monitored and
reported on, the effectiveness of accounting systems and financial
reporting procedures. The Group's Audit Committee consists of
Benjamin Chilcott and Kelvin Harrison, who acts as Non-Executive
Chairman of the committee.
The Committee considers all proposals for non-audit services and
ensures that these do not impact on the objectivity and
independence of the auditor. The Audit Committee reviews, with the
external auditor, the safeguards and procedures developed by the
auditor to counter threats or perceived threats to their
objectivity and independence. Non-audit services performed by the
external auditor are assessed for threats to objectivity and
independence on a case-by-case basis.
Board and Committee Attendance
Name Main Board Audit Committee Remuneration Nomination
Committee Committee
Kelvin Harrison 12/12 2/2 2/2 1/1
Mark Slade 12/12
David Rae 12/12
Benjamin Chilcott 12/12 2/2 2/2 1/1
Niall Hogan 10/12
Donnie Williams 10/12
Going concern
The directors have taken a view of the Group as a whole.
The Group raised approximately GBP1 million in new funds during
the year and mitigated the impact of the COVID-19 pandemic with a
substantial cost reduction programme which reduced administrative
expenses by 40% and reduced the EBITDA loss by 54%. In addition,
the Group shifted the focus of the business towards the data and
insights solutions which are more resilient to effects of the
pandemic. The Group also launched a new verification product,
GeoProtect, which allows brands, agencies and suppliers to check
the validity of location based derived audience segments, a review
of historical movements in contrast to Verify Proximity, which
validates the real time locations of mobile devices as digital
advertising campaigns are delivered. This broadens the appeal of
the Verify product suite to agencies, brands and suppliers, and
gives Location Sciences access to the audience segment industry,
which is a significant part of the overall location-based
advertising market.
However, the Group continued to operate with a trading loss
during the year and the same is expected throughout 2021. The Group
raised GBP1 million in new investment during the year, which will
be utilised for the growth of Verify and for working capital
purposes and the Group also remains debt free.
Due to the ongoing COVID-19 pandemic there remains a sensitivity
to the timing and forecast pipeline of sales. Consequently, near
term cash resources will continue to be closely monitored and
controlled due to the associated working capital requirements of
the Group in delivering its growing order pipeline and winning new
business. To deliver its growth plans further capital may be
required, although the Group expects its existing cash resources to
be sufficient to meet the requirements of the Group until 2022.
Based on the current status, after making enquiries and
considering the broadening of its product base and substantial cost
reductions achieved during 2020, the Directors have a reasonable
expectation that the Group will be able to execute its plans in the
medium term such that the Group will have adequate resources to
continue in operational existence for the foreseeable future. This
provides the Directors with assurance on the Group's ability to
continue as a going concern, and therefore adopt the going concern
basis of accounting in preparing the annual financial
statements.
On behalf of the Board
Kelvin Harrison, Chairman
LOCATION SCIENCES GROUP PLC
DIRECTORS' REMUNERATION REPORT
As a Company admitted to trading on AIM, Location Sciences Group
PLC is not required to present a directors' remuneration report,
however, a number of voluntary disclosures have been made. The
Company has complied with the disclosure requirements set out in
the AIM Rules for Companies.
Remuneration Committee
The Remuneration Committee, consisting of the chairman Kelvin
Harrison and Benjamin Chilcott, determines the Group's policy for
executive remuneration and the individual remuneration packages for
executive directors. In setting the Group's remuneration policy,
the committee considers a number of factors including:
-- salaries and benefits available to executive directors of
comparable companies;
-- the need to both attract and retain executives of appropriate
calibre; and
-- the continued commitment of executives to the Group's
development through appropriate incentive schemes (including the
award of share options).
Remuneration of executive directors
Consistent with this policy, benefit packages awarded to
executive directors comprise a mix of basic salary and performance
-- related remuneration that is designed as an incentive. The
remuneration packages can comprise the following elements:
-- base salary: the Remuneration Committee sets the base
salaries to reflect responsibilities and the skills, knowledge and
experience of the individual;
-- bonus scheme: the executive directors are eligible to receive
a bonus dependent on both individual and Group performance as
determined by the Remuneration Committee;
-- equity: share options; and
-- various other add on benefits such as private medical
insurance.
The executive directors are engaged under separate contracts
which require a notice period of three or six months given at any
time by the individual.
Remuneration of non-executive directors
The fees and equity awarded to non -- executive directors are
determined by the Board. The non -- executive directors do not
receive any other forms of benefit such as private medical
insurance.
Year to 31 December 2020
Salary Share
Director and fees Bonus Pension Benefits based payments Total
GBP GBP GBP GBP GBP GBP
M Slade
(Executive) 156,000 - 1,314 1,991 15,671 174,976
K Harrison
(Non-executive) 45,000 - 179 - 304 45,483
D Rae
(Executive) 85,800 50,000 1,314 2,668 10,241 150,023
B Chilcott
(Non-executive) 24,000 - 103 - - 24,103
N Hogan**
(Non-executive) 24,000 - - - - 24,000
D Williams**
(Non-executive) 60,387 - - - - 60,387
------------------------- ----------------- ------------------- ------------------ ----------------- -----------------
395,187 50,000 2,910 4,659 26,216 478,972
========================= ================= =================== ================== ================= =================
* Included within directors' remuneration is remuneration of
GBP11,250, GBP11,000, GBP24,000 and GBP35,202 for K Harrison, B
Chilcott, N Hogan and D Williams respectively that was settled by
issue of shares.
** Resigned 11 February 2021.
Year to 31 December
2019
Salary Share based
Director and fees Bonus Pension Benefits payments Total
GBP GBP GBP GBP GBP GBP
M Slade (Executive) 150,000 - 1,180 1,746 14,297 167,223
K Harrison (Non-executive) 45,000 - 657 - 304 45,961
S Gregory** (Non-executive) - - - - - -
D Rae (Executive) 84,000 52,404 1,180 3,900 10,241 151,725
B Chilcott (Non-executive) 24,000 - 492 - - 24,492
N Hogan (Non-executive) * 36,000 - - - - 36,000
D Williams (Non-executive) * 55,283 - - - - 55,283
303,000 52,404 3,509 5,646 24,842 480,684
========== ====== ======= ======== =========== =======
* Included within directors' remuneration for N Hogan and D
Williams is remuneration of GBP36,000 and GBP31,604 respectively
that was settled by issue of shares.
** Resigned 31 January 2019.
At 31 December At 31 December
Exercise 2020 2019
Director Grant Date Price Number Number
M Slade (Executive) 29/11/2018 2.25p 15,555,556 15,555,556
D Rae (Executive) 29/11/2018 2.25p 7,333,333 7,333,333
K Harrison (Non-executive) 29/11/2018 2.25p 577,778 577,778
Notes: The options will vest in three equal tranches when
certain share price targets have been reached, the share price
targets are as follows:
-- 4.8 pence per New Ordinary Share
-- 7.3 pence per New Ordinary Share
-- 9.7 pence per New Ordinary Share
On behalf of the Board
Kelvin Harrison Chairman, Remuneration Committee
LOCATION SCIENCES GROUP PLC
DIRECTORS' REPORT FOR THE YEARED 31 DECEMBER 2020
The Directors are pleased to present the annual report and
audited financial statements of Location Sciences Group PLC for the
year ended 31 December 2020.
Dividends
The Directors do not recommend the payment of a dividend.
Board of Directors
Kelvin Harrison, Non-Executive Chairman
Kelvin joined Location Sciences as Non-Executive Chairman in
February 2017. He is a chartered engineer with extensive experience
in executive and non-executive roles across the information
technology, media and telecommunications sector. His involvement
has spanned from start up, through VC and PE investment to IPOs on
LSE and AIM and exits via trade sale. He was previously CEO of Vega
Group Plc and Maxima Holdings Plc, which he founded and grew to
more than GBP50 million revenues, GBP9 million PBT and 500 staff.
He was also CEO of Symbionics Group, a pioneer in wireless
technologies such as Bluetooth, and an NED with UBC Media Group
Plc.
He has led high growth of revenues and profits in British and
International businesses, with a recent focus on Software as a
Service (DaaS). He was Chairman of NetDespatch which was purchased
in a strategic acquisition by Royal Mail Group. He is also Chairman
of Clixifix.
Mark Slade, Chief Executive Officer
Mark joined the Board on 24 July 2017 as an executive director.
Mark is one of the advertising industry's leading lights with
numerous senior relationships across the ad tech and media giants.
He joined from Opera Mediaworks, where he was Managing Director,
EMEA. Mark founded and sold his mobile advertising business 4th
Screen to Opera, and then helped grow the business to over $100
million in revenues. Mark's expertise is in executing in a high
growth ad tech sector as well as European acquisitions. Mark is
also a founding member of the IAB mobile council.
