IQGeo Group plc(the "Company" or the "Group")Interim results for the six months ended 30 June 2021
Continued success in orders and revenue growth
IQGeo Group plc (AIM: IQG), a market leading provider of geospatial productivity and collaboration software for the telecoms
and utility network industries, is pleased to announce its interim results for the six months ended 30 June 2021.
Operational highlights:•
Substantial progress in all regions with new customer wins and extensions•
Successful integration of the OSPInsight (OSPI) business which was acquired in December 2020 and which now
forms our Small and Medium Business (SMB) unit•
Release of mobility solution for OSPI customer baseGroup financial highlights:•
Recurring revenue growth of 58% to £2.6 million (H1 2020: £1.6 million) representing 40% of H1 revenue (H1 2020:34%)•
Annual recurring revenue (ARR) order intake has increased by 88% to £1.5 million (H1 2020: £0.8 million)•
Exit ARR* increased by 131% to £6.6 million (H1 2020: £2.9 million)•
Gross margin increased to 63% (H1 2020: 51%) due to positive changes in sales mix•
Substantially reduced adjusted EBITDA** loss of £0.4 million (H1 2020: £1.2 million) with a reduced loss for the periodof £1.0 million (H1 2020: £1.7 million)•
Net cash balance of £12.1 million as at 30 June 2021 (31 December 2020: £10.5 million, 30 June 2020: £11.2 million)
Outlook:•
Exit ARR of £6.6 million provides good visibility of future revenues and cash flows•
Expected continued progress in profitability and operating cash flow as recurring revenues continue to grow
*Exit ARR is defined as the current go forward run rate of annually renewable subscription and M&S agreements**Adjusted EBITDA excludes amortisation, depreciation, share option expense, foreign exchange gains/losses onintercompany trading balances and non-recurring items and is reported as it reflects the performance of the Group
Richard Petti, Chief Executive Officer, said:“I am pleased with IQGeo’s performance for the first six months of the year. Despite continued business disruption causedby the Covid-19 pandemic, IQGeo performed well against all our key metrics with strong financial performance, productinnovation and go-to-market strategies.
The IQGeo technology continues to develop its best-in-class solutions enhanced by significant new software releases andthe integration of our award-winning mobile software for the OSPI customer base, which we have successfully started to
deploy. Development and demand for our cloud-native capabilities continues to grow as we continue to accelerate ourinvestments in cloud technology. We have also made significant progress in the rollout of our new network “system ofrecord” capabilities, deploying this technology with customers in both North America and EMEA. These system of record
capabilities take the IQGeo solution into the heart of the incumbent vendor market, significantly strengthening ourcompetitive positioning.
Direct sales of our software through our enterprise and SMB teams remains strong with particularly encouraging growth fromour new SMB unit, delivering an exceptional number of new logos in the first half. We are making steady progress in
geographic market expansion having established new channel, technology and integration partners to support our market
growth objectives in all our regional markets.
The IQGeo business is on a firm operational and technology foundation and combined with the growth in the underlying
markets in which we operate, the directors remain very positive about the outlook for the Group in the second half of theyear and beyond.”

For further information contact:
IQGeo Group plc
Richard Petti
Haywood Chapman+44 1223 606655

FinnCap Ltd
Henrik Persson, Seamus Fricker (Corporate Finance)
Tim Redfern, Richard Chambers (ECM)+44 20 7220 0500

Notes to Editors
About IQGeo
IQGeo™ (AIM: IQG), delivers award-winning geospatial software solutions to telecommunication and utility network
operators around the world ranging from large multinationals to smaller regional providers. The IQGeo software suite
improves productivity and collaboration across enterprise planning, design, construction, maintenance, and sales processes
reducing costs and operational risks while enhancing customer satisfaction. Our mobile-first, cloud-native software helps
companies create and maintain an accurate view of their increasingly complex network assets that is easily accessible byanyone, wherever and whenever needed. Whether using our Enterprise IQGeo Platform or targeted OSPInsight fiber
planning and design software, we enable a “System of Action” that breaks down information silos, improves data quality andaccelerates decision making. Headquartered in Cambridge, with offices in Denver, Salt Lake City, Frankfurt and Tokyo, we
work with some of the largest network infrastructure operators in the world. For more information visit: www.iqgeo.com/

