20 September 2011

Ubisense Group plc
Interim revenues up 41%, strong revenue visibility for H2
Ubisense Group plc (AIM: UBI, “Ubisense” “the Group”), the market-leading location solutions company,
has announced its interim results for the six months ended 30 June 2011.
Financial highlights


Revenue increased 41% to £11.3m (H1 2010: £8.0m)

Adjusted EBITDA* of £0.4m (H1 2010: £0.5m)

Operating profit, excluding AIM admission costs, of £0.2m (H1 2010: £0.2m)

Reported operating loss £0.1m (H1 2010: operating profit £0.2m)

Adjusted diluted EPS** 2.6p (H1 2010: 2.7p)

Net cash of £8.1m

Other highlights


Initial public offering on AIM with substantially oversubscribed fundraising raising £5.0m before
expenses for the Group and £3.7m for selling shareholders



BMW global licence and orders for Cowley, UK and Shenyang, China

FPS sale to Deutsche Telekom

French subsidiary established

Richard Green, Chief Executive, said:“We have delivered a robust set of results, our first, as a listed company, with a strong
increase in revenues, a substantial order book and growing opportunity pipeline.
“Admission to AIM marked an important landmark in the Group’s development. It has
provided us with a strong platform to support the rapid growth of our business and toleverage existing customer relationships with global leaders such as Aston Martin, Atlas
Copco, BMW, Deutsche Telekom and EADS.
“With good momentum in the business and a growing order book, we remain confident that
this robust performance will continue in the second half of 2011.”* Measured as operating profit excluding depreciation, amortisation, share-based payments charge and AIM listing expenses.
** Earnings measured as profit for the period excluding depreciation, amortisation, share-based payments charge and AIM listing
expenses.

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Enquiries:
Ubisense www.ubisense.net
Richard Green, Chief Executive Officer
Gordon Campbell, Chief Financial Officer+44 (0) 1223 535170

College Hill
Adrian Duffield / Jon Davies+44 (0) 20 7457 2020

Canaccord Genuity
Simon Bridges/Henry Fitzgerald-O'Connor+44 (0) 20 7050 6500

Note to editors
Ubisense is the market-leading location solutions company, delivering mission-critical enterprise asset
tracking and geospatial systems that bring visibility and control to previously intractable businessprocesses. The Group operates in two divisions, RTLS and Geospatial.
Through its RTLS division, Ubisense is a world leader in real-time location solutions allowing companies totrack assets (such as tools, people and vehicles) within factories and other indoor environments in realtime in three dimensions. Ubisense‟s end-to-end Real Time Location System (RTLS) solutions provide
dynamic and precise indoor tracking of assets, helping its clients, which are primarily in the automotive,
aerospace and transportation industries, to bring visibility and control to business processes thereby
helping to lower costs and drive logistical efficiencies.
The Geospatial division uses Ubisense‟s expertise in location solutions to help large infrastructurecompanies, such as utilities and telecom companies, to map, plan, manage and optimise their networks
across large geographic areas.
Ubisense is headquartered in Cambridge, UK and has offices in the USA, Canada, France, Germany,
Singapore and Korea. For more information please visit: www.ubisense.net

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Overview
Ubisense is a world leader in providing end-to-end real-time location solutions, including hardware,
software and services, to companies allowing them to track people and assets with a high degree of
accuracy.
The first half of the year to 30 June 2011 saw a number of significant developments for the Group. The
Group‟s revenues increased by 41% to £11.3 million (2010: £8.0 million) as two flagship customers (BMWand Airbus) started to roll out Ubisense‟s RTLS solutions.
Ubisense was admitted to AIM on 22 June 2011 following an over-subscribed placing with institutional
investors which raised £8.7 million before expenses. The proceeds of the placing provide the Group with astrong platform to support the rapid growth of its RTLS division and to take advantage of opportunities todevelop the Geospatial business, both organically and by acquisition.
Ubisense operates in two divisions:

The RTLS division uses Ubisense‟s proprietary ultra-wideband technology to track assets, such as
tools, people and vehicles, in factories and other indoor environments to an accuracy of 15cm inthree dimensions, a degree of accuracy in places that satellite-based systems cannot currently
achieve.
Ubisense‟s RTLS technology has successfully been adopted within the automotive industry by
several large-scale manufacturers (including BMW and Aston Martin) and within the aerospaceindustry by the EADS Group (notably Airbus and Eurocopter).



