Ubise Group pic 
for the year ended 
31 December 2015 
Registered number: 05589712  Table of Contents 
ADVISERS ................................................................................................................................................................................................................................. 3 
HIGHLIGHTS ........................................................................................................................................................................................................................... 4 
CHAIRMAN'S STATEMENT. .............................................................................................................................................................................................. 5 
CHIEF EXECUTIVE'S REVIEW ........................................................................................................................................................................................ 7 
STRATEGIC REPORT: FINANCIAL REVIEW ........................................................................................................................................................... 9 
STRATEGIC REPORT: BUSINESS REVIEW .......................................................................................................................................................... 14 
STRATEGIC REPORT: BOARD OF DIRECTORS .................................................................................................................................................. 21 
STRATEGIC REPORT: DIRECTORS' REPORT ...................................................................................................................................................... 23 
CORPORATE GOVERNANCE REPORT .................................................................................................................................................................... 26 
DIRECTORS' RESPONSIBILITIES STATEMENT ................................................................................................................................................ 31 
INDEPENDENT AUDITOR'S REPORT ...................................................................................................................................................................... 32 
CONSOLIDATED INCOME STATEMENT ................................................................................................................................................................ 34 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME. ............................................................................................................... 35 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ........................................................................................................................... 36 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .......................................................................................................................... 37 
CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................................................................................. 39 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ................................................................................................................... 40 
INDEPENDENT AUDITOR'S REPORT ...................................................................................................................................................................... 82 
COMPANY BALANCE SHEET ........................................................................................................................................................................................ 84 
NOTES TO THE COMPANY FINANCIAL STATEMENTS ................................................................................................................................. 86 
Page 2 of89  Registered Office 
Ubisense Group Pic 
St. Andrew's House 
St. Andrew's Road 
Chesterton 
Cambridge CB4 lDL 
Tel: +44 (0)1223 535 170 
Fax: +44 (0)1223 535 167 
Website: www.ubisense.net 
Investor Relations 
Redleaf Communications 
1st Floor, 4 London Wall Buildings 
Blomfield Street 
London EC2M 5NT 
Nominated Advisors and Brokers 
Numis Securities Limited 
The London Stock Exchange Building, 
10 Paternoster Square, 
London, EC4M 7LT 
Lawyers 
Mills & Reeve LLP 
Cambridge Office 
Botanic House 
98-100 Hills Road 
Cambridge CB2 lPH 
Auditor 
Grant Thornton UK LLP 
Cambridge Office 
101 Cambridge Science Park 
Milton Road 
Cambridge CB4 OFY 
Advisers 
Page 3 of89  Highlights 
Ubisense is a global leader in Enterprise Location Intelligence Solutions 
Operating through two divisions - Real-time Location Systems (RTLS) and Geospatial - we deliver best-in-class 
enterprise location intelligence solutions that significantly improve operational effectiveness and profitability for 
businesses around the world. 
Strategic highlights 
• 2015: A challenging year with lower than anticipated revenues against an increased, but now restructured, 
cost base 
• Restructuring complete: Decisive action taken to re-align and reduce costs by focusing on core geographies 
and markets, reassessing marketing strategy and reducing staff numbers 
• Key customer wins in both divisions: BMW Group, Ford, GM, John Deere, Magna Steyr, Nissan, Telus, 
Comporium and Nagoya Water. 
• Deeper customer relationships: Substantial deployments into existing Utilities and Telecoms customers in 
North America and across a number of global Manufacturing clients 
• Geographic consolidation: Further developed presence in Japan achieving first myWorld contract, while 
transitioning the South Korea and Singapore operations into partners 
• Partner channel successes: Worked successfully with Atlas Cop co across three major Automotive OEMs 
• Continued product development: Investment in both product lines maintained, with the next generation 
Dimension 4 RTLS platform fully deployed in three major production environments, and the mobile enhanced 
Geospatial myWorld 3.0 released in February 2016. 
Financial highlights 
• Revenue declined 37.3% from £35.1m to £22.0m with the results achieved in the higher margin solutions 
revenues in both divisions failing to offset the reduction in Geospatial sales, particularly in Europe 
• Gross margin decreased to 35.0% (2014: 39.9%) driven by the timing of new contracts and the revenue mix 
between new solution sales, installation projects and the scale of Geospatial services 
• Adjusted EBITDA* loss of £5.2m (2014: £1.8m profit) and further non-recurring costs of £4.1m (2014: £1.1m) 
and impairment charges of £4.1m (2014: £1.3m), led to an operating loss of £17.0m (2014: £4.6m) 
• £10m was raised from new and existing shareholders in May 2015 of which £2m was used to pay down a bank 
loan. The remainder was used for restructuring, and the support and development of the business 
• Cash balance was £5.4m (2014: £3.7m) and net debt£0.2m (2014: £3.2m) 
* Measured as operating profit excluding depreciation, amortisation/impairment and non-recurring costs such as reorganisation and 
acquisition costs. 
Page 4 of89  Chairman's statement 
Introduction 
2015 was a challenging year for Ubisense, in managing the impact of unprecedented market forces in key sectors and 
our continued transition to an enterprise solutions business. In response to reduced revenue expectations as the year 
progressed, we acted swiftly to increase focus on sales effectiveness and adjust our operating cost base to be better 
aligned to our revenues. These actions, alongside the proven performance enhancements and reduced costs we bring 
to customers, give us confidence that we can capitalise on growth opportunities whilst maintaining financial prudence. 
Reflections on 2015 
As we entered 2015, we were investing heavily in marketing activities, growing the organisation and continuing to 
invest in new markets, with the full expectation that revenue would accelerate driving the profitable growth of the 
business. 
The results for 2015 show that a combination of unforeseen external market forces, together with poor execution, led 
to a disappointing financial outcome. For the RTLS division, global economic concerns and, in particular, the damage 
done to German premium automotive suppliers, continue to resonate in the market but, encouragingly, orders continue 
to be received from these organisations even if at a lower level. For the Geospatial division, customer commitment to 
our platform and applications remains strong with new deployments achieving rapid adoption, and the enhanced 
mobile capability with the next version release is generating good levels of customer interest. 
Strategy 
The task now is to leverage our best-in-class products and ensure we see a tangible return on our investment and a 
return to profitability. We will achieve this by combining our direct sales efforts with those of our strategic partners 
such as Atlas Cop co and leveraging our expanding network of reseller partners. Having restructured the business, we 
are confident that incremental revenue can be generated without further significant expansion of the cost base, whilst 
still allowing for the right level of investment in our products. 
Board of Directors 
In June, Robert Parker stepped down as Chief Financial Officer, with Tim Gingell assuming his responsibilities as Interim 
Chief Financial Officer and Company Secretary 
October saw Andy Hopper signal his intention to leave the business at the end of the calendar year, officially stepping 
down as Chairman and Director of the Group on 31 December 2015. I would like to thank Andy for his hard work and 
commitment during his time with the Group. 
Originally a Non-executive Director ofthe Group, I was appointed Vice Chairman in April2015 and officially took over 
from Andy as Chairman on 1 January 2016. 
Page 5 of89  Outlook 
The business went through a difficult period in 2015 and market conditions remain challenging, so we continue to be 
prudent in our expectations of a recovery in the near term. With a renewed focus on sales and developing the partner 
channel, we have created a solid platform from which to grow in a profitable way on a more appropriately-sized cost 
base. 
Whilst mindful of the challenging environment, we are well positioned to take advantage dfthe demand for our products 
and solutions in both divisions, and first quarter revenues are marginally ahead of the prior year notwithstanding the 
significantly reduced costs base. We pride ourselves on hiring and developing the best location people in the business. 
I would like to take this opportunity to thank our staff for their on-going dedication and commitment during the 
restructuring and to express our gratitude for the support and patience of our shareholders. 
Peter Harvcrson 
Chairman 
06 Apri12016 
Page 6 of 89  Chief Executive's review 
Overview 
Overall 2015 proved to be a disappointing year as the business was hit by weaker than expected demand at the same 
time that we were investing to grow both the organisation and our geographical reach. At the start of the year, we 
anticipated growing the organisational presence and reach into a market that showed signs of material expansion. 
Last year, our strategic focus was on accelerating the growth of solutions sales with an increased proportion of software, 
whilst anticipating the decline in Geospatial revenues, particularly in Europe. The revenue growth required to offset 
this presented a significant challenge. Before the end of the first half, some delays in orders in the RTLS division from 
large German premium automotive OEMs meant we had to reset our revenue expectations for the second half of the 
year. Once it became clear that we would not be able to recover the shortfall against the first half revenue expectations 
by the end of the year, we took decisive action to re-align our costs with the revised revenue expectations. 
Our initiatives to refocus our resources on core geographies and markets and reduce our staff base are now complete. 
Our reset cost base means that we enter 2016 in a much better position to deliver organic growth of the business. 
Customer Successes 
The opportunity for Ubisense continues to be considerable. Our proven products are in use across 10 of the 12 leading 
automotive manufacturers in the world, and over 12,000 utility & telecommunications professionals are using our 
software every day. 
Both divisions of the business continued to expand their respective customer bases in the period. Wins were made with 
BMW Group, Ford, GM, John Deere, Magna Steyr, Nissan, Telus, Comporium and Nagoya Water and we extended our 
systems in our existing customer base with significant deployments in Utilities and Telecoms in North America and 
many of our global Manufacturing customers. 
We have successfully built on our initial entry into Japan, an important strategic territory for us. In Geospatial, we won 
our first notable Japanese myWorld contract with Nagoya Water and, on the RTLS side, good progress was made 
building on proof of concept deployments at both Nissan and Toyota. 
Strategic Partnerships 
The Atlas Copco relationship delivered on three opportunities in Europe, Asia and the US, validating our strategy of 
scaling the business through partner channels. Other industrial vendors have also incorporated our technology into 
their wireless tools recognising the market opportunity with location intelligence enhancement Other partners of note 
include itelligence (a NTT Data company), VLS and Noldus. 
Additionally, a partnership has been developed for the myWorld platform with ONZO (a global provider of data science­
based utility analytics solutions) which was signed in the early part of 2016. 
Page 7 of 89  Chief Executive's review (continued) 
Product Development 
We made considerable investment in the development of the product lines of both divisions in the year, recognising 
that continued investment in products is needed to support future growth. 
Dimension4, our next generation RTLS platform, was fully deployed in three major production environments. The 
feedback has been very positive, leading to a significant improvement in product performance and installation 
efficiencies. 
myWorld also continued on its development path with further integrations to legacy GIS systems from Esri and 
Intergraph, as well as enhancing the mobile capability of the solution which is expected to deliver some key contract 
wins in 2016. 
Summary 
We believe that with the business having a renewed focus on the two divisions and their respective product lines, there 
is a considerable opportunity for us to both win new customers and provide additional solutions for our existing 
customers. We are, as ever, very grateful for the continued support of our stakeholders, and are committed to driving 
value for them in 2016 and beyond. 
Richard Green 
Chief Executive Officer 
06 April2016 
Page 8 of89  Strategic Report: Financial Review 
Revenue 
During the year the Group re-organised into two divisions, RTLS and Geospatial, recognising the separate solutions and 
services and targeting distinct sets of customers. The Group's strategy is outlined further in the Strategic Report. Whilst 
we're organised as two separate divisions supported by a central corporate team, the revenue streams are best 
understood as follows: 
Both divisions sell solutions whereby revenues are those driven from the Ubisense product suites (RTLS -
Smart Factory; Geospatial- myWorld), technical expertise and reseller arrangements. A solution sale will 
include a mixture of application software (licences in perpetuity and subscription based), installation and 
commissioning services, hardware (for RTLS) and maintenance and support. Margins in any given period 
will vary depending upon the mix and phase of the given set of solutions being delivered. The Group sees this 
revenue stream as key to driving the long term growth and profitability of the business and there is a strategic 
shift towards this higher margin revenue stream. 
The Geospatial division also generates services revenues which are those not involving the Ubisense product 
suites as defined above. These revenues are typically multi-year or annually renewed managed services 
contracts, consultancy and training. The Group generally has good visibility on future revenue from these 
services contracts, and drives customer loyalty in addition to providing a customer base into which it can sell 
its solutions. 
The majority of our revenues relate to a small number oflarge deals, the timing of which is not solely within our control 
and each can carry a significant impact on our results in any single reporting period. 
Total revenues fell37.3o/o to £22.0 million (2014: £35.1 million). Within total revenues, the RTLS division's revenue fell 
by 21.0% to £6.4 million (2014: £8.1 million) as a result of the commercial challenges suffered by the German 
automotive OEMs. Geospatial revenue fell by 42.6% to £15.5 million (2014: £27.0 million) primarily due to the 
reduction in low margin Geospatial services contracts in Europe. 
Recurring revenues declined by 30.8% to £6.8 million (2014: £9.8 million) or 31.0% of total revenues (2014: 28.1 %). 
£2.7 million of this was maintenance and support which decreased by 36.9% (2014: £4.2 million) and represents 12.1 o/o 
of total revenues (2014: 12.0%). 
As a global business with activities focussed in Europe, North America and Asia Pacific, the reported results are subject 
to exchange rate volatility. During the period the GBP has weakened against the US Dollar, but strengthened against the 
Euro and Japanese Yen; currencies in which the Group derives a significant proportion of its revenues. If currency 
exchange rates had remained constant in 2015 compared to 2014, the Board estimates that Group reported revenues 
would have been £0.3 million higher at £22.2 million and the adjusted EBITDA loss £0.2m larger. 
To mitigate currency effects, the Group's policy is to maintain natural hedges where possible by matching foreign 
currency revenues and expenditure. The Board regularly reviews the forecast currency requirements and, at this stage, 
does not consider external hedging arrangements for profit and loss items to be appropriate for the Group. 
Orders 
2015 saw a number of major new contract awards and extensions to existing contracts resulting in new orders for the 
period of £19.2 million (2014: £31.6 million). £5.1 million of this related to RTLS and £14.1 million to Geospatial. 
The order book as at 31 December 2015 stood at £9.6 million (2014: £12.4 million), a 22.6% decrease from 2014. This 
reflects the Group's strategy to focus on sales of solutions in both divisions, which provides a shorter lead time between 
order and revenue generation than Geospatial services, which in 2014 was significantly made up of multi-year contracts 
at lower margin. 
Page 9 of89  Strategic Report: Financial Review (continued) 
Gross margin 
The gross margin fell from 39.9% in 2014 to 35.0% in 2015. This was as a result of timing of new contracts and the 
revenue mix between sales of new solution contracts, implementation of installation projects and scale of Geospatial 
services. 
Operating expenses 
Operating expenses increased by £6.1 million (32.8%) to £24.7 million (2014: £18.6 million). 
Operating expenses includes sales, marketing, product marketing, product development, administration, depreciation 
& amortisation and foreign exchange and were increased in the first half of 2015 with an increase in marketing and 
headcount costs to match revenue expectations. Once it became clear that the expected revenue increase would not 
arise then the Group initiated a restructuring and streamlining of the organisation to reduce costs going forward. 
The re-organisation program included reverting to two divisions, removing administration overheads, reducing 
marketing costs and headcount, disposal of non-core operations in South Korea, Singapore and the Philippines, and 
reducing certain business development activities, incurring non-recurring expenditure of £4.0 million split between 
cost saving £3.2 million (2014: £0.5 million) and disposal of non-core operations £0.8 million including a specific 
debtor provision, delivering £5.8 million of annualised cost reductions. 
In total, the Group incurred non-recurring expenditure mainly relating to the reorganisation program of £4.1 million 
(2014: £1.1 million). Additionally, a provision for impairment of goodwill was made for £4.0 million recognising the 
challenging trading period that the Group had during 2015. Acquired intangible assets relating to Services revenues 
were not impaired during the year (2014: £1.3 million). 
Gross expenditure on product development was £3.1 million (2014: £3.9 million) reflecting the continuing investment 
in our flagship Smart Factory and myWorld products. Capitalised product development costs at £2.5 million (2014: 
£3.0 million) represented 81% (2014: 75%) of gross development spend. Amortisation of the capitalised development 
costs remained at £2.6 million (2014: £2.6 million) as a result of significant investment in product development in 
recent years. 
EBITDA and operating profit 
Group Adjusted EBITDA for the period was a loss of £5.2 million (2014: £1.8 million profit). To provide a better ~uide 
to underlying business performance, Adjusted EBITDA excludes non-recurring items along with depreciation, 
amortisation, interest and tax from the measure of profit. 
Both the operating loss of £17.0 million (2014: £4.6 million) and the loss before tax of £17.3 million (2014: £4.8 million) 
includes amortisation/impairment charges of £7.2 million (2014: £5.0 million), depreciation charges of £0.4 million 
(2014: £0.4 million) and the non-recurring items noted above of £4.1 million (2014: £1.1 million). 
Page 10 of89  Strategic Report: Financial Review (continued) 
Interest and tax 
Net interest payable for the period was £0.3 million (2014: £0.2 million) as a result of drawing down our HSBC and 
Mizuho bank loans. 
The Group has a net tax credit of £0.6 million (2014: £0.7 million expense) as a result of cash received of £0.5 million 
under the UK R&D tax credit regime and £0.1 million 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 but does not currently recognise a deferred 
tax asset in respect of these losses. 
EPS and dividend 
Adjusted diluted loss per share was 25.2 pence (2014: 3.5 pence loss). Reported basic and diluted loss per share was 
52.3 pence (2014: 16.7 pence). No dividend has been declared. 
Balance sheet, cash and cash flow 
The Group has a balance sheet with net assets at 31 December 2015 of £12.0 million (31 December 2014:£18.8 million). 
In May 2015, the business completed a share placing raising gross proceeds of £10.0 million with the placement of 
11,111,112 new ordinary shares at a price of £0.90 per share from existing and new shareholders. The net proceeds 
from the placing were used by the Group to repay the £2 million HSBC acquisition loan, support the development of the 
business and to enable a restructuring to occur. 
The Group has a three year working capital facility of £8.0 million agreed with HSBC in May 2015. £4.5 million of this 
facility was drawn as at 31 December 2015 (2014: £4.0 million). The Mizuho Bank facility was increased to 200 million 
Japanese Yen in H2 2014 and JPY 200 million was drawn at 31 December 2015 (2014: JPY 200 million). This facility was 
fully repaid on 31 March 2016. 
In October 2014, the Group agreed an additional £2.0 million four-year term loan with HSBC to provide funds for future 
acquisitions. This facility was fully repaid in 2015. 
