bringing clarity to 
complex operations
ubisense group plc
annual report 2013
ubisense group plc annual report 2013 visit our website for further 
information on our company 
and products at ubisensenet
we’re the world’s foremost specialists in location 
intelligence – whether we’re bringing previously 
inaccessible efficiencies to manufacturing 
processes or revolutionising the management 
of huge networks in the utilities sector
our mission 
we transform our customers’ business processes 
by applying our worldclass location intelligence 
expertise embedded in innovative solutions that 
bring clarity and control to complex operations
contents
board of directors 18
directors’ report 20
corporate governance report 22
statement of directors’ responsibilities 25
governance
highlights 1
chairman’s statement 2
overview
strategic report
our business overview  4
our business  8
chief executive’s review 10
financial review 12
strategic report14
financial statements
independent auditor’s report  26
consolidated income statement 27
consolidated statement  
of comprehensive income 28
consolidated statement of changes in equity 29
consolidated statement of financial position 30
consolidated statement of cash flows 32
notes to the consolidated  
financial statements 33
independent auditor’s report 60
company balance sheet 61
notes to the company financial statements 62
notice of annual general meeting 64
corporate directory ibc
shareholder information ibc
additional information overview
highlights
financial highlights
strategic highlights
broadening reach of addressable market in japan and south korea with acquisition of geoplan
customer bookings in the year up 321 to £325 million including multiyear contracts
order book up 755 year on year to £179 million as at 31 december 2013 and continues 
to provide good revenue visibility
appointment as google enterprise partner
1
operational highlights
product certification granted in japan and south korea enabling deployment of rtli solutions
significant orders during the period from leading european telecoms network operator 
the largest us agricultural manufacturer a topfive us telecoms operator and a leading 
us energy utility
all three german automotive groups deploying ubisense smart factory system in a step 
and repeat cycle
robert parker appointed chief financial officer on 10 february 2014
  measured as operating profit excluding depreciation amortisation sharebased payments charge and 
nonrecurring costs such as reorganisation costs aim listing expenses and acquisition costs
  earnings measured as profit for the period excluding amortisation on acquired intangible assets sharebased 
payments charge and nonrecurring exceptional items such as acquisition and reorganisation costs
£270m
group revenue
2012 £243m
265
recurring revenues
2012 251
£11m
adjusted ebitda
2012 £12m
£40m
2012 £32m
product development
£40m
2012 £27m
cash and cash equivalents
£50m
bank facility
£35m drawn
ubisense group plc annual report 2013
£179m
755
order book
£325m
customer bookings
321 ubisense group plc annual report 2013 2
the necessary investments and efforts we have made 
have allowed ubisense to experience solid growth 
through major new strategic client wins as the use of 
realtime location intelligence solutions is becoming 
increasingly widespread through many industries
the necessary investments and progress we 
have made have allowed ubisense to experience 
solid growth through major new strategic client 
wins as the use of realtime location intelligence 
solutions is becoming increasingly widespread 
through many industries our yearend order 
book is up 755 year on year to £179 million 
– a significant achievement – and this continues 
to provide us with good revenue visibility 
going forward
we have also delivered excellent progress 
and further market traction in the conversion 
of our consulting services customers into 
rtli solutions customers our marketleading 
rtli solutions offering is benefiting from the 
acceleration in enterprise acceptance as it allows 
customers across highvalue manufacturing 
utility and telecommunication sectors to achieve 
substantial improvements in efficiency and cost 
savings our reputation with all our customers 
continues to be one of value reliability and 
exceptional service
our aim is to deliver a single enterprise location 
intelligence platform to address all of our customer 
base and target markets
current trading and outlook
in the period since the year end trading has 
been in line with the board’s expectations 
ubisense has entered 2014 with increasing 
momentum in the business and we are 
extremely well positioned to capitalise 
on the opportunities we see
introduction
2013 was a busy year for the group driving 
forward our aim to be synonymous with enterprise 
location intelligence we have seen significant 
developments in our strategy to transform 
our business to a single realtime location 
intelligence rtli solution fully leveraging 
our product ip across our customer base 
to strengthen this further and expand our 
global footprint on 3 december 2013 we 
completed the acquisition of the geoplan 
interworks kk “geoplan” group of companies
we are still in the early stages of the integration 
process but i am delighted with the progress to 
date and am excited by the potential we see in 
asia over the next few years
overview
group revenue increased by 112 to 
£270 million and we achieved an adjusted 
ebitda of £11 million the group’s gross profit 
was £92 million representing a gross margin 
of 342 the group has a robust balance 
sheet with net assets of £194 million including 
cash and cash equivalents of £40 million
during 2013 we experienced continued 
momentum across the business as we migrated 
to an rtli solutions focused business through 
the strengthening of key customer relationships 
acquisition of new customers improved market 
reach and our approach to product management 
we have also ensured that our resources are 
fully focused on delivering our leading location 
intelligence technology for markets where 
we add the most value
chairman’s statement
 
our aim is to deliver a 
single enterprise location 
intelligence platform to 
address all our customer 
base and target markets overview
ubisense group plc annual report 2013 3
 
our marketleading rtli solutions offering is benefiting 
from the acceleration in enterprise acceptance as it 
allows customers across highvalue manufacturing 
utility and telecommunication sectors to achieve 
substantial improvements in efficiency and cost savings”
we will continue to pursue growth both 
organically and through acquisitions that 
align with our strategic objectives enhance 
our offering and deliver value for our shareholders 
although the world economic recovery is 
still in an early stage we are able to provide 
marketleading innovative solutions for our 
customers and we begin 2014 with a robust 
order book and pipeline which gives us 
confidence for the future 
conclusion
on behalf of the board i would like to thank 
our customers partners and employees for 
their support in making 2013 such a strong 
year for the ubisense group i look ahead 
with confidence for the 2014 financial year
andy hopper cbe
chairman
24 march 2014 continuous 
monitoring 
of progress
benefit realtime assessment of 
operational delay when progress 
deviates from plan supporting wip 
replanning across sites
ubisense group plc annual report 2013 4
problem 
across the major a380 assembly 
factories the tracking and reporting 
of status of the industrial process was 
done via various paperbased processes 
central management received data from 
different sources which provided various 
views of the operational status to ensure 
components arrive at the final assembly 
line at the right times from the distributed 
plants an improved process tracking 
system was required
solution 
by precisely tracking ubisense tags on 
components the smart factory system 
provides airbus with realtime work in 
progress monitoring this includes 
accurate tracking of actual progress per 
component a realtime visual display of 
component locations and synchronised 
information for the components of every 
single aircraft instantaneous alerts are 
given when process deviations occur 
including missed steps and exceeded 
step cycle times
result 
automatic work in progress wip 
monitoring of components has reduced 
delays in reporting the ability to identify 
the quantity of wip and to impact 
assessment of operational delays 
across plants has improved
reliability
our business overview
  strategic report
replace manual 
methods of 
network design
benefit rapidly deliver highvalue 
services to existing and new customers
ubisense group plc annual report 2013 5
problem 
one of the most prevalent challenges 
faced by telecommunications operators 
today is how to roll out new network 
technologies required to deliver high 
bandwidth services to their enterprise 
and residential customers in an 
expedited and costeffective manner 
to remain competitive
solution 
building on many years supplying support 
and software consultancy services for 
swisscom’s manual planning engineering 
and inventory tool ubisense delivered new 
design automation tools for swisscom 
to trial
result 
the proof of concept was a complete 
success ubisense and swisscom are 
now taking the design solution into 
production as a key component of the 
new fibre rollout plan that started at the 
end of 2013 swisscom will be able to 
roll out ftts to deliver high bandwidth 
services to existing and new customers 
and swisscom customers will benefit by 
being able to watch iptv on multiple 
devices in parallel including 3d and 
uhd 4k content
automation automate  
errorproofing for 
critical assembly 
operations
benefit reduction in defects on 
safetycritical tightening operations 
during vehicle assembly
ubisense group plc annual report 2013 6
problem 
because multiple vehicle models are 
produced on the same assembly line 
power tool settings must be constantly 
adapted for the specific model entering 
a work station previously to load the 
specific tool settings a vehicle’s vin was 
identified via a barcode scan upon entry 
to a work station manual barcode scans 
for vin identification were taking up to 
six seconds per tool operation across 
150 tool stations for 1100 cars per day
solution 
by precisely tracking ubisense tags on 
vehicles and tools the system provides 
bmw with efficient and reliable tool 
control through automatic identification 
of a vehicles vin eliminating the barcode 
scans and automatically loading tool 
programs and torque settings for each 
vehicle identified
result 
realtime automatic tool control has 
reduced nonvalue added work across 
the assembly line and contributes to error 
prevention hundreds of hours per day 
have been saved due to the elimination 
of manual barcode scans
quality
our business overview continued
  strategic report
demonstrate 
conformance to 
safety standards
benefit automate surveying 
underground gas network and facilities 
automatically tracking progress and 
storing data as auditable records to 
demonstrate compliance with standards
ubisense group plc annual report 2013 7
problem 
for a time ugi utilities used an 
electronic system to track its gas leak 
surveys across distribution system of 
approximately 12000 miles of gas mains 
until the company encountered a database 
replication issue this issue forced ugi 
to revert back to a paperbased system 
the process still used by most natural 
gas utilities 
ugi needed an online survey tracking 
system with geospatial mapping 
capabilities that would not only detect 
natural gas leaks but also track the 
progress of the leak surveyors against 
the gas mains as mapped in a 
geographic information system gis
solution 
ubisense provided ugi executives with 
a demonstration of verotrack a gas leak 
detection system that highlights facilities 
surveyed and records gas readings 
automatically eliminating the need to 
highlight paper maps and manually 
enter data verotrack records gas 
detector readings and gps coordinates 
automatically and integrates with a gis 
to create standardised reports and 
auditable records
result 
as a result of the ubisense deployment 
ugi’s productivity has increased 
dramatically instead of surveying for 
seven hours and reporting for one field 
surveyors are able to survey for the full 
eight hours and cover more ground
compliance our business 
ubisense group plc annual report 2013 8
ubisense is a market leader in enterprise 
location intelligence solutions that enable 
companies to improve their critical business 
processes ubisense solutions bring clarity 
to complex operations for improved 
situational awareness and automation to 
improve quality and reliability at lower cost 
ubisense products are used by bluechip 
customers around the world
founded in 2002 ubisense is a public 
company aimubi with over 240 staff 
worldwide serving 500 customers in 
50 countries ubisense is headquartered 
in cambridge uk with offices in the 
us canada france germany japan 
s korea the philippines and singapore
240 500 50
staff worldwide serving customers in countries strategic report
 
ubisense group plc annual report 2013 9
our product offerings 
enable businesses across the  
highvalue manufacturing utility 
and telecommunications sectors to 
reduce costs and make significant 
improvements in efficiency
ubisense products are used by over 
40 telecoms network operators worldwide 
providing business location intelligence for 
greater operational visibility our products 
fuse their enterprise system data with 
operational data for anytime anywhere 
access to their critical locationbased 
data making it easily accessible to anyone 
within their organisation ubisense products 
provide situational awareness and more 
effective process support facilitated by this 
greater operational visibility telecom and 
cable network operators are able to address 
issues faster and to deliver a better customer 
experience to their end users
utilities supply and distribution network 
operators need to gather process maintain 
and keep up to date huge amounts network 
asset data this enables them to meet 
customer satisfaction commercial health 
and safety sustainability and regulatory 
requirements ubisense offers the 
electricity gas and water supply industries a 
range of costeffective userfriendly 
software solutions that add business 
location intelligence to their network asset 
management processes providing many 
business benefits
telecommunications
»
utilities
»
manufacturers are striving to optimise their 
businesses using lean production 
techniques the intelligent production 
systems underpinning these processes 
require realtime location intelligence about 
the movement of product and assets 
during the production steps ubisense 
smart factory products are used to 
construct a digital analogue of our 
customer’s factories a smart factory 
model contains both the physical factory 
spaces assets stations and products and 
the logical arrangement of the factory 
process logic interstep dependencies 
and business rules the result is a realtime 
dynamic 3d simulation of all critical 
manufacturing processes that enables 
smart factory to monitor automate and 
optimise manufacturing operations
manufacturing
our markets
ubisense enterprise location intelligence products 
provide visualisation and control of complex processes 
applying them results in improved decision making 
improved quality and improved throughput
enterprise location 
intelligence
by pinpointing in space and time the precise 
positions and status of a customer’s assets 
be they tools and products in a manufacturing 
assembly facility or equipment and cables in 
a distribution network we can transform the 
efficiency of their processes – and therefore 
the profitability of their business
 
our products gather realtime data from a 
variety of sources including our own sensor 
networks existing monitoring systems 
enterprise information systems and cloud 