The Geospatial division provides detailed mapping of network assets, network management,planning and design for large infrastructure companies, primarily in the utilities and telecom sectors,
and has particular expertise in GE Smallworld software and solutions. Smallworld provides theforemost Geospatial solution for sophisticated utility network applications. Integration, through
Smallworld, with software such as Google Maps and the ability to operate Ubisense‟s myWorldapplication on smart phones and tablets gives Ubisense a strong competitive position in a rapidly
developing market.
Key customers of this division include Deutsche Telekom, Swisscom,
ExxonMobil and Duke Energy.

Strategy
Ubisense‟s business strategy is to build upon its existing customer relationships and secure new customer
relationships, whilst expanding and diversifying its RTLS and Geospatial offerings.
There is a significant opportunity to increase the penetration of the Group‟s RTLS offering within theautomotive sector by leveraging both its existing customers and the strategic partnership that Ubisense
has developed with Atlas Copco, one of the world‟s leading industrial tool manufacturers. Ubisense andAtlas Copco have jointly developed a tool location system (“TLS”) which is fully integrated with the Atlas
Copco Tools Talk system and is marketed by Atlas Copco as part of its own product line.
Beyond the automotive industry, Ubisense is seeking to expand on its existing relationship with Airbus andits ultimate parent company EADS Group. Ubisense‟s RTLS solutions also have the potential to be used
extensively in a number of different areas for example, in agriculture, military training, logistics and healthand safety.
The Geospatial division has a significant opportunity to establish a leadership position in the Geospatialindustry through accretive investment in new geographic territories and complementary intellectual
property. In particular, the Geospatial division is uniquely positioned to service the GE Smallworld customer
base as a number of key employees at Ubisense were employees of Smallworld prior to its acquisition by
GE Energy in 2000.

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Divisional review

RTLS division
The RTLS division has continued to grow during the first half, winning business from both new and existingaccounts, which resulted in record first half revenue of £3.9 million.
Ubisense, together with its partner IBS AG in Germany, signed a global licence agreement with BMW toprovide its RTLS solution to all assembly plants across the BMW Group. BMW subsequently placed orders
to deploy the Ubisense solution in the Mini plant at Cowley, UK, and at its Shenyang plant in China.
Follow-on projects at existing BMW plants in Regensburg, Germany, and Spartanburg, USA, have also
been won.
In 2010, the Group signed a master contract with EADS and began a five year managed services
agreement with Airbus to support the manufacture of the A380 across four hangars in France, Germany
and the UK. Recently, the Group has received an order for a further hangar as well as an order for theA350 plane.
The Chicago Transit Authority (CTA) became the Group‟s latest large transit deal in the US, following thesigning of a deal to install the Group’s Transit Yard Management (TYM) system at seven depots in the city
to deliver fast, reliable information about the exact location of CTA’s fleet of 1,700 buses.
The Group has invested in building its R&D and sales teams, including establishing a subsidiary in France.
The division continues to explore opportunities for expansion in Asia. On 3 August 2011, the Groupannounced that its Series 7000 RTLS industrial tags and sensors had been certified for use in China by thecountry‟s stringent regulatory authorities. This development opens up enormous commercial opportunities
to the business, particularly given China has a lucrative automotive market which produced more than ninemillion passenger cars and commercial vehicles in the first six months of 2011.