David Rae, Chief Financial Officer
David joined the Board in February 2018. David has enhanced the
Board's financial and strategic capabilities as well as bringing
experience in delivering rapid growth for ambitious companies and
international business experience within the technology and energy
sectors.
David began his career in 1992 with EY's Entrepreneurial
Services team in London, where he focused on fast growth companies.
After leaving EY in 1999, David worked in corporate finance where
he advised both public and private companies on fundraising and
M&A activities. His experience includes SmartXpo, the AI and
machine learning company, STC Energy Management, a leading energy
software technology provider, as well as Pixel's, a successful
digital marketing company recently acquired by Gravity4.
David is a Fellow of the Institute of Chartered Accountants in
England and Wales and holds a first-class honours degree in
Information Systems and Management Studies from the University of
Leeds.
Benjamin Chilcott, Non-Executive Director
Benjamin was appointed as a non-executive director in March
2018.
Benjamin co-founded the management consultancy company, Concise
Consultants Limited, which was acquired by iris Worldwide, the
integrated marketing agency in 2008. Post-acquisition, the company
became the strategy and consulting arm of iris Worldwide, with
Benjamin taking up the role of CEO for iris Concise, as well as
serving on the Board of Iris Worldwide. Benjamin is also
non-executive Chairman of the electronic receipts company,
yReceipts Limited.
Research and development
Location Sciences continued to invest substantially in research
and development. GBP471,019 (2019: GBP306,415) of development
expenditure has been capitalised as "Intangible Assets". The Group
continued to invest in the development of its location intelligence
products.
Financial Risk Management
The Group's financial instruments comprise cash and cash
equivalents, trade receivables and payables and borrowings. The
main risks arising from the Group's financial instruments are
interest rate risk, credit risk, liquidity risk and foreign
currency risk.
Interest rate and credit risk - the principal assets of the
Group are its cash deposits. These are short-term liquid assets and
as a result the exposure to interest rate income risk is not
considered significant. The principal focus of the Directors has
been to minimise any credit risk in relation to its cash deposits
even at the expense of interest income received. Borrowings include
financial instruments on fixed interest rate terms and a revolving
credit facility at a variable rate. As a result, the exposure to
interest rate expense risk is low and no active management of
interest rate risk is undertaken by the Board.
Foreign currency risk - the main functional currency is
sterling. Throughout 2020, the Company's transactions have
primarily been denominated in sterling and the Group has had low
exposure to foreign currency risk.
Liquidity risk - the Board's policy is to ensure that sufficient
cash and cash equivalents are held on a short-term basis at all
times in order to meet the Group's operational needs. The Group
does actively raise funds through market placings and other loan
facilities.
The Group has been operating at a trading loss due to its stage
of development and seeks to ensure that its investments will
deliver long term value to shareholders. Liquidity risk is actively
managed through regular review of cash requirements of the business
in conjunction with the strategic and operational plans for the
Group.
Substantial shareholdings
As at 17 March 2021 the Directors had been notified of the
following holdings representing3% or more of the issued share
capital of the Company:
Percentage
Number of ordinary of issued share
shares capital
Barclays PLC 58,630,219 9.98%
Herald Investment Management Limited 33,651,222 5.73%
Directors
The Directors, who held office during the year, were as
follows:
B Chilcott
K Harrison
N Hogan (resigned 11 February 2021)
D Rae
M Slade
D Williams (resigned 11 February 2021)
The Company maintains director and officers' liability
insurance.
Statement of Directors' responsibilities
The Directors acknowledge their responsibilities for preparing
the Annual Report and the financial statements in accordance with
applicable law and regulations.
Company law requires the directors to prepare financial
statements for each financial year. Under that law the Directors
have elected to prepare the financial statements in accordance with
International Financial Reporting Standards (IFRSs) as adopted by
the European Union. Under company law the directors must not
approve the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the group
and company and of the profit or loss of the group and company for
that period. In preparing these financial statements, the directors
are required to:
-- select suitable accounting policies and apply them consistently;
-- make judgements and accounting estimates that are reasonable
and prudent;
-- state whether applicable International Financial Reporting
Standards (IFRSs) as adopted by the European Union have been
followed, subject to any material departures disclosed and
explained in the financial statements; and
-- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the group's and the
company's transactions and disclose with reasonable accuracy at any
time the financial position of the group and the company and enable
them to ensure that the financial statements comply with the
Companies Act 2006. They are also responsible for safeguarding the
assets of the group and the company and hence for taking reasonable
steps for the prevention and detection of fraud and other
irregularities.
Directors' interests in shares
The directors held the following interests in Location Sciences
Group PLC:
At 31 December At 31 December At 31 December At 31 December
2020 2020 2019 2019
Options over Options over
Ordinary shares ordinary shares Ordinary shares ordinary shares
of 1p each of 1p each of 1p each of 1p each
K Harrison 3,010,416 577,778 666,666 577,778
M Slade 6,204,444 15,555,556 6,204,444 15,555,556
D Rae 1,166,667 7,333,333 1,166,667 7,333,333
B Chilcott 2,291,667 - - -
N Hogan 6,263,158 - 1,263,158 -
D Williams 8,277,078 - 943,397 -
The market price of the Company's shares at the end of the
financial year was 0.375p.
Disclosure of information to auditor
Each of the persons who are directors at the time when this
director's report is approved has confirmed that:
-- so far as that director is aware, there is no relevant audit
information of which the Company's auditor is unaware; and
-- that director has taken all the steps that ought to have been
taken as a director in order to be aware of any relevant audit
information and to establish that the auditor is aware of that
information.
Annual General Meeting
Notice of the forthcoming Annual General Meeting of the Company
together with resolutions relating to the Company's ordinary
business will be given to the members separately.
Reappointment of auditors
The auditors, Hazlewoods LLP, will be proposed for reappointment
in accordance with section 485 of the Companies Act 2006.
Publication of non-statutory accounts
The financial information set out in this announcement does not
constitute statutory accounts as defined in the Companies Act
2006.
The Group Statement of Comprehensive Income, Group Statement of
Financial Position, Group Statement of Changes in Equity, Group
Statement of Cash Flows and associated notes have been extracted
from the Group's 2020 statutory financial statements upon which the
auditor's opinion is unqualified, includes a material uncertainty
relating to going concern paragraph and does not include any
statement under section 498 of the Companies Act 2006.
Those financial statements will be delivered to the Registrar of
Companies following the release of this announcement.
This announcement and the annual report and accounts are
available on the Company's website www.locationsciences.ai.
A copy of the report and accounts will be sent to shareholders
who have elected to receive a printed copy with details of the
annual general meeting in due course.
LOCATION SCIENCES GROUP PLC
CONSOLIDATED INCOME STATEMENT FOR THE YEARED 31 DECEMBER
2020
2020 2019
Note GBP GBP
Revenue 4 1,080,742 1,206,254
Cost of sales (358,196) (398,753)
----------- -----------
Gross profit 722,546 807,501
Administrative expenses (1,535,906) (2,545,767)
Other operating income 5 30,119 25,280
----------- -----------
Operating loss before exceptional administrative
expenses, amortisation and depreciation (783,242) (1,712,986)
Amortisation and depreciation (616,778) (558,256)
----------- -----------
Operating loss 6 (1,400,019) (2,271,242)
Finance income 7 98 229
Finance costs 7 (5,619) (12,707)
----------- -----------
Loss before tax (1,405,540) (2,283,720)
Income tax receipt 11 166,272 166,908
----------- -----------
Loss for the year attributable to owners
of parent (1,239,268) (2,116,812)
=========== ===========
Earnings per share
Loss per share - basic and
diluted (0.24p) (0.61p)
The above results were derived from continuing operations.