Page 11 of89  Strategic Report: Financial Review (continued) 
Cash and cash equivalents held in the balance sheet at 31 December 2015 was £5.4 million (31 December 2014: £3.7 
million). The movement in the cash position during the year is summarised below: 
2015 
£m 
Loss before tax (17.3) 
Depreciation and amortisation charges 7.7 
Other non-cash expenses 0.3 
Operating cash inflow before working capital movement (9.3) 
Working capital inflows 5.3 
Operating cash flows before capital expenditure (4.0) 
Capital expenditure on product development and property, plant & equipment (2.8) 
Net interest and tax received 0.3 
Cash outflow from trading activities (6.5) 
With bank loans outstanding of £5.6 million, net debt at 31 December 2015 was £0.2 million (31 December 2014: £3.2 
million net debt). The movement in the net debt position is summarised below: 
20'15 
£m 
Net debt at 1 January 2015 (3.2) 
Cash outflow from trading activities (6.5) 
Share placing to institutional investors - net 9.5 
Net debt at 31 December 2015 (0.2) 
Subsequent to the period end the further cash outflow related to restructuring costs together with first quarter losses 
and working capital movements have led to a net debt position of £2.4m at 31 March 2016. 
Page 12 of89  Strategic Report: Financial Review (continued) 
Capital structure 
The issued share capital at 31 December 2015 was 36,620,247 (December 2014: 25,062,842) ordinary shares of £0.02 
each. The increase of 11,557,405 shares relates to 11,111,112 shares issued in the May 2015 placing and 446,293 share 
option exercises by employees. The total number of unexercised share options at 31 December 2015 was 1,486,731. 
Page 13 of89  Strategic Report: Business Review 
Strategy and business model 
Our vision is to be the most widely adopted location intelligence software platform in our target markets - second to 
none. 
We help unlock previously inaccessible intelligence and insight to empower our customers to realise dramatic benefits 
in diverse application areas including vehicle manufacturing, network operations, field operations and asset 
management. Ubisense Enterprise Location Intelligence solutions are used by a number of blue chip customers across 
the world, such as Toyota, VW, Airbus, BMW, Telus, NiSource, Cablevision and Exelon. 
Ubisense is headquartered in Cambridge, UK and has offices in the USA, Germany and Japan. 
Strategy 
The opportunity for Ubisense continues to be large. As a market-leading provider of location intelligence platform 
solutions to some of the world's leading blue chip companies, with proven success and established products in two 
distinct and growing divisions, the foundations are now in place to enable the Company to scale through partners. 
Following what has been a year of considerable challenge for the Group, the Board's focus in the coming year is on 
returning to profitability through improving sales effectiveness in both divisions across key territories and verticals 
combined with a prudent approach to managing operating costs. 
One consequence of our strategy of focusing on higher margin revenue streams driven from Ubisense-owned IP and 
exiting from specific lower margin business has been an impairment to goodwill of £4.0m (2014: £1.2m). 
Business Model- How we add value 
Industry leading technology 
Ubisense has already established very close commercial relationships with blue-chip customers in end markets, 
partnering with some of the world's most recognised and respected brands. 
At the centre of this success has been the development of flexible and highly configurable software platform 
technologies which (whilst in the development phase) led to the identification of critical commercial applications in 
automotive manufacturing, telecom and utilities where we have been extremely successful in using our first-mover IP 
advantage to build the market by creating and delivering new classes of value added services, which are now fully 
proven in the market. 
Addressable market opportunities 
The enterprise acceptance of our solutions has also accelerated allowing consumerisation of maps led by Google, the 
proliferation of smart devices, the growth in cloud technologies, Industry 4.0 and the modern device-to-device 
networking referred to as "Internet of Things". Ubisense's software products and services capability benefit from these 
trends, enabling enterprises to deliver significant improvements in quality, efficiency and cost savings. 
Blue-chip customer base 
In growing these capabilities we have worked with some of the world's leading companies to address some of the most 
difficult and pressing business issues for the customer, thereby giving us a tremendous track record in delivery. The 
opportunity is to now build on this experience and growing market demand to expand the platform technologies and 
the range of applications that can be supported. 
Alongside this, the opportunity to deliver across new vertical markets is significant. We have already identified and had 
success across not only automotive manufacturing, telecoms and utilities, but are now gaining traction and increasing 
sales success in delivering applications in healthcare, mass transit, logistics and entertainment where the flexibility, 
reliability and usability of the platforms have been a key determinant of success. 
Page 14 of89  Strategic Report: Business Review (continued) 
Channel Scalability 
The success and strong customer traction so far has been established with a direct sales channel working alongside a 
growing and increasingly successful set of sales solution partners. The opportunity now is to expand the reseller 
channel to grow our vertical and geographical market presence, taking advantage of in-depth market knowledge, 
geographical coverage and considerably lower cost of sale that the development of the indirect channel would bring. 
Business development 
The Group's products are becoming generally accepted across its chosen industries and Ubisense, with its partners, is 
increasingly able to penetrate the target markets to deliver value-added applications that address the needs of verticals. 
Our strategic acquisition in Japan has delivered early wins for the RTLS division in global OEMs through partners such 
as Meiji Denki, further validating our approach in the market Furthermore, the adoption ofmyWorld by Nagoya Water 
endorses its utility for the water industry in Japan. 
The Group continues to invest in product development to deliver leading edge location platforms upon which to build 
best in class applications. 
Key performance indicators 
The primary financial key performance indicator for the Group, which are reported monthly, are as follows; 
• Adjusted EBITDA 
Adjusted EBITDA excludes amortisation, depreciation and non-recurring items and is reported as it reflects 
the performance of the Group. Adjusted EBITDA for the year was £5.2 million loss (2014: £1.8 million profit). 
• Revenue and contribution by division 
The revenue and contribution in each division is different with the stage of completion of individual contracts 
together with the mix of Geospatial services affecting divisional revenue, gross margin and contribution 
results. Segmental results are outlined in note 5.1 of the consolidated financial statements. 
• Cash and working capital 
The Group closely monitors the cash balances and working capital movements. The closing cash balance for 
the Group was £5.4 million (2014: £3.7 million) and net debt was £0.2 million (2014: £3.2 million net debt). 
The movement in the cash position is explained in detail in the Financial Review starting on page 9. 
• Order backlog 
Order backlog provides the Group visibility over future revenues. At 31 December 2015, the order backlog 
was £9.6 million (2014: £12.4 million). This decrease reflects the Group's strategy of focussing on solutions 
revenues which attract shorter lead times between order and revenue generation than Geospatial services. 
Page 15 of89  Strategic Report: Business Review (continued) 
Non-financial key performance indicators for the Group include: 
• Quantity and quality of!ead generation, pipeline and conversions to deals in the sales pipeline 
• Project duration including installation service days 
• Our reaction and solution times to customer requests 
Following the reorganisation into two divisions in the middle of the year, the Board regularly reviews the KPis in respect 
of changes within periods and changes between reporting periods. The Board believes that the Group has made steady 
progress against the KPis, particularly in terms of driving the business towards positive Adjusted EBITDA and improved 
cash flow. 
Financial instruments 
Information on both the Group's financial risk management objectives and the Group's policies on exposure to relevant 
risks in respect of financial instruments are set out in note 26 of the consolidated financial statements. 
Principal risks and uncertainties 
The Group faces competitive and strategic risks that are inherent in a rapidly growing emerging market. The Board and 
the Executive Management Team review strategy and risks to the business regularly. Where possible, processes are in 
place to monitor and mitigate the identified risks. 
The key business risks affecting the Group are set out below: 
Technological risks 
The Group operates in an industry where competitive advantage is heavily dependent on technology. It is possible that 
technological development may reduce the importance of the Group's function in the market or render the patents on 
which it relies redundant. For instance, the Group's Enterprise location systems rely on ultra-wideband radio signals to 
operate. There is no guarantee that technological advances will not render systems based on ultra-wideband radio 
obsolete. 
In order to mitigate this risk, Ubisense invests in a range of research and development activities to maintain its 
competitive advantage and participates in industry and research forums in order to keep abreast of technological 
advances. The Group spent £3.1m in its R&D programmes in the year (2014: £3.9 million) of which £2.5 million (2014: 
£3.0 million) was capitalised. 
Growth management 
The Directors believe that further expansion, either organic or via acquisition, will be required in the future to capitalise 
on the anticipated increase in demand for the Group's solutions. The Group's future success will depend, in part, on its 
ability to manage this anticipated expansion across the business and if the Group is unable to manage its expansion 
effectively, its business and financial results could suffer. In order to mitigate this risk, the Group continues to develop 
its systems and processes that can scale with the business whilst maintaining good financial management. 
Page 16 of89  Strategic Report: Business Review (continued) 
Staff recruitment and retention 
The contribution made by Ubisense's highly skilled and experienced staff is vital to the Group's success. As the Group 
grows, it is important to recruit and retain staff. 
The Group has in place appropriate incentive structures to attract and retain the calibre of employees necessary to 
ensure the efficient development and management of the Group. 
Reliance on third parties, induding manufacturers 
The Group relies on certain key third party equipment manufacturers in the completion of its products, and therefore 
does not always have complete control over the supply of the equipment and materials it requires to comply with its 
obligations under customer contracts. To the extent that the Group cannot acquire equipment or materials according 
to its plans and budgets, its ability to complete its work for its customers within the timetable laid down by the contract 
or at a profit may be impaired. If a manufacturer is unable to deliver the products for any reason, the Group may be 
required to purchase such equipment or materials from another source at a higher price. The resulting additional costs 
may be substantial and the Group may be in breach of its contracts with customers, which may result in a financial loss 
on a particular contract or a loss of business. In addition, any resulting failure to fulfil contracts with customers and 
other business partners may have an adverse effect on the Group's future profitability and reputation. 
In order to mitigate this risk, the Group closely manages and reviews its relationship with key suppliers on a regular 
basis. 
Dependence on key customers 
The Group has a concentrated customer base, many of which are substantially larger enterprises than the Group. As 
such, the purchasing power of the Group's customers is often significant, which may impact the ability of the Group to 
negotiate terms which are favourable to it in contracts. The Group is reliant on significant projects with its key 
customers to deliver its projected financial results. Changes to the timing and/or terms of significant projects, to the 
investment decisions of key customers or failure by the Group to retain key customers may have a significant adverse 
effect on the Group's business and financial results. In the financial year to 31 December 2015 the Group's ten largest 
customers accounted for 41% of the Group's revenue (2014: 47%), of which one customer accounted for just under 6% 
(2014: 13%). The loss of a major customer could result in a decrease in Group revenues, margins and profitability. 
In order to mitigate this risk, the Group continues to invest in the key customer relationships that it has successfully 
retained over many years, whilst also maintaining a strategy to extend and diversify its customer base. 
Contracts 
Some of the Group's commercial contracts include terms where revenues and/or invoicing are related to customer 
acceptance. Other contracts contain terms whereby the timing of cash collections is contingent on the customer re­
selling our products to end users. The Group's exposure under such contracts is limited and reviewed regularly by the 
Board. 
A significant proportion of the Group's revenue is derived from a small number of large deals, the timing of which is not 
within the control of the Group. Such a profile makes forecasting difficult and changes against expectations have had, 
and may continue to have, a significant impact on the group's results, particularly given the Group's significant level of 
operational gearing. To mitigate this risk, the Group's management maintains regular detailed reviews of the 
opportunity pipeline including critical stages to complete the larger deals taking judgement on the risks involved. The 
status of key deals in the current period is reported on at Board meetings. 
Page 17 of89  Strategic Report: Business Review (continued) 
Credit 
The main credit risk is attributable to trade receivables owed by customers. As the majority ofthe Group's customers 
are very large, blue chip utilities, telecoms and manufacturing companies, the risk of non-payment tends to be less of a 
traditional credit nature and more related to customer satisfaction. 
Credit exposure by customer is reviewed regularly by the Executive Management Team and the main Board with 
provision made for doubtful receivables when there are circumstances which, based on experience, are evidence of a 
likely reduction in the recoverability of the receivable. 
Bank covenants 
In May 2015 the Group extended the 3 year working capital bank loan facility to £8.0 million (2014: £5.0 million) with 
HSBC Bank pic repayable in 2018, and as at 31 December 2015 the outstanding balance was £4.5 million (2014: £4.0 
million). 
Following the fund raise in May 2015, the £2.0 million acquisition loan with HSBC Bank pic that existed as at 31 
December 2014 was repaid. 
The Group is required to meet certain financial criteria agreed as covenants for the bank loan as laid out in note 18 to 
the Financial Statements. The financial measures are regularly reviewed against covenant requirements to ensure the 
Group's obligations can be met. 
The Group notified HSBC of a breach of the covenants relating to adjusted EBITDA as at 31 December 2015 and as at 31 
March 2 016, against which HSBC provided Reservation of Rights letters indicating that they do not intend to take further 
action. 
With a covenant test based on a rolling 12 month adjusted EBITDA calculation, the Group anticipates further covenant 
breaches in the next 12 months until the full effect of the restructuring actions taken in 2015 are delivered and the 
disappointing results of 2015 no longer have an impact on the calculation. The Group is engaged in constructive 
discussions with HSBC on a multi-year repayment loan with business appropriate covenants as a replacement of this 
facility. 
Intellectual property 
The Group has a number of trademarks registered, and is pursuing registration of a number of trademarks, in the major 
territories in which it operates. The Group also has a patent portfolio comprising a number of patents filed in territories 
worldwide. Should a third party successfully demonstrate priority over any of these rights, it could inhibit the Group, 
or the Group's customers, from selling products in certain territories. 
Any failure to protect the Group's intellectual property may result in another party copying or otherwise obtaining and 
using its proprietary technology without authorisation. There may not be adequate protection for the intellectual 
property in every country in which the Group's products are made available and policing unauthorised use of 
proprietary information is difficult and expensive. Due to the Group's size and limited cash resources, it may not be able 
to detect and prevent infringement of its intellectual property. 
In addition, some of the Group's patents are licensed from a third party. The terms of that licence are on relatively 
standard commercial terms. However, there can be no guarantee that such third party will adequately maintain such 
patents and therefore the protection and benefit afforded to the Company by such patents cannot be guaranteed. 
Page 18 of89  Strategic Report: Business Review (continued) 
The steps which the Group has taken to protect its intellectual property may be inadequate to prevent the 
misappropriation of its proprietary technology. Any misappropriation of the Group's intellectual property could have 
an adverse impact on the Group's business and its operating results. Furthermore, the Group may need to take legal 
action to enforce its intellectual property, to protect trade secrets or to determine the validity or scope of the 
proprietary rights of others. Litigation relating to the Group's intellectual property, whether instigated by the Group to 
protect its rights or arising out of alleged infringement of third party rights, may result in substantial costs and the 
diversion of resources and management attention and there can be no guarantees as to the outcome of any such 
litigation. 
Employee involvement 
The Group aims to attract, retain and motivate the best staff regardless of gender, race, religion, sexual orientation, age 
or disability. To that end it is committed to offering equal employment opportunities. 
The Group provides its employees systematically with information on matters of concern to them and regularly consults 
its staff, or their representatives, for views on matters affecting them. 
The Group encourages employee involvement in the Group's performance by periodically granting share options and 
Group performance-related variable compensation, and ensures that employees are fully aware of financial and 
economic factors affecting the performance of the Group. 
Employee policies 
The Group is committed to following the applicable employment laws in each territory in which it operates. The Group 
is committed to ensuring that disabled persons, whether registered or not, have equal opportunities when applying for 
vacancies, with due regard to their aptitudes and abilities. In addition to complying with legislative requirements, 
procedures ensure that disabled employees are fairly treated and that their training and career development needs are 
carefully managed. For those employees becoming disabled during the course of their employment, every effort is made, 
whether through retraining or redeployment, to provide an opportunity for them to remain with the Group. 
Health and safety environment 
The Group is committed to maintaining a safe and healthy working environment for all staff. To that end it provides 
appropriate training and supervision and complies with all applicable regulatory requirements. 
The Group seeks wherever possible to minimise its impact on the environment for the benefit of its staff and the public 
at large. The Group is committed to complying with environmental regulations in particular WEEE and encourages and 
supports staff in waste recycling within its offices. 
Digital infrastructure and cybersecurity 
Breaches of the Group's digital security, through cyber attacks or otherwise, or failure of the Group's digital 
infrastructure, could seriously disrupt operations and result in the loss or misuse of data or sensitive information, 
legal or regulatory breaches and potentially legal liability. These could result in significant costs or have reputational 
consequences. 
Following a review of the resilience and disaster recovery capability of the Group's critical systems and exchanges in 
2015, we have invested resources in enhancing site resilience and defences, improving network monitoring and 
reviewing the incident response processes to mitigate the impact of a security breach. 
Page 19 of89  Strategic Report: Business Review (continued) 
Review of investment in, and balances with, subsidiaries 
An impairment review was undertaken of the standalone Company's balance sheet, and in particular, it's investments 
in, and balances with, subsidiaries, noting the results delivered in 2015 and the outlook to future periods. Following 
this review, an impairment charge was made in the Company's books. 
Approved by the Board of Directors 
And signed on behalf of the Board 
Tim Gingell 
Interim Chief Financial Officer and Company Secretary 
06 April2016 
Ubisense Group pic 
Registered number: 05589712 
Page 20 of89  Strategic Report: Board of Directors 
Peter Harverson, Chairman 
Peter has held a number of senior international sales and marketing roles in the IT industry. These included Regional 
Director, Intel Corporation and Vice President Europe, Cadence Design Systems. In 1995 he joined Sun Microsystems 
where he was responsible for the development of the company's European Corporate Accounts programme. 
Subsequently he became Director of Services Sales- EMEA with a charter to develop new areas of business, including 
professional services. Peter retired from Sun Microsystems in December 2005. Most recently he was Non-Executive 
Chairman of Aspex Semiconductors Limited, sold to Ericsson AB in July 2012. Currently, Peter is a Non-Executive 
Director of Brady pic, CRFS Limited, and Chairman of eo Semi Limited. Peter is also an advisor to Cambridge IP Limited. 
Richard Green, Chief Executive Officer 
Richard initially trained as a mechanical engineer and has over 25 years' of experience in the software industry. 
Having established Smallworld as one of the leading geographic information system companies serving utility and 
telecoms companies in Europe and the US, the company subsequently listed on NASDAQ in 1996 and was acquired by 
GE in 2000 for $214 million. Richard was Ernst & Young UK's Science and Technology Entrepreneur of the Year in 2010. 
Richard is a Fellow of the Institute of Mechanical Engineers. He is also an Entrepreneur in Residence at the Cambridge 
Judge Business School. 
Dr. Robert Sansom, Non Executive Director 
An active angel investor and mentor to start-ups, Robert is founder of the Cambridge Angels, a group of seasoned 
technology and bio-technology entrepreneurs who invest in and mentor technology start-ups in the Cambridge area. 
Previously, Robert was co-founder, CTO and Director of FORE Systems, Inc., a leading provider of networking 
equipment. FORE was listed on NASDAQ in 1994 and subsequently acquired by Marconi for $4.5 billion in 1999. 