Geospatial division
The Geospatial division delivered significant growth in the first half, led by the sale of a newly developed
product – FTTx Planning System (FPS) – to Deutsche Telekom. FPS generates automatically a costoptimised detailed network configuration suitable for laying a fibre network, thereby enabling a reduction
in time-to-market for large scale FTTx roll-outs. The division is making good progress in utilising its
knowledge and experience to further develop this product, as well as a range of applications for the
Geospatial market.
Since the first half, the division secured a major new win to implement GE‟s geospatial product suite for alarge US electric and gas utility. The products, including GE Smallworld Core Spatial Technology, GE
Smallworld Electric Office, GE Gas Distribution Office and PowerOn, will be rolled out over a 14-month
period. The solution has been designed to support over 1,000 employees and external contractors, andwill enable the utility to improve safety, service and reliability across its 6,000 square mile service area.
In order to expand capacity and capability to deliver projects, the division recruited nine new employees
to bring headcount to 57, including the first Geospatial employee in the UK.
Financial review
Group revenues in the six months to 30 June 2011 were £11.3 million, up 41% (2010: £8.0 million).
The RTLS division increased revenues by 83% to £3.9 million (2010: £2.1 million), 35% of Group revenue.
This increase is a result of continued large-scale roll-outs of installations with BMW and Airbus. The
Geospatial division increased revenues by 26% to £7.4 million (2010: £5.9 million), 65% of Group revenue.
Group gross profit increased by 42% to £3.6 million (2010: £2.5 million). Gross margins increased to 32%(2011: 31%), reflecting the increased proportion of higher margin revenues generated by the RTLS
division.

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Excluding one-off AIM admission costs, administrative expenses were £3.4 million (2010: £2.3 million)
which reflects the increase in headcount, focussed on commercial and technical roles in both sales andmarketing as well as R&D. Overall, permanent headcount increased by 19 to 132 staff.
Adjusted EBITDA was £0.4 million (2010: £0.5 million). Adjusted EBITDA excludes non-cash share-based
payments and the one-off £324,000 AIM Admission cost.
Operating profit, excluding AIM Admission costs, was £0.2 million (H1 2010: £0.2 million).
operating loss was £0.1 million (H1 2010: operating profit £0.2 million).

Reported

The reported loss before tax was £0.3 million (2010: profit £0.1 million), after the inclusion of the AIM
admission costs.
The Group has a net tax credit of £0.1 million as a result of the receipt of R&D tax credits.
Adjusted diluted EPS was 2.6 pence (2010: 2.7 pence). Reported diluted loss per share was 1.6 pence (H12010: earnings 0.9 pence).
The Board is not paying an interim dividend. The recently raised cash will be used to fund growth, researchand development and potential acquisitions.
At the time of the Group‟s initial public offering on AIM, the Group issued 2.8 million shares raising grosscash proceeds of £5.0 million, enabling the repayment of the Group‟s debt, facilitating capital investment in
R&D and equipment and providing the platform to fund organic and, potentially, inorganic growth. At thesame time, selling shareholders placed out £3.7 million of shares.
As a result of the fund-raisings earlier in November 2010, which raised £4.8 million, and at the time of theadmission to AIM in June this year, the Group has a strong balance sheet. The Group‟s cash balances at
30 June 2011 were £8.1 million (June 2010: £1.0 million).
Current trading and outlook
The Board continues to evaluate acquisition opportunities to accelerate the growth of the Group,particularly for its Geospatial division, although it will remain prudent in considering any such opportunities.
Ubisense enters the second half of 2011 with strong momentum in the business. Revenue for the first half
was 64% of the revenue for the whole of 2010 financial year. With a strong order book and pipeline, thisperformance is anticipated to continue in the second half of 2011, in line with Board expectations.

