11 September 2013

Highlights
Ubisense Group plc
Interim results for the six months ended 30 June 2013
Ubisense Group plc (“Ubisense” or the “Company”) (LSE: UBI), a market leader in real-time location intelligence
technology, has announced its interim results for the six months ended 30 June 2013.

Delivering on our
strategy

Financialhighlights

Operational
highlights

Business integrated into single “Real Time Location Intelligence” offering to reflectincreasing convergence of Ubisense technology and to meet customer demands



Customer bookings in the period up 87% to £17.2 million

Order book, up 38% year-on-year to £14.1 million as at June 30, continues to provide
good revenue visibilityNew £5 million bank facility signed in August 2013 to provide capacity to meet future
working capital requirements



Revenue increased 3.6% to £12.4m (H1 2012: £12.0m)



Recurring revenues up, representing 26.8% of total revenues (H1 2012: 24.3%)

Adjusted EBITDA* loss of £0.4m (H1 2012: £0.2m loss) reflecting investment inproduct development and marketing

Reported operating loss of £1.5m (H1 2012: £0.8m loss)

Adjusted diluted loss per share** 5.4p (H1 2012: 3.1p loss)

Significant orders during the period from leading European telecoms network
operator, the largest US agricultural manufacturer, a Top-5 US Telecoms operator and aleading US energy utility

Appointed as Google Enterprise Partner

All three German automotive groups deploying Ubisense Smart Factory System

Richard Green, Chief Executive, commented,“Ubisense continued to deliver during the first six months of 2013, evidenced by an increase in orders and deeper
engagement with our blue-chip customer base. I am confident that investments made during the period in getting to
production roll-out in global manufacturing companies will be realised with accelerated future orders from this sector.
Meeting the emerging needs of our telecoms and utility customers and our strategic efforts in emerging markets andpartnerships further contributes to our growth opportunities.”* Measured as operating profit excluding depreciation, amortisation, share-based payments charge and non-recurring costs such as
acquisition and reorganisation costs.
** Earnings measured as profit for the period excluding amortisation on acquired intangible assets, share-based payments charge
and non-recurring costs such as acquisition and reorganisation costs.

Contact
Ubisense Group plc
Richard Green
Gordon Campbell

Tel: + 44 (0) 1223 535170

Canaccord Genuity Limited(NOMAD)
Simon Bridges
Lucy Tilley

Tel: +44 (0) 20 7523 8000

FTI Consulting
Jon Snowball
Tracey Bowditch

Tel: +44 (0) 20 7831 3113

Page 1 of 16

Highlights
About Ubisense
Ubisense is a market leader of location-based smart technology which enables companies to optimise their businessprocesses. By keeping track of key assets, Ubisense solutions bring clarity to complex operations whilst also improving
quality and reliability. Ubisense Real-Time Location Intelligence Solutions are used by a number of blue chip customers
across the world, such as AGCO, Airbus, Aston Martin, BMW, Cablevision, Daimler, Deutsche Telekom, Duke Energy,
John Deere, MINI and VW.
Ubisense is headquartered in Cambridge, UK, with offices in the USA, Canada, France, Germany and Singapore. For
more information visit: www.ubisense.net.

Page 2 of 16

Interim management report

Overview
The Group is delighted to report significant progress in the first half of 2013. The strong momentum in the business is atestament to the strategic changes we have implemented in how we now manage the business and ultimately go tomarket with our leading location technology.
While this is the first time we have reported the business under a converged offering, the company has effectively been
operating as a combined business with one P&L for almost a year. The significant customer traction achieved reflects the
progress that has been made as we invest in the future of the business.
Strategy
In recent years, there has been a significant demand from customers requiring a single solution which combines indoor
and outdoor components as well as dynamic and static data. This overlap of our traditional Geospatial and RTLS
businesses enabled us to integrate both divisions into a single Real Time Location Intelligence (RTLI) business thatbrings together all of our leading location based technologies.
The enterprise acceptance of our RTLI solutions has been accelerated by several factors such as the consumerisation ofmaps led by Google, the proliferation of smart devices and the growth in cloud technologies. Ubisense’s software
products and services capability benefits from these trends enabling enterprises across the high value manufacturing,utility and telecommunications sectors to deliver significant improvements in efficiency and cost savings. This also
opens up new, adjacent markets for Ubisense.
With the business reorganised, the strategy of the Group is to:Continue to evolve as a Solutions-based business with Services capability
Develop next-generation applications that deliver ROI to customers
Focus direct business on Telecoms, Manufacturing and Utility enterprises
Use channel partners to reach other vertical markets at low cost of sale