Additionally, Robert served as the Chief Technology Officer at Marconi until 2000. Robert is a member of the Board of 
Directors of Cambridge Communications Systems Limited, CRFS Limited, Featurespace Ltd and Netronome Systems, 
Inc. He was elected as a Fellow of the Royal Academy of Engineering in 2010 and is a trustee ofCamfed. 
Paul Taylor, Non Executive Director 
Paul is a Fellow of the Association of Chartered Certified Accountants. 
Paul joined AVEVA Group Pic in 1989 and was heavily involved in the flotation process and was responsible for UK 
accounting and for the development of AVEVA's overseas subsidiaries including adherence to group standards. Between 
1998 and 2001, Paul was also UK Director of Human Resources and was appointed to the position of Finance Director 
and Company Secretary of AVEVA Group pic on 1 March 2001. Before joining AVEVA, Paul trained within the 
accountancy profession before moving to Philips Telecommunications (UK) where he was responsible for the 
management accounts of its Public Sectors division. Paul was a recipient of the FTSE250 Finance Director of the Year 
award and is also a Non- Executive Director of Escher Group Holdings pic, Digital Barriers pic and KBC Advanced 
Technologies pic. 
Page 21 of89  Strategic Report: Board of Directors (continued) 
Ian Kershaw, Non Executive Director 
Ian has over 30 years' experience in the automotive, manufacturing and power industries. He has global responsibility 
for both transaction support and operational performance improvement within Ricardo's strategic consulting 
division. Ian has held management positions with Caterpillar, Rolls-Royce & Bentley Motor Cars and Arthur D. Little. 
Tim Gingell, Interim Chief Financial Officer and Company Secretary 
Tim has over 25 years of commercial and financial experience across software, wireless and telecoms industries. Tim 
qualified as a Chartered Accountant with Deloitte in London and most recently was CFO or Director for a number of 
IBM's acquired companies having joined IBM when they acquired i2 from Silver Lake Sumeru. Prior to that Tim led the 
finance team at the venture capital backed company The Cloud Networks, and previously had spent 10 years at MFS I 
Worldcom in commercial roles. 
Page 22 of89  Strategic Report: Directors' Report 
The Directors present their annual report on the affairs of the Group together with the audited financial statements for 
the year to 31 December 2015. 
Incorporation and constitution 
Ubisense Group pic is domiciled in England and incorporated in England and Wales under Company Number 05589712. 
Ubisense Group pic's Articles of Association are available on the Group's website at www.ubisense.net. 
Capital structure 
The Company has one class of ordinary share of two pence each which carries no right to fixed income. Each share 
carries the right to one vote at general meetings of the Company. 
Details of the share capital of the Company, including shares issued during the year, can be found in note 20 of the 
consolidated financial statements. 
Substantial shareholdings 
On 06 Apri12016, the Company had been notified of the following significant interests in its ordinary share capital: 
Partners 
Threadneedle Investments 
Robert Sansom 
NFU Mutual Insurance Society Ltd 
Ruffer LLP 
Richard Green* 
Living Bridge 
Charles Stanley 
Unicorn Asset Management 
% of issued share 
capital 
23.01 
11.54% 
8.15% 
6.38% 
5.28% 
5.04% 
3.91% 
3.64% 
3.29% 
*Includes 115,617 (2014: 115,617) shares held by the RT Green Children's Trust of which Richard Green is a trustee. 
Directors 
The Directors serving at 31 December 2015 were as follows: 
Richard Green 
Peter Harverson 
Ian Kershaw 
Robert Sansom 
Paul Taylor 
Page 23 of89  Strategic Report: Directors' Report (continued) 
Board Changes 
On 29 June 2015, Robert Parker resigned his position as Chief Financial Officer and left the company. 
On 21 July 2015 Tim Gingell, having joined the Group in February 2015, was appointed as Company Secretary and is 
Interim Chief Financial Officer whilst the Group reviews its options for a permanent replacement 
On 9 October 2015, Andrew Hopper notified the Board of his intention to resign both as Chairman and Non-Executive 
Director after almost 10 years of service with Ubisense effective from 31 December 2015. 
Directors' interests - shares 
Directors' interests in the ordinary shares of Ubisense Group pic at 31 December 2015 were as follows: 
2014 
Number 
Peter Harverson 65,161 
Andrew Hopper 225,000 
lan Kershaw 
Robert Sansom 2,493,676 
Paul Taylor 
*Includes 115,617 (2014: 115,617) shares held by the RT Green Children's Trust of which Richard Green is a trustee. 
There has been no change in the interests set out above between 31 December 2015 and 06 April2016. 
Directors' remuneration, share options and loans 
Details of directors' remuneration and share options are provided in note 7 of the financial statements. There are no 
loans to or from the Directors. 
Directors' indemnity arrangements 
The Group has made qualifying third party indemnity provisions for the benefit of its Directors which were made during 
the year and remain in force at the date of this report. 
The Group has purchased and maintained throughout the year Directors' & Officers' liability insurance in respect of 
itself and its Directors. 
Page 24 of89  Strategic Report: Directors' Report (continued) 
Corporate governance 
The company's statement on corporate governance can be found in the Corporate Governance report on pages 26 to 30 
of these financial statements. The Corporate Governance report forms part of the Directors' report and is incorporated 
into it by cross-reference. 
Business review 
The information that fulfils the requirements of the business review, including details offinancial performance for the 
year ending 31 December 2015, key performance indicators, principle risks and uncertainties and the future outlook 
are set out in the Chairman's statement, Chief Executive's statement and Financial Review. 
Going concern review 
The Board has considered the Going Concern position of the Group which is discussed further in note 3. 
Post balance sheet events 
In the Financial Review, the Group outlined the fact that the Mizuho loan was repaid on 31 March 2016, and that the 
Group had notified HSBC Bank pic of the breach of covenants on its loan. In response, HSBC Bank pic had responded 
indicating that it did not plan to take action, remained supportive and desired to put in place a more appropriate facility. 
Dividends 
The Directors do not recommend payment of a dividend for the year (2 014: £nil). 
Auditor 
A resolution to re-appoint Grant Thornton UK LLP as the Group's auditor will be proposed at the forthcoming Annual 
General Meeting. In accordance with normal practice, the Directors will be authorised to determine the Auditor's 
remuneration. 
Approved by the Board of Directors 
And signed on behalf of the Board 
Tim Gingell 
Interim Chief Financial Officer and Company Secretary 
06 April2016 
Ubisense Group pic 
Registered number: 05589712 
Page 25 of89  Corporate governance report 
Although not required to do so by the AIM Listing Rules, the Directors have chosen to provide selected corporate 
governance disclosures with this report, which they consider to be valuable to the reader. 
The Directors believe that effective corporate governance, appropriate to the Group considering its size and stage of 
development, will assist in the delivery of corporate strategy, the generation of shareholder value and the safeguarding 
of shareholders' long-term interests. We do not comply with the UK Corporate Governance Code September 2014 ("the 
code"). However, the Directors are committed, wherever it is reasonably practicable, to ensure that the Group is 
managed in accordance with the principles set out in the Code. 
Composition of the Board 
The Board comprises the Non-Executive Chairman, three Non-Executive Directors and one Executive Director. 
Biographical details of all members of the Board are set out on pages 21 and 22. 
Since the flotation of the Company in 2011, no equity-based incentives have been granted to Non-Executive Directors 
and there are no such plans for any such grants in the future. At the end of the year, the Chairman and all Non-Executive 
Directors had shares and share options in Ubisense Group Pic. 
The holding of shares and share options by Non-Executive Directors could, amongst other things, be relevant in 
determining whether a Non-executive Director is independent. Therefore, after detailed consideration, the Board has 
determined that Paul Taylor and Ian Kershaw are the only independent Non-Executive Directors within the meaning of 
the Code, noting that their shareholdings in the Group are small. 
The roles of Chairman and Chief Executive Officer are vested in separate individuals, each with clear allocation of 
accountability and responsibility. The Chairman has prime responsibility for running the Board and the Chief Executive 
Officer has executive responsibilities for the Group's strategic development, operations and results. The structure of 
the Board and the integrity of each Director ensures that there is no one individual or group dominating the decision 
making process. 
The :role of the Board 
The Board holds full meetings at least ten times per year, with attendance required in person whenever possible. The 
principal matters that it considers are as follows: 
• reviewing operating and financial performance; 
• ensuring that appropriate management development and succession plans are in place; 
• determining corporate strategy, including consideration and approval of the Company's annual strategy review; 
• establishing dividend policy; 
• approving and accepting all new committed funding facilities; 
• approving and accepting major changes in the capital structure of the Company; 
• reviewing and approving formal treasury policies relating to funding, liquidity, transactional foreign exchange and 
interest rate risk management; 
• reviewing the health and safety and environmental performance of the Company; 
• approving corporate acquisitions, mergers, divestments, joint ventures and major capital expenditure; and 
• receiving, reviewing and approving recommendations by the designated committee on matters related to audit, 
nominations and remuneration. 
Page 26 of89  Corporate governance report (continued) 
The Board is supplied with information in a timely manner and in a form and of a quality appropriate to enable it to 
discharge its duties. The Board has a policy to set out which matters are reserved for the decision of the Board and 
those to which the Executive Directors need not refer for approval. This policy also requires that all recommendations 
and decisions by a Board Committee are approved or ratified by the Board. 
Summary of Board meeting attendance in 2015 
The Board is expected to meet regularly on a formal basis at least ten times a year. 20 Board meetings were held in 
2015. Attendance at the meetings was as follows: 
Tim Gingell 
Richard Green 
Peter Harverson 
Andrew Hopper 
lan Kershaw 
Robert Parker 
Robert Sansom 
Paul Taylor 
Figures in brackets denote the maximum number of meetings that could have been attended. 
Board Committees 
Total meetings 
Attended 
9 (9) 
20 (20) 
19 (20) 
20 (20) 
17 (20) 
10 (11) 
17 (20) 
20 (20) 
The Board has established three Committees: the Audit Committee, the Nomination Committee and the Remuneration 
Committee. 
Summary of Committee membership 
The Committee membership as at 31 December 2015, was as follows; 
Tim Gingell 
Peter Harverson 
ian Kershaw 
Robert Sansom 
Paul Taylor 
Audit 
Committee 
Yes 
Yes 
Chair 
Nomination 
Committee 
Yes 
Chair 
Yes 
Remuneration 
Committee 
Chair 
Yes 
Yes 
On 1 January 2016, Ian Kershaw became Chair of the Remuneration Committee whilst Peter Harverson remains on 
that Committee. 
Page 27 of89  Corporate governance report (continued) 
Summary of Committee meeting attendance 
Audit Nomination 
Committee Committee 
Tim Gingell 4 (4) 
Richard Green 
Peter Harverson 4 (4) 
lan Kershaw 4 (4) 
Robert Parker 2 (2) 
Robert Sansom 4 (4) 
Paul Taylor 4 (4) 4 (4) 
Figures in brackets denote the maximum number of meetings that could have been attended 
The role of each Committee is described in more detail below: 
Audit Committee 
The Audit Committee has responsibility for the following matters: 
Financial reporting 
o Review of all financial reports released to the market and shareholders. 
o Review of significant reporting issues and key judgements. 
o Review of accounting policies selected and their application. 
External audit 
o Recommending appointment, re-appointment or removal of the external auditors. 
Remuneration 
Committee 
1 ( 1) 
1 (1) 
4 (4) 
4 (4) 
4 (4) 
o Overseeing the Group's relationship with the external auditors, including assessing their independence. 
o Agreeing the annual audit plan and reviewing the finding and effectiveness of the audit 
Whistleblowing 
o Review of the Group's whistleblowing policies and procedures. 
As part of its procedures, the Committee discusses the interim and annual financial statements with the external 
auditors. When appropriate, non-Committee members are invited to attend. During the period under review, the 
Committee has met four times on a formal basis excluding meetings of the Chairman with external advisers. The 
Committee is expected to meet formally four times a year. 
Page 28 of89  Corporate governance report (continued) 
Nomination Committee 
The Nomination Committee has responsibility for the following matters: 
Reviewing the size and composition of the Board to ensure that an appropriate mix of skills, knowledge and 
experience is achieved. 
Succession planning for the Board and other key management roles. 
Identifying and recommending to the Board candidates to fill Board vacancies. 
Ensuring non-executive directors are able to make the necessary time commitments to fulfil their role. 
Ensuring non-executive directors receive letters of appointment, detailing their responsibilities. 
Making recommendations to the Board about the appointment, removal or continuation in office of any director. 
During the period under review, the Committee has met four times on a formal basis. The Committee is expected to 
meet formally twice a year. 
Remuneration Committee 
The Remuneration Committee has responsibility for the following matters; 
Agreeing the framework for the Group's remuneration policy for Directors and key management personnel, 
including determining individual remuneration policies for executive directors. 
Approving the design and targets for short and long term incentive plans. 
Determining the policy and scope of pension arrangements. 
Ensuring contractual terms and payments made on termination are fair to both the individual and the Group. 
Agreeing the policy for authorising expense claims by the Chair and Chief Executive. 
The Group has a formal and transparent procedure for developing policy on Directors' remuneration. No Director is 
involved in deciding his own remuneration. 
The Committee aims to set levels of remuneration for executive directors that are sufficient to attract, retain and 
motivate directors of the quality required, without paying more than necessary, and that are appropriate for the size 
and complexity of the Group. It aims to see that a significant proportion of each executive director's remuneration 
package is performance-related. 
During the period under review, the Committee has met four times on a formal basis. The Committee is expected to 
meet formally twice a year. 
Page 29 of89  Corporate governance report (continued) 
Internal control 
The Board of Directors has overall responsibility for the Group's system of internal control and for reviewing its 
effectiveness. The risk managing process and systems of internal control are designed to manage rather than eliminate 
the risk of failure to achieve the Group's objectives. It should be recognised that such systems can only provide 
reasonable but not absolute assurance against material misstatement or loss. The directors acknowledge their 
responsibilities for the Group's system of internal control and for reviewing its effectiveness. The principal features of 
the system of internal financial controls are: 
• Budgetary control over all operations, measuring performance against pre-determined targets on at least a 
monthly basis. 
• Regular forecasting and reviews covering trading performance, assets, liabilities, cash flows and bank covenants. 
• Delegated limits of authority covering key financial commitments including capital expenditure and recruitment. 
• Identification and management of key business risks. 
The Board continually reviews the effectiveness of other internal controls, including financial, operational, compliance 
controls and risk management. 
Page 30 of89  Directors' responsibilities statement 
The directors are responsible for preparing the Directors' report, the Strategic report and the financial statements in 
accordance with applicable law and regulations. 
Company law requires the directors to prepare financial statements for each financial year. Under that law the Directors 
are required to prepare the consolidated financial statements in accordance with International Financial Reporting 
Standards (IFRSs) as adopted by the European Union and have elected to prepare the parent company financial 
statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting 
Standards and applicable laws). Under company law the directors must not approve the financial statements unless 
they give a true and fair view of the state of affairs and profit or loss of the Company and Group for that period. In 
preparing these financial statements, the Directors are required to: 
• select suitable accounting policies and then apply them consistently; 
• make judgements and estimates that are reasonable and prudent; 
• state whether applicable IFRSs have been followed, subject to any material departures disclosed and explained in 
the consolidated financial statements; 
• state whether applicable UK Accounting Standards have been followed, subject to any material departures 
disclosed and explained in the Company financial statements; and 
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 
Company will continue in business. 
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 
Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 
enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for 
safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud 
and other irregularities. 
Disclosure of information to auditor 
Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that: 
• so far as that Director is aware, there is no relevant audit information of which the Company's auditor are 
unaware; and 
• that Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant 
audit information and to establish that the Company's auditors are aware of that information. 
The directors are responsible for the maintenance and integrity of the corporate and financial information included 
on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of 
financial statements may differ from legislation in other jurisdictions. 
Page 31 of89  Independent auditor's report 
Independent auditor's report to the members ofUbisense Group pic 
We have audited the group financial statements of Ubisense Group Pic for the year ended 31 December 2015 which 
comprise the consolidated income statement, the consolidated statement of comprehensive income, the consolidated 
statement of changes in equity, the consolidated statement of financial position, the consolidated statement of cash 
flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable 
law and International Financial Reporting Standards (IFRSs) as adopted by the European Union. 
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those 
matters we are required to state to them in an auditor's 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 and the company's members as a 
body, for our audit work, for this report, or for the opinions we have formed. 
Respective responsibilities of directors and auditor 
As explained more fully in the Directors' Responsibilities Statement set out on page 31, the directors are responsible 
for the preparation of the group financial statements and for being satisfied that they give a true and fair view. Our 
responsibility is to audit and express an opinion on the group financial statements in accordance with applicable law 
and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing 
Practices Board's (APE's) Ethical Standards for Auditors. 
Scope of the audit ofthe financial statements 
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website: 
www .frc.org. ukf auditscopeukprivate. 
Opinion on financial statements 
In our opinion, the group financial statements 
• give a true and fair view of the state of the group's affairs as at 31 December 2015 and of its loss for the year then 
ended; 
• have been properly prepared in accordance with IFRSs as adopted by the European Union; and 
• have been prepared in accordance with the requirements of the Companies Act 2006. 
Opinion on other matter prescribed by the Companies Act 2006 
In our opinion the information given in the Strategic report and the Directors' report for the financial year for which 
the group financial statements are prepared is consistent with the group financial statements. 
Matters on which we are required to report by exception 
We have nothing to report in respect of the following matters where under the Companies Act 2006 requires us to 
report to you if, in our opinion: 
• certain disclosures of directors' remuneration specified by law are not made; or 
• we have not received all the information and explanations we require for our audit 
Page 32 of89  Independent auditor's report {continued) 
Independent auditor's report to the members ofUbisense Group pic 
Other matter 
We have reported separately on the parent company financial statements ofUbisense Group pic for the year ended 31 
December 2015. 
Paul Naylor 
Senior Statutory Auditor 
for and on behalf of Grant Thornton UK LLP 
Statutory Auditor, Chartered Accountants 
Cambridge 
06 April2016  Consolidated income statement 
For the year ended 31 2015 
2015 2014 
Notes 
£'000 £'000 
·-----·---·-·-------- ., ____ , ______ ------ --·--·-· ----- --------·--·-···-·-·---------·-··--""""" ___ ., _____________ ,._ .. _.__,._____ .. -----·--·--·-·-··--···--·· . - --. --------·-- -- ________ , __ .. ______________________ .. ____________ ---------------·--····--··-···-·-
Revenue 
Cost of revenues 
Gross profit 
Operating expenses 
Operating loss 
Analysed as: 
Gross profit 
Other operating expenses 
Adjusted EBITDA 
5 
Depreciation 13 
Amortisation and impairment of acquired intangible assets 
Amortisation and impairment of other intangible assets 
Non-recurring items 
Operating loss 
Finance income 
Finance costs 
Loss before tax 
Income tax 
12 
12 
9.2 
8 
9 
10.1 
21,982 
(14,290) 
7,692 
(24,671) 
(16,979) 
7,692 
35,051 
(21 ,053) 
13,998 
(18,579) 
(4,581) 
13,998 
(12,914) ( 12, 169) 
-----------~---- ---·- ---------------
(5,222) 1,829 
(388) (359) 
(309) 
(6,985) 
(4,075) 
(16,979) 
12 
(301) 
(17,268) 
632 
(2,019) 
(2,937) 
(1,095) 
(4,581) 
14 
(211) 
(4,778) 
736 
Loss for the year (16,636) 
(4,042) 
Loss attributable to: 
Equity shareholders of the Company 
Non-controlling interest 
Loss per share attributable to the equity shareholders of the parent (pence) 
Diluted 
1•1 
The notes on pages 40 to 81 are an integral part of these consolidated financial statements. 