LOCATION SCIENCES GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARED 31
DECEMBER 2020
2020 2019
Note GBP GBP
Loss for the year (1,239,268) (2,116,812)
Other comprehensive income
Foreign currency translation loss (10,475) (3,370)
----------- -----------
Total comprehensive income for the
year attributable to owners of the
parent (1,249,743) (2,120,182)
=========== ===========
LOCATION SCIENCES GROUP PLC
(REGISTRATION NUMBER: 06458458)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER
2020
2020 2019
Note GBP GBP
Assets
Non-current assets
Intangible assets 13 1,141,792 1,185,237
Property, plant and equipment 14 5,828 106,864
------------ ------------
1,147,620 1,292,101
============ ============
Current assets
Trade and other receivables 16 415,104 407,321
Tax asset 11 166,272 166,909
Cash and cash equivalents 17 1,128,118 1,325,739
------------ ------------
1,709,494 1,899,969
------------ ------------
Current liabilities
Trade and other payables 18 (211,607) (349,079)
Loans and borrowings 19 - (74,918)
------------ ------------
(211,607) (423,997)
------------ ------------
Net current assets 1,497,887 1,475,972
------------ ------------
Total assets less current liabilities 2,645,505 2,768,073
------------ ------------
Net assets 2,645,505 2,768,073
============ ============
Equity
Share capital 22 14,280,258 14,008,033
Share premium 19,315,231 18,508,593
Merger relief reserve 11,605,556 11,605,556
Capital reserve 209,791 209,791
Reverse acquisition reserve (9,225,108) (9,225,108)
Retained earnings (33,540,223) (32,338,792)
------------ ------------
Equity attributable to owners of the
company 2,645,505 2,768,073
============ ============
LOCATION SCIENCES GROUP PLC
(REGISTRATION NUMBER: 06458458)
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020
2020 2019
Note GBP GBP
Assets
Non-current assets
Investments 15 3,171,622 3,491,764
------------ ------------
Current assets
Trade and other receivables 16 - 386,284
------------ ------------
Current liabilities
Trade and other payables 18 (19,037) (44,506)
------------ ------------
Net current assets (19,037) 341,778
------------ ------------
Total assets less current liabilities 3,152,585 3,833,542
------------ ------------
Net assets 3,152,585 3,833,542
============ ============
Equity
Share capital 22 14,280,258 14,008,033
Share premium 19,315,231 18,508,593
Merger relief reserve 11,605,556 11,605,556
Retained earnings (42,048,460) (40,288,640)
------------ ------------
Total equity 3,512,585 3,833,542
============ ============
The Company has taken advantage of the exemption allowed under
section 408 of the Companies Act 2006 and has not presented its own
statement of comprehensive income in these financial statements.
The loss after tax for the parent Company for the year was
GBP1,808,132 (2019: GBP279,772).
LOCATION SCIENCES GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31
DECEMBER 2020
Reverse
Merger relief Capital acquisition Retained
Share capital Share premium reserve reserve reserve earnings Total
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
year - - - - - (2,116,812) (2,116,812)
Other
comprehensive
income - - - - - (3,370) (3,370)
------------- ------------- ------------- -------------- -------------- ------------ -----------
Total
comprehensive
income - - - - - (2,120,182) (2,120,182)
New share
capital
subscribed 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
============= ============= ============= ============== ============== ============ ===========
Reverse
Merger relief Capital acquisition Retained
Share capital Share premium reserve reserve reserve earnings Total
GBP GBP GBP GBP GBP GBP GBP
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
year - - - - - (1,239,268) (1,239,268)
Other
comprehensive
income - - - - - (10,475) (10,475)
------------- ------------- ------------- -------------- -------------- ------------ -----------
Total
comprehensive
income - - - - - (1,249,743) (1,249,743)
New share
capital
subscribed 272,225 806,638 - - - - 1,078,863
Share-based
payments - - - - - 48,312 48,312
------------- ------------- ------------- -------------- -------------- ------------ -----------
At 31 December
2020 14,280,258 19,315,231 11,605,556 209,791 (9,225,108) (33,540,223) 2,645,505
============= ============= ============= ============== ============== ============ ===========
LOCATION SCIENCES GROUP PLC
STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31 DECEMBER
2020
Merger relief
Share capital Share premium reserve Retained earnings Total
GBP GBP GBP GBP GBP
At 1 January 2019 13,713,498 18,168,965 11,605,556 (40,057,180) 3,430,839
Loss for the year - - - (279,772) (279,772)
------------- ------------- ------------- ----------------- -----------
Total comprehensive income - - - (279,772) (279,772)
New share capital subscribed 294,535 339,628 - - 634,163
Share-based payments - - - 48,312 48,312
------------- ------------- ------------- ----------------- -----------
At 31 December 2019 14,008,033 18,508,593 11,605,556 (40,288,640) 3,833,542
============= ============= ============= ================= ===========
Merger relief
Share capital Share premium reserve Retained earnings Total
GBP GBP GBP GBP GBP
At 1 January 2020 14,008,033 18,508,593 11,605,556 (40,288,640) 3,833,542
Loss for the year - - - (1,808,132) (1,808,132)
------------- ------------- ------------- ----------------- -----------
Total comprehensive income - - - (1,808,132) (1,808,132)
New share capital subscribed 272,225 806,638 - - 1,078,863
Share-based payments - - - 48,312 48,312
------------- ------------- ------------- ----------------- -----------
At 31 December 2020 14,280,258 19,315,231 11,605,556 (42,048,460) 3,152,585
============= ============= ============= ================= ===========
LOCATION SCIENCES GROUP PLC
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARED 31 DECEMBER
2020
2020 2019
Note GBP GBP
Cash flows from operating activities
Loss for the year (1,239,268) (2,116,812)
Adjustments to cash flows from non-cash
items
Depreciation and amortisation 616,778 558,256
Foreign exchange gain (10,475) (3,370)
Finance income 6 (98) (229)
Finance costs 6 5,619 12,707
Share based payment transactions 48,312 48,036
Income tax expense (166,272) (166,908)
Shares issued other than for cash 158,362 67,604
----------- -----------
(587,042) (1,600,716)
Working capital adjustments
Increase in trade and other receivables (7,783) (48,057)
Decrease in trade and other payables (137,472) (21,294)
----------- -----------
Cash used in operations (732,297) (1,670,067)
Income taxes received 11 166,909 235,722
----------- -----------
Net cash flow from operating activities (565,391) (1,434,345)
----------- -----------
Cash flows from investing activities
Interest received 8 98 229
Acquisitions of property plant and equipment 14 (1,278) (8,371)
Acquisition of intangible assets 13 (471,019) (306,415)
----------- -----------
Net cash flows from investing activities (472,199) (314,557)
----------- -----------
Cash flows from financing activities
Proceeds from issue of ordinary shares,
net of issue costs 920,504 566,558
Payments to finance lease creditors - (152)
IFRS 16 liability repayment (80,537) (107,220)
----------- -----------
Net cash flows from financing activities 839,967 459,186
----------- -----------
Net increase/(decrease) in cash and cash
equivalents (197,621) (1,289,716)
Cash and cash equivalents at 1 January 1,325,739 2,615,455
----------- -----------
Cash and cash equivalents at 31 December 1,128,118 1,325,739
=========== ===========
Non-cash financing activities:
Share warrants exercised in year - 1,934,797
Fees settled by share issues 76,923 -
Directors fees settled by share issues 81,452 -
LOCATION SCIENCES GROUP PLC
STATEMENT OF CASH FLOWS FOR THE YEARED 31 DECEMBER 2020
2020 2019
GBP GBP
Cash flows from operating activities
Loss for the year (1,808,132) (279,772)
Adjustments to cash flows from non-cash
items
Non-cash impairments 1,557,859 -
Share issues other than for cash 158,375 67,604
----------- ---------
(91,898) (212,168)
Working capital adjustments
Decrease/(increase) in trade and other
receivables (803,099) (354,352)
Decrease in trade and other payables (25,507) (38)
----------- ---------
Net cash flow from operating activities (920,504) (566,558)
Cash flows from financing activities
Proceeds from issue of ordinary shares,
net of issue costs 920,504 566,558
----------- ---------
Net increase in cash and cash equivalents - -
Cash and cash equivalents at 1 January - -
----------- ---------
Cash and cash equivalents at 31 December - -
=========== =========
LOCATION SCIENCES GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARED 31 DECEMBER
2020
1 General information
The company is a public company limited by share capital,
incorporated and domiciled in England.
The address of its registered office is:
First Floor
St James House
St James Square
Cheltenham
Gloucestershire
GL50 3PR
The Company's ordinary shares are traded on the Alternative
Investment Market (AIM) of the London Stock Exchange.
Principal activity
Location Sciences has two distinct products. Firstly, its UK
Data and Insights platform, which gives customers access to its
data lake of over 36 billion location data points. This helps
customers in a variety of ways, for example, competitor and
footfall analysis, attribution services for advertisers, and even
the ability to enhance the sustainability of transport systems.
Secondly, Location Sciences has developed a global platform called
Verify, which brings transparency to the location based mobile
advertising market. Verify allows marketeers to authenticate where
their adverts have been viewed and uses proprietary technology to
detect location ad-fraud, which would otherwise go unnoticed.
2 Accounting policies
Statement of compliance
The group financial statements have been prepared in accordance
with International Financial Reporting Standards and its
interpretations adopted by the EU ("adopted IFRS's").
Summary of significant accounting policies and key accounting
estimates
The principal accounting policies applied in the preparation of
these financial statements are set out below. These policies have
been consistently applied to all the years presented, unless
otherwise stated.
Going concern
The directors have taken a view of the Group as a whole.