Business development
A significant increase in customer bookings, nearly 90% year-on-year, validates our new strategy focused on real timelocation intelligence and the investment we have made in our next generation platforms and sales and marketing
infrastructure.
Considerable effort and investment in key strategic accounts in both Europe and North America has resulted in Ubisense
securing contracts with three major manufacturing customers with global presence and reach which will result in lower
cost of sales and increased profitability going forward. Furthermore, the Group now has relationships with all three
German auto manufacturers and is targeting repeat orders across these groups in the coming months. As announced
separately today, we are pleased to report a new production installation win with one of these German OEM’s plants
located in Poland.
In our telecommunications and utility markets, new mobile technologies, embodied in our myWorld product, haveopened up new business opportunities for our software products in real time operational use, not traditionally an areaof focus. Customer wins for the period included a leading European telecoms network operator, a Top-5 US Telecoms
operator and a leading US energy utility.
Partnerships
While our direct sales channel is receiving strong customer traction, our channel partners have also contributed to thestrong customer bookings performance. Notably, we became an official enterprise partner of Google in the period.
Together with our ongoing relationship with Atlas Copco, these relationships have resulted in an increase in the numberof pipeline deals. This gives us confidence in achieving our goals for the second half. Furthermore, developments in Asia
Pacific have increased our optimism with regards to the opportunities to significantly increase the Company’s presencein this key market.

Page 3 of 16

Interim management report
Operating and financial review
Orders
The first half of 2013 saw a number of major new contract awards and extensions to existing contracts resulting inrecord new orders for the period of £17.2 million (H1 2012: £9.2 million). The orders in the first half included a numberof multi-year managed services deals. Since the period-end this momentum has continued and the business hasannounced further major RTLI Solutions deals which are expected to drive second half performance.
As a result of the record customer orders in the period, the order book as at 30 June 2013 stood at £14.1 million (H1
2012: £10.2 million) – a 38% increase year-on-year. This continues the trend of an increasing order book and gives theCompany good visibility on revenues for the rest of 2013 as well as into 2014 and beyond.
Revenue
Ubisense has two revenue streams:

Solutions – revenues driven from the Ubisense product suites (Smart Factory System, netSolutions, myWorld,
Verotrack), technical expertise and exclusive reseller arrangements. A solution sale will include a mixture ofapplication software (licences in perpetuity and subscription based), installation and commissioning services,
hardware and maintenance and support. Margins in any given period will vary depending upon the make-up
and phase of the given set of Solutions being delivered. The Company sees this revenue stream as critical todriving the growth and profitability of the business.
Services – revenues not involving the Ubisense product suites as defined above. These revenues are typicallylong-term managed services contracts, consultancy and training. The Company generally has good visibility on
future revenue from services and believes it is critical to driving customer loyalty and providing a customer
base into which it can sell its Solutions.

In the six month period under review, total revenues grew by 3.6% to £12.4 million (H1 2012: £12.0 million). RTLI
Solutions revenue grew to £5.8 million (H1 2012: £5.6 million), with continued growth expected in the second half as
has been the trend in prior years as customers deploy their capital budgets later in the year. RTLI Services revenue
grew to £6.6 million (H1 2012: £6.3 million) primarily as a result of large contract wins in the US in the Utility and
Telecoms markets. Recurring revenues, comprising managed services and maintenance and support, grew to £3.3
million (H1 2012: £2.9 million) or 26.8% of total revenues (H1 2012: 24.3%) as the installed base of products increases
and more customers adopt our managed services offering.
Gross margin
The gross margin reduced to 28.7% from 34.7% for the same period last year. This was the result of a number offactors: a small drop in the proportion of RTLI Solutions revenues out of the total revenues, which are generally higher
margin than Services; a higher proportion of lower margin installation and commissioning revenues compared to higher
margin hardware and software deliveries within RTLI Solutions and the increasing use of contractors to deliver theServices revenue whilst the Company recruits to meet the increased capacity requirements.
Operating expenses
Operating expenses were steady at £5.0 million (H1 2012: £5.0 million). Operating expenses includes Sales &Marketing, Product Marketing, Product Development, General & Administration and foreign exchange.
Gross expenditure on Product Development increased 23.8% to £1.5 million (H1 2012: £1.2 million) reflecting increased
investment in our flagship Smart Factory and myWorld products. Capitalised product development costs at £1.1 million(H1 2012: £0.8 million) represented 72% of gross development spend whilst amortisation of the capitalised
development costs was £0.6 million (H1 2012: £0.4 million).
The Group incurred £0.1 million of costs, mainly comprising professional fees, in connection with an acquisition which
did not proceed. The Board continues to evaluate suitable acquisition opportunities in this area to enhance its
geographical footprint, product offerings, delivery capacity and customer base.