based systems our applications provide 
the business logic to improve the customer 
processes updating information systems 
control systems and mobile devices 
in realtime
»
1
solutions
revenues driven from the ubisense 
software product suites smart factory 
myworld verotrack and ubisense rtls 
hardware technical expertise and exclusive 
reseller arrangements a solution sale will 
include a mixture of application software 
licences in perpetuity and termbased 
hardware installation and commissioning 
services and maintenance and support 
margins in any given period will vary 
depending upon the makeup and phase 
of the given set of solutions being delivered 
the company sees this revenue stream as 
critical to driving the long term growth and 
profitability of the business
2
services
revenues not involving the ubisense 
product suites as defined above these 
revenues are typically multiyear managed 
services contracts consultancy and training 
the company generally has good visibility 
on future revenue from services and believes 
it is critical to driving customer loyalty and 
providing a customer base into which it 
can sell its solutions ubisense group plc annual report 2013 10
our value proposition is and remains our main 
growth driver as customers are seeing clear return 
on investment from increased operational efficiencies 
and reduced costs in their operations
business observations
 » we continue to see location as a key 
asset attribute for many critical business 
processes and the focal point for integration 
of enterprise data
 » in our telecoms and utility markets new 
mobilebased capabilities are realising 
business opportunities for software products 
in field operations where realtime data 
access and updates demonstrate improved 
business efficiency for the mobile workforce
 » in our manufacturing markets we see 
opportunities to penetrate upstream 
and downstream around initial points 
of deployment as customers recognise 
the value of location
our value proposition is and remains our 
main growth driver as customers are seeing 
clear return on investment from increased 
operational efficiencies and reduced costs 
in their operations
customer momentum
in the year the growth momentum in our 
solutions business continued as we extended 
our product sales into our existing client base 
and leveraged these existing relationships 
our focus remained on our priority markets in 
highvalue manufacturing and network operators 
where we delivered yearonyear growth in 
revenues of 18 our rtli solutions have 
strengthened our customer relationships as we 
continue to innovate and offer a growing range 
of applications to support their drive towards 
endtoend location intelligence solutions 
across their whole business
ubisense products and solutions have now 
been installed in eight out of the top 15 auto 
manufacturers and we continue to penetrate 
the global automotive market with installations 
at more new plants in north america europe 
and south korea crucially in the year our 
rtls solution was authorised for certification 
for sale into japan which along with the 
chief executive’s review
 
overview
the group made exceptional progress in 2013 
delivering on our stated strategy in the year 
we decided to bring together all of our leading 
locationbased technologies into one converged 
offering in order to meet the increasing demands 
of our customers our single rtli business 
allows the company to benefit from the 
emerging trends of smart devices and the 
growth in cloud technologies
the implementation of this strategy has 
allowed us to achieve pleasing growth in the 
year we experienced growing awareness and 
increased deployment with a number of large 
manufacturers and network operators
our strategic objectives are as follows
 » continue to evolve as a solutionsbased 
business with a services capability 
developing ip licensed on perpetual 
or term basis to customers
 » develop additional software licence offerings 
for specific business problems that deliver 
roi to customers and represent upsell 
opportunities and additional maintenance 
and support revenue
 » focus direct business on manufacturing 
telecoms and utility enterprises – particularly 
automotive manufacturing cable television 
and triple play operators as well as gas and 
electric utilities
 » drive step and repeat business in automotive 
manufacturing across new site locations 
where we have demonstrated business 
value in initial deployments
 » use channel partners to reach other vertical 
markets at low cost of sale with specific 
domain knowhow and market access and
 » continue to innovate and provide a 
rewarding work environment to attract 
and retain talented staff
implementing intelligent 
concepts through the 
development of unique 
ip is core to our 
product offering strategic report
ubisense group plc annual report 2013 11
 
we continue to look for acquisition opportunities 
to enhance our market penetration geographical 
footprint and product portfolio”
additionally we have focused on integration 
with other enterprise system platforms such 
as sap and this makes for more effective 
deployment for our customers as integration 
timescales and costs are much lower
conclusion
by continuing to invest in our product suite 
and working in close cooperation with our 
customers we have established a strong 
platform for growth and are in a good position 
to build on our successes we look forward 
to the future with confidence
richard green
chief executive officer
24 march 2014
strategic partnerships
substantial progress was achieved with our 
strategic partners atlas copco google and our 
partnership with the daifuku corporation in japan
we remain committed to developing 
partnerships that deliver differentiated 
value propositions leveraging each other’s 
expertise and relationships to provide 
substantial benefit for our joint customers
products
implementing intelligent concepts through 
the development of unique ip is core to our 
product offering and differentiates us from 
our competitors we continue to invest heavily 
in research and development as well as extending 
our collaboration with university and research 
institute partners
we have continued with the consolidation 
of current products into more market focused 
application suites such as smart factory our 
flagship endtoend manufacturing solution 
feedback has been very positive and we are 
ultimately moving to a single enterprise location 
intelligence platform to address all our 
customers’ requirements
development of the smart warehouse system 
by daifuku for its large customer base has 
opened up a large number of new opportunities 
and potential new customers
during the year we saw repeat orders from our 
existing customer base and won several new 
solutions contracts including major strategic wins 
at customers such as vw honda and toyota 
and we have extended our installations at existing 
customers including airbus aston martin 
bmw cummins daimler and john deere
we continue to deliver into telecoms and utility 
network operators servicing both existing and 
new customers we remain committed to this 
customer base and strongly believe that we will 
be able to further sell our enhanced rtli solutions 
to them as a trusted supplier we are pleased 
to report new customer wins with swisscom 
central hudson piedmont gas and kepco
acquisitions
geoplan was acquired for a maximum 
consideration of £34 million with initial 
consideration of £23 million and £11 million 
being deferred of the initial consideration 
£06 million consists of cash and the remainder 
ubisense shares of the deferred consideration 
£02 million has been paid as at 24 march 2014
the acquisition of geoplan contributed £07 million 
to revenues in the year we are integrating the 
company into our existing business and 
operations are being consolidated providing 
us with crossselling opportunities and a strong 
presence in japan to open up the manufacturing 
market there we are delighted with the progress 
we have made so far in both japan and south 
korea and will look to take advantage of the 
vast opportunities this acquisition has brought 
to us across asia
we continue to look for acquisition opportunities 
to enhance our market penetration geographical 
footprint and product portfolio ubisense group plc annual report 2013 12
as a result of the record customer orders in the 
period the order book as at 31 december 2013 
stood at £179 million – a 755 increase  
yearonyear
 » services – revenues not involving the ubisense 
product suites as defined above these 
revenues are typically multiyear managed 
services contracts consultancy and training 
the company generally has good visibility 
on future revenue from services and believes 
it is critical to driving customer loyalty and 
providing a customer base into which it can 
sell its solutions
total revenues grew by 112 to £270 million 
2012 £243 million of the total revenue for 2013 
an incremental £07 million was contributed by 
the geoplan acquisition made at the beginning 
of december 2013 excluding geoplan organic 
revenue increased by 82 to £263 million
solutions revenue grew by 67 to £134 million 
2012 £125 million services revenue grew 
by 159 to £136 million 2012 £118 million 
primarily as a result of large contract wins in the 
us in the utility and telecoms markets recurring 
revenues comprising managed services and 
maintenance and support grew to £72 million 
2012 £61 million or 265 of total revenues 
2012 251 as the installed base of products 
increases and more customers adopt our 
managed services offering
the majority of our revenues relate to a small 
number of large 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
gross margin
the gross margin reduced from 395 to 342 
in 2013 this was the result of a number of factors 
i an increase in services revenue in the revenue 
mix ii within those services revenues a greater 
proportion was derived from lower margin data 
cleansing services which will ultimately allow us 
greater access to sell our solutions as a trusted 
partner and iii our solutions revenues which are 
generally higher margin were in part delivered 
using contractors to fill delivery capacity which 
has a direct impact on the margin
orders
2013 saw a number of major new contract 
awards and extensions to existing contracts 
resulting in record new orders for the period 
of £325 million 2012 £246 million including 
a number of multiyear managed services deals 
£315 million of these orders were organic
as a result of the record customer orders in the 
period the order book as at 31 december 2013 
stood at £179 million 2012 £102 million – a 
755 increase year on year £147 million of the 
order book comes from the organic business 
this continues the trend of an increasing order 
book and gives the company good visibility on 
revenues into 2014 and beyond
revenue
at the start of 2013 ubisense reorganised into 
a single realtime location intelligence rtli 
business integrating all our leading locationbased 
technologies driving to a single platform which we 
are increasingly converging the rtli strategy is 
outlined further in the strategic report while we 
market organise and report a single offering 
ubisense has two revenue streams which 
are serviced by a common cost base
 » solutions – revenues driven from the ubisense 
product suites smart factory system 
netsolutions netplanning myworld verotrack 
technical expertise and exclusive reseller 
arrangements a solution sale will include a 
mixture of application software licences in 
perpetuity and subscription based installation 
and commissioning services hardware and 
maintenance and support margins in any given 
period will vary depending upon the makeup 
and phase of the given set of solutions being 
delivered the company sees this revenue 
stream as critical to driving the longterm 
growth and profitability of the business
financial review
 
the group has a robust 
balance sheet with net 
assets of £194 million strategic report
ubisense group plc annual report 2013 13
 
operating expenses
operating expenses of £109 million 
2012 £104 million increased by 48 
year on year operating expenses includes 
sales and marketing product marketing 
product development general and administration 
and foreign exchange gross expenditure 
on product development increased 26 to 
£40 million 2012 £32 million reflecting 
increased investment in our flagship smart 
factory and myworld products capitalised 
product development costs at £30 million 
2012 £18 million represented 76 
2012 58 of gross development spend whilst 
amortisation of the capitalised development 
costs was £12 million 2012 £09 million
the group incurred exceptional items of 
£08million of which £07 million related 
to strategic asia pacific market entry costs 
comprising £05 million acquisition costs relating 
to geoplan and £02 million relating to product 
certification costs in japan and south korea 
and the termination of our previous agent 
network in the region
in addition the group incurred £01 million 
of costs mainly comprising professional fees 
in connection with an acquisition which did 
not proceed the board continues to evaluate 
suitable acquisition opportunities to enhance 
its geographical footprint product offerings 
delivery capacity and customer base
ebitda and operating profit
group adjusted ebitda for the period was 
£11 million 2012 £12 million to provide a 
better guide to underlying business performance 
adjusted ebitda excludes sharebased 
payment charges and exceptional items along 
with depreciation amortisation interest and 
tax from the measure of profit
both the operating loss of £16 million 
2012 £08 million and loss before tax 
of £17 million 2012 £07 million include 
amortisation and depreciation charges of 
cash and cash equivalents held in the balance 
sheet at 31 december 2013 were £40 million 
31 december 2012 £27 million with the 
bank loan outstanding of £35 million net 
funds at 31 december 2013 were £05 million 
31 december 2012 £27 million
the main components to the gross 
cash increase of £13 million for the year 
2012 £33 million decrease were operating cash 
outflow of £08 million 2012 £08 million outflow 
the cash consideration paid for geoplan of 
£07 million in december 2013 2012 £04 million 
outflow on prior acquisitions the cash acquired 
with geoplan of £25 million capital investment 
in plant and equipment and intangibles 
including product development of £32 million 
2012 £23 million and the receipt of the new 
bank loan of £35 million 2012 £nil
capital structure
the issued share capital at 31 december 2013 
was 23079146 december 2012 21919744 
ordinary shares of £002 each the increase 
of 1159402 shares related to 759809 shares 
issued as part of the consideration of acquiring 
geoplan and 399593 shares as a result of 
share option exercises by employees in addition 
421500 share options were granted to employees 
on 19 april 2013 at an exercise price of £2055 
being the share price at the time the total 
number of unexercised share options at 
31 december 2013 was 2023180
robert parker
chief financial officer
24 march 2014
£19 million 2012 £14 million which have 
increased as a result of the increased amortisation 
of capitalised product development costs as 
well as the exceptional items noted above of 
£08 million 2012 £04 million
interest and tax
net interest payable for the period was 
£01 million 2012 £nil as a result of drawing 
down on our hsbc bank loan 
the group has a net tax expense of £02 million 
2012 £01 million income almost entirely a 
result of noncash deferred tax on capitalised 
development costs and acquired intangible 
assets management’s best estimate of the 
effective current tax rate is nil due to the 
availability of prior years’ losses the group 
has substantial tax losses carried forward 
and expects to benefit from the patent box 
tax regime being introduced in the uk
eps and dividend
adjusted diluted loss per share was 35p 
2012 05p earnings reported basic and 