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Consolidated income statement
For the six months ended 30 June 2011
Six months to

Six months to

12 months to

30 June 201130 June 201031 December 2010

unauditedunaudited

audited

Notes

£’000

£’000

£’000

6

11,255

7,990

17,697

Cost of sales(7,684)(5,483)(11,762)

Gross Profit

3,571

2,507

5,935

(3,719)(2,267)(5,308)

(148)

240

627

Adjusted EBITDA

415

454

1,041

Depreciation

(67)

(55)

(97)

Amortisation

(164)

(148)

(299)

(8)

(11)

(18)

(324)

-

-

Revenue

Administrative expenses
Operating (loss)/profit

6

Analysed as:

Share-based payments charge
AIM listing expenses
Operating (loss)/profit

6

(148)

240

627

Finance income

7

8

1

5

Finance costs

7

(180)

(110)

(237)

(320)

131

395

66

(21)

3

(254)

110

398

(Loss)/profit before tax
Income tax

8(Loss)/profit for the period attributable to theequity shareholders of the Company

Earnings per share (pence)
Basic

9

(1.6p)

0.9p

3.3p

Diluted9(1.6p)

0.9p

3.2p

6 of 19

Consolidated statement of comprehensive income
For the six months ended 30 June 2011

(Loss)/profit for the period

Six months to

Six months to

12 months to

30 June 201130 June 201031 December 2010

unauditedunaudited

audited

£’000

£’000

£’000

(254)

110

398

66

(59)

(29)

(188)

51

369

Other comprehensive income:Exchange difference on retranslation of net assets
and results of overseas subsidiaries
Total comprehensive income attributable toequity shareholders of the Company

7 of 19

Consolidated statement of changes in equity
For the six months ended 30 June 2011
Share

Share

Other

Retained

capitalpremium

reserves

earnings

Total£0’000£0’000£0’000£0’000£0’000

235

9,773

961

6,299

Profit for the period

-

-

-

(4,670)110

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

-

-

(59)

-

(59)

Total comprehensive income for the period

-

-

(59)

110

51

Reserve credit for equity-settled share-based
payment

-

-

11

-

11

Issue of new share capital

1

-

-

-

1

Premium on new share capital

-

16

-

-

16

Transactions with owners

1

16

11

-

28

Balance at 1 January 2010 (audited)

110

236

9,789

913

(4,560)6,378

Profit for the period

-

-

-

288

288

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

-

-

30

-

30

Total comprehensive income for the period

-

-

30

288

318

Reserve credit for equity-settled share-based
payment

-

-

7

-

7

Equity component of loans

-

-

3

-

3

Issue of new share capital

68

-

-

-

68

-

4,957

-

-

4,957

Balance at 30 June 2010 (unaudited)

Premium on new share capital

-

(196)

-

-

(196)

68

4,761

10

-

4,839

304

14,550953(4,272)

11,535

Loss for the period

-

-

-

(254)

(254)

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

-

-

66

-

66

Total comprehensive income for the period

-

-

66

(254)

(188)

Reserve credit for equity-settled share-based
payment

-

-

134

-

134

Share issue costs
Transactions with owners
Balance at 31 December 2010 (audited)

-

(502)

502

-

129

-

-

-

129

Premium on new share capital

-

7,968

-

-

7,968

Share issue costs

-

(591)

-

-

(591)

Equity component of loans
Issue of new share capital-

Transactions with owners

129

7,377

(368)

502

7,640

Balance at 30 June 2011 (unaudited)

433

21,927651(4,024)

18,987

A reconciliation of the components of Other reserves is given in note 12.

8 of 19

Consolidated statement of financial position
At 30 June 2011
At 30 June 2011

At 30 June 2010

At 31 December 2010

unaudited£’000

unaudited£’000

audited
£’000

6,069
693

6,069
471

6,069
525

Property, plant and equipment

358

231

279

Total non-current assets
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Total current assets
Total assets
Liabilities
Current liabilities
Loans and borrowings
Trade and other payables
Total current liabilities
Non-current liabilities
Loans and borrowings
Deferred tax
Total non-current liabilities
Total liabilities
Net assets