(16,569) 
(67) 
(16,636) 
(52.3p) 
(52.3p) 
(4,085) 
43 
(4,042) 
(16.7p) 
(16.7p) 
Page 34of89  Consolidated statement of comprehensive income 
For the year ended 31 December 2015 
Loss for the year 
Other comprehensive income: 
Items that may be reclassified subsequently to profit and loss 
Exchange difference on retranslation of net assets and results of overseas 
subsidiaries 
Total comprehensive loss for the year 
Attributable to: 
Equity shareholders of the Company 
Non-controlling interest 
Total comprehensive loss for the year 
The notes on pages 40 to 81 are an integral part of these consolidated financial statements. 
2015 2014 
£'000 £'000 
(16,636) 
139 
(16,497) 
(16,423) 
(74) 
(4,042) 
(531) 
(4,573) 
(4,549) 
(24) 
(16,497) (4,573) 
Page 35 of89  Consolidated statement of changes in equity 
Loss for the year 
Exchange difference on retranslation of net 
assets and results of overseas subsidiaries 
Total comprehensive loss for the year 
Reserve credit for equity-settled share-based 
payment 
Issue of new share capital 
Premium on new share capital 
Share issue costs 
Share 
capital 
£'000 
461 
40 
For the year ended 31 December 2015 
Attributable to equity shareholders of the parent company 
Share 
premium 
£'000 
24,050 
4,230 
(229) 
Share 
based 
payment 
reserve 
746 
75 
Translation 
reserve 
£'000 
Retained 
earnings 
£'000 
(221) (6,342) 
(4,085) 
(464) 
(464) (4,085) 
Sub­
total 
£'000 
18,694 
(4,085) 
(464) 
(4,549) 
75 
40 
4,230 
(229) 
Non­
controlling 
interest 
£'000 
554 
43 
(67) 
(24) 
Total 
£'000 
19,248 
(4,042) 
(531) 
(4,573) 
75 
40 
4,230 
(229) 
Transactionswithowners 40 4,001 75 4,116 4,116 
···--·------------------------.. -------·--·---·-·-···- ----------------------···---·------.. -------------·---------------------------·-- ·------------------------------------------------------------------
Balance at 31 December 2014 501 28,051 821 (685) (1 18,261 530 18,791 
Loss for the year - ( 16,569) (16,569) (67) (16,636) 
Exchange difference on retranslation of net 146 146 (7) 139 
assets and results of overseas subsidiaries 
Total comprehensive loss for the year 146 (16,569) (16,423) (74) (16,497) 
Reserve credit for equity-settled share-based 
54 54 54 
payment 
Issue of new share capital 231 231 231 
Premium on new share capital 9,845 9,845 9,845 
Share issue costs (474) (474) (474) 
Transactions with owners 231 9,371 54 9,656 
--------------------------------------------------------------- --------o-·-------.-....... , .. , _____ -_, ____________ ,_,. ______ .. __________________________ ., _____ ,. ________________________________ ,. _______ ., __________________________________ ----------·--··---~--------··-----· 
Balance at 31 December 2015 732 37,422 875 (539) (26,996) 11,494 456 11,950 
The notes on pages 40 to 81 are an integral part of these consolidated financial statements. 
Page 36 of89  Assets 
Non-current assets 
Intangible assets 
Property, plant and equipment 
Total non-current assets 
Current assets 
Inventories 
Trade and other receivables 
Cash and cash equivalents 
Total current assets 
Total assets 
Liabilities 
Current liabilities 
Trade and other payables 
Bank loans 
Total current liabilities 
Non-current liabilities 
Deferred income tax liabilities 
Trade and other payables 
Bank loans 
Other payables 
Total non-current liabilities 
Consolidated statement of financial position 
Notes 
12 
'14 
'15 
For the year ended 31 December 5 
2015 2014 
£'000 
9,786 
943 
10,729 
2,815 
9,277 
£'000 
14,363 
1 '112 
15,475 
2,881 
15,541 
16 5,392 3,697 
"'~·---·----··-·-···-···---------·.o·--~--------·--------··-·--·---------·-·-· ·-·----------------· ···-······-------- .. ·-----·····- ·-----~~------.. ·------------------ -
17 
18 
'10 
IS 
19 
17,484 22,119 
28,213 
(8,629) 
(1,123) 
(9,752) 
(1,157) 
(203) 
(4,500) 
(651) 
(6,511) 
(16,263) 
11,950 
37,594 
(9,816) 
(927) 
(10,743) 
(1 ,336) 
(120) 
(6,000) 
(604) 
(8,060) 
(18,803) 
18,791 
Page 37 of89  Consolidated statement of financial position (continued) 
For the year ended 31 December 5 
Notes 
2015 
£'000 
2014 
Restated 
·--------------···---------·----·-··--- -----··-··------·-----------·--·-----------------·------·-·-··--------·--·-- ·---··--·····---·--------·-·-----------------------·------------ ________ f:QQO __ 
Equity attributable to owners of the parent company 
Ordinary share capital 
20 
732 501 
Share premium 
20 
37,422 28,051 
Share based payment reserve 
875 821 
Translation reserves 
(539) (685) 
Retained earnings 
(26,996) (10,427) 
Equity attributable to shareholders of the Company 
11,494 18,261 
Noil~<:<>i1froliTr19Tilteresi5---------------------------------------------------------------------------;s------
530 
roiaT"eCii.iTty-----·-··-·--··-·-·-··-----------·-----------·-·----------------------·---·-·---·------·-·-·----·-------··-----------···--------11,"
950 
-------1~.~91 
The notes on pages 40 to 81 are an integral part of these consolidated financial statements. 
The financial statements were approved by the Board of Directors on 06 Apri12016 and signed on its behalf by: 
Richard Green, Chief Executive Officer 
Ubisense Group pic 
Registered Number: 05589712 
Page 38 of89  Consolidated statement of cash flows 
Loss before tax 
Adjustments for: 
Depreciation 
Amortisation and impairment 
Loss on the disposal of property, plant and equipment 
Share-based payments charge 
Finance income 
Finance costs 
Operating cash flows before working capital movement 
Change in inventories 
Change in receivables 
For the year ended 
Noles 
9, 13 
9, 12 
9 
2'1,2 
8 
8 
December 2015 
2015 2014 
£'000 
(17,268) 
388 
7,294 
54 
(12) 
301 
(9,243) 
66 
6,264 
£'000 
(4,778) 
359 
4,956 
22 
75 
(14) 
211 
831 
(293) 
(3,661) 
Change in payables (1 ,010) 447 
-----·--·---------------·--·---·--·--------------------------·---------------------·------------------------------·--··-------------------------·-·-··-···--··---------------~---------------------------------
Net income taxes received/(paid) 
Net cash flows from operating activities 
Cash flows from investing activities 
Acquisition of subsidiaries, net of cash acquired 
Disposal of subsidiaries, net of cash disposed 
Purchases of property, plant and equipment 
Proceeds on disposal of property, plant and equipment 
Expenditure on intangible assets 
Interest received 
Net cash flows from investing activities 
Cash flows from financing activities 
Proceeds of borrowings 
Repayment of borrowings 
Interest paid 
Proceeds from the issue of ordinary share capital 
Net cash flows from financing activities 
Net (decrease)/increase in cash and cash equivalents 
Cash and cash equivalents at start of period 
Exchange differences on cash and cash equivalents 
Cash and cash equivalents at end of period 
24 
16 
The notes on pages 40 to 81 are an integral part of these consolidated financial statements. 
436 
(3,487) 
(3) 
(196) 
4 
(2,652) 
12 
(2,835) 
522 
(2,000) 
(277) 
9,602 
7,847 
1,525 
3,697 
170 
5,392 
47 
(2,629) 
(509) 
(885) 
(3,500) 
14 
(4,879) 
3,427 
(151) 
4,041 
7,317 
(191) 
3,964 
(76) 
3,697 
Page 39 of89  Notes to the Consolidated financial statements 
General information 
Ubisense Group pic ("the Company") and its subsidiaries (together, "the Group") deliver best-in-class asset location 
solutions that significantly improve operational effectiveness and profitability for businesses around the world. 
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 United Kingdom. The value ofUbisense Group pic shares, 
as quoted on the London Stock Exchange pic at 31 December 2015, was 43.0 pence per share (31 December 2014: 120.0 
pence). 
The Company was incorporated as Ubisense Trading Limited on 11 October 2005 and changed its name to Ubisense 
Group pic on 31 May 2011 ahead of its initial public offering and listing on AIM on 22 June 2011. The address of its 
registered office is St. Andrew's House, St. Andrew's Road, Chesterton, Cambridge, CB4 1DL. 
The Group has its main operations in the UK, USA, Canada, Germany, France and Japan and sells mainly in North America, 
Europe and Asia. The Group legally consists of ten companies headed by Ubisense Group plc (UK). A full list of 
subsidiaries is given in note 23 of the financial statements. 
These consolidated financial statements have been approved for issue by the Board of Directors on 06 April 2016. 
2 New accounting standards 
For the purposes of the preparation of these consolidated financial statements, the Group has applied all standards and 
interpretations as adopted in the European Union that are effective for accounting periods beginning on or after 1 
January 2015. 
The accounting policies used are the same as set out in detail in the Report and Accounts 2014 and have been applied 
consistently to all periods presented in these financial statements. No new standards or amendments or interpretations 
to existing standards have become effective in the year. No new standards, amendments or interpretations to existing 
standards having an impact on these financial statements that have been published and that are mandatory for the 
Group's accounting periods beginning on or after 1 January 2016, or later periods, have been adopted early. The 
Directors do not consider that the adoption ofthese standards and interpretations would have a material impact on the 
Group's financial statements. 
Standards and interpretations not yet applied by the Group 
The following new Standards and Interpretations, which are yet to become mandatory, have not been applied in the 
Group's financial statements. 
• Amendment to !AS 16 'Property, plant and equipment' (effective date financial year commencing on/after 1 
January 2016) 
• Amendment to !AS 38 'Intangible assets' (effective date financial year commencing on/after 1 January 2016) 
• Annual improvements 2014 (effective date financial year commencing on/after 1 January 2016) 
• !FRS 9 'Financial Instruments' (effective date financial year commencing on/after 1 January 2018) 
• !FRS 15 'Revenue from contracts with customers' (effective date financial year commencing on/after 1 January 
2018) 
All standards and interpretations are not expected to have any significant impact on the financial statements when 
applied. 
Page 40 of89  Notes to the Consolidated financial statements (continued) 
3 Summary of significant accounting policies 
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. 
These policies have been consistently applied to all the years presented, unless otherwise stated. 
Basis of preparation 
The consolidated financial statements of Ubisense Group pic have been prepared in accordance with International 
Financial Reporting Standards ("!FRS") as adopted by the European Union (IFRSs as adopted by the EU) and the 
Companies Act 2006 applicable to companies reporting under !FRS. The consolidated financial statements have been 
prepared under the historical cost convention. The consolidated financial statements are presented in GBP and all values 
are rounded to the nearest thousand pounds (£'000) except when otherwise indicated. 
The preparation of these financial statements in conformity with IFRS requires the Directors to make certain critical 
accounting estimates and judgements that affect the amounts reported in the financial statements and accompanying 
notes. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are 
significant to the consolidated financial statements, are disclosed in note 4. 
Going concern basis 
The Directors are required to review the basis on which the accounts are prepared and continue to believe that a Going 
concern basis is appropriate. In reaching their conclusion they recognise that the Group meets it day-to-day working 
capital requirements through its bank facilities. 
The Group had cash of £5.4 million at the balance sheet date reducing to £2.2 million at the end of March 2016 following 
the repayment of the Mizuho loan. As disclosed in note 18, the Group is in breach of the financial and operating 
covenants associated with its major bank facility of £4.5 million, however it is in constructive discussions with its 
lending bank which remains supportive and has indicated that it is not planning to take action following the breaches 
at 31 December 2015 and 31 March 2016. Further the Group and its lending bank anticipate concluding a new loan 
facility with appropriate covenants having already agreed the outline of a multi-year repayment plan. 
In reaching their going concern conclusion, the Directors have considered the following points: 
Net debt at end March 2016 was £2.35m with £2.15m cash and £4.Sm HSBC debt 
An opportunity funnel mainly from existing customers that exceeds revenue target for 2016 (H1 and Full Year) 
Customers continue to expand and extend deployments rather than decommission them 
Sales recruitment continues providing the headcount to build sales momentum 
Sales process work continues to be developed and embedded into the business 
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 financial statements. 
In addition, the Group has considered its funding options and expects to announce a conditional share placing in order 
to strengthen the balance sheet, reduce the loan outstanding and permit selective investment in the business. 
Page41 of89  Notes to the Consolidated financial statements (continued) 
3 Sumrnary of significant accounting policies (continued) 
Consolidation 
The Group financial statements include the results, financial position and cash flows of the Company and all of its 
subsidiary undertakings. Subsidiary undertakings are those entities controlled directly or indirectly by the Company. 
Control arises when the Company has the power to govern the financial and operating policies of an entity, uses this 
power to affect the returns from that entity and has exposure to variable returns from its investment in the entity. 
Co-terminus financial statements of the subsidiaries are prepared for the same reporting year as the Company, using 
consistent accounting policies. Businesses acquired or disposed during the year are accounted for using acquisition 
method principles from, or up to, the date control passed. Intra-group transactions and balances are eliminated on 
consolidation. All subsidiaries use uniform accounting policies for like transactions and other events and similar 
circumstances. 
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity 
therein. Non-controlling interests consist of the amount of those interests at the date of the original business 
combination and the non-controlling interest's share of changes in equity since the date of combination. 
Foreign currencies 
(a) Functional and presentation currency 
The functional currency of each Group entity is the currency of the primary economic environment in which each entity 
operates. The consolidated financial statements are presented in GBP. 
(b) Transactions and balances 
Foreign currency transactions are translated into the functional currency of each Group entity using the exchange rates 
prevailing at the dates of transactions. Monetary assets and liabilities denominated in foreign currencies are translated 
at rates ruling at the period end date. Such exchange differences are included in the income statement within "operating 
expenses". Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using 
the exchange rates as at the dates of the initial transactions. 
(c) Consolidation 
For the purpose of presenting consolidated financial statements, the results and financial position of all the Group 
entities (none of which have the currency of a hyperinflationary economy) that have a functional currency other than 
GBP are translated into GBP as follows: 
• assets and liabilities for each statement of financial position are translated at the exchange rate at the period end 
date; 
• income and expenses for each income statement are translated at the exchange rate ruling at the time of each 
period the transaction occurred; and 
• all resulting exchange differences are recognised in other comprehensive income. 
Page 42 of89  Notes to the Consolidated financial statements (continued} 
Summary of significant accounting policies (continued) 
Segment reporting 
!FRS 8 requires a "management approach" under which information in the financial statements is presented on the 
same basis as that used for internal management reporting purposes. 
The Group is organised on a global basis into two operating segments based on the Group's divisions; Real-Time 
Location Systems (RTLS) and Geospatial. The Directors believe that the Chief Operating Decision Maker (CODM) is the 
Chief Executive Office of the Group. The CODM and the rest of the Board are provided with information on a divisional 
basis to assess the financial performance of, and allocate resources to, the Group. 
The internal management accounting information is prepared on an !FRS basis but has a non-GAAP "Adjusted EBITDA" 
as the primary measure of profit and this is reported on the face of the income statement. 
Revenue recognition 
Revenue represents amounts derived from the provision of goods and services which fall within the Group's ordinary 
activities, exclusive of discounts, value added tax and other similar sales taxes. Revenue is measured by reference to the 
fair value of consideration received or receivable. 
Revenues on product sales are recognised at the time that units are shipped, except for shipments under arrangements 
involving significant acceptance requirements. Under such arrangements, revenue is recognised when the Group has 
substantially met all its performance obligations. 
Revenue earned from sales under licence agreements is recognised when the software is made available. When the sale 
includes a period of support and maintenance, a proportion of the revenue is deferred and recognised straight line over 
the period of support. For licence rental fees, amounts are recognised over the period of the contract, commencing from 
when the software is available for use. 
Services and training revenue from time and materials contracts is recognised in the period that the services and 
training 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, including customisation and modification, is 
recognised on the stage of completion of each assignment at the period end date compared to the total estimated service 
to be provided over the entire 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 income statement. 
Where bundled sales including a combination of some or all of the above are made, the revenue attributable to the deal 
is apportioned across the constituents of the bundle, and then recognised according to the policies stated above. 
Page 43 of89  Notes to the Consolidated financial statements (continued) 
3 Summary of significant accounting policies (continued) 
Employee benefits 
(a) Retirement benefits 
The Group operates various defined contribution pension arrangements for its employees. 
For defined contribution pension arrangements, the amount charged to the income statement represents the 
contributions payable in the period. Differences between contributions payable in the period and contributions actually 
paid are shown as either accruals or prepayments in the statement of financial position. 
(b) Share-based payments 
The Group issues equity-settled share-based payments to certain employees. Vesting conditions are continuing 
employment and, for senior employees, a diluted EPS performance target. Equity-settled share-based payments are 
measured at fair value at the date of grant using the Black-Scholes pricing model. The fair value is expensed on a 
straight-line basis over the vesting period, together with a corresponding increase in equity in the share based payment 
reserve, based on the Group's estimate of the number of shares that will eventually vest. 
(c) Termination benefits 
Termination benefits are recognised as an expense when the Group is demonstrably committed, without realistic 
possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, 
or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits 
for voluntary redundancies are recognised as an expense if the Group has made an offer of voluntary redundancy, it is 
probable the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable 
more than twelve months after the reporting date, then they are discounted to their present value. 
Operating lease income and expense 
The Group as the lessor 
(a) Rental income 
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial 
direct costs incurred in negotiating the lease are recognised straight-line over the lease term. 