diluted loss per share was 89p 2012 28p 
the board does not feel it appropriate at this 
time to commence paying dividends
balance sheet 
cash and cash flow
the group has a robust balance sheet with 
net assets at 31 december 2013 of £194 million 
31 december 2012 £189 million
in august 2013 the group agreed a 
£50 million threeyear loan to provide 
future working capital replacing the previous 
£20 million facility negotiated in 2012 and 
drawn down in 2013 £35 million of the new 
loan was drawn as at 31 december 2013 
2012 £nil of which £20 million was used 
to repay the original facility ubisense group plc annual report 2013 14
as the company’s products become more generally 
accepted across its chosen industries ubisense expects 
to penetrate deeper into its customer base to deploy 
multiple applications in each site
with the business reorganised the strategy 
of the group is to 
 » continue to evolve as a solutionsbased 
business with services capability
 » develop nextgeneration applications that 
deliver roi to customers
 » focus direct business on manufacturing 
telecoms and utility enterprises
 » drive step and repeat business in automotive 
manufacturing across new site locations
 » use channel partners to reach other vertical 
markets at low cost of sale and
 » continue to innovate and provide a 
rewarding work environment to attract 
and retain talented staff
business review and 
future developments
business development
a significant increase in customer bookings 
over 30 year on year validates our new strategy 
focused on realtime location intelligence and the 
investment we have made in our nextgeneration 
platforms and sales and marketing infrastructure
considerable effort and investment in key strategic 
accounts in both europe and north america 
has resulted in ubisense securing contracts 
with three major manufacturing customers with 
global presence and reach which will result in 
lower cost of sales and increased profitability 
going forward furthermore the group now 
has relationships with all three german auto 
manufacturers and is targeting repeat orders 
across these groups in the coming months
it is still too early to see the momentum of our 
increased solution sales being reflected in the 
group accounts but on a regional basis we 
can start to see the delivery of our strategy 
strategy and business model
ubisense is a market leader in realtime 
location intelligence solutions which enable 
companies to optimise their business 
processes by keeping track of key assets 
ubisense solutions bring clarity to complex 
locationbased operations that facilitate 
improved human decision making whilst also 
improving quality efficiency and reliability 
ubisense realtime location intelligence 
solutions are used by a number of bluechip 
customers across the world such as agco 
airbus aston martin bmw cablevision 
daimler deutsche telekom duke energy 
john deere mini and vw 
ubisense is headquartered in cambridge uk 
with offices in the us canada france 
germany japan south korea the philippines 
and singapore 
in recent years there has been a significant 
demand from customers requiring a single 
solution which combines indoor and outdoor 
components as well as dynamic and static 
data this overlap of our traditional geospatial 
and rtls businesses enabled us to integrate 
both divisions into a single realtime location 
intelligence rtli business that brings together 
all of our leading locationbased technologies 
the enterprise acceptance of our rtli 
solutions has been accelerated by several 
factors such as the consumerisation of maps 
led by google the proliferation of smart 
devices and the growth in cloud technologies 
ubisense’s software products and services 
capability benefits from these trends enabling 
enterprises across the highvalue manufacturing 
utility and telecommunications sectors to 
deliver significant improvements in efficiency 
and cost savings this also opens up new 
adjacent markets for ubisense 
ubisense expects repeat 
business to have a more 
profitable product mix and 
a lower cost of sale which 
ultimately will drive up 
margins and profitability
strategic report
  strategic report
ubisense group plc annual report 2013 15
a significant increase in customer bookings 
over 30 yearonyear validates our new strategy 
focused on realtime location intelligence and the 
investment we have made in our nextgeneration 
platforms and sales and marketing infrastructure”
principal risks  
and uncertainties
the group faces competitive and strategic risks 
that are inherent in a rapidly growing emerging 
market the board of the company 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 realtime location systems 
rely on ultrawideband radio signals to operate 
key performance indicators
the primary financial key performance 
indicator for the group is adjusted ebitda 
on which it reports monthly adjusted ebitda 
for the year was £11 million 2012 £12 million 
the group also monitors the order pipeline 
and cash balances at the close of the year the 
outstanding order book totalled 69 of annual 
sales 2012 47 the closing cash balance for 
the group was £40 million 2012 £27 million 
having regularly reviewed the kpis in respect 
of changes within periods and changes between 
reporting periods the directors believe that the 
group has made satisfactory progress against 
the kpis especially the order pipeline compared 
to budget
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 27 of the 
consolidated financial statements
our european business shows the acceleration 
of solutions revenues over services and resultant 
increase in margins and profits whilst the americas 
business is still transitioning and we look forward 
to the acceleration of its solutions revenues 
this year
in our telecommunications and utility markets 
new mobile technologies embodied in our 
myworld product have opened up new business 
opportunities for our software products in 
realtime operational use not traditionally an 
area of focus for us customer wins for the 
period included a leading european telecoms 
network operator a topfive us telecoms 
operator and a leading us energy utility
as the company‘s products become more 
generally accepted across its chosen industries 
and markets ubisense expects to be able 
to penetrate deeper into its customer base 
to deploy multiple applications on each site 
its acquisition strategy aims to enhance the 
company’s product portfolio geographical 
reach and the ability to service its customers 
from a local office the company expects 
repeat business to have a more profitable 
product mix and a lower cost of sale which 
ultimately will drive up margins and profitability
partnerships
while our direct sales channel is receiving strong 
customer traction our channel partners have 
also contributed to the strong customer bookings 
performance notably we became an official 
enterprise partner of google in the year 
our channel partner relationships have resulted 
in an increase in the number of pipeline deals 
this gives us confidence in achieving our growth 
goals for 2014 furthermore developments 
with partners such as daifuku in asia pacific 
have increased our optimism with regards to 
the opportunities to significantly increase the 
company’s presence in this key market ubisense group plc annual report 2013 16
the group continues to invest in rd spending 
£40 million in its rd programmes in the year 
2012 £32 million
in the financial year to 31 december 2013 the 
group’s ten largest customers accounted for 
60 of the group’s revenue 2012 67 of 
which one customer accounted for in excess 
of 10 2012 2 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 has 
extensive sales and account management 
processes and procedures
contracts
some of the group’s commercial contracts 
include terms where revenues andor invoicing 
are related to customer acceptance 
the group’s exposure under such contracts is 
review regularly by the executive management 
team and the main board
credit
the main credit risk is attributable to trade 
receivables owed by customers as the majority 
of the group’s customers are very large 
bluechip utilities telecoms and manufacturing 
companies the risk of nonpayment 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 circumstance which 
based on experience are evidence of a likely 
reduction in the recoverability of the receivable
bank covenants
in august 2013 the group agreed a 
£50 million loan facility with hsbc bank plc 
to provide future working capital capacity 
the loan is repayable in three years and the 
outstanding balance at 31 december 2013 
was £35 million
the group has in place appropriate 
incentivisation structures to attract and retain 
the calibre of employees necessary to ensure 
the efficient management and development 
of the group
reliance on third parties 
including manufacturers
the group relies on thirdparty equipment 
manufacturers in the completion of its products 
and therefore does not always have complete 
control over 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 one key supplier supplies 
more than 75 hardware required annually 
by the group
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 is dependent on a number of key 
contracts and customer relationships for its 
current and future growth and development 
ubisense has strong customer relationships 
with considerable repeat business from a 
number of large international organisations 
principal risks 
and uncertainties continued
technological risks continued
there is no guarantee that technological 
advances will not render systems based on 
ultrawideband radio obsolete the group’s 
existing reference designs may become 
obsolete or may be superseded by new 
technologies or changes in customer 
requirements the technology used in the 
group’s products is still evolving and is highly 
complex and may change rapidly 
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
growth management 
and acquisitions
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 such expansion is expected to 
place demands on management support 
functions accounting sales and marketing 
and other resources 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 undertakes 
extensive due diligence on acquisition targets 
and uses dedicated project teams to integrate 
acquisitions into the group
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
strategic report continued
  strategic report
ubisense group plc annual report 2013 17
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
approved by the board of directors and signed 
on behalf of the board
gordon campbell
company secretary
24 march 2014
registered number 05589712
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 and 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 is required to meet certain financial 
criteria agreed as covenants for the bank loan 
the financial measures are regularly reviewed 
against covenant requirements to ensure the 
group’s obligations can be met all covenants 
tests during the year were met and all tests for 
the forthcoming twelve months are forecast to 
be met based on our annual operating plan 
and our latest rolling forecast
research and development rd
the group continues to invest in rd 
spending £40 million in its rd programmes 
in the year 2012 £32 million of which 
£30 million 2012 £18 million was capitalised 
in the opinion of the directors these investments 
will maintain and generate significant revenues 
in future years
intellectual property
the group owns intellectual property both in its 
software tools and the products derived from 
them the directors consider such properties 
to be of significant value to the business
employee involvement
the group aims to attract retain and 
motivate the best staff regardless of 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 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
the group is dependent on a number of key contracts 
and customer relationships for its current and future 
growth and development ubisense has strong customer 
relationships with considerable repeat business from 
a number of large international organisations” ubisense group plc annual report 2013 18
board of directors
 
robert parker
chief financial officer   a r n
robert is a chartered accountant with more than 
25 years’ experience in senior finance roles across 
multiple sectors most recently robert was cfo of 
the optitune group a finnish cleantech company 
robert has held senior positions with sumitomo 
electric europe ltd eircom uk national grid 
and immedia
richard green
chief executive officer   n
richard initially trained as a mechanical engineer 
and has over 25 years of experience in the software 
industry after he had 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 and sits on the institute of 
mechanical engineers manufacturing industries board
professor andrew hopper cbe
nonexecutive chairman   a r n
andy is one of the foremost leaders in the 
technology industry having cofounded twelve 
successful companies including acorn computers 
limited acquired by olivetti virata inc listed on 
nasdaq adaptive broadband limited acquired by 
california microwave inc cambridge broadband 
limited level 5 networks limited and realvnc 
limited andy is professor of computer technology 
at the university of cambridge and is currently head 
of the university of cambridge computer laboratory 
and a member of the university’s council andy has 
worked on location systems for over 20 years he 
was elected as a fellow of the royal society in 2006 
and the royal academy of engineering in 1996 
andy was made a cbe in 2007 for services to 
the computer industry
board committee membership
a – audit committee
r – remuneration committee
n – nominations committee governance
ubisense group plc annual report 2013 19
 
dr richard newell
nonexecutive director   a n
dick has spent over 45 years in the software industry 
in computeraided design cad and geographic 
information systems gis he cofounded his first 
company cambridge interactive systems limited 
cis in 1977 cis was part of what became known 
as “the cambridge phenomenon” dick was a 
cofounder of smallworld in 1988 dick was chairman 
of both cis and smallworld he was the original 
project manager of pdms a core product of aveva 
group plc and is also a nonexecutive director of 
ultravision clpl and digital spring limited
j keith lomas
nonexecutive director   a r n
keith has more than 20 years’ senior management 
experience in both small and medium sized 
entrepreneurial and extensive multinational 
companies keith was appointed managing director 
of clpl in 1996 and after leading the successful 
acquisition of ultravision international in 2003 
keith was appointed as president and ceo of the 
ultravision clpl group the combined group is 
one of the largest independent manufacturers and 
suppliers of contact lenses in europe prior to his 
involvement in the contact lens world keith was 
an investment banker at sg warburg kleinwort 
benson and daiwa europe keith is an active investor 
in other technology startup companies keith accepted 
the queen’s award for enterprise innovation 2006 
and 2010 on behalf of ultravision clpl
peter harverson
nonexecutive director   r n
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 nonexecutive 
chairman of aspex semiconductors limited sold to 
ericsson ab in july 2012 currently peter is a 
nonexecutive director of brady plc  crfs limited 
and chairman of eosemi limited peter is also an 
advisor to cambridge ip limited
dr robert sansom
nonexecutive director   r n
an active angel investor and mentor to startups robert 
is founder of the cambridge angels a group of seasoned 
technology and biotechnology entrepreneurs who 
invest in and mentor technology startups in the 
cambridge area previously robert was cofounder 
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 45 billion in 1999 additionally robert 
served as the chief technology officer at marconi in 
1999 robert is a member of the board of directors 