7,120

6,771

6,873

784
7,774
8,077
16,63523,755

236
5,031
1,034
6,301
13,072

364
6,900
7,130
14,394
21,267

10(4,587)(4,587)(2,206)(3,051)(5,257)(2,372)(5,974)(8,346)

10

(181)
(181)
(4,768)18,987(1,310)(127)(1,437)(6,694)
6,378(1,246)(140)(1,386)(9,732)
11,535111

433
21,927651(4,024)
18,987

236
9,789
913
(4,560)6,378

304
14,550953(4,272)
11,535

Notes
AssetsNon-current assets
Goodwill
Other intangible assets

EquityEquity attributable to owners of
the parent company
Share capital
Share premium account
Other reserves
Retained earnings
Total equity

12

9 of 19

Consolidated statement of cash flows
For the six months ended 30 June 2011
Six months to

Six months to

12 months to

30 June 2011

30June 201031 December 2010

unauditedunaudited

audited

£’000

£’000

£’000

(320)

131

395

Depreciation

67

55

97

Amortisation

164

148

299

8

11

18

Finance income

(8)

(1)

(5)

Finance costs

180

110

237

Foreign exchange differences

19

78

(12)

Operating cash flows before working capital
movements
Change in inventories

110

532

1,029

(420)

28

(100)

Change in receivables(880)(1,374)(3,244)

Change in payables(1,844)

123

3,009

Cash generated by operations before tax(3,034)

(691)

694

107

(13)

32

(2,927)

(704)

726

Purchases of property, plant and equipment

(146)

(124)

(218)

Purchases of intangible assets

(340)

(195)

(400)

8

1

5

(478)

(318)

(613)

-

-

150

Repayment of borrowings

(892)

(167)

(255)

Interest paid

(42)

(53)

(108)

Proceeds from the issue of share capital

5,238

17

4,846

Net cash flows from financing activities

4,304

(203)

4,633

Net increase in cash and cash equivalents

899(1,225)

4,746

7,130

2,396

2,396

48

(137)

(12)

8,077

1,034

7,130

(Loss)/profit before tax
Adjustments for:

Share-based payments charge

Net income taxes received/(paid)
Net cash flows from operating activities
Cash flows from investing activities

Interest received
Net cash flow from investing activities
Cash flows from financing activities
Proceeds from the issue of borrowings

Cash and cash equivalents at start of period
Exchange differences on cash and cash equivalents
7
Cash and cash equivalents at end of period

10 of 19

Notes to the interim financial statements
1. General information
Ubisense Group plc („the Company‟) and its subsidiaries (together, „the Group‟) deliver mission-criticalenterprise asset tracking and geospatial systems.
The Group has operations in the UK, US, Canada, France, Germany, Korea and Singapore and sells mainlyin the US and Europe.
The Company is a public limited company which is listed on the Alternative Investment Market („AIM‟) ofthe London Stock Exchange (UBI.L) and is incorporated and domiciled in the UK. The address of its
registered office is St. Andrew‟s House, 90 St. Andrew‟s Road, Chesterton, Cambridge, CB4 1DL.
The condensed consolidated interim financial statements were approved by the Board of Directors for
issue on 19 September 2011..
The condensed consolidated interim financial statements do not comprise statutory accounts within themeaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December
2010 were approved by the Board of Directors on 21 April 2011 and delivered to the Registrar ofCompanies. The report of the auditors on those accounts was unqualified, did not contain an emphasis ofmatter 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 theGroup have adequate resources to continue in operational existence for the foreseeable future, a periodof not less than twelve months from the date of this report. The Group therefore continues to adopt thegoing 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 are consistent with those followed in the preparation of the Group‟s consolidated financial
statements for the year ended 31 December 2010.
Exceptional items are disclosed and described separately in the financial statements where it is necessary
to do so to provide further understanding of the financial performance of the Group. They are material
items of income or expense that have been shown separately due to the significance of their nature or
amount.
The operations of the Group are not subject to significant seasonality.