The Group raised approximately GBP1 million in new funds during
the year and mitigated the impact of the COVID-19 pandemic with a
substantial cost reduction programme which reduced administrative
expenses by 40% and reduced the EBITDA loss by 54%. In addition,
the Group shifted the focus of the business towards the data and
insights solutions which are more resilient to effects of the
pandemic. The Group also launched a new verification product,
GeoProtect, which allows brands, agencies and suppliers to check
the validity of location based derived audience segments, a review
of historical movements in contrast to Verify Proximity, which
validates the real time locations of mobile devices as digital
advertising campaigns are delivered. This broadens the appeal of
the Verify product suite to agencies, brands and suppliers, and
gives Location Sciences access to the audience segment industry,
which is a significant part of the overall location-based
advertising market.
However, the Group continued to operate with a trading loss
during the year and the same is expected throughout 2021. The Group
raised GBP1 million in new investment during the year, which will
be utilised for the growth of Verify and for working capital
purposes and the Group also remains debt free.
Due to the ongoing COVID-19 pandemic there remains a sensitivity
to the timing and forecast pipeline of sales. Consequently, near
term cash resources will continue to be closely monitored and
controlled due to the associated working capital requirements of
the Group in delivering its growing order pipeline and winning new
business. To deliver its growth plans further capital may be
required, although the Group expects its existing cash resources to
be sufficient to meet the requirements of the Group until 2022.
Based on the current status, after making enquiries and
considering the broadening of its product base and substantial cost
reductions achieved during 2020, the Directors have a reasonable
expectation that the Group will be able to execute its plans in the
medium term such that the Group will have adequate resources to
continue in operational existence for the foreseeable future. This
provides the Directors with assurance on the Group's ability to
continue as a going concern, and therefore adopt the going concern
basis of accounting in preparing the annual financial
statements.
Basis of consolidation
The group financial statements consolidate the financial
statements of the company and its subsidiary undertakings drawn up
to 31 December 2020 in accordance with IFRS 10.
A subsidiary is an entity controlled by the company. Control is
achieved where the company has the power to govern the financial
and operating policies of an entity so as to obtain benefits from
its activities.
The results of subsidiaries acquired or disposed of during the
year are included in the income statement from the effective date
of acquisition or up to the effective date of disposal, as
appropriate. Where necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting policies into
line with those used by the group.
The purchase method of accounting is used to account for
business combinations that result in the acquisition of
subsidiaries by the group. The cost of a business combination is
measured as the fair value of the assets given, equity instruments
issued and liabilities incurred or assumed at the date of exchange,
plus costs directly attributable to the business combination.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date. Any excess
of the cost of the business combination over the acquirer's
interest in the net fair value of the identifiable assets,
liabilities and contingent liabilities recognised is recorded as
goodwill.
Inter-company transactions, balances and unrealised gains on
transactions between the company and its subsidiaries, which are
related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an
impairment that requires recognition in the consolidated financial
statements.
Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the
group. Non-controlling interests in the net assets of consolidated
subsidiaries are identified separately from the group's equity
therein. Non-controlling interests consist of the amount of those
interests at the date of the original business combination and the
non-controlling shareholder's share of changes in equity since the
date of the combination. Total comprehensive income is attributed
to non-controlling interests even if this results in the
non-controlling interests having a deficit balance.
Changes in accounting policy
For the purpose of the preparation of these consolidated
financial statements, the Group has applied all standards and
interpretations that are effective for accounting periods beginning
on or after 1 January 2020. None of the standards that have been
applied have had a material effect on the financial statements.
New standards, interpretations and amendments not yet
effective
No new standards, amendments or interpretations to existing
standards that have been published and that are mandatory for the
Group's accounting periods beginning on or after 1 January 2021, or
later periods, have been adopted early.
None of the standards, interpretations and amendments which are
effective for periods beginning after 1 January 2021, and which
have not been adopted early, are expected to have a material effect
on the financial statements.
Segmental reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision maker
for the use in strategic decision making and monitoring of
performance. The Group considers the chief operating decision maker
to be the Executive Board.
Revenue recognition
Revenue represents the invoice value of services and software
licences provided to external customers in the period, stated
exclusive of value added tax.
Consideration received from customers in respect of services is
only recorded as revenue to the extent that the Group has performed
its contractual obligations in respect of that consideration.
Management assess the performance of the Group's contractual
obligations against project milestones and work performed to
date.
Revenue from software licences sold in conjunction with services
is invoiced separately from those services and recognised over the
period of the licence.
Revenue from software licences for the use of the technology
platform is recognised over the period of the licence.
Revenue from software development is recognised to the extent
that the Group has obtained the right to consideration through its
performance.
The IFRS 15 Practical expedient has been applied whereby the
promised amount of consideration has not been amended for the
effects of a significant financing component as at the contract
inception there are no contracts where the period between transfers
of promised goods or services and customer payment is expected to
exceed one year.
Under the Group's standard contract terms, customers have a
right of return within 30 days. At the point of sale, a refund
liability and a corresponding adjustment to revenue is recognised
for those products expected to be returned. It is considered highly
probable that a significant reversal in the revenue recognised will
not occur given the consistent low level of returns over previous
years.
Grants
Grants for revenue expenditure are presented as part of the
Income Statement in the periods in which the expenditure is
recognised.
Foreign currency transactions and balances
Items included in the financial statements of each of the
Group's entities are measured using the currency of the primary
economic environment in which the entity operates ("the functional
currency"). The consolidated financial statements are presented in
sterling, which is the Parent's presentational currency.
Transactions in foreign currencies are recorded at the rate
ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are translated at the
rate of exchange ruling at the balance sheet date.
The results and financial position of all Group entities that
have a functional currency different from the presentational
currency of the Group are translated into sterling follows:
-- Assets and liabilities for each balance sheet presented are
translated at the closing rate at the date of the balance
sheet;
-- Income and expenses for each income statement are translated
at the average exchange rate for the month where these approximate
the exchange rate at the date of the transaction; and
-- All resulting exchange differences are recognised within
other comprehensive income and taken to the foreign exchange
reserve.
Tax
The current tax charge is calculated on the basis of tax rates
and laws that have been enacted or substantively enacted by the
reporting date in the countries where the group operates and
generates taxable income.
Deferred tax is provided for using the liability method on
temporary differences at the balance sheet date between tax basis
of assets and liabilities and their carrying amounts for financial
reporting purposes. Deferred tax liabilities are recognised in full
for all temporary differences other than those relating to goodwill
on investments in subsidiaries. Deferred tax assets are recognised
for all deductible temporary differences carried forward of unused
tax credits and unused tax losses to the extent that it is probable
that taxable profit will be available against which the deductible
temporary differences and carry-forward of unused tax credits and
unused tax losses can be utilised.
The carrying amount of deferred tax assets is assessed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised. Unrecognised
deferred tax assets are reassessed at each balance sheet date and
are recognised to the extent that it is probable that future
taxable profits will allow the deferred tax asset to be
recovered.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply to the period when the asset is
realised, or the liability settled, based on tax rates that have
been enacted or substantively enacted at the balance sheet
date.
The tax currently receivable is based on the taxable loss for
the period and relates to R&D tax credits. Taxable loss differs
from net loss as reported in the consolidated income statement
because it excludes items of income or expense that are taxable or
deductible in other periods and it further excludes items that are
never taxable or deductible. This is calculated using rates and
laws enacted or substantively enacted at the reporting date
Financial instruments
The Group recognises financial instruments when it becomes a
party to the contractual arrangements of the instrument. Financial
instruments are de-recognised when they are discharged or when the
contractual terms expire. The Group's accounting policies in
respect of financial instruments transactions are explained
below:
Financial assets
The Group classifies all of its financial assets as loans and
receivables. Loans and receivables are non-derivative financial
assets with fixed or determinable payments that are not quoted in
an active market. They arise principally through the provision of
goods and services to customers (e.g. trade receivables), but also
incorporate other types of contractual monetary assets. They are
initially recognised at fair value plus transaction costs that are
directly attributable to their acquisition or issue, and are
subsequently carried at amortised cost using the effective interest
rate method, less provision for impairment. Discounting is omitted
where the effect of discounting is immaterial.
Impairment provisions are recognised when there is objective
evidence (such as significant financial difficulties on the part of
the counterpart or default or significant delay in payment) that
the Group will be unable to collect all of the amounts due under
the terms receivable, the amount of such a provision being the
difference between the net carrying amount and the present value of
the future expected cash flows associated with the impaired
receivable. For trade receivables, which are reported net, such
provisions are recorded in a separate allowance account with the
loss being recognised within administrative expenses in the Income
Statement. On confirmation that the trade receivable will not be
collected, the gross carrying value of the asset is written off
against the associated provision.
Financial liabilities
The Group classifies all of its financial liabilities as
liabilities at amortised cost. Liabilities are classified as
current liabilities when the Group has an unconditional right to
defer settlement of the liability for at least 12 months after the
balance sheet date.