The Group as the lessee 
(b) Rental expense 
Operating lease rentals are charged as operating expenses to the income statement in equal annual amounts over the 
lease term. Assets leased under operating leases are not recorded in the statement of financial position because the 
lessor retains a significant portion of the risks and rewards of ownership. 
(c) Lease incentives 
The benefit of lease incentives such as rent-free periods or up-front cash payments are spread equally on a straight-line 
basis over the lease term. 
Page 44of89  Notes to the Consolidated financial statements (continued) 
3 Summary of significant policies (continued) 
Non-recurring items 
Non-recurring items are disclosed 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 one off items of income or expense that 
have been shown separately due to the significance of their nature or amount and do not reflect the on-going cost base 
or revenue-generating ability of the Group. 
Interest income and expense 
Interest income and expense is included in the income statement on a time basis, using the effective interest method by 
reference to the principal outstanding. 
Tax 
The tax charge or credit comprises current tax payable and deferred tax: 
(a) Current tax 
The current tax charge represents an estimate of the amounts payable or receivable to or from tax authorities in respect 
of the Group's taxable profits and is based on an interpretation of existing tax laws. Taxable profit differs from profit 
before tax as reported in the income statement because it excludes certain items of income and expense that are taxable 
or deductible in other years or are never taxable or deductible. Taxation received is recognised only when it is probable 
that the Group is entitled to the asset. 
(b) Deferred tax 
Deferred income taxes are calculated using the liability method on temporary differences. This involves the comparison 
of the carrying amounts of assets and liabilities in the consolidated financial statements with their respective tax bases. 
In addition, tax losses available to be carried forward as well as other income tax credits to the Group are assessed for 
recognition as deferred tax assets. However, deferred tax is not provided on the initial recognition of goodwill, nor on 
the initial recognition of an asset or liability, unless the related transaction is a business combination or affects tax or 
accounting profit. 
Deferred tax liabilities are always provided in full. Deferred tax assets are recognised to the extent that it is probable 
that the underlying deductible temporary differences will be able to be offset against future taxable income. Deferred 
tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective 
period of realisation, provided they are enacted or substantively enacted at the reporting date. Deferred tax is 
recognised as a component of tax expense in the income statement, except where it relates to items charged or credited 
directly to other comprehensive income or equity when it is recognised in other comprehensive income or equity. 
Page 45 of89  Notes to the Consolidated financial statements (continued) 
Summary of significant accounting policies (continued) 
Business combinations 
The Group applies the acquisition method to account for business combinations. The consideration transferred for the 
acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the 
acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset 
or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and 
contingent liabilities assumed in a business combination are measured initially at their provisional fair values at the 
acquisition date. Fair values are reassessed during the measurement period and updated if required. The Group 
recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at 
the non-controlling interest's proportionate share of the recognised amounts of the acquiree's identifiable net assets. 
Acquisition-related costs are expensed as incurred. 
If the business combination is achieved in stages, the acquisition date fair value of the acquirer's previously held equity 
interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss. 
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. 
Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is 
recognised in accordance with lAS 39 either in profit or loss or as a change to other comprehensive income. Contingent 
consideration that is classified as equity is not remeasured and its subsequent settlement is accounted for within equity. 
Goodwill 
Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non­
controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than 
the fair value of the net assets of the subsidiary acquired, the difference is recognised in profit or loss. 
Goodwill arising on an acquisition of a bu~iness is the difference between the fair value of the consideration paid and 
the net fair value of the assets and liabilities acquired. Goodwill is carried at cost less accumulated impairment losses. 
Research and development 
Expenditure on research activities is recognised as an expense in the period in which it is incurred. 
Development activities involve a plan or design for the production of new or substantially improved products and 
processes. Development expenditure is only capitalised if all of the following conditions are met: 
• completion of the intangible asset is technically feasible so that it will be available for use or sale; 
• the Group intends to complete the intangible asset and use or sell it; 
• the Group has the ability to use or sell the intangible asset; 
• the intangible asset will generate probable future economic benefits. Among other things, this requires that there 
is a market for the output from the intangible asset or for the intangible asset itself, or, if it is to be used internally, 
the asset will be used in generating such benefits; 
• there are adequate technical, financial and other resources to complete the development and to use or sell the 
intangible asset; and 
• the expenditure attributable to the intangible asset during its development can be measured reliably. 
Page 46 of89  Notes to the Consolidated financial statements (continued) 
3 Summary of significant accounting policies (continued) 
Internally-generated intangible assets, consisting mainly of direct labour costs, are amortised on a straight-line basis 
over their useful economic lives. Amortisation is shown within administrative expenses in the income statement. The 
estimated useful lives of current development projects are three years. Upon completion the assets are subject to 
impairment testing. 
Where no internally-generated intangible asset can be recognised, development expenditure is recognised as an 
expense in the period in which it is incurred. 
Other intangible assets 
Intangible assets that are purchased separately, such as software licences that do not form an integral part of related 
hardware, are capitalised at cost and amortised on a straight-line basis over their useful economic life which is typically 
3 years. 
Acquired intangible assets 
Intangible assets acquired through a business combination are initially measured at fair value and amortised on a 
straight line basis over their useful economic lives. Amortisation is shown within operating expenses in the income 
statement. The useful economic lives of the intangible assets recognised on acquisition are as follows: 
• Software products recognised on acquisition: 3 years 
• Customer relationships recognised on acquisition: 3 years 
• Order backlog: based on contract life recognised on acquisition, typically less than 1 year 
Property, plant and equipment 
Property, plant and equipment are stated at cost less accumulated depreciation and any recognised impairment loss. 
Depreciation is charged to the income statement so as to write off the cost or valuation less estimated residual values 
over their expected useful lives on a straight-line basis over the following periods: 
• Fixtures and fittings: 3 to 10 years, or period of the lease if shorter 
• Computer equipment: 3 years 
Residual values and useful economic lives are assessed annually. The gain or loss on the disposal or retirement of an 
asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised 
in operating expenses. 
Page 47 of89  Notes to the Consolidated financial statements (continued) 
3 Summary of significant accounting policies (continued) 
Impairment of non-financial assets 
Assets that have an indefinite useful life -for example, goodwill or intangible assets not ready to use - are not subject 
to amortisation and are tested at least annually for impairment and whenever there is an indication that the asset may 
be impaired. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in 
circumstances indicate that the carrying amount may not be recoverable. 
An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. 
The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of 
assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows 
(cash-generating units). Impairment losses are recognised immediately in profit or loss. 
Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the 
impairment at each reporting date. Where an impairment loss is reversed, it is reversed to the extent that the increased 
carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been 
recognised in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. 
Inventories 
Inventories are stated at the lower of cost and net realisable value. Cost is the actual cost of third party components and 
labour, and is applied on a first in, first out basis. Net realisable value is based on estimated selling price less additional 
cost to completion and disposal. Provision is made for obsolete, slow moving or defective items where appropriate and 
are recognised as an expense in the period in which the write-down or loss occurs. 
Trade receivables 
Trade receivables are amounts due from customers for products sold or services performed in the ordinary course of 
business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as 
non-current assets. 
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective 
interest method, less provision for impairment. 
Cash and cash equivalents 
In the Consolidated statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at call with 
banks and other short-term highly liquid investments with original maturities of three months or less. 
Trade payables 
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business 
from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, 
they are presented as non-current liabilities. 
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective 
interest method. 
Page48 of89  Notes to the Consolidated financial statements (continued) 
3 Summary of significant accounting policies (continued) 
Borrowings 
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried 
at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is 
recognised in the income statement over the period of the borrowings using the effective interest method. 
Fees paid on the establishment of debt facilities are recognised as transaction costs of the debt to the extent that it is 
probable that some or all of the facility will be drawn-down. In this case, the fee is deferred until the draw-down occurs. 
To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is 
capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. 
All borrowing costs are recognised in the income statement in the period they are incurred. 
Share capital and share premium 
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options 
are shown in equity as a deduction, net of tax, from the proceeds. The nominal value of shares issued is classified as 
share capital and the amounts paid over the nominal value in respect of share issues, net of related costs, is classified 
as share premium. 
Share-based payment reserve 
The share-based payment reserve relates to a cumulative charge made in respect of share options granted by the 
Company to the Group's employees under its employee share option plans. 
Translation reserve 
Exchange differences relating to the translation of the results and net assets of the Group's foreign operations from 
their functional currencies to the Group's presentation currency of GBP, are recognised directly in other 
comprehensive income and accumulated in the translation reserve. 
Page 49 of89  Notes to the Consolidated financial statements (continued) 
4 Critical accounting judgements and key sources of estimation and uncertainty 
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by 
definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing 
a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed 
below. 
Impairment of goodwill and intangible assets 
The Group tests goodwill for impairment annually in accordance with the accounting policy stated in note 3. This 
requires an estimation of the value in use of the cash-generating units to which the goodwill is allocated. Estimating the 
value in use requires the Group to make an estimate of the expected future cash flows from the cash-generating unit 
and also to choose a suitable discount rate in order to calculate the present value of those cash flows. The Group uses 
pre-tax discount rates of 11.5% for this purpose. The carrying amount of goodwill at 31 December 2015 is £4.3 million, 
following an impairment of £4.0 million. Further consideration of the impairment of goodwill is included in note 12. 
Capitalisation of development costs 
The point at which development costs meet the criteria for capitalisation is critically dependent on management's 
judgement of the point at which technical and commercial feasibility is demonstrable. The carrying amount of 
capitalised development costs at 31 December 2015 is £4.0 million. 
Revenue recognition 
Significant management judgement is applied in determining the allocation and timing of the recognition of revenue on 
fixed price, long-term customer specific contracts. In this process management takes into account milestones, hardware 
supplied, actual work performed, and further obligations and costs expected to complete the work. The carrying value 
of amounts recoverable on contracts at 31 December 2015 is £2.1 million. 
Inventories 
The provision for obsolete, slow-moving or defective inventory is based on management's estimation of the commercial 
life ofinventory lines and is applied on a prudent basis. In assessing this, management takes into consideration the sales 
history of products and the length of time that they have been available for resale. 
Page 50 of89  Notes to the Consolidated financial statements (continued) 
Critical accounting judgements and key sources of estimation uncertainty (continued) 
Deferred tax 
A deferred tax asset is recognised where the Group considers it probable that future tax profits will be available against 
which the tax credit will be utilised in the future. This specifically applies to tax losses and to outstanding vested share 
options at the statement of financial position date. In estimating the amount of the deferred tax asset that should be 
recognised, the Directors make judgements based on current budgets and forecasts about the amount of future taxable 
profits and the timings of when these will be realised. No deferred tax asset is currently recognised. 
Valuation of separately identifiable intangible assets 
As detailed in note 3, separately identifiable intangible assets are identified and amortised over defined periods. The 
Directors use an acknowledged valuation approach but this is reliant upon certain judgements which they determine 
are reasonable by reference to companies in similar industries. 
Contingent consideration 
The Group initially estimates the amounts payable under 'earn-out' plans to the former shareholders of acquired 
companies based on the business model produced at the time of acquisition. Earn-out clauses within acquisition 
agreements typically contain provisions for amounts payable to the former shareholders based on future financial 
performance. In order to calculate the expected future payments, the acquisition business model contains estimates of 
the future financial performance for the acquired business. 
The post-acquisition performance and expected future performance of acquired companies is reviewed throughout the 
year. Any adjustments required to contingent consideration arising from a significant departure of financial 
performance from the original acquisition plan are made as required and recognised through the profit and loss. 
The Directors do not consider that there are any other critical accounting judgements or key sources of estimation 
uncertainty. 
Page 51 of89  Notes to the Consolidated financial statements (continued) 
Segment information 
5.1 Operating segments 
Management has determined the operating segments to be the Group's divisions based on the 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 Real-Time Location Systems (RTLS) division takes real-time location data from Ubisense's own sensing hardware, 
or from standards based integration with 3rd party hardware, and transforms this data into high value spatial event 
information, delivering highly reliable, automatic, adaptive asset identification, precise real-time location and spatial­
monitoring to offer meaningful insights that help businesses make smarter decisions. 
The Geospatial division delivers software solutions that integrates data from any source -geographic, real-time asset, 
GPS, location, corporate and external cloud based sources - into a live geospatial common operating picture, 
empowering all users in the customer's organisation to access, input and analyse operational intelligence to proactively 
manage their networks, respond quickly to emergency events and effectively manage day-to-day operations. 
Each operating segment is managed separately by a business unit leader as each deal with different technologies and 
predominately a different customer base. The performance of the operating segments is assessed on a measure of 
contribution, being gross profit less sales and business unit marketing expenditure. Assets and liabilities are not 
presented to the CODM on a divisional basis. 
Costs incurred centrally or not directly attributable to either the RTLS or Geospatial division are reported in the Central 
division. The results of each segment are prepared using accounting policies consistent with those of the Group as a 
whole. No intra-segmental transactions are reported. 
Year ended 31 December 20'15 
Revenues 
Cost of revenues 
Gross profit 
RTLS 
£'000 
6,445 
(3,694) 
2,751 
Geospatia\ 
£'000 
15,458 
(10,545) 
4,913 
Sales and marketing costs (2,81 0) (1 ,800) 
Central 
£'000 
79 
(51) 
28 
Total 
£'000 
21,982 
(14,290) 
7,692 
(472) (5,082) 
-·--------~·--···---------·--·-·------------------------------·--------------·-·-"'·'" ---"·'··---··-··--·-··--·-··--·-·-·-··-""" ________________________ ,.___________________________________________ --- ----·····-··----.. -----------------------~-----------------------
Contribution (59) 3,113 
Other operating costs 
Adjusted EBITDA 
Depreciation 
Amortisation of intangibles 
Non-recurring items 
Operating loss 
Finance costs 
Loss before tax 
Income tax 
Loss after tax 
(444) 2,610 
(7,832) 
(8,276) 
(388) 
(7,294) 
(4,075) 
(20,033) 
(289) 
(20,322) 
632 
(19,690) 
(7,832) 
(5,222) 
(388) 
(7,294) 
(4,075) 
(16,979) 
(289) 
(17,268) 
632 
(16,636) 
Page 52 of 89  Notes to the Consolidated financial statements (continued) 
5 Segment information (continued) 
In the prior year, the Group was organised into a single Enterprise Location Intelligence business unit. This was the 
basis of the Group's external market offering and internal organisation atthattime and the CODM received information 
in this way. The Group had one reportable segment under IFRSS in the year ending 31 December 2014. 
Data is not available to report full comparative information for the current reportable segments due to the excessive 
effort and cost that would be involved to develop it. Revenue is as follows; 
RTLS Geospatial Central 
Year ended 3i December 20'14 £'000 £'000 £'000 
Revenues 8,053 26,984 14 
In the previous year, revenue from the single Enterprise Location Intelligence business unit was reported by the 
nature of revenue. Information has been prepared for the year ending 31 December 2015, although it was not 
reported to the CODM during 2015. 
2015 
£'000 
Total 
£'000 
35,051 
2014 
£'000 
Solutions 12,782 20,067 
Services 9,200 14,984 
Total revenues 21,982 35,051 
5.2 Geographical areas 
The Board and Management Team also review the revenues on a geographical basis, based around the regions where the 
Group 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. Non-current assets are allocated based on their 
physical location. 
UK 
France 
Germany 
Europe other 
USA 
Canada 
Japan 
Asia Pacific other 
Rest of World 
Revenue 
2015 
£'000 
487 
616 
3,074 
580 
12,131 
1,423 
3,330 
337 
4 
21,982 
2014 
£'000 
1,584 
784 
11,782 
362 
13,061 
976 
6,015 
416 
71 
35,051 
Non-current assets 
2015 
£'000 
6,412 
4 
1,242 
1,008 
2 
2,061 
10,729 
2014 
£'000 
7,607 
24 
2,197 
2,015 
4 
3,621 
7 
15,475 
Page 53 of89  Notes to the Consolidated financial statements (continued) 
5 Segment infonnation (continued) 
5.3 Information about major customers 
Included in revenues arising from the Geospatial division are revenues of approximately £1.5 million (2014: £1.4 
million) which arose from sales to the Group's largest customer. No single customer contributed 10% or more to the 
Group's revenue in 2015, but another Geospatial customer contributed £4.4 million in 2014. 
6 Employee information 
6.1 Employee numbers 
The average monthly number of people, including Executive Directors, employed by the Group during the year was: 
By activity 
Technical consultants 
Sales & marketing 
Research & development 
Administration 
By geography 
United Kingdom 
Europe 
Americas 
Asia 
6.2 Employee benefits 
Wages and salaries 
Social security costs 
Contributions to defined contribution pension arrangements 
Share-based payments 
Total aggregate employee benefits 
Actual number of people as at 31 
December 
2015 2014 
Number Number 
Average monthly number of 
2015 2014 
Number Number 
~·-·---·---···-·-------------------.........,.·-~~-.. --
89 
38 
31 
22 
180 
2015 
Number 
44 
39 
63 
34 
180 
134 
46 
33 
37 
250 
2014 
Number 
61 
69 
79 
41 
250 
Notes 
2'12 
103 
45 
33 
27 
208 
2015 
Number 
54 
44 
71 
39 
208 
135 
45 
32 
38 
250 
2014 
Number 
63 
63 
80 
44 
250 
2015 2014 
£'000 
15,768 
1,362 
581 
54 
17,765 
£'000 
15,905 
1,512 
784 
75 
18,276 
Included in the wages and salaries figure above are termination benefits of £2.0 million (2014: £0.5 million) which are 
presented as non-recurring costs in the income statement- see note 9.2. 
Page 54 of89  Notes to the Consolidated financial statements (continued} 
Employee information (continued) 
6.3 Key management compensation 
Key management includes Directors (Executive and non-executive) and members of the Executive Management Team. 
During the year, there was an average number of 11 key management personnel (2014: 10) and 12 personnel at 31 
December 2015 (2014: 11). The compensation paid or payable to key management for employee services is shown 
below: 
2015 2014 
£'000 £'000 
Short-term employee benefits 
Wages and salaries 1,371 973 
Social security costs 95 95 
Other benefits 5 19 
,087 
Post-employment benefits 
Contributions to defined contribution pension arrangements 26 47 
Share-based payments 
Equity-settled share-based payments 3 25 
Total key management compensation 1,500 1,159 
Included in the wages and salaries figure above are termination benefits of £263,000 (2014: £nil) which are presented 
as non-recurring costs in the income statement- see note 9.2. 
Page 55 of89  Directors' :remuneration and interests 
7.1 Directors' remuneration 
Employer's 
contributions to 
defined 
Benefits in Tennination contribution 
Basic salary kind benefits Subtotal 
Director £'000 £'000 £'000 £'000 
Richard Green* 180 3 183 
Peter Harverson** 94 94 
Andrew Hopper 30 30 
Robert Sansom*** 
Paul Taylor** 51 51 
lan Kershaw 20 20 
* Remuneration is through the Group's flexible benefits scheme under which the individual can elect to switch basic 
salary into pension contributions and other benefits. The basic salary entitlement in the year was £190,000. 