of cambridge communications systems limited 
crfs limited and netronome systems inc he was 
elected as a fellow of the royal academy of engineering 
in 2010
paul taylor
nonexecutive director   a r n
paul is a fellow of the association of chartered 
certified accountants paul joined aveva group plc 
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 plc 
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 nonexecutive director of anite plc escher 
group holdings plc digital barriers plc and kbc 
advanced technologies plc ubisense group plc annual report 2013 20
directors’ report
 
directors’ indemnity 
arrangements
the group has made qualifying thirdparty 
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
corporate governance
the company’s statement on corporate 
governance can be found in the corporate 
governance report on pages 22 to 24 of these 
financial statements the corporate governance 
report forms part of the directors’ report and 
is incorporated into it by crossreference
post balance sheet events
there are no significant events since the 
balance sheet date
dividends
the directors do not recommend payment 
of a dividend for the year 2012 £nil
auditors
a resolution to reappoint grant thornton uk llp 
as the group’s auditors will be proposed at the 
forthcoming annual general meeting 
in accordance with normal practice the 
directors will be authorised to determine 
the auditors’ remuneration
board changes 
in february 2014 after ten years at ubisense 
gordon campbell chief financial officer notified 
the board of his intention to step down from his 
role gordon campbell has made a significant 
contribution to the growth and development of 
the group including listing on aim and this will 
continue in a new role responsible for mergers 
and acquisitions and postacquisition integration
on 10 february 2014 robert parker was 
appointed as cfo of ubisense group plc 
robert parker joins ubisense from optitune plc 
where he had been cfo since 2012 robert 
parker brings extensive experience in both 
the strategic development and operational 
management of high growth multicultural 
businesses he has a proven track record 
of driving organic growth executing ma 
and raising finance in both the private and 
public markets
directors’ interests – shares
directors’ interests in the ordinary shares 
of ubisense group plc at 31 december 2013 
and 31 december 2012 are set out below
there has been no change in the interests 
set out below between 31 december 2013 
and 24 march 2014
paul taylor and robert parker hold no shares 
as at 24 march 2014
directors’ remuneration 
share options and loans
details of directors’ remuneration share 
options and loans are provided in note 7 
of the financial statements
the directors present their annual report 
on the affairs of the group together with the 
audited financial statements for the year to 
31 december 2013 
incorporation and constitution
ubisense group plc is domiciled in england 
and incorporated in england and wales under 
company number 05589712 ubisense group 
plc’s articles of association are available on 
the group’s website at wwwubisensenet
capital structure
the company has one class of ordinary share 
of 2p 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 21 of the consolidated 
financial statements 
directors
the directors who served throughout the year 
except as noted were as follows
g m campbell resigned 10 february 2014
r t green 
p g harverson
prof a hopper
j k lomas
r g newell
r sansom
p taylor
r g parker was appointed on 10 february 2014
substantial shareholdings
on 24 march 2014 the company had been notified of the following significant interests in its ordinary share capital
t otal holding
 number
 of issued
 share capital
robert sansom 2493676 1080
richard green 1619289 702
fil investment international 1344322 582
nfu mutual investment managers 1155000 500
david theriault 807000 350
threadneedle investments 805939 349
blackrock investment management 793495 344
unicorn asset management 786800 341
ruffer llp 729115 316
amati global investors 715691 310 governance
ubisense group plc annual report 2013 21
 
it is considered prudent and is widely accepted 
practice amongst quoted companies to maintain 
general authorities such as these so as to enable 
the directors to take advantage of opportunities 
to develop the company’s business
resolutions 6 and 7 also ensure that the 
directors maintain sufficient authority to issue 
ordinary shares on the exercise of options 
that were granted by the company prior to 
the company’s admission to trading on aim 
of the london stock exchange
resolution 6 provides for the general authority 
to allot and issue shares under section 551 
of the companies act 2006 and resolution 7 
provides for the disapplication of the 
preemption provisions of section 570 
of the companies act 2006
approved by the board of directors and signed 
on behalf of the board
gordon campbell
company secretary
24 march 2014
ubisense group plc
registered number 05589712
in addition the company’s articles of 
association require any director who has 
been appointed to the board since the date 
of the company’s last annual general meeting 
to retire from office and seek reelection at the 
agm accordingly robert parker who was 
appointed to the board on 10 february 2014 
will retire and stand for reelection as a director 
at the agm
reappointment and remuneration 
of auditors resolution 5
resolution 5 proposes the reappointment 
of grant thornton uk llp as auditors of the 
company and authorises the directors to set 
the auditors’ remuneration
authority to issue new ordinary 
shares resolutions 6 and 7
the company is seeking a general shareholder 
authority to authorise the directors to allot and 
issue shares andor grant rights to subscribe for 
or to convert any security into shares up to an 
aggregate nominal value of £166791 being the 
nominal value of approximately onethird of the 
current issued share capital of the company 
the company is also seeking a limited 
authority to generally disapply preemption 
rights in relation to an issue of shares for cash 
this limited authority is only being sought in 
respect of up to an aggregate nominal value of 
£75055 being the nominal value of approximately 
15 of the current issued share capital of the 
company accordingly the directors will only 
be able to issue this smaller amount and not 
the full amount referred to in the paragraph 
above for cash unless at the time of any issue 
of a larger amount the company’s then existing 
shareholders are also given the opportunity to 
participate in such larger issue subject to certain 
limited exclusions pro rata to their respective 
holdings of ordinary shares
annual general meeting
the annual general meeting of the company is 
due to take place at the offices of fti consulting 
200 aldersgate aldersgate street london 
ec1a 4hd on 15 may 2014 at 100pm
the resolutions to be proposed at the agm 
are explained in detail below and are set out 
in full in the notice of annual general meeting 
which is set out on pages 64 to 68 of this 
document resolutions 1 2 3 4 5 and 6 are 
being proposed as ordinary resolutions and 
therefore need the approval of a simple majority 
of those shareholders who are present and 
voting in person or by proxy at the agm and 
resolution 7 is being proposed as a special 
resolution and therefore needs the approval 
of at least 75 of those shareholders who 
are present and voting in person or by proxy 
at the agm
presentation of the company’s 
annual accounts resolution 1
resolution 1 deals with the adoption of the 
annual accounts for the financial year ended 
31 december 2013
reelection of directors 
resolutions 2 3 and 4
the company’s articles of association 
require that onethird or the nearest number not 
exceeding onethird of the board retire and seek 
reelection at each annual general meeting
at this meeting keith lomas and 
dr robert sansom will retire and stand for 
reelection as directors having considered 
the performance of and contribution made 
by keith lomas and robert sansom the 
board remains satisfied that their performance 
continues to be effective and that they 
demonstrate commitment to the role and 
as such recommends their reelection
2013
number
2012
number
gordon campbell 87987 87987
richard green 1619289 1543011
peter harverson 65161 65161
andrew hopper 225000 225000
j keith lomas 47712 47712
richard newell 643354 643354
robert sansom 2493676 2493676
total 5182179 5105901 ubisense group plc annual report 2013 22
corporate governance report
 » 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
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
board committees
the board has established three committees 
the audit committee the nomination committee 
and the remuneration committee
nonexecutive director is independent therefore 
after detailed consideration the board has 
determined that mr taylor is the only independent 
nonexecutive director within the meaning 
of the code
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
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’ longterm interests we do not 
comply with the uk corporate governance 
code june 2012 “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 nonexecutive 
chairman five nonexecutive directors and 
two executive directors biographical details 
of all members of the board are set out on 
pages 18 and 19
since the flotation of the company in 2011 no 
equitybased incentives have been granted to 
nonexecutive directors and there are no such 
plans for any such grants in the future at the 
end of the year the only nonexecutive director 
with neither shares nor share options is mr taylor
the holding of shares and share options by 
nonexecutive directors could amongst other 
things be relevant in determining whether a 
summary of board meeting attendance in 2013
the board is expected to meet regularly on a formal basis ten times a year 20 board meetings were held in 2013 attendance at the meetings was 
as follows
scheduled 
meetings
additional 
meetings
total meetings
attended
gordon campbell 10 11 8 9 18 20
richard green 11 11 9 9 20 20
peter harverson 11 11 9 9 20 20
andrew hopper 11 11 7 9 18 20
j keith lomas 10 11 8 9 18 20
richard newell 10 11 7 9 17 20
robert sansom 8 11 8 9 16 20
paul taylor 10 11 7 9 17 20
figures in brackets denote the maximum number of meetings that could have been attended governance
ubisense group plc annual report 2013 23
summary of committee membership
audit 
committee
nomination
 committee
remuneration
 committee
peter harverson — yes chair
andrew hopper observer yes observer
j keith lomas yes observer yes
richard newell yes yes —
robert sansom — chair yes
paul taylor chair observer yes
gordon campbell observer observer observer
richard green — observer —
summary of committee meeting attendance
audit 
committee
nomination 
committee
remuneration
committee
peter harverson — 2 2 4 4
andrew hopper 1 3 2 2 1 4
j keith lomas 3 3 2 2 4 4
richard newell 3 3 2 2 —
robert sansom — 2 2 4 4
paul taylor 3 3 2 2 3 4
gordon campbell 3 3 1 2 3 4
richard green — 2 2 —
figures in brackets denote the maximum number of meetings that could have been attended
the role of each committee is described in more detail on page 24 ubisense group plc annual report 2013 24
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 company’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  
predetermined 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 and
 » 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
 » identifying and nominating suitable candidates 
to fill vacancies on the board and
 » reviewing succession planning for both 
directors and the management team
during the period under review the committee 
has met twice 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
 » setting the basic pay of executive directors 
and the remuneration of the chairman
 » operating the performance related bonus 
plan for the executive directors
 » agreeing the allocation and term for the 
granting of sharebased incentives to 
executive directors and
 » overseeing the overall annual staff pay review 
and the operation of the equitybased 
incentive schemes
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
audit committee
the audit committee has responsibility for the 
following matters
 » reviewing the accounts and the key 
judgements and policies underlying them 
in relation to the interim and annual financial 
statements before they are submitted to the 
board for final approval
 » reviewing management’s reports on 
internal controls
 » reviewing the group’s risk management 
process including the adequacy of 
insurance cover
 » reviewing the appointment of the external 
auditors together with the audit fee
 » monitoring the audit and nonaudit work 
of the external auditors including reviewing 
any management letters and the company’s 
response and 
 » reviewing the arrangements by which staff 
may in confidence raise concerns about 
possible improprieties
as part of its procedures the committee 
discusses the interim and annual financial 
statements with the external auditors when 
appropriate noncommittee members are 
invited to attend during the period under 
review the committee has met three times 
on a formal basis excluding meetings of the 
chairman with external advisors the committee 
is expected to meet formally four times a year
nomination committee
the nomination committee has responsibility 
for the following matters
 » reviewing the size and composition 
of the board
corporate governance report continued governance
ubisense group plc annual report 2013 25
the directors confirm that
 » so far as each director is aware there is 
no relevant audit information of which the 
company’s auditors are unaware and
 » the directors have taken all steps that they 
ought to have taken as directors to make 
themselves aware of any relevant audit 
information and to establish that the 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
 » 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
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
statement of directors’ responsibilities
  ubisense group plc annual report 2013 26
we have audited the group financial statements of ubisense group plc for the year ended 31 december 2013 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 25 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 apb’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 wwwfrcorgukapbscopeprivatecfm
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 2013 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
other matter
we have reported separately on the parent company financial statements of ubisense group plc for the year ended 31 december 2013
paul naylor
senior statutory auditor
for and on behalf of grant thornton uk llp
statutory auditor chartered accountants
cambridge
24 march 2014
independent auditor’s report
to the members of ubisense group plc
  financial statements
ubisense group plc annual report 2013 27
consolidated income statement
for the year ended 31 december 2013
 
 notes
2013
£’000
2012
£’000
revenue 5 27002 24292
cost of revenues 17761 14690
gross profit 9241 9602
operating expenses 10867 10368
operating loss 1626 766
analysed as
gross profit 9241 9602
other operating expenses 8100 8445
adjusted ebitda 1141 1157
depreciation 266 227
amortisation of acquired intangible assets 13 313 257
amortisation of other intangible assets 1332 953
sharebased payments charge 212 92 63
exceptional items 92 764 423
operating loss 1626 766
finance income 8 10 38
finance costs 8 103 —
loss before tax 9 1719 728
income tax 101 219 90
loss for the year 1938 638
loss attributable to
equity shareholders of the company 1968 638
noncontrolling interest 30 —
1938 638
loss per share attributable to the equity shareholders of the parent pence 
basic 11 89p 28p
diluted 11 89p 28p
the notes on pages 33 to 59 are an integral part of these consolidated financial statements ubisense group plc annual report 2013 28