Intangible assets
Goodwill
Goodwill arising on the acquisition of an entity represents the
excess of the cost of acquisition over the Group's interest in the
net fair value of the identifiable assets, liabilities and
contingent liabilities of the entity recognised at the date of
acquisition. Goodwill is initially recognised as an asset at cost
and is subsequently measured at cost less any accumulated
impairment losses. Goodwill is not subject to amortisation but is
tested for impairment annually. Goodwill is held in the currency of
the acquired entity and revalued to the closing rate at each
reporting period date.
For the purpose of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash
flows (cash-generating units). Goodwill is allocated to those
cash-generating units that are expected to benefit from the
synergies of the related business combination and represent the
lowest level within the Group at which management monitors the
related cash flows. The recoverable amount is tested annually or
when events or changes in circumstances indicate that it may be
impaired. The recoverable amount is higher of the fair value less
costs and the value in use in the Group. An impairment loss is
recognised to the extent that the carrying value exceeds the
recoverable amount. In determining a value in use, estimated future
cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time
value of money and the risks specific to the cash generating unit
that have not already been included in the estimate of future cash
flows.
Internally developed software
Intangible assets are predominantly internally generated
software development costs for Location Sciences' technologies.
Development costs are capitalised when certain criteria are met.
The product must be technically feasible, sale is intended, a
market exists, expenditure can be measured reliably, and sufficient
resources are available to complete the project. The extent of
capitalisation is limited to the amount, which taken together with
further related costs, will be recovered from the future economic
benefits related to the asset. When the Board is sufficiently
confident that all of the criteria for capitalisation are met,
development costs are amortised over the expected useful life,
currently 5 years, from the date the asset is available for use.
Development costs that have been capitalised, but where
amortisation has not yet commenced are reviewed annually for
impairment. If no intangible asset can be recognised based on the
above then development costs are recognised within administrative
expenses in the Consolidated Income Statement.
Other intangibles
Acquired trademarks and intellectual property rights are
recognised as an asset at cost, or deemed cost, less accumulated
amortisation and any recognised impairment loss.
Amortisation
Amortisation method and
Asset class rate
Development costs 20% straight line
Trademarks and intellectual property 10% straight line
rights
Amortisation is recognised within administrative expenses and
disclosed separately on the Consolidated Income Statement.
Depreciation
Depreciation method and
Asset class rate
Computer equipment 33.33% straight line
Office equipment 33.33% straight line
Right of Use assets Straight line over lease
term
Depreciation is recognised within administrative expenses and
disclosed separately on the Consolidated Income Statement
Impairment of non-financial assets
At each Statement of Financial Position date, the Group performs
an impairment review in respect of goodwill and any intangible
assets not yet ready for use and reviews the carrying amounts of
its tangible and intangible assets to determine whether there is
any indication that those assets have suffered any impairment. If
any such indication exists, the recoverable amount of the asset
(being the higher of fair value less costs to sell and value in
use) is estimated in order to determine the extent of any
impairment. Any impairment loss is recognised as an expense in the
Consolidated Income Statement in the period in which it was
identified.
Investments
Investments are carried at cost, less any impairment in
value.
The Company grants options over its equity investments to the
employees of its subsidiaries. The carrying value of the investment
in this subsidiary is increased by an amount equal to the value of
the share-based payment charge attributable to the option holder in
the subsidiary.
Dividends on equity securities are recognised in income when
receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call
deposits, and other short-term highly liquid investments that are
readily convertible to a known amount of cash and are subject to an
insignificant risk of changes in value, and have a maturity of less
than 3 months from the date of acquisition. For the purpose of the
statement of cash flows, cash and cash equivalents consist of cash
in hand and bank deposits.
Trade receivables
Trade receivables are amounts due from customers for licences
sold or services performed in the ordinary course of business. If
collection is expected in one year or less (or in the normal
operating cycle of the business if longer), they are classified as
current assets. If not, they are presented as non-current
assets.
Trade receivables are recognised initially at the transaction
price. They are subsequently measured at amortised cost using the
effective interest method, less provision for impairment. A
provision for the impairment of trade receivables is established
when there is objective evidence that the group will not be able to
collect all amounts due according to the original terms of the
receivables.
Trade payables
Trade payables are obligations to pay for goods or services that
have been acquired in the ordinary course of business from
suppliers. Accounts payable are classified as current liabilities
if payment is due within one year or less (or in the normal
operating cycle of the business if longer). If not, they are
presented as non-current liabilities.
Trade payables are recognised initially at the transaction price
and subsequently measured at amortised cost using the effective
interest method.
Leases
Assets held under leases are recognised as assets of the Group
at the fair value at the inception of the lease or if lower, at the
present value of the minimum lease payments. The related liability
to the lessor is included in the Balance Sheet as a finance lease
obligation. Lease payments are apportioned between interest
expenses and capital redemption of the liability. Interest is
recognised immediately in the Consolidated Income Statement, unless
attributable to qualifying assets, in which case they are
capitalised to the cost of those assets.
Exemptions are applied for short life leases and low value
assets, with payments made under operating leases charged to the
Consolidated Income Statement on a straight line basis over the
period of the lease.
Equity
Equity comprises:
Share capital - the nominal value of ordinary shares is
classified as equity.
Share premium - represents the excess over nominal value of the
fair value of consideration received for equity shares, net of
expenses of the share issue.
Merger relief reserve - the difference between cost or fair
value and the nominal value of shares issued on the exchange of
shares with Location Sciences AI Limited and on acquisition of
subsidiaries where shares are issued as part of the
consideration.
Translation reserve - the foreign exchange difference arising on
consolidation.
Capital reserve - represents a capital contribution to the
Company.
Equity reserve - represents the fair value of warrants over
shares issued to Barclays in return for debt waiver in 2017. During
2018 the equity reserve has been transferred to share premium upon
exercise of the warrants.
Reverse acquisition reserve - the balance of the amount
recognised as issued equity instruments arising on restatement of
Location Sciences AI Limited to reflect the parent equity
structure, further to the reverse acquisition basis of accounting
adopted in 2013 on the share exchange by Location Sciences Group
Plc for 100% of the shares of Location Sciences AI Limited.
Retained earnings - includes all current and prior period
retained profits/(losses).
Share capital
Ordinary shares are classified as equity. Equity instruments are
measured at the fair value of the cash or other resources received
or receivable, net of the direct costs of issuing the equity
instruments. If payment is deferred and the time value of money is
material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed
contributions are paid into a separate entity and has no legal or
constructive obligations to pay further contributions if the fund
does not hold sufficient assets to pay all employees the benefits
relating to employee service in the current and prior periods.
For defined contribution plans contributions are paid publicly
or privately administered pension insurance plans on a mandatory or
contractual basis. The contributions are recognised as employee
benefit expense when they are due. If contribution payments exceed
the contribution due for service, the excess is recognised as an
asset.
Share based payments
The Group operates an equity-settled, share-based compensation
plan. Equity-settled share-based payments are measured at fair
value at date of grant. The fair value determined at the grant date
of the equity-settled share based payments is expensed on a
straight-line basis over the vesting period, based on the Group's
estimate of shares that will eventually vest. Fair value is
measured by use of the Black Scholes or a binomial options
valuation model as appropriate depending on the terms of the
options.
3 Critical accounting judgements and key sources of estimation
uncertainty
The preparation of financial information in conformity with IFRS
requires the directors to make critical accounting estimates and
judgements that affect the application of policies and reported
amounts of assets and liabilities, income and expenses. An
assessment of the impact of these estimates and judgements on the
financial statements is set out below.
Estimates and judgements are continually evaluated and are based
on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the
circumstances. Actual results could differ from these estimates and
any subsequent changes are accounted for with an effect on income
at the time such updated information is available.
Fair values for employee share schemes
The establishment of fair values in respect of employee services
received in exchange for share options require the exercise of
judgement and estimation in respect of the life of the option, the
expected dividend yield and, in particular, the volatility of the
underlying shares. A calculated value for the latter may not
accurately reflect the future share price movements given the
Group's stage of development.
Assessing whether development costs meet the criteria for
capitalisation
The point at which development costs meet the criteria for
capitalisation is critically dependent on management's judgement of
the point at which technical feasibility is demonstrable.
Commercial success of the development projects remains uncertain at
the time of recognition and therefore impairment reviews are
undertaken based on current estimates of future revenue streams.
This assessment has resulted in the impairment of GBPnil (2018:
GBPnil) of development costs, previously capitalised for which the
underlying projects are no longer being pursued.
Classification and valuation of financial instruments
The Group previously issued financial instruments including
conversion features and warrants. The valuation of these financial
instruments, including Level 3 fair values where there are no
observable market inputs, are performed in consultation with third
party valuation specialists, with the overall aim of maximising the
use of market based information.