**Included for Peter Harverson and Paul Taylor in 2015 (2014 £nil) are amounts of £25,000 each for directors fees and 
£69,000 and £26,000 respectively for additional duties requested by the Board. 
***Robert Sansom has waived his entitlement to annual remuneration in the year of £20,000 (2014: £20,000 waived) 
7.2 Directors' interests- share options 
Awards Ceased 
Granted Exercised 
Lapsed 
Exercise 
Outstanding to be a during 
Award during during 
Price 
at 1 Director the : , .at3.1: 
date Vests Expires the year the year 
> ~k~~er 
Director Years Years Year £ 
January during 
Number Number 
year 
,1: 
" 
' ::!o15 2015 the year Number 
Total 
2014 
289 
20 
28 
20 
12 
Awards 
exercisable 
at 31 
December 
2015 
Richard Green 2011 2012-14 2021 1.050 100,000 ~111~;ooo .·· 100,000 
2012 2013-15 2022. 2.125 60,000 6t'MOil 60,000 
2013 2014-16 2023 2.055 60,000 6!1;11110 60,000 
\\'; 
2014 2015-17 2024 2.250 75,000 .7S,~II!l 
295,000 
·.'c-'2e~;oo11-· --22o,ooo-
--~-·---·---~--~-·--- ~ 
Robert Parker 2014 2015-17 2024 2.250 60,000 (60,000) - . 
Peter Harverson 2010 2011-13 2020 0.140 91,333 91;~33 91,333 
Andrew Hopper 2010 2011-13 2020 0.140 20,278 (20,278) 
Page 56 of89  Notes to the Consolidated financial statements (continued) 
Directors' remuneration and interests (continued) 
During the year, no Directors have been granted share options in the Company or other Group entities. None of the terms 
and conditions of the existing share options were varied during the year. The market price of the Company's shares at 
the end of the financial year was £0.43. The range of market prices during the year was between £1.26 and £0.42. 
Ian Kershaw, Robert Sansom and Paul Taylor do not have any share options at 31 December 2015 (31 December 2014: 
nil). There have been no options granted to or exercised by Directors between 31 December 2015 and 06 April2016. 
Directors' gains on share options 
7.3 Directors' interests ·shares 
Gain on 
exercise 
2015 
Gain on 
exercise 
2014 
Directors' interests in the ordinary shares ofUbisense Group pic, at 31 December 2015 and 31 December 2014, were as 
follows: 
2015 2014 
Number Number 
Richard Green* 1,844,462 1,734,906 
Robert Sansom 2,985,899 2,493,676 
Andrew Hopper 277,401 225,000 
Peter Harverson 65,161 65,161 
Paul Taylor 33,334 
Jan Kershaw 2,000 
*Includes 115,617 (2014: 115,617) shares held by the RT Green Children's Trust of which Richard Green is a trustee. 
There has been no change in the interests set out above between 31 December 2015 and 06 April2016. 
Page 57 of 89  Notes to the Consolidated financial statements (continued) 
Finance income and costs 
Interest income from cash and cash equivalents 
Finance income 
Interest payable- bank 
Interest payable- other 
Finance costs 
2015 
£'000 
12 
12 
(287) 
(14) 
(301) 
2014 
£'000 
14 
14 
(197) 
(14) 
(211) 
·--------·-···------··-····-··-··-····-···-··-··--··-··-····--··-···-·----···-·--·-···-···---········-·-----.. -··········-·-·-----·----····-·--···-·-"'·-----·-···-----~---
Net finance costs (289) (197) 
Loss before tax: analysis of expenses by nature 
9.1 Expenses by nature 
The following items have been charged/ (credited) to the income statement in arriving at loss before tax: 
Amortisation of acquired intangible assets 
Impairment of goodwill and acquired intangibles 
Amortisation and impairment of other intangible assets 
Depreciation of owned property, plant and equipment 
Loss on disposal of property, plant and equipment 
Operating lease rental charges- land and buildings 
Operating lease rental charges - other 
Inventory recognised as an expense 
Research and development costs expensed 
Net foreign currency losses I (gains) 
Non-recurring items (excluding impairment of goodwill) 
Auditors' remuneration 
Notes 
12 
'12 
i2 
13 
9.2 
9.3 
2015 2014 
£'000 £'000 
309 751 
4,043 1,268 
2,942 2,937 
388 359 
22 
677 715 
63 167 
1,478 2,884 
581 766 
175 (180) 
4,075 1,095 
166 254 
Page 58 of89  Notes to the Consolidated financial statements (continued) 
Loss before tax: analysis of expenses by nature (continued) 
9.2 Non-recurring items 
Reorganisation costs 
Disposal of subsidiary companies 
Strategic Asia-Pacific market entry costs 
Unrealised foreign exchange losses on intercompany trading balances 
Aborted acquisition costs 
Others 
Total non-recurring items 
2014 
£'000 
458 
603 
34 
1,095 
During 2015, the Group incurred reorganisation costs totalling £3.2 million comprising mainly redundancy costs in 
order to align the employee base with the future strategy of the Group. The employment terminations in 2015 are 
expected to provide annualised cost savings of £4.0 million in 2016. 
The Group disposed of two subsidiary companies during the year and incurred costs relating to exits from these 
markets. More details are included in note 24. 
Foreign exchange losses on unrealised intercompany trading balances of £37,000 were incurred. These will be non­
recurring due to the conversion of trading balances to long-term loans in 2016. 
The Group incurred £7,000 of costs (2014: £34,000), mainly comprising professional fees, in connection with a 
potential future acquisition. The acquisition plans have been aborted. During 2014, the Group incurred £603,000 of 
non-recurring expenditure relating to strategic Asia Pacific market entry. No such costs were incurred in 2015. 
9.3 Auditors' remuneration 
During the year the Group (including its overseas subsidiaries) obtained the following services from the Company's 
auditor and its associates: 
Fees payable to the Group's auditor for the audit of: 
Parent Company and consolidated financial statements 
Financial statements of subsidiaries, pursuant to legislation 
Total audit fees 
Fees payable to the Group's auditor for other services: 
Tax services 
Corporate Finance services 
Other services 
Total non-audit fees 
Total auditors' remuneration 
The auditor ofUbisense Group pic is Grant Thornton UK LLP. 
2014 
£'000 
27 
100 
127 
74 
53 
127 
254 
Page 59 of89  Notes to the Consolidated financial statements (continued) 
Income tax 
10.1 Income tax recognised in the income statement 
Current tax 
UK corporation tax 
Foreign tax 
Research and development tax credits - prior years 
Total current tax credit 
Deferred tax 
Origination and reversal of temporary differences 
Total deferred tax credit 
Total income tax credit 
The tax credit differs from the standard rate of corporation tax in the UK for the year of 20.3% (2014: 21.5%) for the 
following reasons: 
Loss before tax 
Loss before tax multiplied by the standard rate of corporation tax in the UK of 20.3% 
(2014: 21.5%) 
Tax effects of: 
Expenses not deductible for tax purposes 
Accrued contingent consideration released not subject to tax 
Utilisation of previously unrecognised tax losses 
Tax losses for which no deferred tax asset was recognised 
Tax unprovided in prior years 
Research and development tax credits- prior years 
Difference on tax treatment of share options - unrecognised 
Re-measurement of deferred tax - change of tax rate 
Differential on overseas tax rates 
Other unrecognised temporary differences 
Total income tax credit 
Page 60 of89  Notes to the Consolidated financial statements {continued) 
Income tax (continued) 
10.2 Factors that may affect future tax charges 
The Group has tax losses of £10.5 million (2014: £9.3 million) that are available for offset against future taxable profits 
of those subsidiary companies in which the tax losses arose. Deferred tax assets have not been recognised in respect of 
these losses as they may not be used to offset taxable profits elsewhere in the Group, and they have arisen in subsidiaries 
whose future taxable profits are uncertain. No deferred tax has been recognised on the unremitted earnings of overseas 
subsidiaries, because the earnings are continually reinvested by the Group and no tax is expected to be payable on them 
in the foreseeable future. 
On 26 October 2015, the UK Government substantially enacted reductions to the UK corporation tax rates. Effective 
from 1 April2017, the UK corporation tax rate will reduce to 19% from 20% and effective from 1 April2020, the rate 
will further reduce to 18%. As a result, the deferred tax balances have been re-measured at 19%, the rate of realisation 
expected. 
10.3 Deferred tax 
The movement in deferred tax in the Consolidated statement of financial position during the year is as follows: 
At 1 January 
Deferred tax credited to the income statement 
Deferred tax charged to the income statement 
At 31 December 
Deferred income tax assets 
2014 
£'000 
Deferred income tax liabilities 
2014 
£'000 
(1,773) 
1,085 
(648) 
(1,336) 
The components of deferred tax included in the Consolidated statement of financial position are as follows: 
Development costs capitalised 
Intangible assets recognised on acquisition of subsidiaries 
, ___________ , ___ ,_, __ ,, ______ , ___ , _____________ , ___ ~-~~~,~~~~-~~------------------
Total deferred income tax liabilities 
Deferred tax assets have not been recognised in respect of the following items because it is not probable that future 
taxable profits will be available against which the Group can utilise the benefits: 
Tax losses carried forward 
Equity-settled share options temporary differences 
Total unrecognised deferred tax assets 
Page 61 of89  Notes to the Consolidated financial statements (continued) 
Earnings per share (EPS) 
Earnings 
Earnings for the purposes of basic and diluted EPS being net loss 
attributable to equity holders of the parent company (£'000) 
Number of shares 
Weighted average number of ordinary shares for the purposes of basic EPS ('000) 
Effect of dilutive potential ordinary shares: 
- Share options ('000) 
Weighted average number of ordinary shares for the purposes of diluted EPS ('000) 
Basic EPS (pence) 
Diluted EPS (pence) 
(4,085) 
24,541 
969 
25,510 
(16.7) 
(16.7) 
Basic earnings per share is calculated by dividing profit for the period attributable to ordinary shareholders of 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 of all dilutive share options and 
warrants outstanding at the end of the year. Options have no dilutive effect in loss-making years, and hence the diluted 
loss per share for the year 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 items/impairment from the measurement of profit 
for the period. 
Earnings for the purposes of diluted EPS being net loss attributable to equity 
holders of the parent company (£'000) 
Adjustments: 
Reversal of amortisation on acquired intangible assets (£'000) 
Impairment of goodwill and acquired intangible assets (£'000) 
Reversal of share-based payments charge (£'000) 
Reversal of non-recurring items (£'000) 
Notes 
9, 12 
9, 12 
21.2 
9.2 
2014 
(4,085) 
751 
1,268 
75 
1,095 
Net adjustments (£'000) 3,189 
-------------··------···-·····--·-·--··-····--·----·······--·----------· .. ·--·------··-·····---------·----·-······--·-~~,~~~~~-~~,~~~~----------·-·······-··-· 
Adjusted earnings (£'000) (896) 
Adjusted diluted EPS (pence) (3.5) 
The adjusted EPS information is considered to provide a fairer representation of the Group's trading performance. 
Page 62 of89  Notes to the Consolidated financial statements (continued) 
12 Intangible assets 
Goodwill 
Acquired 
customer 
relationships 
and order 
Acquired 
software 
products 
Capitalised 
product 
development 
Total 
costs 
Software 
£'000 
--···--··-··-·-··--·-··--------····--···-···-............... . .................................................. - ....................... _b_~~k~? .. 9........ .... ....................................... .. ................ ~.'QQ~-----·-·-------· .................................... -
£'000 £'000 £'000 
Cost 
At 1 January 2014 
Effects of movement in exchange rates 
Additions 
9,619 
(203) 
At 31 December2014 9,416 
2,042 
(205) 
937 
(52) 
7,461 633 
(38) 
20,692 
(498) 
2,956 544 3,500 
~-·-·-···-·--·---·--·-··-·-·---·--·-··---------~-~-----------------------------------·-··-
1,837 885 10,417 1,139 23,694 
Exchange difference 91 63 16 68 238 
Additions 2,499 152 2,651 
Disposals (1, 193) (338) (511) (59) (2, 101) 
·~. ~. ~-.,...,..-~-~-..,-.,--~-,_.,... ___ _, __ ~-~--~-. ------.-·----~---~---,__,_ ___ ~-.. ----~------.,~.....,...--~-""r--~-~---------~---------~-------~--------
Accumulated amortisation 
At 1 January 2014 
Effects of movement in exchange rates 
Charge for the year 
8,314 
(1 '192) 
1,900 
(268) 
36 
(497) 
(76) 
563 
(414) 
11 
(254) 
12,405 1 ,300 
(3,541) 
(1) 
(2,568) 
(80) 
(222) 
24 
(289) 
24,482 
(4,445) 
70 
(3,608) 
(1,348) 
At31 December2014 (1,192) (805) (657) (6,190) (487) (9,331) 
_____ , _________________________________________________________ ··---------------·--o.-----------------------------------------------------------·-'"-·-··-···-···-------------------------------------------------------
Effects of movement in exchange rates (24) (11) (52) (87) 
Charge for the year (189) (119) (2,609) (279) (3, 196) 
Elimination on disposal 1,192 338 429 57 2,016 
Impairment for the year (4,043) (55) (4,098) 
~£~:;J:f,tie'~~iri(;l2'd1~ L ___ :_:~.•·· --2:-T·-=~=-~~]~~o..~.~L._Xill~Isl2•····'·CJ::~~!=.~~3~1~T--:.~~-·······rrs1);i··:L!~~!!~>=~ 
Net book amount 
At 31 December 2014 
8,224 1,032 228 4,227 652 14,363 
The acquired software products, customer relationships and order backlog assets arose on the acquisition in 2013 of 
the Geoplan group of companies and in 2011 of Integrated Mapping Solutions, Inc. (now merged into Ubisense Inc.) and 
Realworld 00 Systems Limited (now re-named Geospatial Systems Limited). Capitalised development assets relate to 
expenditure that can be applied to a plan or design for the production of new or substantially improved products and 
processes. The software assets represent assets purchased from third parties. 
During the year, an impairment expense of £4,043,000 was recognised in respect of goodwill (2014: £1,192,000), 
£55,000 in respect of capitalised development costs (2014: £80,000) and £nil in respect of acquired customer 
relationships and order backlog (2014: £76,000). 
The goodwill impairment expense in 2015 writes down the goodwill to the present value of the future cash flows from 
services revenues, which is lower than previously estimated due to the challenging trading period that the Group had 
during 2015. The impairment expense in 2014 relating to goodwill and unamortised customer relationships 
attributable to the acquisition of Realworld 00 Systems Limited in 2011, which were written down to £nil carrying 
value at 31 December 2014. The impairments in both years have arisen as a result of the Group strategy, focussing on 
higher margin revenue streams driven from Ubisense-owned IP and exiting from specific lower margin business areas. 
Page 63 of89  Notes to the Consolidated financial statements (continued) 
Intangible assets (continued) 
The impairment of capitalised development costs in both 2015 and 2014 writes off expenditure on products that will 
not be launched to the market. 
In assessing whether intangible assets have been impaired, the carrying amount of the cash-generating unit (CGU) is 
compared with the recoverable amount of the CGU. The Board consider the CGUs to reflect the two operating segments 
(RTLS- Smart Factory; Geospatial- myWorld). 
All goodwill relates to the Geospatial CGU. In the event of a shortfall in estimated revenues of 10% a further goodwill 
impairment of £506k would be required. In the event of a 20% shortfall the further goodwill impairment would be 
£1,012k 
The recoverable amount is the higher of fair value less costs to sell and value in use. In the absence of readily available 
information about the fair value of a cash-generating unit, the recoverable amount is deemed to be the value in use for 
the purposes of performing an impairment test of goodwill, unless this would lead to an impairment loss. If goodwill 
would be impaired using value in use as the recoverable amount, a fair value less costs to sell assessment would be 
performed as this may lead to a higher recoverable amount. The Group calculates the value in use using a discounted 
cash flow model, based on the most recent financial budgets approved by the Board. The future cash flows are adjusted 
for risks specific to the cash-generating unit and are discounted using a pre-tax discount rate. The discount rate is 
derived from the Group's post-tax weighted average cost of capital and is adjusted where applicable to take into account 
any specific risks. A discount rate of11.5% has been used for impairment calculations performed in 2015 (2014: 11.5%) 
for each of the CGUs. The recoverable amounts of all CGUs have been determined from value-in-use calculations based 
on 3- 5 year forecasts projected from the 2016 budget approved by the Board for each CGU with an assumed terminal 
growth rate of nil (2014: nil) and no improvement in relative operating margin after the forecast period. The Board has 
considered reasonable possible sensitivities in key assumptions, particularly revenue, on which the value-in-use 
calculations are based. 
There was no further impairment of intangible assets as the estimated recoverable amount exceeded the carrying value 
for all CGUs. 
13 Property, plant and equipment 
Fixtures and Computer 
fittings equipment 
Total 
£'000 
-------------------·--··---------------------------------------·-·· ----···--··--------------------------------------------·---·----------·---- ______ J:~o.Q_o ______________________ E~-~-~------···--
Cost 
At 1 January 2014 689 607 1,296 
Effect of movements in exchange rates (23) (26) (49) 
Additions 556 402 958 
Qi~EQ~-~~-------------------- ____ _ ______________ _______ __________________ ____ _ ___ .. ____________ j~-~-~L- ____________ \~5.L___ _ __ _L~?D 
6L~1l>_~~~mt:J~.1QJ_4______ ________ _______ ------------------------------------- ____________ _ __ --~~_1___ ____ ------~~! __________ ~!-~!~ 
Effect of movements in exchange rates 
Transfers 
Additions 
Disposals 
Disposal of subsidiary 
58 (71) (13) 
(194) 194 
78 
(35) 
(12) 
118 
(11) 
196 
(46) 
(12) 
Page 64of89  Notes to the Consolidated financial statements (continued) 
Plant, property and equipment (continued) 
Fixtures and Computer 
Total 
fittings equipment £'OOO 
····-----·-··-··-· ·······-·-········-··-······-···········-······ ····-····-----------·-·-·····-··-··----··-··-··----···-·--·--- ··-··-·-···-·----··-···-··-···-·····--f''.OOfL. ................•..•. f.QQ.Q ___________ ............... . 