consolidated statement of comprehensive income
for the year ended 31 december 2013 
2013
£’000
2012
£’000
loss for the year 1938 638
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 203 33
total comprehensive loss for the year 2141 605
attributable to
– equity shareholders of the company 2141 605
– noncontrolling interest — —
total comprehensive loss for the year 2141 605
the notes on pages 33 to 59 are an integral part of these consolidated financial statements financial statements
ubisense group plc annual report 2013 29
consolidated statement of changes in equity
for the year ended 31 december 2013 
attributable to equity shareholders of the parent company
non
controlling
 interest
£’000
total
£’000
share
capital
£’000
share
premium
£’000
other
reserves
£’000
retained
earnings
£’000
subtotal
£’000
balance at 1 january 2012 433 22031 510 3736 19238 — 19238
loss for the year — — — 638 638 — 638
exchange difference on retranslation of net assets 
and results of overseas subsidiaries — — 33 — 33 — 33
total comprehensive loss for the year — — 33 638 605 — 605
reserve credit for equitysettled sharebased payment — — 63 — 63 — 63
issue of new share capital 5 — — — 5 — 5
premium on new share capital — 220 — — 220 — 220
transactions with owners 5 220 63 — 288 — 288
balance at 31 december 2012 438 22251 606 4374 18921 — 18921
loss for the year — — — 1968 1968 30 1938
exchange difference on retranslation of net assets 
and results of overseas subsidiaries — — 173 — 173 30 203
total comprehensive loss for the year — — 173 1968 2141 — 2141
reserve credit for equitysettled sharebased payment — — 92 — 92 — 92
noncontrolling interest in new subsidiary — — — — — 704 704
issue of new share capital 23 — — — 23 — 23
premium on new share capital — 1799 — — 1799 — 1799
transactions with owners 23 1799 92 — 1914 704 2618
balance at 31 december 2013 461 24050 525 6342 18694 704 19398
the notes on pages 33 to 59 are an integral part of these consolidated financial statements
a reconciliation of the components of other reserves is given in note 22 ubisense group plc annual report 2013 30
consolidated statement of financial position
as at 31 december 2013
notes
2013
£’000
2012
£’000
assets
noncurrent assets
intangible assets 12 15962 10319
property plant and equipment 13 628 621
total noncurrent assets 16590 10940
current assets
inventories 14 3106 862
trade and other receivables 15 11547 10302
cash and cash equivalents 16 3964 2716
total current assets 18617 13880
total assets 35207 24820
liabilities
current liabilities
trade and other payables 17 10023 5246
total current liabilities 10023 5246
noncurrent liabilities
deferred income tax liabilities 10 1856 653
bank loans 18 3500 —
other payables 19 25 430 —
total noncurrent liabilities 5786 653
total liabilities 15809 5899
net assets 19398 18921 financial statements
ubisense group plc annual report 2013 31
notes
2013
£’000
2012
£’000
equity attributable to owners of the parent company
ordinary share capital 20 461 438
share premium 20 24050 22251
other reserves 22 525 606
retained earnings 6342 4374
equity attributable to shareholders of the company 18694 18921
noncontrolling interests 704 —
total equity 19398 18921
the notes on pages 33 to 59 are an integral part of these consolidated financial statements
the financial statements were approved by the board of directors on 24 march 2014 and signed on its behalf by
richard green   robert parker
chief executive officer  chief financial officer
ubisense group plc
registered number 05589712 ubisense group plc annual report 2013 32
consolidated statement of cash flows
for the year ended 31 december 2013
notes
2013
£’000
2012
£’000
loss before tax 1719 728
adjustments for
depreciation 9 13 266 227
amortisation 9 12 1645 1210
loss on the disposal of property plant and equipment 9 — 5
sharebased payments charge 62 212 92 63
finance income 8 10 38
finance costs 8 103 —
operating cash flows before working capital movement 377 739
change in inventories 639 805
change in receivables 242 839
change in payables 727 1691
cash used in operations before tax 747 986
net income taxes paidreceived 7 203
net cash flows from operating activities 754 783
cash flows from investing activities
acquisition of subsidiaries net of cash acquired 25 1846 400
purchases of property plant and equipment 140 492
proceeds on disposal of property plant and equipment — 1
expenditure on intangible assets 3085 1849
interest received 10 38
net cash flows from investing activities 1369 2702
cash flows from financing activities
proceeds of borrowings 3500 —
interest paid 92 —
proceeds from the issue of ordinary share capital 111 225
net cash flows from financing activities 3519 225
net increasedecrease in cash and cash equivalents 1396 3260
cash and cash equivalents at start of period 2716 6034
exchange differences on cash and cash equivalents 148 58
cash and cash equivalents at end of period 16 3964 2716
the notes on pages 33 to 59 are an integral part of these consolidated financial statements financial statements
ubisense group plc annual report 2013 33
notes to the consolidated financial statements
for the year ended 31 december 2013 
1 general information
ubisense group plc “the company” and its subsidiaries together “the group” deliver missioncritical locationbased smart technology which 
enables companies to optimise their business processes
the company is a public limited company which is listed on the aim of the london stock exchange ubi and is incorporated and domiciled in the 
united kingdom the value of ubisense group plc shares as quoted on the london stock exchange plc at 31 december 2013 was 2460p per 
share 31 december 2012 2300p
the company was incorporated as ubisense trading limited on 11 october 2005 and changed its name to ubisense group plc 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 us canada france germany japan south korea singapore and the philippines and sells mainly 
in north america europe and asia the group legally consists of twelve companies headed by ubisense group plc uk a full list of subsidiaries 
is given in note 24 of the financial statements
these consolidated financial statements have been approved for issue by the board of directors on 24 march 2014
2 new accounting standards
for the purposes of the preparation of these consolidated financial statements the group has applied all standards and interpretations that are 
effective for accounting periods beginning on or after 1 january 2013 
during 2013 the group has applied several new revised and amended standards and interpretations which became effective in the year 
ifrs 13 “fair value measurement” the annual improvements to ifrs and ias 1 amended “presentation of items of other comprehensive 
income” the group has early adopted “recoverable amount disclosures for nonfinancial assets” amendments to ias 36 their adoption has 
not had a material impact on the disclosures and amounts reported otherwise the accounting policies used are the same as set out in detail in the 
report and accounts 2012 and have been applied consistently to all periods presented in these financial statements no new standards amendments 
or interpretations to existing standards that have been published and that are mandatory for the group’s accounting periods beginning on or after 
1 january 2014 or later periods have been adopted early the directors do not consider that the adoption of these 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
 » ifrs 10 “consolidated financial statements” effective date financial year commencing onafter 1 january 2014 
 » ias 27 revised “separate financial statements” effective date financial year commencing onafter 1 january 2014 
 » amendments to ias 32 “offsetting financial assets and financial liabilities” effective date financial year commencing onafter 1 january 2014
 » amendments to ifrs 10 “transition guide” effective date financial year commencing onafter 1 january 2014 
 » amendments to ias 36 “recoverable amount disclosures for nonfinancial assets” effective date financial year commencing onafter 1 january 2014 
all standards and interpretations are not expected to have any significant impact on the financial statements when applied
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 plc have been prepared in accordance with international financial reporting standards 
ifrs as adopted by the european union ifrss as adopted by the eu and the companies act 2006 applicable to companies reporting under ifrs 
the consolidated financial statements have been prepared under the historical cost convention the consolidated financial statements are presented 
in sterling 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 group meets it daytoday working capital requirements through its bank facilities the group had cash of £40 million at the balance sheet date 
along with £15 million undrawn on its bank facility as well as an order book equivalent to 66 of annual revenue in this context 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 ubisense group plc annual report 2013 34
3 summary 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 so as to obtain benefits from its activities
coterminous 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 
intragroup transactions and balances are eliminated on consolidation all subsidiaries use uniform accounting policies for like transactions and 
other events and similar circumstances 
noncontrolling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein noncontrolling interests 
consist of the amount of those interests at the date of the original business combination and the noncontrolling 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 sterling which is the company’s functional and presentation currency 
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” nonmonetary 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 sterling are translated into sterling 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
segment reporting
ifrs 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 as a single realtime location intelligence rtli business this is the basis of the group’s external 
market offering and internal organisational and management structure and is the primary way in which the chief executive officer who is the 
chief operating decision maker receives financial information to assess group performance as a result the group has therefore determined that it 
has only one reportable segment as defined by ifrs 8 
the internal management accounting information is prepared on an ifrs basis but has a nongaap “adjusted ebitda” as the primary measure 
of profit and this is reported on the face of the income statement
in addition the board and management team consider the business to have two revenue streams with different characteristics solutions and services 
which are generated from the same asset and cost base 
revenue recognition
revenue represents amounts derived from the provision of goods and services which fall within the group’s ordinary activities exclusive of 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 rateably 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
notes to the consolidated financial statements continued
for the year ended 31 december 2013  financial statements
ubisense group plc annual report 2013 35
3 summary of significant accounting policies continued
revenue recognition continued
revenue from fixed price longterm 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
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 sharebased payments
the group issues equitysettled sharebased payments to certain employees equitysettled sharebased payments are measured at fair value at 
the date of grant using the blackscholes pricing model the fair value is expensed on a straightline basis over the vesting period together with a 
corresponding increase in equity 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
a 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 
b lease incentives
the benefit of lease incentives such as rentfree periods or upfront cash payments are spread equally on a straightline basis over the lease term
exceptional items
exceptional 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 nonrecurring items of income or expense that have been shown separately due to the significance of their 
nature or amount
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 to 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
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 ubisense group plc annual report 2013 36
3 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 fair values at the acquisition date 
the group recognises any noncontrolling interest in the acquiree on an acquisitionbyacquisition basis either at fair value or at the noncontrolling 
interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets
acquisitionrelated 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 ias 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 is initially measured as the excess of the aggregate of the consideration transferred and the fair value of noncontrolling 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
goodwill arising on an acquisition of a business 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 on 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
internally generated intangible assets consisting mainly of direct labour costs are amortised on a straightline basis over their useful economic lives 
amortisation is shown within administrative expenses in the income statement the estimated useful life of current development projects is 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 straightline basis over their useful economic life which is typically three to five years 
intangible assets acquired through a business combination are initially measured at fair value and amortised on a straightline 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 three years 
 » customer relationships recognised on acquisition five to ten years
 » order backlog based on contract life recognised on acquisition typically less than one year
notes to the consolidated financial statements continued
for the year ended 31 december 2013  financial statements
ubisense group plc annual report 2013 37
3 summary of significant accounting policies continued
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 straightline basis 
over the following periods
 » fixtures and fittings five to eight years or period of the lease if shorter
 » computer equipment three years
 » demonstration equipment one year
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
impairment of nonfinancial 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 
annually for impairment 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 cashgenerating units nonfinancial assets other than goodwill that suffered an impairment 
are reviewed for possible reversal of the impairment at each reporting date
inventories
inventories are stated at the lower of cost and net realisable value cost is based on the cost of purchase 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 noncurrent 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 shortterm 
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 noncurrent liabilities
trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method
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 prepayment 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 ubisense group plc annual report 2013 38
4 critical accounting judgements and key sources of estimation and uncertainty
the group makes estimates and assumptions concerning the future actual results may differ from these estimates 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 this requires an estimation of the value in use of the cashgenerating 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 cashgenerating unit and also 
to choose a suitable discount rate in order to calculate the present value of those cash flows the group uses pretax discount rates of between 100 