Page 4 of 16

Interim management report

Operating and financial review (continued)
EBITDA and operating profit
Group Adjusted EBITDA for the period was a loss of £0.4 million (H1 2012: £0.2 million loss). Both the operating loss
and loss before tax for the period were £1.5 million (H1 2012: £0.8 million loss) including amortisation and depreciation
charges of £0.9 million (H1 2012: £0.6 million) which have increased as a result of the increased amortisation on
capitalised product development costs.
Interest and tax
Net interest payable for the period was £6,000 (H1 2012: £14,000 income) reflecting the lower average cash balancesheld during the period and the draw down of the £2 million bank loan in April 2013.
The Group has a net tax expense of £82,000 (H1 2012: £46,000), almost entirely a result of non-cash deferred tax on
capitalised development costs and acquired intangible assets. Management’s best estimate of the effective current tax
rate is nil due to the availability of prior years’ losses. The Group has substantial tax losses carried forward and expects
to benefit from the Patent Box tax regime being introduced in the UK.
EPS and dividend
Adjusted diluted loss per share was 5.4 pence (H1 2012: 3.1 pence loss). Reported basic and diluted loss per share was
7.0 pence (H1 2012: 4.0 pence loss). The Board does not feel it appropriate at this time to commence paying dividends.
Balance sheet, cash and cash flow
The Group has a robust balance sheet with Shareholder Funds at 30 June 2013 of £17.3 million (31 December 2012:£18.9 million).
In November 2012, the Group agreed a Sterling Base Rate loan of £2.0 million to provide future working capital capacity.
The loan was drawn down in full in one tranche in April 2013 and remained outstanding. Cash held in the balance sheet
at 30 June 2013 was £2.0 million (31 December 2012: £2.7 million).
The main components to the cash movements in the first six months of 2013 include operating cash outflow of £1.6
million (H1 2012: £1.5 million outflow), capital investment in plant and equipment and intangibles including productdevelopment of £1.2 million (H1 2012: £1.2 million) and the receipt of the new bank loan of £2 million (H1 2012: nil).
Since the period end, in preference to renegotiating the renewal of the existing facility, the Group agreed a £5.0 million
three-year term loan which will replace the existing £2 million facility and thus provide an additional £3 million of
future working capital capacity. The business has yet to transition to and draw on this facility.
Capital structure
The issued share capital at 30 June 2013 was 22,015,388 (December 2012: 21,919,744) ordinary shares of £0.02 each.
The increase of 95,644 shares relates entirely to share option exercises by employees. In addition, 421,500 shareoptions were granted to employees on 19 April 2013 at an exercise price of £2.055, being the share price at the time.
The total number of unexercised share options at 30 June 2013 was 2,380,911.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group’s
medium term performance, and the factors which mitigate these risks, have not significantly changed from those set out
on pages 22 to 33 of the Group’s Annual Report for 2012, a copy of which is available from our website
www.ubisense.net.
Current trading and outlook
Ubisense now meets the integrated service requirements of its major customers, whose repeat orders drive the majorityof the order book and who are continuing to invest in essential infrastructure projects. Ubisense has started the second
half of 2013 with increasing momentum in the business and will continue to pursue growth both organically and via
selective acquisitions. With improving economic conditions, Ubisense looks forward to the rest of the year withconfidence.