Impairment of goodwill and other intangible assets
There are a number of assumptions management have considered in
performing impairment reviews of goodwill and intangible assets, as
determining whether such assets are impaired requires an estimation
of the value in use of the cash generating units to which goodwill
and other intangible assets have been allocated. The value in use
calculation requires the directors to estimate the future cash
flows expected to arise from the cash generating unit and a
suitable discount rate in order to calculate the present value. An
impairment of goodwill of GBPnil has been recognised in the
year.
Assessing whether revenue meets the criteria for recognition
Contracts can include both the sale of licences and provision of
services including integration and development. Revenue is
recognised based on the analysis of individual contracts and the
point at which significant risks and reward of ownership transfer
is dependent on the contractual terms. In respect of a licence,
this would usually be on delivery of the software. Software
development and other consulting services generally recognised on
the basis of work done but where issues of client acceptance are
identified, then revenue is deferred until issues are resolved.
4 Segmental analysis
Operating segments are based on internal reports about
components of the Group, which are regularly reviewed and used by
the Board for strategic decision making, to allocate resources
across segments and to assess performance by segment.
Since 2018 the Group maintained a holding company structure with
one operating subsidiary. For financial reporting, Location
Sciences segments the Group based on its two distinct products.
Firstly, its UK Data and Insights platform, which gives customers
access to its data lake of over 36 billion location data points.
This helps customers in a variety of ways, for example, competitor
and footfall analysis, attribution services for advertisers, and
even the ability to enhance the sustainability of transport
systems. Secondly, Location Sciences has developed a global
platform called Verify, which brings transparency to the location
based mobile advertising market. Verify allows marketeers to
authenticate where their adverts have been viewed and uses
proprietary technology to detect location ad-fraud, which would
otherwise go unnoticed.
It should be noted that a segmental analysis of the Balance
Sheet is not part of routine management reporting and consequently
no segmental analysis of assets is shown here.
The analysis of the Group's revenue from contracts with
customers for the year is as follows:
2020 2019
GBP GBP
Verify 318,572 495,554
Location Data and Insights 762,170 710,700
--------- ---------
1,080,742 1,206,254
========= =========
An analysis of the Group's revenue by geographical segment is as
follows:
2020 2019
GBP GBP
UK 578,697 718,743
Europe - 108,121
ROW 502,045 379,390
--------- ---------
1,080,742 1,206,254
========= =========
All non-current assets of the Group are held in the UK.
During the year there was revenue from individual customers that
represented more than 10% of revenue as follows:
2020 2019
GBP GBP
Verify - customer 1 - 165,220
Location Data and Insights - customer 1 385,074 -
Location Data and Insights - customer 2 132,242 -
Average payments terms are set out in note 16. There are no
significant financing components, nor variable consideration
elements in customers' contracts.
An analysis of EBITDA is as follows:
2020 2019
GBP GBP
Location Data and Insights (552,365) (1,009,199)
Verify (230,877) (703,787)
--------- -----------
Total EBITDA (783,242) (1,712,986)
========= ===========
An analysis of loss before tax is as follows:
2020 2019
GBP GBP
Location Data and Insights (970,849) (1,345,445)
Verify (405,796) (938,275)
----------- -----------
Total loss before tax (1,405,540) (2,283,720)
=========== ===========
5 Other operating income
The analysis of the Group's other operating income for the year
is as follows:
2020 2019
GBP GBP
Government grants 10,000 25,280
Furlough receipts 20,119 -
------ ------
30,119 25,280
====== ======
Furlough scheme
The furlough scheme is a government grant relating to a wage
subsidiary programme introduced in the United Kingdom in response
to the COVID-19 coronavirus pandemic. The Company was entitled to
the wage subsidy because it had reduced operations in the United
Kingdom as a result of the pandemic. The accounting policy adopted
is set out in note 2 to the financial statements; the grant was
recognised in the profit and loss in 'other income' as the related
wages and salaries for furloughed employees were recognised.
6 Loss before taxation
Arrived at after charging/(crediting)
2020 2019
GBP GBP
Depreciation expense * 102,314 104,163
Amortisation expense 514,464 454,093
Research and development expenditure 27,548 85,172
Share based payments 48,312 48,036
Net foreign exchange losses 11,004 20,517
Auditors remuneration
- Company audit 10,000 10,000
- Subsidiary audit 15,000 15,000
Non-audit services:
- Tax and other compliance services 12,750 12,000
- Transaction related long form reports - 7,500
======= =======
* Depreciation includes the charge arising on right-of-use
assets arising upon initial application of IFRS 16 totalling
GBP93,879 (2019: GBP93,879).
7 Finance income and costs
2020 2019
GBP GBP
Finance income
Interest income on bank deposits 98 229
Finance costs
Interest on IFRS 16 lease liabilities (5,619) (12,707)
------------ ------------
Net finance costs (5,521) (12,478)
============ ============
8 Staff costs
The aggregate payroll costs (including directors' remuneration)
were as follows:
2020 2019
GBP GBP
Wages and salaries 1,074,189 1,097,403
Social security costs 150,120 129,946
Pension costs, defined contribution scheme 13,017 15,532
Share-based payment expenses 48,312 48,036
--------- ---------
1,285,638 1,290,917
========= =========
The average number of persons employed by the group (including
directors) during the year, analysed by category was as
follows:
2020 2019
No. No.
Finance and operations 2 3
Research and development 8 9
Commercial and client services 4 5
Non-executive directors 4 4
---- ----
18 21
==== ====
The average number of persons employed by the company (including
directors) during the year, analysed by category was as
follows:
2020 2019
No. No.
Finance and operations 1 1
Non-executive directors 4 4
---------------------------- ---------------------------
18 21
============================ ===========================
9 Key management compensation and directors' remuneration
Details of aggregate key management emoluments for the year are
as follows:
2020 2019
GBP GBP
Salaries and other short-term employee
benefits 449,846 452,333
Pension costs 2,910 3,509
Expense of share-based payments 26,216 24,842
------- -------
478,972 480,684
======= =======
The directors are of the opinion that the key management of the
Group comprises the executive and the non-executive directors of
Location Sciences Group Plc. These persons have authority and
responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly.
Directors' remuneration is disclosed in the Directors'
Remuneration Report.
10 Auditors' remuneration
2020 2019
GBP GBP
Audit of the Company's financial statements 10,000 10,000
Audit of the subsidiaries' financial statements 15,000 15,000
----------- -----------
25,000 25,000
=========== ===========
All other non-audit services 12,750 19,500
=========== ===========
11 Income tax
Tax charged/(credited) in the income statement
2020 2019
GBP GBP
Current taxation
UK R&D tax credit (166,272) (166,908)
========= =========
The tax on profit before tax for the year is higher than the
standard rate of corporation tax in the UK (2019 - higher than the
standard rate of corporation tax in the UK) of 19% (2019 -
19%).
The differences are reconciled below:
2020 2019
GBP GBP
Loss before tax (1,405,540) (2,283,720)
=========== ===========
Corporation tax at standard rate (267,053) (66,520)
Effect of expenses not deductible 9,926 74,688
Unrecognised deferred tax asset 154,144 183,828
Surrender of tax losses for R&D tax credit 51,602 51,800
Other differences 8,255 80,300
Additional deduction for research development
expenditure (123,146) (123,617)
----------- -----------
Total tax charge (166,272) 200,479
=========== ===========
Subject to the UK tax authority's agreement, the Group has UK
tax losses of approximately GBP20,200,000 (2019: GBP19,680,000)
available to carry forward and offset against future taxable
profits arising from the same trade. The Group has a potential
deferred tax asset of GBP3,840,000 (2019: GBP3,340,000) which will
not be recognised until it is regarded as more likely than not that
there will be sufficient taxable profits from which the tax losses
can be deducted. In addition, no deferred tax asset is recognised
in respect of future tax deductions on exercise of share
options.
12 Loss per share
The calculation of loss per share is based on the loss of
GBP1,239,268 (2019: GBP2,116,812) and on the number of shares in
issue, being the weighted average number of equity shares in issue
during the period of 513,986,630 0.1p ordinary shares (2019:
348,073,166 1p ordinary shares).
2020 2019
GBP GBP
Loss for the financial year (1,239,268) (2,116,812)
=========== ===========
Earnings per share
Loss per share - basic and
diluted (0.24p) (0.61p)
Dilutive instruments
Instruments that could potentially dilute basic loss per share
in the future but are not included in the calculation of diluted
loss per share because they are anti-dilutive.