Accumulated depreciation 
At 1 January 2014 
Effect of movements in exchange rates 
Charge for the year 
Disposals 
At 31 December 2014 
Effect of movements in exchange rates 
Transfers 
Charge for the year 
Elimination on disposals 
Disposal of subsidiary 
Net book amount 
At 31 December 2014 
Inventories 
Raw materials 
(255) 
17 
(139) 
239 
-·-"'····----····-·-----·--·------
(138) 
(1) 
181 
(233) 
35 
7 
753 
(413) 
13 
(220) 
92 
····----------------------------- -
(528) 
43 
(181) 
(155) 
10 
359 
(668) 
30 
(359) 
331 
(666) 
42 
(388) 
45 
7 
.(960) 
943 
1 '112 
There are no impairment provisions against inventory included in the above amounts (2014: £nil). The Group's 
inventories are comprised of products which are not generally subject to rapid obsolescence on account of technological, 
deterioration in condition or market trends. 
Page 65 of89  Notes to the Consolidated financial statements (continued) 
15 Trade and other receivables 
Trade receivables, gross 
Allowances for doubtful debts 
Trade receivables, net 
Amounts recoverable on contracts 
Other receivables 
Prepayments 
Corporation tax recoverable 
VAT and taxation receivable 
Total trade and other receivables 
i~otes 
15.1 
2015 2014 
4,134 
211 
1,255 
521 
527 
All amounts disclosed are short term. The carrying value of trade receivables is considered a reasonable approximation 
of fair value. 
The following disclosures are in respect of trade receivables that are either impaired or past due. The individually 
impaired receivables mainly relate to customers who are in unexpectedly difficult economic situations, and are assessed 
on a customer-by-customer basis following detailed review of the particular circumstances. To the extent they have not 
been specifically provided against, the trade receivables are considered to be of sound credit rating. 
15.1 Movement in allowance for doubtful debts 
At 1 January 
Exchange differences 
Amounts recovered in the year 
Amounts written off in the year 
Allowance made 
At 31 December 
Allowance made in 2015 includes £1,626k for two entities in the Asia Pacific region. Provision has been made against 
these balances as their recoverability is uncertain following the disposals and cost reduction actions in that region. 
Page 66 of 89  Notes to the Consolidated financial statements {continued) 
5 Trade and other receivables (continued) 
15.2 Ageing of past due but not impaired receivables 
Neither past due nor impaired 
Past due but not impaired: 
0 to 90 days overdue 
More than 90 days overdue 
Total 
Cash and cash equivalents 
Cash at bank and in hand 
Cash and cash equivalents 
2014 
£'000 
5,492 
2,494 
907 
8,893 
2014 
£'000 
3,697 
3,697 
The carrying amount approximates to fair value because of the short-term maturity of these instruments, being no 
greater than three months. 
Cash at bank earns interest at floating rates based on daily bank overnight deposit rates. Short-term cash deposits earn 
interest at fixed rates for the term of the deposit. 
2014 
£'000 
British Pound (GBP) 904 
Euro (EUR) 1,361 
US Dollar (USD) 
1 '169 
Japanese Yen (JPY) 122 
South Korean Won (KRW) 36 
Canadian Dollar (CAD) 103 
Philippine Peso (PHP) 2 
Cash and cash equivalents 3,697 
Page 67 of89  Notes to the Consolidated financial statements (continued) 
17 Trade and other payables 
Payments received on account 
Trade payables 
Trade accruals 
Current tax liability 
Other taxation and social security 
Other payables 
Total trade and other payables 
20.15 2014 
£'000 
2,137 
4,021 
2,020 
51 
822 
765 
9,816 
All amounts disclosed are short term. The carrying value of trade payables is considered a reasonable approximation of 
fair value. 
Bank loans 
In May 2015, the Group renewed its working capital loan facilities and repaid its £2 million acquisition bank loan. The 
Group has an £8.0 million bank loan facility agreed with HSBC Bank Pic to provide working capital for the Group. This 
loan is repayable in full in June 2018 by Ubisense Ltd, is secured on the fixed and floating assets of the Group and attracts 
an interest charge ofLIBOR + 3%. As at 31 December 2015, £4.5 million of the £8.0 million facility is drawn down and 
is subject to certain operating and net worth covenants of the business, being: 
• Total senior debt (net of cash balances) not exceeding 2x Adjusted EBITDA; 
• Interest charges and repayments of principal due in the next 12 months in respect of borrowings whose 
original stated term to maturity exceed 12 months not exceeding 3x Adjusted EBITDA; and 
• Total senior debt (net of cash balances) not exceeding 2.5x the aggregate of trade debtors (net of provisions) 
and work-in-progress (Amounts recoverable on contracts). 
The Group notified HSBC of a breach of the covenants relating to adjusted EBITDA as at 31 December 2015 and as at 31 
March 2 016, against which HSBC provided Reservation of Rights letters indicating that they do not intend to take further 
action. 
With a covenant test based on a rolling 12 month adjusted EBITDA calculation, the Group anticipates further covenant 
breaches in the next 12 months until the full effect of the restructuring actions taken in 2015 are delivered and the 
disappointing results of 2015 no longer have an impact on the calculation. The Group is engaged in constructive 
discussions with HSBC on a replacement of this facility. 
At 31 December 2014, the Group had the following bank loans with HSBC Bank Pic in place, which were repaid in full in 
May 2015 by Ubisense Limited: 
• A three year bank loan facility of up to £5.0 million, repayable in full in August 2016. Interest was payable at 
LIB OR plus 3%. The facility was secured on the fixed and floating assets of the Group and was subject to certain 
operating performance and net worth covenants of the business. As at 31 December 2014, £4.0 million was 
drawn. 
Page 68 of89  Notes to the Consolidated financial statements (continued) 
Bank loans (continued) 
• A four year bank loan facility of £2.0 million, repayable in quarterly instalments. Interest was payable at Bank 
of England base rate plus 3%. The facility was secured on the fixed and floating assets of the Group and was 
subject to certain operating and net worth covenants of the business. As at 31 December 2014,£2.0 million 
was outstanding. 
The Group renewed a six month loan facility of 200 million Japanese Yen (JPY) in June 2015 and which was further 
extended until 31 March 2016 at which point it was repaid. The loan was unsecured and interest was payable at 0.99%. 
As at 31 December 2015, the JPY 200 million facility was drawn down in full (31 December 2014: JPY 170 million of JPY 
200 million facility drawn). 
19 Other payables 
Contingent consideration 
Property provisions 
Rent deposit repayable 
Total other payables 
Noies 
19.2 
2014 
£'000 
414 
179 
11 
604 
In September 2014, Ubisense Limited entered a new 10 year lease on the Group's headquarter offices. The property 
provision is a dilapidation provision to restore the office to its original state. It is included in fixtures and fittings 
within Property, Plant and Equipment and is being depreciated over the lease term. 
19.2 Contingent consideration 
Ubisense Group Pic acquired the Ubisense Inc (formerly named Geoplan Interworks K.K.) group of companies 
("Geoplan") in December 2013. 
The purchase consideration contained a contingent cash element, under which the Group is required to pay additional 
amounts to the vendors of Geoplan based on the achievement of two separate performance milestones that may arise 
between 2014 and 2017 with a combined undiscounted range of outcomes between JPY nil and JPY 149 million (£nil to 
£892,000). 
At acquisition, the fair value of the contingent consideration was JPY 136 million (£816,000) being management's best 
estimate of the probability-adjusted estimated discounted future cashflows. The discount rate used is 3.5%, based on 
the Group's estimated incremental borrowing rate for unsecured liabilities at the reporting date, and therefore reflects 
the Group's credit position. The fair value amount recognised for this arrangement is revised based on the most recent 
management estimates and, as the liability is denominated in JPY, it is subject to the impact of exchange rates. 
Page 69 of89  Notes to the Consolidated financial statements (continued) 
Other payables (continued) 
Contingent consideration - non-current 
Total 
Sha:re capital and premium 
At 1 January 
2015 
£'000 
414 
414 
Effect of Unwinding of 
exchange discount 
rates £'OOO 
19 15 
19 15 
Number of 
ordinary shares 
of £0.02 each 
At31 
December 
2015 
Share 
capital 
£'000 
448 
448 
Share 
premium 
£'000 
Total 
£'000 
Balance at 1 January 2014 23,079,146-----461 24,050 ·-------24,511~ 
--........ ----·-----~-·--~·---~~M-00-0--~·-~·-~--------~-----·---...-----..... ~~-~··-~~~·-"~-
Issued under share-based payment plans 54,107 1 23 24 
Issued on placing to institutional shareholders 1,929,589 39 3,978 4,017 
Balance at 31 December 2014 25,062,842 501 28,051 28,552 
lssuedu-nCier-sllare-bas-ecrilaY"m.eiitplans-·-------------· ----------···-·--·---446~293--··-- -----9---·--·--·-·-6r-----·----···-·76-
lssued on placing to institutional shareholders 11,111,112 222 9,304 9,526 
Change in year 11,557,405 231 9,371 9,602 
38,154 
The Company has one class of ordinary shares which carry no right to fixed income. 
During the period, the Company issued 11,557,405 shares, increasing the total number of shares in issue from 
25,062,842 to 36,620,247 as follows: 
• 11,111,112 shares at £0.90 per share for a total gross consideration of £10.0 million with share issue costs of 
£4 7 4,000 written off against the share premium account.; and 
• 446,293 shares as a result of options exercised with a weighted average exercise price of £0.17 per share for total 
cash consideration of £7 6, 131. 
21 Share-based payments: options 
21.1 Equity-settled share-based payment arrangements 
The Group operates a number of plans to award options over shares in the Company to incentivise high performing key 
employees of the Group periodically. 
Options are generally granted at an exercise price equal to the market price of the shares under option at the date of 
the grant. The options generally vest evenly over three years on the anniversary from the date of the grant or entirely 
on the third anniversary from the date of grant, depending on continuing service during the vesting period. The 
contractual life of the options is ten years from the date of grant after which they expire if unexercised. 
Page 70 of89  Notes to the Consolidated financial statements (continued) 
Share-based payments: options (continued) 
21.2 Analysis of amounts recognised in the financial statements 
a) Analysis of amounts recognised in the Consolidated income statement 
Total share-based payments charge recognised in operating profit 
----------··--···---·------·-------------------·-----'-~~----~------~~·-~-'------------------
b) Analysis of amounts recognised in the Consolidated statement of changes in equity in the year 
2014 
£'000 
Net share-based payments credit recognised in equity 75 
c) Cumulative amounts included within equity in the Consolidated statement of financial position 
2014 
£'000 
Cumulative reserve credit for share-based payments 821 
21.3 Reconciliation of movements in equity-settled share-based payment arrangements in the year 
Awards Awards 
outstanding 
Granted Exercised 
exercisable 
Award Exercise 
at 
during during 
at 
date Vests Expires price 
1 January 
the year the year the year 
31 
Arrangement Year Years Year £ 
2015 
Number Number Number 
2008 2009-11 2018 0.900 650 
2009 2010-12 2019 0.900 3,750 (3,750) 
2010 2011-13 2020 0.140 847,454 (431,293) (7,700) 417,461 
2011 2012-14 2021 1.050 386,117 (15,000) (72,917) 298,200 
2012 2013-15 2022 2.125 316,000 (114,500) 141,500 
2013 2014-16 2023 2.055 351,500 (82,200) 112,867 
2014 2015-17 2024 2.250 437,500 35,000 
No share options were granted in 2015. In May 2014,447,500 share options were granted to employees with an exercise 
price of £2.25 per share, being the market value at the date of exercise. The weighted average share price at the date of 
exercise for options exercised during the year was £0.754 (2014: £1.921). 
Page 71 of89  Notes to the Consolidated financial statements (continued} 
21 Share-based payments: options (continued) 
21.4 Principal assumptions 
The fair value of share-based payments grants has been valued using the Black-Scholes option-pricing model. Expected 
volatility was determined based on the historic volatility of comparable companies. The expected life is the expected 
period from grant to exercise based on management's best estimate of the effects of non-transferability, exercise 
restrictions and behavioural considerations. The risk-free rate of return is an average yield on the zero-coupon UK 
Government Bond in issue at the date of grant with a similar life to the option or warrant. 
The following assumptions were used in the model for options granted during the year ended 31 December 2014. No 
options were granted in the year ended 31 December 2015. 
Instrument 
Number granted 
Grant date 
Share price at grant date (£) 
Exercise price (£) 
Fair value per option (£) 
Expected life (years) 
Expected volatility(%) 
Risk-free interest rate (%) 
Expected dividends expressed as a dividend 
yield(%) 
Option 
447,500 
23 May 2014 
2.250 
2.250 
0.60 
3.0 
34 
1.83 
Page 72 of89  Notes to the Consolidated financial statements {continued) 
Operating lease commitments 
Leases as lessee 
At 31 December 2015, the Group has lease agreements in respect of property and equipment for which payments extend 
over a number of years. The Group enters into these arrangements as these are a cost-efficient way of obtaining the 
short-term benefits of these assets. The Group lease rental charge is disclosed in note 9.1. There are no other material 
off-balance sheet arrangements. 
The Group's future aggregate minimum lease payments under non-cancellable operating leases are as follows: 
Lease ending 
No later than one year 
Later than one year and no later than five years 
Later than five years 
Total 
Land and buildings Other 
The above table reflects the committed cash payments under operating leases, rather than the expected charge to the 
income statement in the relevant periods. The effect on the income statement will differ to the above figures due to the 
amortisation of rent-free and discounted rent periods included in property leases signed in 2012 and 2014. The 
expected charge in 2016 for operating leases is expected to be £105,000 higher than the committed cash payments 
shown above. From existing subleasing agreements under non-cancellable operating leases which end in less than one 
year, the Group will received income of £31,000. 
The Group has guaranteed rent bonds issued by its banks on its behalftotalling£122,000 as at 31 December 2015 (2014: 
£134,000). These are not expected to result in any material financial loss. 
Page 73 of89  Notes to the Consolidated financial statements (continued) 
23 Subsidiaries 
The group consists of the parent company, Ubisense Group Pic, incorporated in the UK, and a number of subsidiary 
companies which operate and are incorporated around the world. Information about the composition at the end of the 
reporting period is as follows: 
Proportion of 
ordinary Proportion of ordinary 
Subsidiary 
Country of shares held shares J1eld by non-
incorporation Principal activity 
-· -·--·-···------··-·----··-·-·-·--··---·-------- . ·----·-·-·-·-··----·-·-·-------··--·--
__________ _b_Y__g~~-UE__£~_c_o~-~IJ!:rl~-L~t~~~~~~("/o2 
Ubisense Limited 
UK Location solutions 100 
Ubisense GmbH 
Germany Location solutions 100 
Ubisense SAS 
France Location solutions 100 
Ubisense Inc. 
US Location solutions 100 
Ubisense Solutions Inc. 
Canada Location solutions 100 
Geospatial Systems Limited 
UK Location solutions 100 
Ubisense Inc. 
Japan Intermediate holding company 100 
Geoplan Company Limited* 
Japan Location solutions 77 
Binary Star Developments K.K.* 
Japan Non-trading 100 
All subsidiaries are directly held by Ubisense Group pic except those denoted* which are held by the intermediate 
holding company, Ubisense Inc. 
23 
All subsidiaries prepare local statutory accounts up to 31 December each year except for Geospatial Systems Limited 
which prepares accounts up to 31 March and Binary Star Developments K.K. to 31 January. For subsidiaries which have 
a different financial year-end to the Group, additional co-terminus accounts are prepared reflecting the same financial 
reporting as the Group for the purposes of consolidation. 
During the year, the Group disposed of its 100% interest in Ubisense Company Ltd, a company incorporated in South 
Korea and Geoplan Philippines Inc, a company incorporated in the Philippines. The proceeds on sale of USD 1,000 for 
each entity were received in cash. No investment has been retained in either entity. 
Neither subsidiary company was material to the financial performance or position of the Ubisense Group therefore no 
amounts have been classified as discontinued operations. The loss on disposal of the subsidiary companies is 
disclosed in note 24. 
Page 74 of89  Notes to the Consolidated financial statements (continued) 
Disposal of subsidiaries 
As referred to in note 23, the Group disposed of two subsidiary companies during the year. 
On 18 May 2015, Ubisense Inc. disposed of its 100% equity interest in its subsidiary, Geoplan Philippines Inc. for 
consideration of USD 1,000. The net assets of Geoplan Philippines Inc. at the date of disposal were as follows: 
Property, plant and equipment 
Trade and other receivables 
Cash and cash equivalents 
Trade and other payables 
Gain on disposal 
Total consideration 
Satisfied by: 
Cash and cash equivalents 
Net cash outflow arising on disposal 
Consideration received in cash and cash equivalents 
Less: cash and cash equivalents disposed of 
Total 
£'000 
2 
145 
4 
(165) 
(14) 
15 
(4) 
(3) 
In the current year, Geoplan Philippines Inc. contributed £nil to the Group's adjusted EBITDA (2014: loss of £41,000). 
Costs associated with the disposal of £112,000 have been included in non-recurring items. 
On 30 September 2015, Ubisense Inc. disposed of its 100% equity interest in its subsidiary, Ubisense Company Ltd. for 
consideration of USD 1,000. The net assets of Ubisense Company Ltd at the date of disposal were as follows: 
Page 75 of89  Notes to the Consolidated financial statements (continued) 
Total 
£'000 
Property, plant and equipment 3 
Inventories 913 
Trade and other receivables 4 
Trade and other payables (923) 
(3) 
Profit on disposal 4 
Total consideration 
Satisfied by: 
Cash and cash equivalents 
Net cash outflow arising on disposal 
Consideration received in cash and cash equivalents 
Less: cash and cash equivalents disposed of 
In the current year, Ubisense Company contributed a loss of £84,000 to the Group's adjusted EBITDA (2014: loss of 
£272,000). Costs associated with the disposal of £644,000 have been included in non-recurring items. 
The disposals of both subsidiaries are not considered discontinued operations as the subsidiary disposals have not 
exited a major line of business or geographic area for the Group. 
Related party transactions 
Compensation of key management personnel disclosed in note 6.3 and full details of Directors' remuneration are given 
in note 7. 
During the year, Ubisense Ltd contemplated entering into a commercial sub-lease arrangement with a third party. One 
of the Directors of Ubisense Group Pic, is also a Director of that third party. The arrangement was not completed 
although as an outcome the third party paid Ubisense £3,800 plus VAT (2014: £nil). As at 31 December 2015, 
Ubisense Ltd showed that£4,560 was owed by the third party (31 December 2014: £nil). Full payment of this balance 
outstanding was subsequently received in 2016. 
There were no other related party transactions with Directors of the Company. 
Page 76 of89  Notes to the Consolidated financial statements (continued) 
Financial risk management 
26.1 Risk management objectives and policies 
The Group is exposed to various risks in relation to financial instruments. The Group's financial assets and liabilities by 
category are summarised below. The main types of risks are market risk (including foreign currency risk and interest 
rate risk), credit risk and liquidity risk. 
The Group's risk management is coordinated at its headquarters, in close cooperation with the Board of Directors, and 
focuses on actively securing the Group's short to medium-term cash flows. The Group does not actively engage in the 
trading of financial assets for speculative purposes. The most significant financial risks to which the Group is exposed 
are described below. 