Chief Executive Officer’s statement
Overview
IQGeo’s primary target markets of telecommunications and utility network operators have remained resilient despite the shift
in business priorities and working patterns caused by the Covid-19 pandemic. These industries are providing critical national
infrastructure which has been highlighted by a greater demand for nation-wide broadband and utility services as more
people work from home in all our key markets. Combine this trend with the rollout of fibre and 5G services and gridmodernisation for electrical network operators, we expect to see continued strong demand for IQGeo’s end-to-end
geospatial software solutions building on the 39 new logos signed in the first half of 2021.
The first six months of 2021 have unfortunately also witnessed a number of catastrophic climate events including wildfires,
heat waves, floods and severe storms which have all had a major impact on both telecommunication and utility networks.
One key theme that has emerged from our markets in these incidents is the need for greater network resilience. Creating
more resilient networks against a backdrop of year-on-year staffing declines demands that operators digitise and automate
all aspects of their network lifecycle. Not only must they respond to natural disasters quickly but put systems in place toproactively seek out, mitigate network weaknesses and respond quickly when incidents are reported. These drivers haveresulted in significant wins such as the federal Western Area Power Administration in North America and a new win at one of
the largest Japanese energy companies in the world, where the IQGeo solution will be used for disaster prevention andresponse. Unlike many of our competitors, IQGeo’s software is optimised for the industries we serve, enabling us to help
operators improve the quality and enterprise-wide accessibility of network information in order to build and maintain more
resilient networks.
The Covid-19 pandemic has also accelerated an ongoing shift in buying patterns for enterprise software from direct sales
engagement to online research and evaluation. We see potential customers spending much more time researching andevaluating software solutions on their own before engaging with salespeople, with some studies pointing to a 100% increasein digital research by clients1. This shifting pattern plays to the strengths of IQGeo as an agile, digital organisation. We areconstantly measuring and evaluating our own online footprint and working to develop digital sales content and marketingstrategies that support online prospects. As a result of this improvement in our online presence, IQGeo have attracted agreater variety of network operators including cities, airports, universities, departments of transport, oil and mining
companies aside from the traditional commercial telecommunications and utilities operators.
This trend toward a greater online presence also speaks to IQGeo’s Cloud-first product architecture that is helping
customers move their software deployments from on-premise to a cloud hosted environment, a trend we have seen increasesignificantly with our customer deployments compared to that of a year ago. While cautious telecommunications and utility
network operators have been slower to move to cloud-based deployments than other industries, we believe that the move tocloud will accelerate in the coming years. There are compelling technical and financial advantages to SaaS based cloud
deployments and IQGeo will continue to invest in this area to provide an industry leading solution.
1 https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-b2b-digital-inflection-point-how-sales-have-changed-during-covid-19

Strategic Priorities
The strategic priorities of the Group remain consistent with those identified within our 2020 Annual report which was
published in April 2021. Since then, the Group has achieved continued progress against our strategic objectives in the firsthalf and this positive performance is reflected in our first half results.
•••

Regional Growth: The Group has added 39 new customer logos during the first six months of the year, with market
share being expanded in North America, Europe and Japan. This included new business with notable brands suchas Shaw Communications and Western Area Power Administration in North America, Deutsche GigaNetz andSwish fiber in Europe and two tier one utilities companies in Japan.
Building Recurring Revenues: The combination of new customers and expansion orders from existing customers
has added £1.5 million of Annual Recurring Revenues (‘ARR’) through subscription and M&S arrangements to ourexit ARR, which now stands at £6.6 million.
Product Innovation: IQGeo has continued to grow investment in the IQGeo product stack adding functionality withan increased focus on cloud capabilities for both enterprise and small/medium business clients.

Board changes
In May 2021 IQGeo announced the appointment of Carolyn Rand as a new Non-executive Director to the IQGeo Board.
Carolyn is a great addition to the existing Board members and her extensive expertise with enterprise mobile software is aparticularly good fit given IQGeo’s focus on mobile-first, cloud-native software architecture and business operations. With astrong background in finance and audit Carolyn has taken the role of Chair of the Audit Committee.

Current trading and outlook
Our financial performance remains in-line with Board expectations, and we remain positive about the outlook for our target
markets in the telecommunication and utility industries. With major private and public initiatives for electrical gridmodernisation and the roll out of fibre and 5G networks, we continue to see significant opportunity in our two industry
verticals in all our geographic markets. In addition, the OSPI acquisition at the end of 2020 has expanded our addressable
market as we successfully target the high-growth area of regional, private, and governmental fibre network operators.

Richard Petti
Chief Executive Officer

Financial Review
On 21 December 2020 the Group acquired OSPInsight International Inc. ("OSPI") for a total consideration of up to $8.75
million. During the six months to 30th June 2021, the OSPI business has been successfully integrated into IQGeo’s
operations and the positive results of the acquisition along with the organic growth achieved by IQGeo’s pre-existing
operations are reflected in the Group KPIs below:
KPIs

H1 2021

H1 2020

£’000

£’000

Total revenue

6,378

4,722

Recurring revenue

2,574

1,625

Recurring revenue %

40%

34%

Exit recurring revenue run rate

6,581

2,850

IQGeo own product orders

6,900

5,500

Gross margin %

63%

51%

Adjusted EBITDA loss

(357)

(1,209)Loss for the period(1,041)(1,732)