Page 5 of 16

Interim income statement
For the six months ended 30 June 2013
Six months to

Six months to

12 months to

30 June30 June31 December

2013

2012

2012

unauditedunaudited

audited

Notes

£’000

£’000

£’000

6

12,385

11,95024,292(8,827)(7,799)(14,690)

3,558

4,151

9,602

Operating expenses(5,013)(4,995)(10,368)

Operating loss

(1,455)

(844)

(766)

3,558

4,151

9,602

(3,958)(4,377)(8,445)Adjusted EBITDA

(400)

(226)

1,157

Depreciation

(130)

(100)

(227)

Amortisation of acquired intangible assets

(128)

(128)

(257)

Amortisation of other intangible assets

(643)

(369)

(953)

Share-based payments charge

(40)

(21)

(63)

Acquisition costs

(114)

-

-

-

-

(423)

Operating loss

(1,455)

(844)

(766)

Finance income

6

15

38

Finance costs

(12)

(1)

-

(1,461)

(830)

(728)

(82)

(46)

90

(1,543)

(876)

(638)

Revenues
Cost of revenues
Gross profit

Analysed as:
Gross profit
Other operating expenses

Reorganisation costs

Loss before tax
Income tax
Loss for the period attributable to the equity
shareholders of the Company

Earnings per share (pence)
Basic

7

(7.0p)(4.0p)(2.8p)

Diluted7(7.0p)(4.0p)(2.8p)The notes 1 to 12 are an integral part of these condensed interim financial statements.

Page 6 of 16

Interim statement of comprehensive income
For the six months ended 30 June 2013

Loss for the period

Six months to
30 June2013
unaudited£’000

Six months to
30 June2012
unaudited£’000

12 months to
31 December
2012
audited£’000(1,543)

(876)

(638)

(110)

(30)

33

(1,653)

(906)

(605)

Other comprehensive income:Items that may be reclassified subsequently to profit and loss
Exchange difference on retranslation of net assets and results ofoverseas subsidiaries
Total comprehensive income attributable to equity shareholders of
the Company

The notes 1 to 12 are an integral part of these condensed interim financial statements.

Page 7 of 16

Interim statement of changes in equity
For the six months ended 30 June 2013
Sharecapital
£’000

Share
premium
£’000

Other
reserves£’000

Retainedearnings
£’000

Total
£’000

438

22,251606(4,374)18,921

Loss for the period

-

-

-

(1,543)(1,543)

Exchange difference on retranslation of net assets
and results of overseas subsidiaries

-

-

(110)

-

(110)

Total comprehensive income for the period

-

-

(110)

(1,543)(1,653)

Reserve credit for equity-settled share-based
payment

-

-

40

-

40

Issue of new share capital

2

-

-

-

2

Premium on new share capital

-

18

-

-

18

Transactions with owners

2

18

40

-

60

440

22,269536(5,917)

17,328Sharecapital
£’000

Share
premium
£’000

Other
reserves£’000

Retainedearnings
£’000

Total
£’000

433

22,031510(3,736)

19,238

-

-

-

(876)

(876)

-

-

(30)

-

(30)

-

-

(30)

(876)

(906)

-

-

21

-

21

3

-

-

-

3

-

25

-

-

25

3

25

21

-

49

436

22,056501(4,612)

18,381

Balance at 1 January 2013 (audited)

Balance at 30 June 2013 (unaudited)

Balance at 1 January 2012 (audited)
Loss for the period
Exchange difference on retranslation of net assets
and results of overseas subsidiaries
Total comprehensive income for the period
Reserve credit for equity-settled share-based
payment
Issue of new share capital
Premium on new share capital
Transactions with owners
Balance at 30 June 2012 (unaudited)

The notes 1 to 12 are an integral part of these condensed interim financial statements.

Page 8 of 16

Interim statement of financial position
At 30 June 2013
At
30 June2013
unaudited£’000

At
30 June2012
Unaudited£’000

At
31 December
2012
audited
£’000

7,418

7,418

7,418

3,244

2,550

2,901

564

476

621

11,226

10,444

10,940Inventories

1,330

1,115

862

Trade and other receivables

11,621

8,508

10,302

Cash and cash equivalents

2,038

3,324

2,716

Total current assets

14,98912,947

13,880Total assets

26,21523,391

24,820Loans and borrowings(2,000)--Trade and other payables(6,157)(4,254)(5,246)

Total current liabilities(8,157)(4,254)(5,246)

(730)

(596)

(653)

-

(160)

-

(730)

(756)

(653)

Total liabilities(8,887)(5,010)(5,899)Net assets

17,32818,381

18,921

440

436

438

22,26922,05622,251

536

501

606

Retained earnings(5,917)(4,612)(4,374)

Total equity

17,32818,381

18,921

Notes

AssetsNon-current assets
Goodwill
Other intangible assets

8

Property, plant and equipment
Total non-current assets
Current assets

Liabilities
Current liabilities

Non-current liabilities
Deferred tax liability
Other liabilities
Total non-current liabilities

EquityEquity attributable to owners of the parent company
Share capital

9

Share premium
Other reserves

10

The notes 1 to 12 are an integral part of these condensed interim financial statements.