26.2 Foreign currency risk management 
The Group operates globally and undertakes certain transactions denominated in foreign currencies, predominantly in 
US dollars (USD), Euros (EUR) and Japanese Yen (JPY), exposing the Group to foreign currency risk. The Group's risk 
management policy is to maintain natural hedges where possible, by matching foreign currency revenue and 
expenditure. The Group does not enter into forward exchange contracts to mitigate the exposure to foreign currency 
risk as the Group's currency transactions are not considered significant enough to warrant this. 
Foreign currency denominated monetary assets and liabilities which expose the Group to currency risk are disclosed 
below. The amounts shown are those not denominated in the local functional currency, translated into GBP at the 
closing rate. 
Japanese Yen 
2015 2014 
Assets 
Liabilities 
US Dollars 
2015 
145 
(62) 
2014 
2,240 
(199) 
All foreign currency financial assets and liabilities are classified as current. 
26.3 Foreign currency sensitivity analysis 
2015 
535 
(1) 
Euros 
2014 
886 
The following table illustrates the sensitivity of profit and equity in regards to the Group's financial assets and financial 
liabilities and the USD/GBP, EUR/GBP and JPY/GBP exchange rates 'all other things being equal'. It assumes a+/- 5% 
change in the GBP exchange rate against the relevant foreign currencies. The percentages has been determined based 
on the average market volatility in exchange rates in the previous 12 months. 
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their 
translation at the period end. A positive number indicates an increase in profit and equity. 
Page 77 of 89  Notes to the Consolidated financial statements (continued) 
26 Financial risk management (continued) 
26.3 Foreign currency sensitivity analysis (continued) 
.t>Jn>~nR!<R Yen 
Effect of a 5% strengthening in 
relevant exchange rate on: 
Income statement 
Equity 
Effect of a 5% weakening in 
relevant exchange rate on: 
Income statement 
Equity 
2015 
£'000 
(43) 
(43) 
50 
50 
2014 
£'000 
(5) 
(5) 
5 
5 
US Dollars 
2015 
£'000 
(27) 
(27) 
32 
32 
2014 
£'000 
182 
182 
(201) 
(201) 
2015 
£'000 
(95) 
(95) 
110 
110 
Euros 
Exposure to foreign currency exchange rates vary during the year, depending on the volume of transactions. 
Nonetheless, the analysis above is considered to be representative of the Group's exposure to currency risk. 
26.4 Interest rate sensitivity 
2014 
£'000 
221 
221 
(244) 
(244) 
The Group's exposure to interest rate risk relates primarily to the Group's variable rate bank loan facilities of £8.0 
million which is partially offset by cash held at variable rates. Interest is payable at LIBOR plus 3% on the £8.0 million 
facility and £4.5 million was outstanding at 31 December 2015 (2014: £4.0 million). Other bank loans are at a fixed 
interest rate of 0.99%. 
The following table illustrates the sensitivity of the net profit of the Group for the year and equity to a reasonably 
possible change in interest rates of + f -0.5%. These changes are considered to be reasonably possible based on 
observation of current market conditions. The calculations are based on a change in the interest rate with effect from 
the beginning of the year and the financial instruments held at the reporting date that are sensitive to interest rate 
changes. All other variables are held constant A positive number indicates an increase in profit or equity. 
Effect of a 0.5% decrease in interest rate on: 
Income statement 
Equity 
Effect of a 0.5% increase in interest rate on: 
Income statement 
Equity 
2014 
23 
23 
(23) 
(23) 
Page 78 of89  Notes to the Consolidated financial statements (continued) 
26 Financial risl\: management (continued) 
26.5 Credit risk analysis 
Credit risk is the risk that a counterparty fails to discharge a contractual obligation resulting in financial loss to the 
Group. The Group's maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at 
the reporting date, as summarised in note 26.8, which are principally cash and cash equivalents and trade receivables. 
Cash and cash equivalents are held at banks with good independent credit ratings in accordance with the Group 
Treasury policy. The Group continuously monitors defaults of customers and other counterparties, identified either 
individually or by the Group, and incorporates this information into its credit risk controls. Where available at 
reasonable cost, external credit ratings andjor reports on customers and other counterparties are obtained and used. 
The Group's policy is to deal only with creditworthy counterparties. 
The Group's management considers that its financial assets that are not impaired or past due for each of the reporting 
dates under review are of good credit quality. All receivables are subject to regular review to ensure that they are 
recoverable and any issues identified as early as possible. In order to manage credit risk the Directors set limits for 
customers based on a combination of payment history and third party credit references. Credit limits are reviewed by 
the credit controller on a regular basis in conjunction with debt ageing and collection history. In addition many of the 
Group's customers, and approximately 80% by balance at any given time, are large utility companies and other blue­
chip companies that would be considered a low credit risk. 
The amount of exposure to any single counterparty or a group of counterparties having similar characteristics is subject 
to a limit, which is reassessed periodically by management. At 31 December 2015, one customer individually accounted 
for more than 10% of the trade receivables balance (31 December 2014: none). 
None of the Group's financial assets are secured by collateral or other credit enhancements. 
Details of certain trade receivables at 31 December 2015 that have not been settled by the contractual due date but are 
not considered to be impaired are included in note 15.2. 
26.6 Liquidity risk analysis 
Liquidity risk is the risk arising from the Group not being able to meet its obligations as they fall due. The Group seeks 
to manage this risk by monitoring scheduled debt servicing payments for long-term financial liabilities, regularly 
reviewing forecast inflows and outflows due in day-to-day business and investing cash assets safely and profitably. 
The data used for analysing these cashflows is consistent with that used in the contractual maturity analysis below. 
Cashflow forecasting is performed at the subsidiary level and aggregated by Group finance. Rolling cashflow forecasts 
are used by the Group to monitor liquidity requirements to ensure it has sufficient cash to meet operational needs, as 
well as maintaining sufficient headroom so that loan covenants are not breached. The Group policy throughout the 
year has been to remit surplus working capital balances at the subsidiary level to Group treasury and place on short­
term deposit or interest bearing reserve accounts and to draw down on borrowing facilities and distribute funds 
locally when required. As disclosed in note 18, the Group has total bank loan facilities of £9.1 million, of which £5.6 
million was drawn down at 31 December 2015 (2014: £8.1 million facility, £6.9 million drawn down). 
The Group considers expected cashflows from financial assets, predominately cash and trade receivables, in assessing 
and managing liquidity risk. The Group's cash and trade receivable resources at 31 December 2015 (see note 15) 
exceed the current cash outflow requirements. 
As at 31 December 2015, the Group's financial liabilities, including interest payments where applicable, have 
contractual maturities as summarised below: 
Page 79 of89  Notes to the Consolidated financial statements (continued) 
26 Financial risk management (continued) 
26.6 Liquidity risk analysis (continued) 
Current Non-current 
Within Between 6 and Between 1 Later than 5 
6 months 12 months and 5 years Years 
---------·-·-·---·-·-··-·-·-·-·-·-··-·------·--·-··-··-···- ---------------------------------------------------·---· __________ f~_QQ_I) ________ -···-···-·--·------.£~Q_Q_Q ______________________ f~QQ_I) ______________ t.QQ_Q __ _ 
As at 31 December 2015 
As at 31 December 2014 
Trade and other payables 
Bank loans 
9,465 
927 
351 120 
6,000 
Other payables 425 179 
Financial assets used for managing liquidity risk 
Cash flows from trade and other receivables are contractually due within six months in the majority of cases. Extended 
credit terms have been agreed with specific customers. Cash is generally held in accounts with immediate notice. Where 
surplus cash deposits are identified these are placed in accounts with access terms of no more than three months. 
26.7 Capital risk management 
The Group manages its capital to ensure that entities in the Group will be able to continue as going concern whilst 
maximising the return to stakeholders and to maintain an optimal capital structure to reduce the long-term cost of 
capital. The capital structure of the Group consists of cash and cash equivalents and capital and reserves attributable to 
the owners of the Company, and the Group's borrowing facilities. 
In order to maintain or adjust the capital structure, the Group may issue shares, take on debt, sell assets to raise cash, 
adjust the amount of dividends payable to shareholders or return capital to shareholders. 
The capital structure is continually monitored by the Group. The Group's strategy is to have a capital structure that 
allows investment in long-term profitable growth, takes into account prevailing trading conditions and seeks to improve 
balance sheet efficiency over time. The Group is not subject to externally imposed capital requirements. 
The Group has bank facilities at 31 December 2015 of £9.1 million (31 December 2014: £8.1 million) of which £8.0 
million dominated in GBP and £1.1 million denominated in JPY (2014: £7.0 million GBP, £1.1 million JPY). At 31 
December 2015 £5.6 million of the facilities were drawn (31 December 2014: £6.9 million) of which £4.5 million is 
denominated in GBP and £1.1 million denominated in JPY (2014: £6.0 million GBP, £0.9 million JPY). The Group may 
need to seek further capital, through equity or debt, in order to support the business. Currently, the Group has 
considered its funding options and expects to announce a conditional share placing in order to strengthen the balance 
sheet, reduce the loan outstanding and permit selective investment in the business. 
Page 80 of89  Notes to the Consolidated financial statements (continued) 
26 Financial risk management (continued) 
26.8 Categories of financial instruments 
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of 
measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, 
financial liability and equity instrument, are disclosed in the accounting policies in note 3. The carrying amounts 
presented in the Consolidated Statement of Financial Position relate to the following categories of financial instrument: 
2014 
Notes 
£'000 
Financial assets 
Loans and receivables: 
Trade receivables 
15 
8,893 
Amounts recoverable on contracts 
15 
4,134 
Other receivables 
15 
2,514 
Cash and cash equivalents 
16 
3,697 
Total financial assets 19,238 
Financial liabilities 
Amortised cost: 
Trade payables 
17 
4,021 
Trade accruals 
H 
2,020 
Other payables 
17 
3,775 
Provisions 
19 
190 
Bank loans 
"18 
6,927 
Fair value: 
Contingent consideration 
"19.2 
414 
Total financial liabilities 17,347 
Page 81 of 89  Independent auditor's report 
Independent auditor's report to the members ofUbisense Group pic 
We have audited the parent company financial statements ofUbisense Group Pic for the year ended 31 December 2015 
which comprise the company balance sheet, company statement of changes in equity and the related notes. The financial 
reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting 
Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 'The Financial Reporting 
Standard applicable in the UK and Republic of Ireland'. 
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those 
matters we are required to state to them in an auditor's 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 and the company's members as a 
body, for our audit work, for this report, or for the opinions we have formed. 
Respective responsibilities of directors and auditor 
As explained more fully in the Directors' Responsibilities Statement set out on page 31, the directors are responsible for 
the preparation of the parent company financial statements and for being satisfied that they give a true and fair view. 
Our responsibility is to audit and express an opinion on the parent company financial statements in accordance with 
applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with 
the Auditing Practices Board's (APE's) Ethical Standards for Auditors. 
Scope of the audit of the financial statements 
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website 
at www.frc.org.uk/ auditscopeprivate. 
Opinion on financial statements 
In our opinion the parent company financial statements: 
give a true and fair view of the state of the company's affairs as at 31 December 2015; 
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 
have been prepared in accordance with the requirements of the Companies Act 2006. 
Opinion on other matter prescribed by the Companies Act 2006 
In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the 
financial statements are prepared is consistent with the parent company financial statements. 
Page 82 of89  Independent auditor's report (continued) 
Independent auditor's report to the members of Ubisense Group pic (continued) 
Matters on which we are required to report by exception 
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to 
you if, in our opinion: 
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have 
not been received from branches not visited by us; or 
• the parent company financial statements are not in agreement with the accounting records and returns; or 
• certain disclosures of directors' remuneration specified by law are not made; or 
• we have not received all the information and explanations we require for our audit. 
Other matter 
We have reported separately on the Group financial statements of Ubisense Group pic for the year ended 31 December 
2015. 
U~ LLf:> 
Paul Naylor 
Senior Statutory Auditor 
for and on behalf of Grant Thornton UK LLP 
Statutory Auditor, Chartered Accountants 
Cambridge 
06April2016  Fixed assets 
Investments in subsidiaries 
Current assets 
Debtors 
Cash at bank and in hand 
Creditors- amounts falling due within one year 
Net current assets 
Total assets less current liabilities 
Net assets 
Capital and reserves 
Called-up share capital 
Share premium account 
Share-based payment reserve 
Profit and loss reserve 
Company balance sheet 
Notes 
4 
5 
6 
7 
7 
7 
8 
2014 
£'000 
17,999 
10,113 
19 
10,132 
501 
28,051 
821 
(1,385) 
27,988 
The notes on pages 86 to 89 are an integral part of the Company financial statements. 
The financial statements were approved by the Board of Directors on 06 April 2016 and signed on its behalf by: 
Richard Green, 
Ubisense Group pic 
Registered Number: 05589712 
Page 84 of89  Company statement of changes in equity 
Balance at 1 2014 
Total comprehensive loss for the year 
Reserve credit for equity-settled share-based payment 
Issue of new share capital 
Premium on new share capital 
Share issue costs 
Transactions with owners 
For the year ended 31 December 5 
Share 
capital Share premium 
£'000 £'000 
461 
40 
40 
24,050 
4,230 
(229) 
4,001 
Attributable to equity shareholders 
Share based 
payment 
reserve 
£'000 
746 
75 
75 
Retained 
earnings 
£'000 
(500) 
(885) 
Total £'000 
24,757 
(885) 
75 
40 
4,230 
(229) 
4,116 
Balance at 31 December 2014 501 28,051 821 (1 ,385) 27,988 
..... ·-·-·------··-··---·-·-·--·-·-----------------------------------·----
Total comprehensive loss for the year (22,736) (22,736) 
Reserve credit for equity-settled share-based payment 54 54 
Issue of new share capital 231 
231 
Premium on new share capital 9,845 
9,845 
Share issue costs (474) (474) 
Transactions with owners 231 9,371 54 9,656 
---------------------
Balance at 31 December 2015 732 37,422 875 14,908 
The notes on pages 86 to 89 are an integral part of the Company financial statements. 
Page 85 of89  Notes to the Company financial statements 
Principal accounting policies 
The separate financial statements of the Company are presented as required by the Companies Act 2006. They have 
been prepared under the historical cost convention and in accordance with applicable United Kingdom Accounting 
Standards and law. 
This is the first year in which the financial statements have been prepared under FRS 102. An explanation of the 
transition is provided in note 9. 
The principal accounting policies are summarised below. They have been applied consistently throughout the year and 
the preceding year. 
The Company has taken advantage of the following exemptions allowed under FRS 102; 
• Section 33 "Related party disclosures" not to show transactions with other wholly-owned companies in the 
Group headed by Ubisense Group pic. 
• Section 7 Statement of Cash Flows not to prepare a cash flow statement for the parent company. 
• Section 11/12 financial instrument disclosures 
Share-based payments 
The Company issues equity-settled share-based payments to certain employees of its subsidiaries. Equity-settled share­
based payments are measured at fair value at the date of grant using the Black-Scholes pricing model. The expected life 
used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, 
exercise restrictions and behavioural considerations. The share-based payment is accounted for as a capital 
contribution to the subsidiaries. Investments in subsidiaries are increased by the aggregate amount of share-based 
payment with a corresponding increase in equity for the same amount. 
Investments in subsidiaries 
Fixed asset investments are shown at cost less provision for impairment. 
Deferred taxation 
Deferred tax is provided in full on timing differences that result in an obligation at the balance sheet date to pay more 
tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates 
and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in 
periods different from those in which they are included in financial statements. Deferred tax assets are recognised to 
the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets and liabilities are 
not discounted. 
Page 86 of89  Notes to the Company financial statements (continued) 
2 Loss for the year 
As permitted by Section 408 of the Companies Act 2006, the Company has elected not to present its own profit and loss 
account for the year. Ubisense Group pic reported a loss for the financial year ended 31 December 2015 of £22,736,000 
(2014: £885,000). 
The Company does not have any employees (2014: nil). Directors' emoluments are disclosed in note 7 of the 
consolidated financial statements. The Directors were not remunerated by the parent Company. 
3 Investments in subsidiaries 
Cost and net book amount 
At 1 January 2015 
Additions 
Capital contribution relating to share-based payments 
Impairment 
Additions 
Investments in 
subsidiaries 
£'000 
17,999 
890 
54 
(9,252) 
Additions in the year relate to compensation of Ubisense GmbH for losses under a Domination Agreement. The 
additions of £890,000 represents the compensation for the losses in the years ending 31 December 2012, 2013 and 
2014 when the entity was Ubisense AG. There will be no similar compensation for losses in future. 
Capital contribution 
The capital contributions relating to share-based payments arise because the company has granted share options to the 
employees of its various subsidiaries. 
Impairment 
At 31 December 2015, there were indicators of impairment of the investment in subsidiaries asset. The carrying value 
of the investment, considered together with the net amounts owed by subsidiary undertakings, was compared to the 
recoverable amount and an impairment found to exist. As such, the investment has been written down to recoverable 
amount, being the discounted future cash flows generated from the investment. The discount rate used was 11.5%, this 
being derived from the weighted average cost of capital. 
The impairment expense has been recognised in profit or loss for the year. 
Further information about subsidiaries is provided in note 23 of the consolidated financial statements. 
Page 87 of89  Notes to the Company financial statements (continued) 
Debtors 
Amounts owed by subsidiary undertakings 
2014 
£'000 
10,113 
10,113 
The amounts owed by subsidiary undertakings have been impaired during the year by £12,615,000 (2014: £nil) to 
reduce their carrying value to recoverable amount. The impairment expense has been recognised in profit or loss for 
the year. 
£904,000 owed is due in more than twelve months. 
5 Creditors: amounts falling due within one year 
Trade accruals 
Amounts owed to subsidiary undertakings 
6 Share capital 
Allotted, called up and fully paid 
Ordinary shares of £0.02 each 
A description of the movements in share capital in the year is given in note 20 of the consolidated financial 
statements. 
Page 88 of89  Notes to the Company financial statements (continued) 
Reserves 
Balance at 1 January 2015 
Loss for the year 
Reserve credit for equity-settled share-based payment 
Premium on new share capital 
Share issue costs 
Change in year 
Transition to FRS 102 
Share Share-based Profit and 
premium payment reserve loss reserve 
£'000 £'000 £'000 
28,051 
9,845 
(474) 
9,371 
821 
54 
54 
(1,385) 
(22,736) 
(22,736) 
The company has adopted FRS 102 for the year ended 31 December 2015 and has recalculated the comparative 
amounts as if FRS 102 had always been applied. The shareholders' funds at the effective date of 1 January 2014 
remain unchanged from previously published financial statements and no restatements are required. 
Page 89 of89