Recurring revenue net retention

109%

133%

Cash, net of debt

12,115

11,209The Group continues to focus on increasing Annual Recurring Revenue (“ARR”) through subscription-based software sales
and maintaining long-term relationships with customers, creating recurring revenue growth and achieving sustained
profitability and cash flows. ARR also includes maintenance and support arrangements from perpetual licence sales.
During the first half of 2021, ARR order intake has increased by 88% to £1.5 million (H1 2020: £0.8 million), the highest everrecurring revenue order intake for a 6 month period for IQGeo. This has been achieved through winning 39 new customer
logos combined with expansion sales to existing customers. The Exit ARR of the Group as of 30 June 2021 has increased by
131% to £6.6 million (H1 2020: £2.9 million). Although lower than H1 2020, the recurring revenue net retention rate of 109%
was still pleasing. The driver behind the 2020 figure was the large order received from Tokyo Electric and Power Company,
an existing customer, in March 2020. In H1 2021, ARR order intake was across 39 new logos as well as current customers.
OrdersBookings of orders related to IQGeo own products increased by over 25% to £6.9 million during H1 2021 (H1 2020: £5.5
million) with new customers being added in all three of our key markets (North America, Europe and Japan). Bookings oforders related to third-party Geospatial Services were £0.2 million (H1 2020: £0.5 million).
IQGeo product order backlog (orders won, revenue not recognised) as at 30 June 2021 was £9.2 million (H1 2020: £5.8 million)
with the growth being due to increased order intake. Third-party Geospatial Services order backlog was £0.6 million (H1 2020:£1.0 million).
Revenue
In addition to recurring revenue described above, revenue is derived from consultancy services on own IP products and also
consultancy services connected to third party products. The Group continues to focus its strategy on its core IP products
rather than lower margin non-core 3rd party products, this revenue stream will continue to diminish, replaced by higher
margin IQGeo products. Revenue composition by revenue stream is summarised in the table below
Revenue by stream

H1 2021
£’000
2,574

% of total
revenue40%

H1 2020
£’000
1,625

% of total
revenue
34%

Year onyear growth58%

Perpetual Software

761

12%

122

3%

524%

Services

2,599

41%

1,847

39%

41%

Non-recurring IQGeo product revenue

3,360

53%

1,969

42%

71%

Total IQGeo product revenue

5,934

93%

3,594

76%

65%

Geospatial services from third party products

444

7%

1,128

24%

(61)%

Total revenue

6,378

100%

4,722

100%

35%

Recurring IQGeo product revenue

Recurring revenues have increased by 58% to £2.6m (H1 2020: £1.6m) as a result of the ARR won during 2020 and theacquired OSPI customer base. ARR won during H1 2021 has had limited impact on revenues for the six months ended 30
June 2021, with the increase in recurring revenues to be realised in future periods. Sales of perpetual software licences willcontinue to fluctuate in reporting periods as the Group continues to focus on subscription sales and the increase during H1
was due to a single new customer. The increase in deployments and expansion orders has led to a 41% increase inassociated service revenues which reflects the growing customer base using IQGeo software. The Group continues to havevisibility of services revenues of around six months forward due to the strong backlog of orders won
Gross profit
Gross profit
Gross profit/gross margin

H1 2021
£’000
4,037

Gross
margin %63%

H1 2020
£’000
2,422

Gross
margin %51%

Grossmargin mvt
12%

Gross margin percentage increased by 12% compared with the prior period. High margin recurring product revenues are
40% of total revenues for the six months ended 30 June 2021 (H1 2020: 34%). This shift in product mix has driven theincrease in gross margin percentage along with improved services margins.
Operating expenses and adjusted EBITDA
Operating expenses were £5.5 million (H1 2020: £4.1 million) and are summarised as follows:
H1 2021

H1 2020

£’000

£’000

Other operating expenses

4,394

3,631

Depreciation

156

223

Amortisation and impairment

780

472

Share option expense

119

20

Unrealised foreign exchange on intercompany trading balances

55

(282)

Non-recurring items
Total operating expense

8

-

5,512

4,064

Other operating expenses of the Group include sales, product development, marketing, and administration costs.
Other operating costs during the period have increased with the addition of the OSPI acquired business adding £0.8 millionof operating costs to the Group. The Covid-19 pandemic has continued to restrict travel and face-to-face sales activities
which has resulted in reduced costs. Operating costs are anticipated to increase in the future to drive further revenue growth.
Adjusted EBITDA excludes amortisation and impairment, depreciation, share option expense, foreign exchange gains/losses
on intercompany trading balances and non-recurring items and is reported as it reflects the performance of the Group.
Adjusted EBITDA for the period was a £0.4 million loss (H1 2020: £1.2 million loss).
The operating loss for the period was £0.9 million (H1 2020: £1.6 million loss).
EPS and dividends
Adjusted diluted loss per share was 2.2 pence (H1 2020: 4.0 pence). Reported basic and diluted loss per share was 1.8
pence (H1 2020: 3.5 pence).
Consolidated statement of financial position and cash flow.
Cash as at 30 June 2021 was £12.1 million (31 December 2020: £11.1 million, 30 June 2020: £11.9 million).
Cash net of debt as at 30 June 2021 was £12.1 million (31 December 2020: £10.5m, 30 June 2020: £11.2m). In April 2020,
IQGeo America Inc, a subsidiary of IQGeo Group plc applied for and received a loan of $819,000 under the USA CARES
Act’s “Paycheck Protection Program” in order to support the USA operations during the uncertainty caused by the impact of
the global COVID-19 pandemic. This loan was forgiven by the US Small Business Administration along with interest accruedin June 2021.
Net cash outflows from operating activities materially reduced to £0.4 million (H1 2020: £1.1 million) partly due to R&D tax
credit cash received during the period.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group’s
performance, and the factors which mitigate these risks, have not significantly changed from those set out on pages 32 to 35of the Group’s Annual Report for 2020 (a copy of which is available from our website www.iqgeo.com).