Page 9 of 16

Interim statement of cash flows
For the six months ended 30 June 2013
Six months to
30 June2013
unaudited£’000

Six months to
30 June2012
unaudited£’000

12 months to
31 December
2012
audited£’000(1,461)

(830)

(728)

Depreciation

130

100

227

Amortisation

771

497

1,210

-

-

5

Share-based payments charge

40

21

63

Finance income

(6)

(15)

(38)

Finance costs

12

1

-

Operating cash flows before working capital movements

(514)

(226)

739

Change in inventories

(469)

552

805

Change in receivables(1,536)

1,004

(839)

946

(2,798)(1,691)(1,573)(1,468)

(986)

(5)

1

203

(1,578)(1,467)

(783)

-

(200)

(400)

(93)

(210)

(492)

-

-

1

(1,125)(789)(1,849)6

15

38(1,212)(1,184)(2,702)

2,000

-

-

(12)

(1)

-

20

28

225

Net cash flows from financing activities

2,008

27

225

Net increase in cash and cash equivalents(782)(2,624)(3,260)Cash and cash equivalents at start of period

2,716

6,034

6,034

104

(86)

(58)

2,038

3,324

2,716

Notes

Loss before tax
Adjustments for:

Loss on disposal of property, plant and equipment

Change in payables
Cash generated by operations before tax
Net income taxes (paid)/received
Net cash flows from operating activities
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired
Purchases of property, plant and equipment
Proceeds on disposal of property, plant and equipment
Purchases of intangible assets
Interest received
Net cash flows from investing activities
Cash flows from financing activities
Receipt of new bank loan
Interest paid
Proceeds from the issue of share capital

Exchange differences on cash and cash equivalents
Cash and cash equivalents at end of period

97

The notes 1 to 12 are an integral part of these condensed interim financial statements.

Page 10 of 16

Notes to the interim financial statements
1 General information
Ubisense Group plc (‘the Company’) and its subsidiaries (together, ‘the Group’) deliver mission-critical locationbased smart technology which enables companies to optimise their business processes.
The Group has operations in the UK, USA, Canada, France, Germany and Singapore and sells mainly in the Americas,
Europe and Asia Pacific.
The Company is a public limited company which is listed on the Alternative Investment Market (‘AIM’) of the London
Stock Exchange (UBI) and is incorporated and domiciled in the UK. The address of its registered office is St. Andrew’s
House, St. Andrew’s Road, Chesterton, Cambridge, CB4 1DL.
The condensed consolidated interim financial statements were approved by the Board of Directors for issue on 10
September 2013.
The condensed consolidated interim financial statements do not comprise statutory accounts within the meaning ofsection 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2012 were approved by
the Board of Directors on 18 March 2013 and delivered to the Registrar of Companies. The report of the auditors on
those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement
under section 498 of the Companies Act 2006.
The condensed consolidated interim financial statements have been reviewed, not audited.

2 Basis of preparation
The condensed consolidated interim financial statements should be read in conjunction with the annual financial
statements of the Group and are prepared in accordance with IFRSs as adopted by the European Union.
Going concern basis
The Group’s forecasts and projections, taking account of reasonably possible changes in trading performance,
support the conclusion that there is a reasonable expectation that the Company and the Group have adequate
resources to continue in operational existence for the foreseeable future, a period of not less than twelve months
from the date of this report. The Group therefore continues to adopt the going concern basis in preparing its
condensed consolidated interim financial statements.

3 Accounting policies
The accounting policies adopted in the preparation of the condensed consolidated interim financial statements areunchanged from those set out in the Group’s consolidated financial statements for the year ended 31 December 2012.
These policies have been consistently applied to all the periods presented.
The operations of the Group are not subject to significant seasonality.