13 Intangible assets
Group
Internally generated
software development
costs
GBP
Cost or valuation
At 1 January 2019 2,492,746
Additions 306,415
---------------------
At 31 December 2019 2,799,161
---------------------
At 1 January 2020 2,799,161
---------------------
Additions 471,019
---------------------
At 31 December 2020 3,270,178
---------------------
Amortisation
At 1 January 2019 1,159,831
Amortisation charge 454,093
---------------------
At 31 December 2019 1,613,924
---------------------
At 1 January 2020 1,613,924
---------------------
Amortisation Charge 514,464
---------------------
At 31 December 2020 2,128,388
---------------------
Carrying amount
At 31 December 2020 1,141,792
=====================
At 31 December 2019 1,185,237
=====================
At 1 January 2019 1,332,915
=====================
Internal development represents the cost incurred in developing
the Group's DaaS platform and software development, split between
the two distinct products, Location Data and Insights and Verify,
with net book value of GBP551,442 (2019: GBP831,125) and GBP590,369
(2019: GBP354,112) respectively. These internal costs have been
capitalised in accordance with the Group's accounting policies
where all the conditions for capitalisation have been met.
The Verify and Location Data and Insights intangible assets have
on average a remaining amortisation period of 4 and 2 years
respectively.
Impairment of research and development is considered within the
conditions of capitalisation. Amortisation charges are included in
administrative expenses, disclosed separately on the Consolidated
Income Statement.
14 Property, plant and equipment
Group
IFRS 16 Right
of Use Assets:
Computer Equipment Office Equipment Property Total
GBP GBP GBP GBP
Cost or valuation
At 1 January 2019 33,676 - - 33,676
Additions 5,878 2,493 - 8,371
Recognised upon application
of IFRS 16 - - 187,757 187,757
------------------ ---------------- ----------------- ---------
At 31 December 2019 39,554 2,493 187,757 229,804
Additions 1,278 - - 1,278
Disposals - - 187,757 187,757
------------------ ---------------- ----------------- ---------
At 31 December 2020 40,832 2,493 - 43,325
------------------ ---------------- ----------------- ---------
Depreciation
At 1 January 2019 18,777 - - 18,777
Charge for year 9,730 554 93,879 104,163
------------------ ---------------- ----------------- ---------
At 31 December 2019 28,507 554 93,879 122,940
------------------ ---------------- ----------------- ---------
Charge for year 7,605 831 93,878 102,314
Eliminated on disposal - - (187,757) (187,757)
------------------ ---------------- ----------------- ---------
At 31 December 2020 36,112 1,385 - 37,497
------------------ ---------------- ----------------- ---------
Carrying amount
At 31 December 2020 4,720 1,108 - 5,828
================== ================ ================= =========
At 31 December 2019 11,047 1,939 93,878 106,864
================== ================ ================= =========
At 1 January 2019 14,899 - - 14,899
================== ================ ================= =========
15 Investments
Company
2020 2019
GBP GBP
Investment in subsidiaries 2,045,627 2,414,081
Capital contribution arising from IFRS
2 share based payments charge 1,125,995 1,077,683
--------- ---------
3,171,622 3,491,764
========= =========
Subsidiaries
GBP
Cost or valuation
At 1 January 2019 3,443,414
Additions 38
Revaluation 48,312
------------
At 31 December 2019 3,491,764
------------
Revaluation 48,312
Impairment (368,454)
At 31 December 2020 3,171,622
------------
Carrying amount
At 31 December 2020 3,171,622
============
At 31 December 2019 3,491,764
============
At 1 January 2019 3,491,726
============
Details of the Group subsidiaries held as direct investments of
the Company as at 31 December 2020 are as follows:
Proportion
of ownership
interest
and voting
rights
held
Name of subsidiary Principal activity Registered office 2020 2019
Same registered
Location Sciences Location Data and office address
AI Limited Insights and Verify as group 100% 100%
1209 Orange Street,
Wilmington, New
Location Data and Castle, Delaware,
Location Sciences Insights and Verify 19801
(US) Inc. within the US marketplace USA 100% 100%
16 Trade and other receivables
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Trade receivables 258,468 356,911 - -
Receivables from
related parties - - - 386,284
Prepayments 6,837 20,939 - -
Other receivables 149,799 29,471 - -
-------------------------- ------------------- ------------- ---------
415,104 407,321 - 386,284
========================== =================== ============= =========
Trade receivables comprise amounts due from customers for
services provided. All amounts are short term. The net carrying
amount of trade receivables is considered a reasonable
approximation of fair value. Average credit terms were 45 days
(2019: 60) and average debtor days outstanding were 73 (2019: 79)
excluding balances that have been fully provided for.
All of the Group's trade and other receivables have been
reviewed for impairment. An impairment provision of GBP13,911
(2019: GBP105,891) has been recognised in the year.
The Group's exposure to credit and market risks, including
impairments and allowances for credit losses, relating to trade and
other receivables is disclosed in the financial risk management and
impairment note.
Trade receivables above include amounts (detailed below) that
are past due at the end of the reporting period and which an
allowance for doubtful debts has not been recognised as the amounts
are still considered recoverable and there has not been a
significant change in credit quality.
Age of trade receivables that are past
due but not impaired Group
2020 2019
GBP GBP
31 to 60 days 92,954 71,416
61 to 90 days 31,838 39,790
91 to 120 days 34,118 48,458
3 to 6 months 22,913 71,953
------- -------
181,823 231,257
======= =======
17 Cash and cash equivalents
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Cash at bank 1,128,118 1,325,739 - -
=========== =========== ======= =======
18 Trade and other payables
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Trade payables 45,458 120,220 - -
Payables to related
parties - - 38 -
Accrued expenses 117,208 137,142 18,999 18,999
Social security and
other taxes 42,347 52,219 - -
Other payables 6,594 39,498 - 25,507
------- ------- ------ ------
211,607 349,079 19,037 44,506
======= ======= ====== ======
The directors consider that the carrying amount of trade and
other payables approximated their fair value.
Trade payables are paid between 30 and 60 days of receipt of the
invoice.
The Group's exposure to market and liquidity risks, including
maturity analysis, related to trade and other payables is disclosed
in the financial risk management and impairment note.
19 Loans and borrowings
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Current loans and borrowings
IFRS 16 liabilities - 74,918 - -
===== ======= ==== ====
The Group's exposure to market and liquidity risk; including
maturity analysis, in respect of loans and borrowings is disclosed
in the financial risk management and impairment note.
Further information regarding IFRS 16 lease liabilities is
provided in note 20.
20 Obligations under leases
IFRS 16
For the year ended 31 December 2020, the following amounts have
been recognised under IFRS 16 in relation to property leases:
2020 2019
GBP GBP
Additions to 'right-of-use' assets - 187,757
Depreciation charged on 'right-of-use' asset
recognised 93,878 93,879
Interest expense recognised on lease liability 5,619 12,707
Expense incurred in relation to 'short-term'
leases 19,200 11,200
Obligation at year end in relation to 'short-term'
leases - 8,000
Total cash outflow in year in relation to
leases 99,737 118,420
======= ========
21 Financial risk management and impairment of financial
assets
Treasury risk management
The Group manages a variety of market risks, including the
effect of changes in foreign exchange rates, liquidity and
counterparty risks.
Credit risk
The Group's principal financial assets are bank balances, cash,
trade and other receivables.
The credit risk on liquid funds is limited because the counterparties
are UK banks or "Blue Chip" companies with high credit ratings
assigned by international credit rating agencies.
As a result, investment returns and credit risk to the Group
in this regard are not material to the financial statements.
The Group's maximum exposure to credit risk is limited to the
carrying amount of financial assets at the reporting date. No
collateral is held in respect of these amounts which are expected
to be received in full. In order to manage credit risk, credit
limits are reviewed on a regular basis in conjunction with debt
ageing and collection history.
Currency risk
The Group's operations are primarily located in the United
Kingdom, with an increasing investment into the United States. The
Group's transactions during 2020 were predominantly denominated in
sterling, with consequently little exposure to foreign currency
risks. Due to the limited risks to the Group, forward exchange
contracts are not considered necessary and are not used. At the
year end, the Group operated both sterling and dollar bank
accounts. Going forward the Directors will continue to monitor the
currency risk and the potential impact of increasing trade and
investment into the United States.
The translation risk on the Group's foreign exchange payables
and receivables is considered to be immaterial due to their
short-term nature.
Liquidity risk
The Group has sufficient capital resources to meet its external
current liabilities as they fall due in 2020.
Operational cash flow represents on going trading revenue and
costs, administrative costs and research and development
activities. The Group manages its liquidity requirements by the use
of both short-term and long-term cash flow forecasts. The Group's
policy is to ensure facilities are available as required or to
issue equity share capital to ensure cash resources available are
in accordance with long-term cash flow forecasts. The Group
currently has no overdrawn committed facilities as at 31 December
2020.
The Group actively manages its working capital to ensure it has
sufficient funds for operations and planned research and
development activities.
The Group's main financial liabilities include trade payables
and operational costs. All amounts for trade and other payables are
due for payment in accordance with agreed settlement terms with
suppliers or statutory deadlines. All such payment terms are within
six months.