Condensed consolidated income statement
for the six months ended 30 June 2021

Notes

Revenue

6 months to
30 June 2021
unaudited£’000

6 months to
30 June 2020
unaudited£’000

12 months to
31 December 2020
audited
£’000

6,378

4,722

9,155

Cost of revenues(2,341)(2,300)(4,409)Gross profit

4,037

2,422

4,746

592

-

-

(5,512)(4,064)(9,074)(883)(1,642)(4,328)Gross profit

4,037

2,422

4,746

Other operating expenses

Other operating income

45Operating expenses
Operating loss
Analysed as:(4,394)(3,631)(7,241)

Adjusted EBITDA(357)(1,209)(2,495)

Depreciation

(156)

(223)

(369)

Amortisation and impairment of intangible assets

(780)

(472)

(1,002)

Share option expense

(119)

(20)

(130)

Unrealised foreign exchange gains/(losses) on intercompany
trading balances

(55)

282

(43)

584

-

(289)

Operating loss

(883)

(1,642)(4,328)

Net finance income/(costs)

(76)

(42)

(98)

Loss before tax(959)(1,684)(4,426)

Income tax

(82)

(48)

315

(1,041)(1,732)(4,111)(1.8p)(3.5p)(8.2p)

Non-recurring items

5

Loss for the period
Loss per share
Basic and diluted

6

Condensed consolidated statement of comprehensive income
for the six months ended 30 June 2021

6 months to

6 months to

12 months to

30 June 2021
unaudited£’000

30 June 2020
unaudited£’000

31 December 2020
audited£’000

Loss for the period
Other comprehensive income:Items that may be reclassified subsequently to profit and loss
Exchange difference on retranslation of net assets and results ofoverseas subsidiaries
Items that will not be reclassified to profit and loss
Changes in the fair value of equity investments at fair value throughother comprehensive income(1,041)(1,732)(4,111)

16

(109)

80

-

(1,800)500

Total comprehensive loss for the period(1,025)(3,641)(3,531)

Condensed consolidated statement of changes in equity
for the six months ended 30 June 2021

Attributable to equity shareholders of the parent company
Sharecapital£’000

Balance at 1 January 2020

Share based
CapitalSharepayment redemption
premium
reserve
reserve
£’000
£’000
£’000

Mergerrelief Translation
reserve
reserve
£’000
£’000

Retainedearnings
£’000

Total
£’000

990

17,454

632

476

-

(1,866)(2,114)

15,572

Loss for the period
Exchange difference on retranslation of net
assets and results of overseas subsidiaries
Other comprehensive losses

-

-

-

-

-

-

(1,732)(1,732)

-

-

-

-

-

(109)
-

(1,800)(109)(1,800)Total comprehensive loss for the period

-

-

-

-

-

(109)

(3,532)(3,641)

Reserve debit for equity-settled share-based
payment
Exercise of share options
Lapse of share options

2
-

10
-

20
(3)
(567)

-

-

-

3
567

20
12
-

Transactions with owners
Balance at 30 June 2020 (unaudited)
Loss for the period
Exchange difference on retranslation of net
assets and results of overseas subsidiaries
Other comprehensive income

2

10

(550)

-

-

-

570

32

992

17,46482

476-(1,975)(5,076)

11,963

-

-

-

-

-

-

(2,379)(2,379)

-

-

-

-

-

189
-

2,300

189
2,300

Total comprehensive loss for the period

-

-

-

-

-

189

(79)

110

Issue of shares – fundraise, net of costs
Issue of shares - acquisition
Lapse of share options
Reserve debit for equity-settled share-based
payment

136
18
-

5,030
-

(2)

-

739
-

-

2

5,166
757
-

-

-

110

-

-

-

-

110

Transactions with owners

154

5,030

108

-

739

-

2

6,033

Balance at 31 December 2020

1,146

22,494

190

476

739

(1,786)(5,153)

18,106

Loss for the period
Exchange difference on retranslation of net
assets and results of overseas subsidiaries

-

-

-

-

-

-

(1,041)(1,041)

-

-

-

-

-

16

-

16

Total comprehensive loss for the period

-

-

-

-

-

16

(1,041)(1,025)Lapse of share options
Reserve debit for equity-settled share-based
payment

-

-

(9)

-

-

-

9

-

-

-

119

-

-

-

-

119

Transactions with owners

-

-

110

-

-

-

9

119

1,146

22,494

300

476

739

(1,770)(6,185)

17,200

Balance at 30 June 2021 (unaudited)

Condensed consolidated statement of financial position
for the six months ended 30 June 2021