and 145 for this purpose the carrying amount of goodwill at 31 december 2013 is £9116000 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 2013 is £39 million
revenue recognition
significant management judgement is applied in determining the allocation and timing of the recognition of revenue on 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 amount of amounts recoverable on contracts at 31 december 2013 is £33 million
inventories
the provision for obsolete slow moving or defective inventory is based on management’s estimation of the commercial life of inventory lines and is 
applied on a prudent basis in assessing this management takes into consideration the sales history or products and the length of time that they have 
been available for resale
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 “earnout” plans to the former shareholders of acquired companies based on the business 
model produced at the time of acquisition earnout 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 postacquisition 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 
the directors do not consider that there are any other critical accounting judgements or key sources of estimation uncertainty
5 segment information
ifrs 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 as announced in september 2013 the group is now organised on a global basis as a single realtime location 
intelligence rtli business this is the basis of the group’s external market offering and internal organisational and management structure and is 
the primary way in which the chief executive officer who is the chief operating decision maker receives financial information to assess group 
performance as a result the group has therefore determined that it has only one reportable segment as defined by ifrs 8 the prior year 
disclosures have been restated to reflect these changes
the internal management accounting information is prepared on an ifrs basis but has a nongaap “adjusted ebitda” as the primary measure 
of profit and this is reported on the face of the income statement 
in addition the board and management team consider the business to have two revenue streams with different characteristics solutions and services 
which are generated from the same asset and cost base 
notes to the consolidated financial statements continued
for the year ended 31 december 2013  financial statements
ubisense group plc annual report 2013 39
5 segment information continued
51 revenue by nature
2013
£’000
2012
£’000
solutions 13375 12537
services 13627 11755
total revenues 27002 24292
in addition 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
52 geographical areas
the group’s revenue from external customers and information about its noncurrent assets excluding goodwill and deferred tax by geography are 
detailed below
revenue noncurrent assets
2013
£’000
2012
£’000
2013
£’000
2012
£’000
uk 539 1441 4239 2576
europe 12478 10533 294 239
americas 11988 9585 477 675
asia pacific 1997 2733 2464 —
27002 24292 7474 3490
revenues from external customers in the group’s domicile the uk as well as its major markets europe americas and asia pacific have been 
identified on the basis of the customer’s geographical location noncurrent assets are allocated based on their physical location
53 information about major customers
during 2013 revenues of £60 million 2012 £26 million derived from one european customer and revenues of £11 million 2012 £26 million 
from one americas customer there were no other customers in 2013 or 2012 who contributed in excess 10 of revenue
6 employee information
61 employee numbers
the average monthly number of people including executive directors employed by the group during the year was
actual number of people as 
at 31 december
average monthly number
of people
by activity
2013
number
2012
number
2013
number
2012
number
technical consultants 130 93 97 96
sales and marketing 40 32 34 37
research and development 40 32 35 31
administration 29 18 20 20
239 175 186 184 ubisense group plc annual report 2013 40
6 employee information continued
61 employee numbers continued
actual number of people as 
at 31 december
average monthly number 
of people
by geography
2013
number
2012
number
2013
number
2012
number
united kingdom 53 48 51 51
europe 54 55 56 58
americas 72 68 71 71
asia pacific 60 4 8 4
239 175 186 184
62 employee benefits
notes
2013
£’000
2012
£’000
wages and salaries 13152 12286
social security costs 1346 1265
contributions to defined contribution pension arrangements 626 562
sharebased payments 212 92 63
total aggregate employee benefits 15216 14176
included in the above are termination benefits of £nil 2012 £404000 which are presented as reorganisation costs in the income statement – see 
note 92
63 key management compensation
key management includes directors executive and nonexecutive and members of the global management team during the year there were 
twelve key management personnel 2012 13 the compensation paid or payable to key management for employee services is shown below
2013
£’000
2012
£’000
shortterm employee benefits
wages and salaries 998 879 
social security costs 151 84 
other benefits 28 21 
1177 984 
postemployment benefits
contributions to defined contribution pension arrangements 49 52 
sharebased payments
equitysettled sharebased payments 37 24 
total key management compensation 1263 1060 
notes to the consolidated financial statements continued
for the year ended 31 december 2013  financial statements
ubisense group plc annual report 2013 41
7 directors’ remuneration and interests
71 directors’ remuneration
director
basic
salary
£’000
performance
payments
£’000
benefits 
in kind
£’000
subtotal
£’000
employer’s
contributions
to defined
contribution
pension
arrangements
£’000
total
2013
£’000
total
2012
£’000
gordon campbell 93 56 2 151 18 169 124
richard green 132 116 3 251 16 267 201
peter harverson 15 — — 15 — 15 15
andrew hopper 25 — — 25 — 25 25
j keith lomas 15 — — 15 — 15 15
richard newell 15 — — 15 — 15 15
robert sansom — — — — — — —
paul taylor 15 — — 15 — 15 15
total 310 172 5 487 34 521 410
  the directors are remunerated through the company’s flexible benefits scheme under which they can elect to switch basic salary into pension contributions 
and other benefits the basic salary entitlement in the year was richard green £140000 gordon campbell £105000
 robert sansom has waived his entitlement to annual remuneration in the year of £15000
72 directors’ interests – share options
director
award
date
year
vests
years
expires
year
exercise
price
£
awards
 outstanding
at 1 january
 2013
number
granted
during
the year
number
exercised
during
the year
number
lapsed
during
the year
number
awards
outstanding at
31 december
2013
number
awards
 exercisable at
 31 december
 2013 
number
gordon campbell 2010 2011–13 2020 0140 120500 — — — 120500 120500 
2011 2012–14 2021 1050 32500 — — — 32500 21667 
2012 2013–15 2022 2125 40000 — — — 40000 13333 
2013 2014–16 2023 2055 — 40000 — — 40000 — 
193000 40000 — — 233000 155500 
richard green 2010 2011–13 2020 0140 76278 — 76278 — — — 
2011 2012–14 2021 1050 100000 — — — 100000 66667 
2012 2013–15 2022 2125 60000 — — — 60000 20000 
2013 2014–16 2023 2055 — 60000 — — 60000 — 
236278 60000 76278 — 220000 86667 
peter harverson 2010 2011–13 2020 0140 91333 — — — 91333 91333 
andrew hopper 2010 2011–13 2020 0140 20278 — — — 20278 20278 
richard newell 2010 2011–13 2020 0140 1056 — — — 1056 1056 
total 541945 100000 76278 — 565667 354834 
the 2013 grants vest subject to meeting performance criteria set out in the longterm incentive plan ltip no other directors have been granted share 
options in the company or other group entities none of the terms and conditions of the share options were varied during the year all options were granted in 
respect of qualifying services there have been no options granted to or exercised by directors between 31 december 2013 and 24 march 2014
the market price of the company’s shares at the end of the financial year was £246 the range of market prices during the year was between 
£182 and £250 ubisense group plc annual report 2013 42
7 directors’ remuneration and interests continued
72 directors’ interests – share options continued
directors’ gains on share options
gain on
exercise
2013
£’000
gain on 
exercise
2012
£’000
richard green 155 —
73 directors’ interests – shares
directors’ interests in the ordinary shares of ubisense group plc at 31 december 2013 and 31 december 2012 were as follows
2013
number
2012
number
gordon campbell 87987 87987 
richard green 1619289 1543011 
peter harverson 65161 65161 
andrew hopper 225000 225000 
j keith lomas 47712 47712 
richard newell 643354 643354 
robert sansom 2493676 2493676 
5182179 5105901
there has been no change in the interests set out above between 31 december 2013 and 24 march 2014
8 finance income and costs
2013
 £’000
2012
£’000
interest income from cash and cash equivalents 10 38
finance income 10 38
interest payable – bank 103 —
finance costs 103 —
net finance costsincome 93 38
notes to the consolidated financial statements continued
for the year ended 31 december 2013  financial statements
ubisense group plc annual report 2013 43
9 loss before tax analysis of expenses by nature
91 expenses by nature
the following items have been chargedcredited to the income statement in arriving at loss before tax
notes
2013
£’000
2012
£’000
amortisation of acquired intangible assets 12 313 257
amortisation of other intangible assets 12 1332 953
depreciation of owned property plant and equipment 13 266 227
loss on disposal of property plant and equipment — 5
operating lease rental charges – land and buildings 445 355
operating lease rental charges – other 135 124
inventory recognised as an expense 1057 1571
research and development costs expensed 946 1312
net foreign currency gainslosses 153 153
exceptional items 92 764 423
auditors’ remuneration 93 216 81
92 exceptional items
2013
£’000
2012
£’000
strategic asia pacific market entry costs 650 —
aborted acquisition costs 114 —
reorganisation costs — 423
764 423
during 2013 the group incurred exceptional items of £764000 of which £650000 related to strategic asia pacific market entry costs comprising 
£464000 acquisition costs relating to geoplan and £186000 costs relating to product certification costs in japan and south korea and the termination 
of the group’s previous agent network in the region in addition the group incurred £114000 costs mainly comprising professional fees in connection 
with an acquisition which did not proceed 
during 2012 the group incurred reorganisation costs totalling £423000 comprising mainly redundancy costs in order to integrate acquisitions made 
in 2011 and to centralise the research and development and sales and marketing functions
93 auditors’ remuneration
during the year the group including its overseas subsidiaries obtained the following services from the company’s auditors and their associates
2013
£’000
2012
£’000
fees payable to the group’s auditors for the audit of
parent company and consolidated financial statements 16 14
financial statements of subsidiaries pursuant to legislation 91 43
107 57
fees payable to the group’s auditors for other services
tax services 26 15
corporate finance services 75 —
other services 8 9
109 24
auditors’ remuneration 216 81
the auditors of ubisense group plc are grant thornton uk llp ubisense group plc annual report 2013 44
9 loss before tax analysis of expenses by nature continued
93 auditors’ remuneration continued
during the year the auditors were used for due diligence work as this was considered most beneficial to the group due to the auditors’ established 
knowledge and experience of the group’s activities the auditors’ independence and objectivity was safeguarded through the use of separate 
engagement teams no services were provided pursuant to contingent fee arrangements
10 income tax
101 income tax recognised in the income statement
2013
£’000
2012
£’000
current tax
uk corporation tax 2 —
foreign tax 36 9
research and development tax credits – prior years 177 203
total current tax credit 139 194
deferred tax
origination and reversal of temporary differences 358 104
total deferred tax expense 358 104
total income tax expensecredit 219 90
the tax expense 2012 credit differs from the standard rate of corporation tax in the uk for the year of 23 2012 24 for the following reasons
2013
£’000
2012
£’000
loss before tax 1719 728
loss before tax multiplied by the standard rate of corporation tax in the uk of 23 2012 24 395 175
tax effects of
expenses not deductible for tax purposes 219 21
accrued contingent consideration released not subject to tax — 38
utilisation of previously unrecognised tax losses 96 259
tax losses for which no deferred tax asset was recognised 708 832
tax unprovided in prior years 38 9
research and development tax credits – prior years 188 203
difference on tax treatment of share options 74 —
differential on overseas tax rates 149 233
remeasurement of deferred tax – change of rate — 58
other temporary differences 8 14
total income tax expensecredit 219 90
102 factors that may affect future tax charges
the group has tax losses of £89 million 2012 £44 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
as a result of the reduction in the uk corporation tax rate to 23 that was substantively enacted on 3 july 2012 and effective from 1 april 2013 
the deferred tax balances have been remeasured the uk government has also announced a further reduction in the main rate of corporation tax 
to 21 effective from 1 april 2014 and has proposed a further reduction of 1 by 1 april 2015 these further tax rate reductions had not been 
substantively enacted at the balance sheet date and therefore are not recognised in the financial statements
notes to the consolidated financial statements continued
for the year ended 31 december 2013
  financial statements
ubisense group plc annual report 2013 45
10 income tax continued
103 deferred tax
the movement in deferred tax in the consolidated statement of financial position during the year is as follows
deferred income tax assets deferred income tax liabilities
2013
£’000
2012
£’000
2013
£’000
2012
£’000
at 1 january — — 653 549
arising on acquisition of subsidiaries — — 844 —
deferred tax credited to the income statement — — 57 88
deferred tax charged to the income statement — — 416 192
at 31 december — — 1856 653
the components of deferred tax included in the consolidated statement of financial position are as follows
2013
£’000
2012
£’000
development costs capitalised 901 485
intangible assets recognised on acquisition of subsidiaries 955 168
total deferred income tax liabilities 1856 653
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
2013
£’000
2012
£’000
tax losses carried forward 2537 1343
equitysettled share options temporary differences 452 289
total unrecognised deferred tax assets 2989 1632
11 earnings per share eps
basic and diluted earnings per share 2013 2012 
earnings
earnings for the purposes of basic and diluted eps being net loss attributable to equity holders of the parent company £’000 1968 638
number of shares
weighted average number of ordinary shares for the purposes of basic eps ’000 21984 21764
effect of dilutive potential ordinary shares
– share options ’000 1034 1383
weighted average number of ordinary shares for the purposes of diluted eps ’000 23018 23147
basic eps pence 89p 28p
diluted eps pence 89p 28p
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 lossmaking 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 sharebased 
payments charge and nonrecurring exceptional items such as acquisition integration or reorganisation costs from the measurement of profit for 
the period ubisense group plc annual report 2013 46
11 earnings per share eps continued
adjusted diluted earnings per share notes 2013 2012
earnings for the purposes of diluted eps being net loss attributable to equity holders of the parent company £’000 1968 638
adjustments
reversal of amortisation on acquired intangible assets £’000 9 12 313 257
reversal of sharebased payments charge £’000 21 92 63