4 Estimates
The preparation of interim financial statements requires management to make judgements, estimates andassumptions that affect the application of accounting policies and the reported amounts of assets and liabilities,
income and expense. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgements made bymanagement in applying the Group’s accounting policies and the key sources of estimation and uncertainty were thesame as those that applied to the consolidated financial statements for the year ended 31 December 2012.

Page 11 of 16

Notes to the interim financial statements

5 Risks and uncertainties
An outline of the key risks and uncertainties faced by the Group was described in the 2012 financial statements,
including exposure to foreign exchange rate fluctuation, in particular the strength of Sterling relative to the US dollar
and Euro. Risk is an inherent part of doing business and the strong cash position and order book leads the Directors
to believe that the Group is well placed to manage business risks successfully.

6 Segmental Information
IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group
that are regularly reviewed by the Chief Executive Officer to allocate resources and assess performance. Segment
results are reported according to the internal management reporting structure at the reporting date. In the final
quarter of 2012, the management structure of the group was realigned as a single business run on a global basis
reflecting the convergence of the Group’s technologies, customer base and management including the centralisationof the sales, marketing and product development functions. The Group has therefore determined that it has only one
reportable segment. Within this segment, the Board and Management Team consider the business to have tworevenue streams with differing characteristics, as described in the Interim Management Report on page.
6.1 Revenue by nature
Six months to
30 June2013
unaudited£’000

Six months to
30 June2012
unaudited£’000

12 months to
31 December
2012
audited£’000

Solutions

5,802

5,645

12,537

Services

6,583

6,305

11,755

Total Revenues

12,385

11,95024,292

In addition, the Board and Management Team also review the revenues on a geographical basis, based around theregions where the Group has its significant subsidiaries or markets.
6.2 Revenue by geography
Six months to
30 June2013
unaudited£’000

Six months to
30 June2012
unaudited£’000

12 months to
31 December
2012
audited
£’000

609

614

1,441

Europe

5,451

5,738

10,533

Americas

6,090

5,187

9,585

Asia Pacific

235

411

2,733

12,385

11,95024,292

United Kingdom

Total Revenues

Page 12 of 16

Notes to the interim financial statements
7

Earnings per share
Six months to
30 June2013
unaudited

Six months to
30 June2012
unaudited

12 months to
31 December
2012
auditedLoss for the period (£’000)(1,543)

(876)

(638)

Loss for the purposes of diluted earnings per share (£’000)(1,543)

(876)

(638)

21,953

21,72527,764

1,281

1,527

1,383

-

15

-

Diluted weighted average number of shares (‘000)

23,23423,267

23,147

Basic loss per share (pence)(7.0p)(4.0p)(2.8p)

Diluted loss per share (pence)(7.0p)(4.0p)(2.8p)

Earnings

Number of shares
Basic weighted average number of shares (‘000)
Effect of dilutive potential ordinary shares:- Share options (‘000)- Warrants (‘000)

Basic earnings per share is calculated by dividing profit for the period attributable to ordinary shareholders of theCompany by the weighted average number of ordinary shares outstanding during the period. For diluted earnings
per share, the weighted average number of shares is adjusted to allow for the effects of dilutive share options andwarrants. Options have no dilutive effect in loss-making years, and hence the diluted loss per share for the periods
ended 30 June 2013 and 2012 and 31 December 2012 is the same as the basic loss per share.
The Group also presents an adjusted diluted earnings per share figure which excludes amortisation on acquired
intangible assets, share-based payments charge and non-recurring expenditure such as acquisition andreorganisation costs from the measurement of profit for the period.
Six months to
30 June2013
unaudited

Six months to
30 June2012
unaudited

12 months to
31 December
2012
audited

(1,543)

(876)

(638)

Reversal of amortisation on acquired intangible assets (£’000)

128

128

257

Reversal of share-based payments charge (£’000)

40

21

63

Reversal of aborted acquisition costs (£’000)

114

-

-

-

-

423

282

149

743

Adjusted earnings (£’000)(1,261)

(727)

105

Adjusted diluted (loss)/earnings per share (pence)(5.4p)(3.1p)

0.5p

Adjusted diluted earnings per share

Loss for the purposes of diluted earnings per share (£’000)
Adjustments

Reversal of reorganisation costs (£’000)
Net adjustments (£’000)