At

At

At

30 June 2021
unaudited£’000

30 June 2020
unaudited£’000

31 December 2020
audited
£’000

8,969
167
1,425
-

1,772
197
1,771
200

8,902
167
1,567
-

Total non-current assets

10,561

3,940

10,636

Current assets
Trade and other receivables
Corporation tax receivable
Asset held for sale
Cash and cash equivalents

3,343
12,1152,431
14
11,874

2,850
413
2,500
11,078

Total current assets

15,45814,31916,841

Total assets

26,01918,25927,477(6,639)(235)-(3,392)
(103)
(332)

(5,828)
(208)
(167)

Total current liabilities(6,874)(3,827)(6,203)

Non-current liabilities
Deferred income tax liabilities
Trade and other payables
Lease obligation
Bank loans(424)(1,521)-(322)(1,814)
(333)

(351)
(746)
(1,638)(433)

Total non-current liabilities(1,945)(2,469)(3,168)

Total liabilities(8,819)(6,296)(9,371)

Net assets
Equity attributable to owners of the parent company
Ordinary share capital
Share premium
Share based payment reserve
Capital redemption reserve
Merger relief reserve
Translation reserve
Retained earnings

17,20011,963

18,106

1,146
22,494300
476
739(1,770)(6,185)992
17,46482
476(1,975)(5,076)

1,146
22,494190
476
739(1,786)(5,153)

17,20011,963

18,106

Notes

AssetsIntangible assets
Property, plant, and equipment
Right of use assets
Investments

Liabilities
Current liabilities
Trade and other payables
Lease obligation
Bank loans

Equity attributable to shareholders of the Company

8

9

9

10

10

11
11

Condensed consolidated statement of cash flows
for the six months ended 30 June 2021

6 months to

6 months to

12 months to

30 June 2021
unaudited£’000

30 June 2020
unaudited£’000

31 December 2020
audited
£’000

(959)

(1,684)(4,426)

156
780
55
(592)
119
(7)
83

223
472
(282)
20
(7)
49

369
1,002
43
130
(7)
105

Operating cash flows before working capital movement
Change in receivables
Change in payables

(365)
(493)
87

(1,209)(78)
204(2,784)190
295

Cash generated from operations before tax(771)(1,083)(2,299)

Notes

Loss before tax from operating activities
Adjustments for:
Depreciation
Amortisation and impairment
Revaluation of intercompany balances
Forgiveness of bank loan
Share-based payment charge
Finance income
Finance costs

5

Net income taxes received/(paid)

404

(11)

(17)

Net cash flows from operating activities(367)(1,094)(2,316)

Cash flows from investing activities
Purchases of property, plant, and equipment
Expenditure on intangible assets
Cash received on sale of the RTLS SmartSpace business unit
Acquisition of subsidiaries, net of cash acquired
Interest received

(37)
(951)
2,500
14
7

(143)
(647)
7

(165)
(1,307)(3,990)7

Net cash flows from investing activities

1,533

(783)

(5,455)

Cash flows from financing activities
Borrowings
Interest paid
Payment of lease liability
Proceeds from the issue of ordinary share capital

(110)
-

662
(1)
(78)
13

662
(78)
5,178

Net cash flows from financing activities

(110)

596

5,762

Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at start of period
Exchange differences on cash and cash equivalents

1,056
11,078(19)(1,281)
13,053102(2,009)13,05334

Cash and cash equivalents at end of period

12,115

11,874

11,078

Notes to the interim consolidated financial statements
1 General information
IQGeo Group plc (“the Company”) and its subsidiaries (together, “the Group”) deliver end-to-end geospatial software which
improves productivity and collaboration across enterprise planning, design, construction, maintenance and sales processes
for telecoms and utility network operators. Our mobile-first enterprise solutions create and maintain, an accurate view ofcomplex network assets that is easily accessible by anyone, wherever and whenever needed.
Specialised applications combined with our open IQGeo Platform help network operators create a single source of network
truth to meet their digital transformation ambitions and operational KPIs. Our award-winning, cloud-enabled solutions savetime and money, and improve safety and productivity, while enhancing customer satisfaction.
The Company is a public limited company which is listed on the Alternative Investment Market (AIM) of the London Stock
Exchange (IQG) and is incorporated and domiciled in the United Kingdom. The address of its registered office is Nine Hills
Road, Cambridge CB2 1GE.
The Group has its operations in the UK, USA, Canada, Germany and Japan, and sells its products and services in North
America, Japan, the UK and Europe.
The condensed consolidated interim financial statements were approved by the Board of Directors for issue on 10
September 2021.
The condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of section
434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2020 were approved by the Board of
Directors on 22 March 2021 and delivered to the Registrar of Companies. The report of the auditors on those accounts was
unqualified, did not contain a material uncertainty related to going concern 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 statementsof the Group and are prepared in accordance with international accounting standards in conformity with the requirements of
the Companies Act 2006 (‘IFRS’).
Going concern basis
The Directors have adopted the going concern basis in preparing the financial statements. In assessing whether the going
concern assumption is appropriate, the Directors have taken into account all relevant information about the current status of
the business operations. The Directors have a reasonable expectation that the Group has adequate resources to continue
operations for the foreseeable future and for at least 12 months following the approval of these accounts. This expectation isarrived at following a review of cash resources, cashflow projections, customer order book, and pipeline of future projects.
For the purposes of the preparation of the consolidated financial statements, the Group has applied all standards andinterpretations as adopted in the European Union that are effective and applicable for accounting periods beginning on or
before 1 January 2021. There are no standards in issue and not yet adopted that will have a material impact on the 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 2020.
However, new contractual arrangements entered into in the first half of the year have necessitated we update and expand
on our revenue policy going forward. This change does not impact on revenue recognition for past periods. Our updated
policy is as follows:
Revenue recognition
Revenue represents the fair value of consideration received or receivable for the sales of goods and services net of
discounts and sales taxes. Revenue is recognised based on the distinct performance obligations under the relevant
customer contract as set out below. Where goods and/or services are sold in a bundled transaction or on a subscription
basis, the Group allocates the total consideration under the contract to the different individual elements based on actual
amounts charged by the Group on a standalone basis.