11 of 19

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 andliabilities, income and expense. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgements madeby management in applying the group‟s accounting policies and the key sources of estimation anduncertainty were the same as those that applied to the consolidated financial statements for the year
ended 31 December 2010.
5. Risks and uncertainties
An outline of the key risks and uncertainties faced by the Group was described in the 2010 financial
statements, including exposure to foreign exchange rate fluctuation, in particular the strength of Sterling
relative to the US dollar and Euro. It is anticipated that the risk profile will not significantly change for theremainder of the year. Risk is an inherent part of doing business and the strong cash position of the Group
as a result of the fund raising and admission to AIM on 22 June 2011 along with the strong order bookleads the Directors to believe that the Group is well placed to manage business risks successfully.
6. Operating segments
Management has determined the operating segments to be the Group‟s two divisions based on the reports
reviewed by the Chief Operating Decision Maker.
The Real-Time Location Systems division (“RTLS”) delivers mission-critical enterprise asset tracking
solutions utilising ultra-wideband (“UWB”) technology to locate people and assets in 3D, bringing visibility
and control to industrial business processes.
The Geospatial division delivers core location based solutions, typically to blue chip utility andcommunications companies, to allow them to better plan and maintain their dispersed network of assets.
Centrally incurred costs not directly attributable to business segments are reported under „Central‟.
Each of these operating segments is managed separately as each deal with different technologies andpredominantly different customer bases. The performance of the operating segments is assessed on ameasurement of adjusted EBITDA. The measurement basis excludes depreciation, amortisation, sharebased payments charge, non-recurring expenditure, finance income and expense and income taxes.
Other administrative expenses for the periods ended 30 June and 31 December 2010 have been
reclassified to be consistent with current internal management reporting. The effect on the period ended
30 June 2010 was to decrease administrative expenses for RTLS by £358,000 and increase Geospatial andCentral by £36,000 and £322,000 respectively. The effect on the period ended 30 December 2010 was todecrease administrative expenses for RTLS by £727,000 and increase Geospatial and Central by £66,000
and £661,000 respectively.
Six months ended 30 June 2011

Revenue
Cost of sales
Gross Profit
Other administrative expenses
Adjusted EBITDA

RTLS
£’000
3,888
(1,951)
1,937(1,892)45

Geospatial
£’000
7,367
(5,733)
1,634
(292)
1,342

Central
£’000
(972)
(972)

Total
£’000
11,255(7,684)
3,571(3,156)415

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Depreciation
Amortisation
Share-based payments charge
AIM listing expenses
Operating (loss)/profit
Finance income
Finance costs
Loss/(profit) before tax

(164)
(119)
(119)

1,342
1,342

(67)
(8)
(324)
(1,371)8(180)(1,543)

(67)
(164)
(8)
(324)
(148)
8
(180)
(320)

Geospatial
£’000
5,867
(4,442)
1,425
(115)
1,310
1,310
1,310

Central
£’000
(726)
(726)
(55)
(11)
(792)
1
(110)
(901)

Total
£’000
7,990
(5,483)
2,507(2,053)
454
(55)
(148)
(11)
240
1
(110)
131

Geospatial£’000
11,968(9,242)
2,726
(229)
2,497
2,497
2,497

Central£’000(1,497)(1,497)(95)(18)(1,610)5(237)(1,842)

Total
£’000
17,697(11,762)
5,935(4,894)
1,041
(97)
(299)
(18)
627
5
(237)
395

Six months ended 30 June 2010

Revenue
Cost of sales
Gross Profit
Other administrative expenses
Adjusted EBITDA
Depreciation
Amortisation
Share-based payments charge
Operating (loss)/profit
Finance income
Finance costs
Loss/(profit) before tax

RTLS
£’000
2,123
(1,041)
1,082(1,212)
(130)
(148)
(278)
(278)

12 months ended 31 December 2010

Revenue
Cost of sales
Gross Profit
Other administrative expenses
Adjusted EBITDA
Depreciation
Amortisation
Share-based payments charge
Operating (loss)/profit
Finance income
Finance costs
Loss/(profit) before tax