reversal of exceptional items £’000 9 764 423
net adjustments £’000 1169 743
adjusted earnings £’000 799 105
adjusted diluted eps pence 35p 05p
the adjusted eps information is considered to provide a fairer representation of the group’s trading performance
12 other intangible assets
goodwill
£’000
acquired
 customer
 relationships
and order
backlog
£’000
acquired
software
 products
£’000
capitalised
 product
 development
 costs
£’000
software
£’000
total
£’000
cost
at 1 january 2012 7418 449 529 2579 295 11270
effects of movement in exchange rates — — — — 12 12
additions — — — 1845 16 1861
at 31 december 2012 7418 449 529 4424 299 13119
additions — — — 3037 161 3198
acquisition of geoplan 1698 1593 626 — 173 4090
at 31 december 2013 9116 2042 1155 7461 633 20407
accumulated amortisation
at 1 january 2012 — 68 44 1452 30 1594
effects of movement in exchange rates — — — — 4 4
charge for the year — 80 177 862 91 1210
at 31 december 2012 — 148 221 2314 117 2800
charge for the year — 120 193 1227 105 1645
at 31 december 2013 — 268 414 3541 222 4445
net book amount
at 31 december 2013 9116 1774 741 3920 411 15962
at 31 december 2012 7418 301 308 2110 182 10319
the acquired software products customer relationships and order backlog assets arose on the acquisition in 2013 of the geoplan interworks kk 
group of companies and in 2011 of integrated mapping solutions inc now merged into ubisense inc and realworld oo systems limited now renamed 
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
notes to the consolidated financial statements continued
for the year ended 31 december 2013  financial statements
ubisense group plc annual report 2013 47
12 other intangible assets continued
in assessing whether goodwill has been impaired the carrying amount of the cashgenerating unit cgu or groups of cgus including goodwill 
is compared with the recoverable amount of the cgu or groups of cgus 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 cashgenerating 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 the future cash flows are adjusted for risks specific 
to the cashgenerating unit and are discounted using a pretax discount rate the discount rate is derived from the group’s posttax weighted average 
cost of capital and is adjusted where applicable to take into account any specific risks discount rates of 100 and 145 have been used for goodwill 
impairment calculations performed in 2013 2012 97 and 125 the recoverable amounts of all cgus have been determined from valueinuse 
calculations based on five year forecasts projected from the 2014 annual operating plan approved by the board for each cgu with an assumed 
terminal growth rate of nil and no improvement in relative operating margin after the forecast period the board has considered reasonable possible 
sensitivities in key assumptions on which the valueinuse calculations are based if the underlying organic revenue growth rate reduced to 0 or if 
the discount factor increased to 20 this would not cause the carrying value to exceed estimated recoverable amount there was no impairment 
of goodwill as the estimated recoverable amount exceeded the carrying value for all cgus
13 property plant and equipment
fixtures and
fittings
 £’000
computer
 equipment
£’000
total
£’000
cost 
at 1 january 2012 221 605 826
effect of movements in exchange rates 7 13 20
reclassification 31 31 —
additions 321 174 495
disposals 23 218 241
at 31 december 2012 543 517 1060
effect of movements in exchange rates 42 4 38
additions 52 88 140
acquisition of subsidiaries 136 — 136
disposals — 2 2
at 31 december 2013 689 607 1296
accumulated depreciation
at 1 january 2012 128 332 460
effect of movements in exchange rates 6 7 13
charge for the year 77 150 227
reclassification 20 20 —
disposals 20 215 235
at 31 december 2012 199 240 439
effect of movements in exchange rates 32 3 35
charge for the year 88 178 266
disposals — 2 2
at 31 december 2013 255 413 668
net book amount
at 31 december 2013 434 194 628
at 31 december 2012 344 277 621 ubisense group plc annual report 2013 48
14 inventories
2013
£’000
2012
£’000
raw materials 811 182
finished goods 2295 680
total inventories 3106 862
included in the analysis above are impairment provisions against inventory amounting to £nil 2012 £44000 the group’s inventories are comprised 
of products which are not generally subject to rapid obsolescence on account of technological trends deterioration in condition or market trends
15 trade and other receivables
notes
2013
£’000
2012
£’000
trade receivables gross 7072 7390
allowances for doubtful debts 151 141 80
trade receivables net 152 6931 7310
amounts recoverable on contracts 3347 2439
other receivables 285 40
prepayments and accrued income 645 502
corporation tax recoverable 177 —
vat and taxation receivable 162 11
total trade and other receivables 11547 10302
all amounts disclosed are short term the carrying value of trade receivables is considered a reasonable approximation of fair value 
due to having a bluechip customer base and effective credit control procedures the group is not significantly exposed to the risk of bad debt 
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 any impairment is assessed on a customerbycustomer basis following a 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
151 movement in allowance for doubtful debts
2013
£’000
2012
£’000
at 1 january 80 7
amounts recovered in the year 2 7
allowance made 63 80
at 31 december 141 80
152 ageing of past due but not impaired receivables
2013
£’000
2012
£’000
neither past due nor impaired 5114 5360
past due but not impaired
0 to 90 days overdue 1500 1360
more than 90 days overdue 317 590
total 6931 7310
notes to the consolidated financial statements continued
for the year ended 31 december 2013  financial statements
ubisense group plc annual report 2013 49
16 cash and cash equivalents
2013
£’000
2012
£’000
cash at bank and in hand 3848 2716
shortterm bank deposits 116 —
cash and cash equivalents 3964 2716
the carrying amount approximates to fair value because of the shortterm 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 shortterm cash deposits earn interest at fixed rates 
for the term of the deposit
the composition of cash and cash equivalents by currency is as follows
2013
£’000
2012
£’000
british pound gbp 489 723
euro eur 496 1101
us dollar usd 739 847
japanese yen jpy 1718 —
south korean won krw 352 —
canadian dollar cad 11 45
turkish lira try 159 —
cash and cash equivalents 3964 2716
17 trade and other payables
notes
2013
£’000
2012
£’000
payments received on account 2765 1002
trade payables 3570 1936
trade accruals 1748 1404
current tax liability 41 —
other taxation and social security 667 612
other payables 705 292
other liabilities – deferred consideration 25 172 —
other liabilities – contingent consideration 25 355 —
total trade and other payables 10023 5246
all amounts disclosed are short term the carrying value of trade payables is considered a reasonable approximation of fair value
18 bank loans
in august 2013 the group agreed a new threeyear bank loan of up to £50 million to provide additional future working capital capacity and is 
repayable in full in august 2016 interest is payable at libor plus 3 and the facility is secured on the fixed and floating assets of the group 
the facility is subject to certain operating performance and net worth covenants of the business the loan replaced an existing loan which was 
drawn down in the year was due to expire in november 2013 and on which there was an outstanding balance of £20 million which had been 
drawn down in full in april 2013 the new loan was used pay the outstanding balance on this previous loan as at 31 december 2013 and as 
at 24 march 2014 £35 million 31 december 2012 £nil is outstanding and is repayable by ubisense limited to hsbc bank plc ubisense group plc annual report 2013 50
19 other liabilities
notes
2013
£’000
2012
£’000
other liabilities – contingent consideration 25 430 —
20 share capital and premium
number of
ordinary shares
 of £002 each
share
capital
£’000
share
premium
£’000
total
£’000
balance at 1 january 2012 21657698 433 22031 22464
issued under sharebased payment plans 154937 3 29 32
issued on conversion of warrants 107109 2 191 193
change in year 262046 5 220 225
balance at 31 december 2012 21919744 438 22251 22689
issued under sharebased payment plans 399593 8 103 111
issued on acquisition of subsidiary 759809 15 1696 1711
change in year 1159402 23 1799 1822
balance at 31 december 2013 23079146 461 24050 24511
the company has one class of ordinary shares which carry no right to fixed income
during the period the company issued 1159402 shares increasing the total number of shares in issue from 21919744 to 23079146 as follows
 » 399593 shares as a result of options exercised with a weighted average exercise price of £028 per share for total cash consideration 
of £111000 and
 » 759809 shares as a result of the acquisition of the geoplan interworks kk group of companies at £22525 per share for cash consideration of £nil
21 sharebased payments options and warrants
211 equitysettled sharebased payment arrangements
the group operates a number of plans to award options over shares in the company to the bestperforming employees of the group around the world
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
212 analysis of amounts recognised in the financial statements
a analysis of amounts recognised in the consolidated income statement
2013
£’000
2012
£’000
total sharebased payments charge recognised in operating profit 92 63
b analysis of amounts recognised in the consolidated statement of changes in equity in the year
2013
£’000
2012
£’000
net sharebased payments credit recognised in equity 92 63
c cumulative amounts included within equity in the consolidated statement of financial position
notes
2013
£’000
2012
£’000
cumulative reserve credit for sharebased payments 22 746 654
notes to the consolidated financial statements continued
for the year ended 31 december 2013  financial statements
ubisense group plc annual report 2013 51
21 sharebased payments options and warrants continued
213 reconciliation of movements in equitysettled sharebased payment arrangements in the year
arrangement
award 
date
year
vests 
years
expires
year
exercise 
price 
£
awards
 outstanding
at 
1 january 
2013
number
granted 
during 
the year 
number
exercised
during
the year
number
forfeited
during
the year 
number
awards
 outstanding
at 
31 december
2013 
number
awards
exercisable
at
31 december
2013
number
options 2006 2007–09 2016 0900 2500 — 2500 — — —
2007 2008–10 2017 0900 300 — — — 300 300
2008 2009–11 2018 0900 650 — — — 650 650
2009 2009 2019 0900 4457 — 707 — 3750 3750
2010 2011–13 2020 0140 1243815 — 360338 333 883144 883144
2011 2012–14 2021 1050 427466 — 14902 4114 408450 269932
2011 2012–14 2021 1975 32532 — 21146 — 11386 7591
2012 2013–15 2022 2125 346000 — — 2000 344000 33334
2013 2014–16 2023 2055 — 421500 — 50000 371500 —
total 2057720 421500 399593 56447 2023180 1198701
weighted average exercise price £ 0695 2055 0277 1973 1025 0415
the weighted average share price at the date of exercise for options exercised during the year was £21053 2012 £21026
214 principal assumptions
the fair value of sharebased payments grants has been valued using the blackscholes optionpricing 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 nontransferability exercise restrictions and behavioural considerations the riskfree rate of return is an average yield on the 
zerocoupon 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 years ended 31 december 2013 and 31 december 2012
instrument option option
number granted 421500 347000
grant date 19 april 2013 29 june 2012
share price at grant date £ 2055 2125
exercise price £ 2055 2125
fair value per option £ 03 03
expected life years 30 30
expected volatility  20 20
riskfree interest rate  079 087
expected dividends expressed as a dividend yield  — — ubisense group plc annual report 2013 52
22 other reserves
sharebased
payment reserve
£’000
translation
reserve
£’000
total
 £’000
balance at 1 january 2012 591 81 510
exchange difference on retranslation of net assets and results of overseas subsidiaries — 33 33
reserve credit for equitysettled sharebased payment 63 — 63
balance at 31 december 2012 654 48 606
exchange difference on retranslation of net assets and results of overseas subsidiaries — 173 173
reserve credit for equitysettled sharebased payment 92 — 92
balance at 31 december 2013 746 221 525
sharebased payment reserve
the sharebased payment reserve relates to 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 sterling are recognised directly in other comprehensive income and accumulated in the translation reserve
23 operating lease commitments
leases as lessee
at 31 december 2013 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 costefficient way of obtaining the shortterm benefits of these assets the group lease 
rental charge is disclosed in note 9 there are no other material offbalance sheet arrangements
the group’s future aggregate minimum lease payments under noncancellable operating leases are as follows
land and buildings other
2013
£’000
2012
£’000
2013
£’000
2012
£’000
no later than one year 433 360 111 111
later than one year and no later than five years 1409 1512 117 91
later than five years 550 853 — —
total 2392 2725 228 202
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 rentfree and discounted rent periods 
included in a new property lease signed in 2012 the expected charge in 2014 for operating leases is expected to be £30000 higher than the 
committed cash payments shown above 
the group has guaranteed rent bonds issued by its banks on its behalf totalling £122000 as at 31 december 2013 2012 £125000 these are not 
expected to result in any material financial loss
notes to the consolidated financial statements continued
for the year ended 31 december 2013  financial statements
ubisense group plc annual report 2013 53
24 principal subsidiaries
subsidiary
country of 
incorporation principal activity
proportion of
 ordinary
shares held
by group 
proportion of ordinary
 shares held by
 noncontrolling
 interests 
ubisense limited uk location solutions 100 —
ubisense ag 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 —
geoplan interworks kk japan intermediate holding company 100 —
geoplan company limited japan location solutions 77 23
binary star developments kk japan nontrading 100 —
geoplan korea company limited south korea location solutions 100 —
geoplan philippines inc philippines location solutions 100 —
all subsidiaries are directly held by ubisense group plc except those denoted which are held by intermediate holding companies
all subsidiaries prepare local statutory accounts up to 31 december each year except for geospatial systems limited which prepares accounts up 
to 31 march geoplan company limited to 30 june and binary star developments kk to 31 january for subsidiaries who which have a different 
financial year end to the group additional coterminous accounts are prepared reflecting the same financial reporting as the group for the purposes 
of consolidation
25 business combinations
251 subsidiaries acquired
subsidiary
country of
incorporation
principal
activity
date of
acquisition
proportion of 
equity interest 
acquired
geoplan interworks kk japan location solutions 3 december 2013 100
the geoplan interworks kk group of companies “geoplan” was acquired to enhance the group’s geographic reach into the asian market to 
deploy rtli solutions to utility telecoms and manufacturing customers in japan south korea and the philippines geoplan formerly the master 
distributor for the group in asia is a location solutions business providing geospatial software products and consulting with a focus on the utility 
and telecoms sectors the acquisition will enhance the group’s product range customer list sector presence and geographical footprint bringing 
locally based skills and presence to the group the group expects japan to be the headquarters for its asian operations and to develop the markets 