Notes to the interim consolidated financial statements continued
Software licence
Software is sold under perpetual licence agreements or that of a term licence for a defined period of time. Under thesearrangements revenue is recognised when the software is made available to the customer for use, provided that all
obligations associated with the sale of the licence have been made fulfilled.
If contracts include performance obligations which result in software being customised or altered, the software cannot be
considered distinct from the labour service. Revenue recognition is dependent on the contract terms and assessment of
whether the performance obligation is satisfied over time. If the conditions of IFRS15 to recognise revenue over time are notsatisfied, revenue is deferred until the software is available for customer use.
Maintenance and support
Maintenance and support is recognised on a straight-line basis over the term of the contract, which is typically one year.
Revenue not recognised in the consolidated income statement is classified as deferred revenue on the consolidated
statement of financial position.
Subscription services
Subscription services, which may include hosting services, are considered to be a single distinct performance obligation due
to the promises stated within the contract. Revenue is recognised evenly over the subscription period as the customer
receives the benefits of the subscription services.
Services
Services revenue includes consultancy and training. Services revenue from time and materials contracts is recognised in the
period that the services are provided on the basis of time worked at agreed contractual rates and as direct expenses are
incurred.
Revenue from fixed price, long-term customer specific contracts is recognised over time following assessment of the stageof completion of each assignment at the period end date compared to the total estimated service to be provided over theentire contract where the outcome can be estimated reliably. If a contract outcome cannot be estimated reliably, revenues
are recognised equal to costs incurred, to the extent that costs are expected to be recovered. An expected loss on a contract
is recognised immediately in the consolidated income statement.
Timing of payment
Maintenance and support income and subscription income is invoiced annually in advance at the commencement of thecontract period. Other revenue is invoiced based on the contract terms in accordance with performance obligations.
Amounts recoverable in contracts (contract assets) relate to our conditional right to consideration for completed performanceobligations under the contract prior to invoicing. Deferred income (contract liabilities) relates to amounts invoiced in advanceof services performed under the contract.
4 Segmental information
4.1 Operating segments
Management provides information reported to the Chief Operating Decision Maker (CODM) for the purpose of assessing
performance and allocating resources. The CODM is the Chief Executive Officer.
The Geospatial operations are reported to the CODM as a single business unit.

Notes to the interim consolidated financial statements continued
4.2 Revenue by typeThe following table presents the different revenue streams of the Geospatial business unit:
6 months to
30 June 2021
unaudited£’000

6 months to
30 June 2020
unaudited£’000

12 months to
31 December 2020
audited£’000

Subscription
Maintenance and support

1,672
902

976
649

1,860
1,335

Recurring IQGeo product revenue

2,574

1,625

3,195

SoftwareServices
Non-recurring IQGeo product revenue

761
2,599
3,360

122
1,847
1,969

299
3,846
4,145

Total revenue generated from IQGeo products

5,934

3,594

7,340

Geospatial services from third party products

444

1,128

1,815

6,378

4,722

9,155

Total revenue
4.3 Geographical areas

The Board and Management Team also review the revenues on a geographical basis, based around the regions where theGroup has its significant subsidiaries or markets.
The Group’s revenue from external customers in the Group’s domicile, the UK, and its major worldwide markets have been
identified on the basis of the customers’ geographical location and is presented below:
6 months to
30 June 2021
unaudited£’000

6 months to
30 June 2020
unaudited£’000

12 months to
31 December 2020
audited£’000

UK
EuropeUSA
CanadaJapan
Rest of World

119
83
3,727
1,658
642
149

179
102
2,999
559
872
11

316
146
5,990
1,233
1,437
33

Total revenue

6,378

4,722

9,155

6 months to
30 June 2021
unaudited£’000

6 months to
30 June 2020
unaudited£’000

12 months to
31 December 2020
audited£’000

Waiver of loan
Acquisition costs

592
(8)

-

(289)

Total non-recurring items

584

-

(289)

5 Non-recurring items

In April 2020, IQGeo America Inc, a subsidiary of IQGeo Group plc applied for and received a loan of $819,000 under the
USA CARES Act’s “Paycheck Protection Program” in order to support the USA operations during the uncertainty caused by
the impact of the global COVID-19 pandemic. The loan was provided by HSBC Bank USA and accrued interest at a rate of
1.0% p.a. In June 2021, the loan was forgiven by the US Small Business Administration along with interest accrued.
On 21 December 2020 the Group acquired OSPInsight International Inc. Costs have been expensed as they were incurred.