Page 13 of 16

Notes to the interim financial statements
8

Other intangible assets
At
30 June2013
Unaudited£’000

At
30 June2012
Unaudited£’000

At
31 December
2012
audited
£’000

2,597

1,583

2,110

Software

166

229

182

Acquired software products

220

396

308

Acquired customer relationships and backlog

261

342

301

3,244

2,550

2,901

Allotted, called-up and fully paidAt
30 June2013
unaudited£’000

At
30 June2012
unaudited£’000

At
31 December
2012
audited£’000

Ordinary shares of £0.02 each

440

436

438

Movement in number of sharesAt
30 June2013
unaudited£’000

At
30 June2012
unaudited£’000

At
31 December
2012
audited£’000

21,919,744

21,657,698

21,658,698

95,644

144,269

154,937--

107,109

95,644

144,269

262,046

22,015,388

21,801,967

21,919,744

Net book amount

Capitalised product development costs

Total other intangible assets

9

Share capital

Number of shares at beginning of period
Issued under share-based payment plans
Issued on exercise of warrants
Change in number of shares in period
Number of shares at end of period

During the period, the Company issued 95,644 shares increasing the total number of shares in issue from21,919,744 to 22,015,388 as a result of options exercised with a weighted average exercise price of £0.21 pershare for total cash consideration of £20,000.

Page 14 of 16

Notes to the interim financial statements
10 Other reserves

Share-based
payment
reserve£’000

Translation
reserve
£’000

Total
£’000

654

(48)

606

Exchange difference on retranslation of net assets andresults of overseas subsidiaries

-

(110)

(110)

Reserve credit for equity-settled share-based payment

40

-

40

Balance at 30 June 2013 (unaudited)

694

(158)

536

Share-based
payment
reserve£’000

Translation
reserve
£’000

Total
£’000

591

(81)

510

Exchange difference on retranslation of net assets andresults of overseas subsidiaries

-

(30)

(30)

Reserve credit for equity-settled share-based payment

21

-

21

Balance at 30 June 2012 (unaudited)

612

(111)

501

Balance at 1 January 2013 (audited)

Balance at 1 January 2012 (audited)

11 Cautionary statement
This document contains certain forward-looking statements with respect of the financial condition, results,
operations and businesses of Ubisense Group plc. These statements and forecasts involve risk and uncertainty
because they relate to events and depend on circumstances that will occur in the future. There are a number offactors that could cause the actual results or developments to differ materially from those expressed or implied bythese forward looking statements and forecasts. Nothing in this document should be construed as a profit forecast.

12 Copies of interim financial statements
Copies of the interim financial statements are available from the Company at its registered office at St. Andrew’s
House, St. Andrew’s Road, Chesterton, Cambridge, CB4 1DL. The interim financial statements will also be available
on the Company’s website www.ubisense.net.

Page 15 of 16

Independent review report to Ubisense Group plc
Introduction
We have been engaged by the Company to review the financial information in the half-yearly financial report for the six
months ended 30 June 2013 which comprises the Interim Income Statement, Interim Statement of Comprehensive
Income, Interim Statement of Changes in Equity, Interim Statement of Financial Position, Interim Statement of Cash
Flows and related notes (1 to 12). We have read the other information contained in the half-yearly financial report andconsidered whether it contains any apparent misstatements or material inconsistencies with the information in thecondensed set of financial statements.
This report is made solely to the Company in accordance with guidance contained in ISRE (UK and Ireland) 2410,'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has
been undertaken so that we might state to the Company those matters we are required to state to them in a review
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility toanyone other than the Company, for our review work, for this report, or for the conclusion we have formed.
Directors’ responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The AIM rules of the
London Stock Exchange require that the accounting policies and presentation applied to the financial information in thehalf-yearly financial report are consistent with those which will be adopted in the annual accounts having regard to theaccounting standards applicable for such accounts. As disclosed in Note 2, the annual financial statements of the Groupare prepared in accordance with IFRSs as adopted by the European Union. The financial information in the half-yearlyreport has been prepared in accordance with the basis in Note 2.
Our responsibility
Our responsibility is to express to the Company a conclusion on the financial information in the half- yearly financial
report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410,'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards
on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the financial information in thehalf-yearly financial report for the six months ended 30 June 2013 is not prepared, in all material respects, inaccordance with the basis of accounting described in Note 2.
Grant Thornton UK LLP
Chartered Accountants
Registered Auditor
Cambridge
10 September 2013

Page 16 of 16