Capital management
The Group's activities are of a type and at a stage of
development where the most suitable capital structure is that of
one primarily financed by equity. The directors will reassess the
future capital structure when projects under development are
sufficiently advanced.
The Group's financial strategy is to utilise its resources and
current trading revenue streams to commercialise its products and
grow revenues. The Group keeps investors informed of its progress
with its projects through regular announcements and raises
additional equity finance at appropriate times.
The Group manages capital on the basis of the carrying amount of
equity, and debt with regard to maintaining sufficient liquidity to
enable the Group to continue to trade and invest in
commercialisation. As at the year end the equity to overall
financing ratio, excluding IFSR 16 adjustments, is 1 (2019:1).
Categories of financial instruments
All of the Group's financial assets are classified as loans and
receivables. The directors consider that the carrying amount of
trade and other receivables approximates their fair value.
All of the Group's financial liabilities are classified as
liabilities at amortised cost. The directors consider that the
carrying amount of trade and other payables approximates their fair
value. The contractual maturity of financial liabilities.
22 Share capital
Allotted, called up and fully paid shares
2020 2019
No. GBP No. GBP
Ordinary shares of 1.0p
each - - 370,497,894 3,704,979
New Ordinary shares
of 0.1p each 587,337,398 587,337 - -
Deferred shares of 0.99p
each 1,040,712,398 10,303,054 1,040,712,398 10,303,054
New deferred shares
of 0.9p each 376,651,734 3,389,866 - -
2,004,701,530 14,280,258 1,411,210,292 14,008,033
============= ========== ============= ==========
Reconciliation of shares
Number of shares
Total number of shares at 1 January 2020 1,411,210,292
23 January 2020 share issue: settlement of fees 6,153,840
27 March 2020 subdivision of deferred shares 376,651,734
27 March 2020 share issue 114,858,571
24 April 2020 warrant exercise 15,457,332
6 May 2020 warrant exercise 21,980,665
6 May 2020 share issue: settlement of fees 4,800,000
4 June 2020 warrant exercise 1,524,000
19 June 2020 warrant exercise 23,667,332
6 July 2020 warrant exercise 11,428,666
4 November 2020 share issue: settlement of fees 16,969,098
----------------
At 31 December 2020 2,004,701,530
================
New shares allotted
-- On 23 January 6,153,840 new shares were allotted with an
aggregate nominal value of GBP61,538. These shares were issued to a
supplier to settle a debt of $100,000 (GBP76,923).
-- On 27 March 2020 the share capital was subdivided with each
Existing Ordinary Shares split into 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. In aggregate, 114,858,571
new ordinary shares with an aggregate nominal value of GBP114,859
were issued comprising; 111,430,000 Placing Shares for aggregate
consideration of GBP975,013, 1,142,857 Broker Shares for aggregate
consideration of GBP10,000 and 2,285,714 Settlement Shares for
aggregate consideration of GBP20,000.
-- On 24 April 2020 15,457,332 new ordinary shares with an
aggregate nominal value of GBP15,457 were issued further to the
exercise of warrants for aggregate consideration of GBP15,457.
-- On 6 May 2020 21,980,665 new ordinary shares with an
aggregate nominal value of GBP21,981 were issued further to the
exercise of warrants for aggregate consideration of GBP21,981.
-- On 6 May 2020 4,800,000 new ordinary shares with an aggregate
nominal value of GBP4,800 were issued to Peterhouse Capital for
aggregate consideration of GBP30,000.
-- On 4 June 2020 1,524,000 new ordinary shares with an
aggregate nominal value of GBP1,524 were issued further to the
exercise of warrants for aggregate consideration of GBP1,524.
-- On 19 June 2020 23,667,332 new ordinary shares with an
aggregate nominal value of GBP23,667 were issued further to the
exercise of warrants for aggregate consideration of GBP23,667.
-- On 6 July 2020 11,428,666 new ordinary shares with an
aggregate nominal value of GBP11,429 were issued further to the
exercise of warrants for aggregate consideration of GBP11,429.
-- On 4 November 2020 7,333,681 new shares were allotted with an
aggregate nominal value of GBP7,334. These shares were issued to
non-executive director D Williams as consideration for remuneration
due of GBP35,202.
-- On 4 November 2020 2,343,750 new shares were allotted with an
aggregate nominal value of GBP2,344. These shares were issued to
non-executive director K Harrison as consideration for remuneration
due of GBP11,250.
-- On 4 November 2020 2,291,667 new shares were allotted with an
aggregate nominal value of GBP2,292. These shares were issued to
non-executive director B Chilcott as consideration for remuneration
due of GBP11,000 .
-- On 4 November 2020 5,000,000 new shares were allotted with a
nominal value of GBP5,000. These shares were issued to
non-executive director N Hogan as consideration for remuneration
due of GBP24,000.
Share rights
Ordinary and New 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 and New 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.
Share Warrants
Mike Staten holds 5,583,522 share warrants at the year end with
an exercise price of 16.92 pence per share. For comparison the
closing share price on 17 March 2021 was 0.475 pence per share. The
fair value of the warrants is not material for adjustment.
23 Share-based payments
The share option scheme was originally adopted by the company on
29 September 2011. It was established to attract and retain the
best available personnel for positions of responsibility, to
provide additional incentive to employees, officers or consultants
of the company and to promote the success of the company's
business. Further to the acquisition of the business by Location
Sciences Group plc (formerly Proxama plc), the options were granted
over shares in the parent entity. The share option scheme was and
continues to be administered by the directors.
All outstanding options as at 1 January 2018 and outstanding
options issued in March 2018 and May 2018 were surrendered and
replaced by options issued in November 2018. Further in 2019 part
of the outstanding share options issued in November 2018 were
surrendered and replaced by options issued in July 2019. Share
options surrendered are accounted for as modified options under
IFRS 2. The incremental value of the modified share options is not
material.
Share options issued in November 2018, February 2019, May 2019
and October 2019 are to be settled by way of issues of Ordinary
Shares. The options have no vesting period but cannot be exercised
until target share prices are achieved and have a maximum term of
10 years.
Further, Location Sciences Group plc consolidated its shares
during 2018 whereby every 100 existing ordinary shares of 0.01
pence was consolidated into one new ordinary share of 1 penny each
and on 27 March 2020 the existing ordinary shares were split on a
one to one basis for new ordinary shares of 0.1 pence each. This
consolidation and share split are reflected in the comparative
information below to facilitate comparability.
The target share prices are as follows:
Target A: GBP0.048
Target B: GBP0.073
Target C: GBP0.097
The movements in the number of share options during the year
were as follows:
2020 2019
Number Number
Outstanding, start of period 29,773,278 34,222,222
Granted during the period - 6,700,818
Forfeited during the period (3,551,056) (7,333,333)
Surrendered during the period - (3,816,429)
Outstanding, end of period 26,222,222 29,773,278
=========== ===========
None of the options outstanding at the end of the period are yet
exercisable as the target share prices have not yet been
achieved.
The movements in the weighted average exercise price of share
options during the year were as follows:
2020 2019
GBP GBP
Outstanding, start of period 2.28 2.25
Granted during the period - 2.37
Forfeited during the period 2.49 2.25
Surrendered during the period - 2.25
Outstanding, end of period 2.25 2.28
==== ====
The weighted average contractual life of options outstanding at
the year-end is 3 years (2019: 3 years).
Fair value of options granted
The fair value of the equity instruments granted was determined
using the Black Scholes Model. This model was selected as it is an
industry standard model. The exercise price of all the options in
issue is 2.25p per ordinary share. The performance condition
includes three target share prices, as set out above. The inputs
into the model for options granted in 2019 were as follows:
2020 2019
Weighted average share price during the
period - 2.41p
Exercise price of option - 2.25p
Expected volatility - 53%
Risk-free interest rate - 2%
Probability of achieving criteria - 50%
==== =====
The expected volatility was determined with reference to
historic volatility. The expected life used in the model has been
adjusted, based on management's best estimate for the effects of
non-transferability, exercise restrictions and behavioural
consideration and is estimated at 3 years.
The share-remuneration expense for the year recognised in the
Profit and Loss is GBP48,312 (2019: GBP48,036). Expenses are
allocated to Location Sciences AI Limited, the company that
receives the employee services.
24 Commitments
No capital expenditure was committed to as at 31 December 2020
(2019: GBPNil).
25 Related party transactions
During the year purchases of GBP26,250 (2019: GBP15,000) were
made to Alderslade Limited, a company of which K Harrison is a
director. As at 31 December 2020, the balance owed to Alderslade
Limited was GBP3,000 (2019: GBP1,500).
Key management personnel are considered to be the directors of
the company and key management compensation is disclosed in note 9
to the financial statements and in the Directors' Remuneration
Report.
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END
FR BCGDXCDBDGBR
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March 18, 2021 03:00 ET (07:00 GMT)
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