Notes to the interim consolidated financial statements continued
6 Earnings per share (EPS)

Earnings attributable to Ordinary Shareholders
Loss from operations
Number of shares
Weighted average number of ordinary shares for the purposes ofbasic EPS (’000)
Effect of dilutive potential ordinary shares:– Share options (’000)
Weighted average number of ordinary shares for the purposes ofdiluted EPS (’000)
EPS
Basic and diluted EPS (pence)

6 months to

6 months to

12 months to

30 June 2021
unaudited£’000

30 June 2020
unaudited£’000

31 December 2020
audited£’000(1,041)(1,732)(4,111)

57,312

49,57750,195

2,162

540

1,002

59,474

50,117

51,197

(1.8)

(3.5)

(8.2)

Basic earnings per share is calculated by dividing profit/(loss) 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 all dilutive share options and warrants
outstanding at the end of the year. Options have no dilutive effect in loss-making years and are therefore not classified as
dilutive for EPS since their conversion to ordinary shares does not decrease earnings per share or increase loss per share.
The Group also presents an adjusted diluted earnings per share figure which excludes amortisation and impairment ofacquired intangible assets, share-based payments charge, unrealised foreign exchange gains/(losses) on intercompany
trading balances and non-recurring items from the measurement of profit for the period.

Earnings for the purposes of diluted EPS being net loss attributable toequity holders of the parent company (£’000)
Adjustments:
Amortisation and impairment of acquired intangible assets (£’000)
Reversal of share-based payments charge (£’000)
Unrealised foreign exchange gains/(losses) on intercompany tradingbalances
Reversal of non-recurring items (£’000)

6 months to
30 June 2021
unaudited£’000

6 months to
30 June 2020
unaudited£’000

12 months to
31 December 2020
audited£’000(1,041)(1,732)(4,111)

193
119

20

130

55
(584)

(282)
-

43
289

Net adjustments (£’000)

(217)

(262)

462

Adjusted earnings (£’000)(1,258)(1,994)(3,649)

(2.2)

(4.0)

(7.3)

Adjusted diluted EPS (pence)

The adjusted EPS information is considered to provide a fairer representation of the Group’s trading performance. Options
have no dilutive effect in loss-making years.

Notes to the interim consolidated financial statements continued
7 Revenue and profit contribution of OSPI acquisition
OSPInsight acquired on 21 December 2020, contributed revenues of £1.4 million and a net profit of £0.1 million to the Group
results of the six months ended 30 June 2021.
8 Intangible assets

At 30 June 2021
unaudited£’000

At 30 June 2020
unaudited£’000

At 31 December 2020
audited£’000

Goodwill
Acquired customer relationships
Acquired software products
Acquired brands
Capitalised product development
Software

4,334
1,942
386
42
2,228
37

1,695
77

4,403
2,072
470
56
1,843
58

Total intangible assets

8,969

1,772

8,902

Net book amount

9 Investments
On 31 December 2018 the Group disposed of its RTLS SmartSpace business unit for a consideration of up to £35.0 million
with £30.0 million paid in cash on completion (subject to adjustments for net debt and net working capital) in addition to a
£2.0 million roll over investment in Abyssinian Topco Limited. Abyssinian Topco Limited is a UK registered company(company number 11649721) and is the ultimate UK parent company of Ubisense Limited which along with its subsidiarycompanies, comprise the former RTLS SmartSpace business unit.
On 29 December 2020, the Group entered into an agreement to sell its shares in Abyssinian Topco Limited with the salecompleting during January 2021 for a consideration of £2.5 million.
10 Trade and other payables
At 30 June 2021
unaudited£’000

At 30 June 2020
unaudited£’000

At 31 December 2020
audited£’000

Trade and other payables due within 1 year:
Deferred income
Trade payables
Trade accruals
Other taxation and social security
Deferred acquisition consideration
Contingent acquisition consideration
Other payables

2,946
220
1,664
281
755
755
18

1,260
370
1,364
383
15

2,833
74
1,741
430
746
4

Trade and other payables due within 1 year

6,639

3,392

5,828

Trade and other payables due after 1 year:
Contingent acquisition consideration

-

-

746

Trade and other payables due after 1 year
Total trade and other payables

-

-

746

6,639

3,392

6,574

On 21 December 2020 the Group acquired 100% of the equity instruments of OSPInsight International Inc. ("OSPI"), abusiness based in Utah, USA, thereby obtaining control. The deferred acquisition consideration associated with theacquisition will be satisfied by cash payment of $538,000 with the balance settled through issue of shares in IQGeo Groupplc with the deferred consideration fully settled on 21 December 2021.
The purchase agreement included an additional consideration of up to $1.1 million subject to achievement of defined levelsof recurring revenue during the year ended 31 December 2021. Management anticipate this earn out will be settled in fullwith amounts payable in January 2022.