RTLS
£’000
5,729
(2,520)3,209(3,168)
41
(2)
(299)
(260)
(260)

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7. Finance income and costs

Interest income from cash and cash
equivalents
Finance income

Interest payable – bank
Interest payable – other loans
Finance costs

Six months to
30 June 2011
unaudited£’000

Six months to
30 June 2010
unaudited£’000

12 months to
31 December 2010
audited
£’000

8

1

5

8

1

5

Six months to
30 June 2011
unaudited
£’000
(21)
(159)
(180)

Six months to
30 June 2010
unaudited
£’000
(13)
(97)
(110)

12 months to
31 December 2010
audited
£’000
(43)
(194)
(237)

Finance costs for the six months ended 30 June 2011 includes an imputed non-cash amount of £138,000
relating to accelerated interest as a result of conversion of the Convertible Loans into shares and exercise of
the warrants attaching to the bank loan (see note 10).
8. Income tax
Income tax is recognised based on management‟s estimate of the weighted average annual income tax
rate expected for the full financial year.
The income tax credit for the period principally arises due to the receipt of R&D tax credit relief in respectof the prior year. The Group‟s policy is to recognise tax credits resulting from R&D claims on a cash
received basis. A tax credit has not been recognised in respect of the claim expected to be made for the2011 financial year.

14 of 19

9. Earnings per share
Six months to

Six months to

12 months to

30 June 201130 June 201031 December 2010

unauditedunaudited

audited

£’000

£’000

£’000

(254)

110

398

159

-

-

(95)

110

398

16,182

11,773

12,034

313

430

444

1,446

-

-

70

-

107

Diluted weighted average number of shares („000)

18,011

12,203

12,585

Basic earnings per share (pence)(1.6p)

0.9p

3.3p

Diluted earnings per share (pence)(1.6p)

0.9p

3.2p

Earnings(Loss)/profit for the period (£‟000)
Effect of dilutive potential ordinary shares:
Convertible Loans (£„000)
Earnings for the purposes of diluted earnings per share(£‟000)
Number of shares
Basic weighted average number of shares („000)
Effect of dilutive potential ordinary shares:
Share options („000)
Convertible Loans („000)
Warrants („000)

Basic earnings per share is calculated by dividing profit for the period attributable to ordinary shareholdersof the Company 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 ofdilutive share options, Convertible Loans and warrants. The Group also presents an adjusted diluted
earnings per share figure which excludes depreciation, amortisation, share-based payments charge, andnon-recurring expenditure from the measurement of profit for the period.
Adjusted diluted earnings per share
At 30 June 2011

At 30 June 2010

At 31 December 2010

unauditedunaudited

audited

£’000

£’000

£’000

(95)

110

398

Reversal of depreciation (£‟000)

67

55

97

Reversal of amortisation (£‟000)

164

148

299

Reversal of share-based payments charge(£‟000)8

1118

Reversal of AIM listing expenses (£‟000)

324

-

-

Net adjustments

563

214

414

Adjusted earnings (£‟000)

468

324

812

Adjusted diluted earnings per share (pence)

2.6p

2.7p

6.5p

Earnings for the purposes of diluted earnings per
share (£‟000)
Adjustments

15 of 19

10.

Loans and borrowings
At 30 June 2011

At 30 June 2010

At 31 December 2010

unauditedunaudited

audited

£’000

£’000

£’000

Bank loan

-

535

492

Convertible Loan

-

775

754

Total non-current loans and borrowings

-

1,310

1,246

Bank loan

-

288

398

Convertible Loan

-

1,918

1,974

Total current loans and borrowings

-

2,206

2,372

Total loans and borrowings

-

3,516

3,618

Non-current

Current

During the period, the bank loan was repaid in full. Of the Convertible Loan, £2,364 was repaid with theremainder converted into ordinary shares (see note 11).
11.