Notes to the interim consolidated financial statements continued
11 Share capital and premium
Number ofordinary sharesof £0.02 each

Share capital Share premium
£’000
£’000

Merger relief
reserve
£’000

Total
£’000

Balance at 1 January 2020
Issued under share-based payment plans

49,503,429
90,657990
217,454
10-

18,444
12

Balance at 30 June 2020

49,594,086

992

17,464-

18,456

Issued on placing to institutional investors
Issued as part consideration for acquisition

6,794,872
923,294

136
18

5,030
-

739

5,166
757

Balance at 31 December 2020 and 30 June 2021

57,312,252

1,146

22,494739

24,379The Company has one class of ordinary shares which carry no right to fixed income.
12 Share options
At 30 June 2021, the Group had the following share-based payment arrangements.

Currency

Awardsoutstanding at
1 Jan 2021
NumberGrantedduringthe year
NumberExercisedduring theyear
NumberForfeited
during theyear
NumberAwardsoutstanding at
30 June 2021
NumberAwardsexercisable at
30 June 2021
Number

GBP

24,200--

11,20013,00013,000GBP

24,000

-

-

7,000

17,00017,0002.055

GBP32,750

-

-

5,500

27,25027,250

2024

2.250

GBP

10,000

-

-

5,000

5,000

5,000

2019 - 21

2028

0.555

GBP

350,000---

350,000

350,000

2020 - 23

2030

0.460

GBP

1,971,000

-

-

5,000

1,966,000

655,3332020

2020 - 23

2030

0.625

GBP

110,000---

110,000

36,6662020

2020 - 23

2030

0.783

USD

1,390,000--

120,000

1,270,000

423,3332020

2020 - 23

2030

0.675

GBP

500,000---

500,000

166,666

4,411,950--

153,700

4,258,250

1,694,248

0.562

-

-

0.789

0.554

0.587

Arrangement

Award
date
Year

ExpiresYear

Exercise
price
£

Vests
Years

Options

2011

2012 – 14

2021

1.050

2012

2013 – 15

2022

2.125

2013

2014 – 16

2023

2014

2015 – 17

2018
2020

Total
Weighted average exercise price (£)

2020 granted share options
During 2020, IQGeo Group plc implemented a new long-term incentive share option plan with options granted to Executive
Directors and employees of the Group. IQGeo Group plc granted a total of 3,971,000 options of two pence each in the
Company with varying exercise prices as set out above. The options vest in portions of one third on the first, second andthird anniversaries of grant and have no further performance conditions other than ongoing employment on the date ofvesting and of exercise. Awards will be subject to a two-year holding period from vesting point, with participants only
permitted to sell shares sufficient to cover the exercise cost and any tax liability within this holding period.

Independent review report to IQGeo Group plc
Introduction
We have reviewed the consolidated condensed set of financial statements in the half-yearly financial report of IQGeo Groupplc (the ‘company’) for the six months ended 30 June 2021 which comprise the condensed consolidated income statement,
the condensed consolidated statement of comprehensive income, the condensed consolidated statement of changes inequity, the condensed consolidated statement of financial position, the condensed consolidated statement of cash flows andrelated notes. 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 the condensed set of financial
information.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors.
As disclosed in the notes, the annual financial statements of the company are prepared in accordance with International
Financial Reporting Standards in conformity with the requirements of the Companies Act 2006. The condensed set offinancial statements included in this half-yearly financial report has been prepared in accordance with International
Accounting Standard 34, 'Interim Financial Reporting'.
Our responsibility
Our responsibility is to express a conclusion to the company on the consolidated condensed set of financial statements 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’. 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 consequently does not enable us to obtain assurance that we would becomeaware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
The impact of uncertainties arising from the UK exiting the European Union on our review
Our review of the condensed set of financial statements in the half-yearly financial report requires us to obtain anunderstanding of all relevant uncertainties, including those arising as a consequence of the effects of Brexit. Such reviews
assess and challenge the reasonableness of estimates made by the directors and the related disclosures and theappropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessmentsof the future economic environment and the company’s future prospects and performance.
Brexit is one of the most significant economic events for the UK, and at the date of this report its effects are subject tounprecedented levels of uncertainty, with the full range of possible outcomes and their impacts unknown. We applied astandardised firm-wide approach in response to these uncertainties when assessing the company’s future prospects andperformance. However, no review of interim financial information should be expected to predict the unknowable factors or all
possible future implications for a company associated with a course of action such as Brexit.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 June 2021 is not prepared, in all material respects,
in accordance with International Accounting Standard 34, 'Interim Financial Reporting'.

Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London10 September 2021