Share capital

At 30 June 2011

At 30 June 2010

At 31 December 2010

unauditedunaudited

auditedAllotted, called-up and fully paid

£’000

£’000

£’000

Ordinary shares of £0.02 each

433

236

304

Movement in number of shares
Number of shares at beginning of period
Share issue
Issued under share-based payment plans
Issued on conversion of Convertible Loan
Issued on exercise of warrants
Change in number of shares in period
Number of shares at end of period

At 30 June 2011
unaudited£’000

At 30 June 2010
unaudited£’000

At 31 December 2010
audited£’000

15,211
2,778
374
3,177
115
6,444
21,655

11,75527
27
11,782

11,755
3,401
27
28
3,456
15,21116 of 19

During the period, the Company issued 6,444,208 shares increasing the total number of shares in issue
from 15,211,490 to 21,655,698.
2,777,778 shares as a result of new share subscriptions at £1.80 per share for total cash
consideration of £5,000,000, with share issue costs of £591,000 written off against the sharepremium account and listing expenses of £324,000 charged to the income statement. Included in
the share issue costs written off against the share premium account is an amount of £126,000
relating to share-based payments in respect of warrants granted to professional advisers in lieu of
fees;



374,308 shares as a result of options exercised with a weighted average exercise price of £0.35 pershare for total cash consideration of £133,819;



3,176,772 shares as a result of the Convertible Loans being converted at £0.90 per share for totalloan value converted of £2,859,095;

115,350 shares as a result of exercise of warrants entitled under the bank loan at £0.90 per sharefor cash consideration of £103,815.

12.

Other reserves
Equity componentof convertibleloans and warrants£’000

Sharebased
payments
reserve£’000

Translation
£’000

Total
£’000

499

528

(66)

961

-

-

(59)

(59)

-

11

-

11

499

539

(125)

913

-

-

30

30

-

7

-

7

3

-

-

3

Balance at 31 December 2010 (audited)
Exchange difference on retranslation of net assets
and results of overseas subsidiaries
Reserve credit for equity-settled share-based
payment

502

546

(95)

953

-

-

66

66

-

134

-

134

Equity component of loans

(502)

-

-

(502)

-

680

(29)

651

Balance at 1 January 2010 (audited)
Exchange difference on retranslation of net assets
and results of overseas subsidiaries
Reserve credit for equity-settled share-based
payment
Balance at 30 June 2010 (unaudited)
Exchange difference on retranslation of net assets
and results of overseas subsidiaries
Reserve credit for equity-settled share-based
payment
Equity component of loans

Balance at 30 June 2011 (unaudited)

13.

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 anduncertainty because they relate to events and depend on circumstances that will occur in the future.
There are a number of factors that could cause the actual results or developments to differ materiallyfrom those expressed or implied by these forward looking statements and forecasts. Nothing in thisdocument should be construed as a profit forecast.

17 of 19

14.

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, 90 St. Andrew‟s Road, Chesterton, Cambridge, CB4 1DL. The interim financial
information document will also be available on the Company‟s website www.ubisense.net.

18 of 19

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 2011 which comprises the Consolidated Income Statement,
Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity,
Consolidated Statement of Financial Position, Consolidated Statement of Cash Flows and related notes (1to 14). We have read the other information contained in the half yearly financial report and considered
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 weare 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 to anyone 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 thefinancial information in the half yearly financial report are consistent with those which will be adopted in
the annual accounts having regard to the accounting standards applicable for such accounts. As disclosed
in Note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted
by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the financial information in the half yearlyfinancial 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 thanan audit conducted in accordance with International Standards on Auditing (UK and Ireland) andconsequently 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 the half yearly financial report for the six months ended 30 June 2011 is not prepared, in allmaterial respects, in accordance with the basis of accounting described in Note 2.
Grant Thornton UK LLP
Chartered Accountants
Registered Auditor
Cambridge
19 September 201119 of 19