in china from there ubisense group plc annual report 2013 54
25 business combinations continued
252 consideration transferred
total
£’000
cash consideration paid 635
consideration satisfied by issue of ubisense shares 1711
deferred consideration 178
contingent cash consideration arrangement 816
consideration transferred 3340
consideration satisfied by issue of ubisense shares comprised 759809 new ordinary shares of nominal value of £002 in ubisense at a price of 22525p 
per ordinary share being the average of the volume weighted midmarket closing price on each of the preceding five business days
the deferred consideration was paid in full in january 2014 
under the contingent cash consideration arrangement 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 £nil and £892000 the fair value of the contingent consideration of £816000 recognised at the acquisition date was based on management’s 
best estimate of the probabilityadjusted estimated future cash outflows from the arrangement discounted at 35 the discount rate used is 35 
based in the group’s estimated incremental borrowing rate for unsecured liabilities at the reporting date and therefore reflects the group’s credit 
position the effects on the fair value of risk and uncertainty in future cash flow are dealt with by adjusting the estimated cash flows rather than 
adjusting the discount rate
as at 31 december 2013 the fair value amount recognised for this arrangement was unchanged based on the most recent management estimates 
although as the liability is denominated in japanese yen it is subject to the impact of exchange rates 
upon
acquisition
£’000
effect of
 exchange
rates
 £’000
at
31 december
 2013
£’000
deferred consideration – current 178 6 172
contingent consideration – current 369 14 355
contingent consideration – noncurrent 447 17 430
total contingent consideration 816 31 785
total 994 37 957
acquisitionrelated costs amounting to £464000 have been excluded from the consideration transferred and have been recognised as an expense 
in the current year within the “operating expenses” line item in the consolidated income statement
notes to the consolidated financial statements continued
for the year ended 31 december 2013  financial statements
ubisense group plc annual report 2013 55
25 business combinations continued
253 assets acquired and liabilities recognised at the date of acquisition
total
£’000
assets
noncurrent assets
software products 626
customer relationships 1246
order backlog 347
other intangible assets 173
property plant and equipment 132
total noncurrent assets 2524
current assets
inventories 1605
trade and other receivables 1080
cash and cash equivalents 2481
total current assets 5166
liabilities
current liabilities
trade and other payables 4500
total current liabilities 4500
noncurrent liabilities
deferred income tax liabilities 843
total noncurrent liabilities 843
noncontrolling interest 704
fair value of identifiable net assets acquired 1643
the fair value of trade and other receivables of £1080000 includes trade receivables with a fair value and gross contractual value of £1080000 all 
of which is expected to be collectable 
as at 31 december 2013 the fair values of acquired assets liabilities and goodwill for geoplan have been determined on a provisional basis as these 
businesses were acquired in close proximity to the year end pending finalisation of the postacquisition review of the fair value of the acquired net assets  ubisense group plc annual report 2013 56
25 business combinations continued
254 goodwill arising on acquisitions
total
£’000
fair value of consideration transferred 3340
less fair value of identifiable net assets acquired 1643
goodwill arising on acquisitions 1697
goodwill arose on the acquisition of geoplan in respect of the benefits of a highly knowledgeable workforce expected operational synergies 
revenue growth and future market development these benefits are not recognised separately from goodwill because they do not meet the 
recognition criteria for identifiable intangible assets
goodwill is not expected to be deductible for tax purposes
255 net cash inflow on acquisition of subsidiaries
total
£’000
cash consideration paid 635
less cash and cash equivalent balances acquired 2481
net cash inflow on acquisition of subsidiaries 1846
256 impact of acquisitions on the results of the group
the incremental impact of acquisitions to the group’s results for the year are set out in the table below
before
acquisitions
£’000
geoplan
 £’000
total
 £’000
revenue 26284 718 27002
adjusted ebitda 929 212 1141
lossprofit before tax 1828 109 1719
if the acquisitions had been effective from 1 january 2013 the group’s estimated results would have been as follows
before
acquisitions
£’000
geoplan
 £’000
total
 £’000
revenue 26284 5365 31649
adjusted ebitda 929 59 870
loss before tax 1828 75 1903
26 related party transactions
other than compensation of key management personnel disclosed in note 63 there are no transactions with other related parties full details 
of directors’ remuneration are given in note 7
there were no other transactions with directors of the company
27 financial risk management
271 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 credit risk and liquidity risk the group is exposed to market risk through its use of financial 
instruments and specifically to currency risk and interest rate risk which result from its operating activities
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 mediumterm 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
notes to the consolidated financial statements continued
for the year ended 31 december 2013  financial statements
ubisense group plc annual report 2013 57
27 financial risk management continued
272 foreign currency risk management
the group undertakes certain transactions denominated in foreign currencies the group’s 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
the carrying amounts of the group’s foreign currency denominated monetary assets and liabilities at the reporting date not denominated in the 
local functional currency are as follows
japanese yen us dollars euros
2013
£’000
2012
£’000
2013
£’000
2012
£’000
2013
£’000
2012
£’000
assets — — 777 752 623 817
liabilities — — 5 16 5 3
273 foreign currency sensitivity analysis
the group is mainly exposed to us dollars euros and japanese yen the group seeks to manage cash inflows and outflows in each currency to 
mitigate currency exposure and exchange risk the following table details the group’s sensitivity to a 5 increase and decrease in the sterling exchange 
rate against the relevant foreign currencies the sensitivity analysis includes only outstanding foreign currency denominated monetary items and 
adjusts their translation at the period end for a 5 change in foreign currency rates a positive number indicates an increase in profit or equity
japanese yen us dollars euros
2013
£’000
2012
£’000
2013
£’000
2012
£’000
2013
£’000
2012
£’000
effect of a 5 strengthening in relevant exchange rate on 
income statement — — 41 37 33 39
equity — — 41 37 33 39
effect of a 5 weakening in relevant exchange rate on
income statement — — 37 40 30 43
equity — — 37 40 30 43
274 interest rate sensitivity
the group’s exposure to market risk for the changes in interest rates relates primarily to the group’s threeyear £50 million bank loan interest is payable 
at libor plus 3 and £35 million of the loan was outstanding as at 31 december 2013 2012 £nil 
the following table illustrates the sensitivity of the net profit of the group for the year and equity to a possible change in interest rates of 05 
and 05 with effect from the beginning of the year a positive number indicates an increase in profit or equity
2013
£’000
2012
£’000
effect of a 05 decrease in interest rate on
income statement 17 —
equity 17 —
effect of a 05 increase in interest rate on
income statement 17 —
equity 17 — ubisense group plc annual report 2013 58
27 financial risk management continued
275 credit risk analysis
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 278 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 
continually monitors defaults of customers and other counterparties identified either individually or by group and incorporates this information into 
its credit risk controls where available at reasonable cost external credit ratings andor 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 thirdparty 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 bluechip companies that would be considered a low credit risk
none of the group’s financial assets are secured by collateral or other credit enhancements
276 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 ensuring 
sufficient liquidity is available to meet the foreseeable needs and to invest cash assets safely and profitably the group manages its liquidity needs 
by carefully monitoring forecast cash inflows and outflows due in daytoday business net cash requirements are compared to balances in order 
to determine headroom or any shortfalls the group policy throughout the year has been to place surplus funds on shortterm treasury deposit 
or interestbearing reserve accounts based on its cash flow forecasting and to draw down on borrowing facilities for when required as disclosed 
in note 18 the group entered into a £50 million bank facility in the year of which £35 million was drawn down as at 31 december 2013
the group’s financial liabilities have contractual maturities as summarised below
current noncurrent
within
6 months
£’000
between 6 and
12 months
£’000
between 1
and 5 years
£’000
later than 5
years
£’000
as at 31 december 2013
trade and other payables 6195 355 430 —
bank loan — — 3500 —
as at 31 december 2012
trade and other payables 3632 — — —
financial assets used for managing liquidity risk
cash flows from trade and other receivables are contractually due within six months 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
277 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 
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
the capital structure is continually monitored by the group 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 group 
is not subject to externally imposed capital requirements the group has entered into a £50 million bank facility in 2013 of which £35 million 
was drawn down as at 31 december 2013 2012 £nil in order to provide working capital capacity to fund business growth
notes to the consolidated financial statements continued
for the year ended 31 december 2013  financial statements
ubisense group plc annual report 2013 59
27 financial risk management continued
278 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
notes
2013
£’000
2012
£’000
financial assets
loans and receivables
– trade receivables 15 6931 7310
– amounts recoverable on contracts 15 3347 2439
– other receivables 15 285 40
– cash and cash equivalents 16 3964 2716
total financial assets 14527 12505
financial liabilities
amortised cost
– trade payables 17 3570 1936
– trade accruals 17 1748 1404
– other payables 17 705 292
– deferred consideration 252 172 —
– contingent consideration 252 785 —
– bank loan 18 3500 —
total financial liabilities 10480 3632 ubisense group plc annual report 2013 60
we have audited the parent company financial statements of ubisense group plc for the year ended 31 december 2013 which comprise the parent 
company balance sheet 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
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 25 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 apb’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 wwwfrcorgukapbscopeprivatecfm
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 2013 
 » 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
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 plc for the year ended 31 december 2013
paul naylor
senior statutory auditor
for and on behalf of grant thornton uk llp
statutory auditor chartered accountants
cambridge
24 march 2014
independent auditor’s report
to the members of ubisense group plc financial statements
ubisense group plc annual report 2013 61
notes
2013
£’000
2012
£’000
fixed assets
investments in subsidiaries 3 17332 15906
current assets
debtors 4 7540 7772
cash at bank and in hand 288 —
7828 7772
creditors – amounts falling due within one year 5 403 —
net current assets 7425 7772
total assets less current liabilities 24757 23678
net assets 24757 23678
capital and reserves
calledup share capital 6 461 438
share premium account 7 24050 22251
sharebased payment reserve 7 746 654
profit and loss reserve 7 500 335
equity shareholders’ funds 8 24757 23678
the notes on pages 62 to 63 are an integral part of the company financial statements
the financial statements were approved by the board of directors on 24 march 2014 and signed on its behalf by
richard green   robert parker
chief executive officer   chief financial officer
ubisense group plc
registered number 05589712
company balance sheet
at 31 december 2013 ubisense group plc annual report 2013 62
1 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 
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 exemption allowed under frs 8 “related party disclosures” not to show transactions with other wholly 
owned companies in the group headed by ubisense group plc
sharebased payments
the company issues equitysettled sharebased payments to certain employees of its subsidiaries equitysettled sharebased payments are measured 
at fair value at the date of grant using the blackscholes pricing model the expected life used in the model has been adjusted based on management’s 
best estimate for the effects of nontransferability exercise restrictions and behavioural considerations the sharebased payment is accounted for 
as a capital contribution to the subsidiaries investments in subsidiaries are increased by the aggregate amount of sharebased payment with a 
corresponding increase in shareholders’ funds 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
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 plc reported a loss for the financial year ended 31 december 2013 of £835000 2012 £122000
the company does not have any employees 2012 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
investments in
 subsidiaries
 £’000
cost and net book amount
at 1 january 2013 15906
additions 1334
capital contribution relating to sharebased payments 92
at 31 december 2013 17332
additions
additions in the year relate to
 » acquisition of geoplan interworks kk for total consideration of £30000 and
 » subscription of new shares in existing subsidiary companies ubisense solutions inc for total consideration of £316000 and ubisense inc 
for total consideration of £988000
capital contribution
the capital contributions relating to sharebased payments arise because the company has granted share options to the employees of its 
various subsidiaries
notes to the company financial statements
for the year ended 31 december 2013 financial statements
ubisense group plc annual report 2013 63
4 debtors
2013
£’000
2012
£’000
amounts owed by subsidiary undertakings 7537 7769
other debtors 3 3
7540 7772
5 creditors amounts falling due within one year
2013
£’000
2012
£’000
trade accruals 403 —
6 share capital
2013
number
2012
number
2013
£’000
2012
£’000
allotted calledup and fully paid
ordinary shares of £002 each 23079146 21919744 461 438
a description of the movements in share capital in the year is given in note 20 of the consolidated financial statements
7 reserves
share
premium
£’000
sharebased
 payment
reserve
£’000
profit and
loss reserve
 £’000
balance at 1 january 2013 22251 654 335
loss for the year — — 835
reserve credit for equitysettled sharebased payment — 92 —
premium on new share capital 1799 — —
change in year 1799 92 835
balance at 31 december 2013 24050 746 500
8 reconciliation of movements in shareholders’ funds
2013
£’000
2012
£’000
loss for the year 835 122
reserve credit for equitysettled sharebased payment 92 63
issue of new share capital 23 5
premium on new share capital 1799 220
net change in shareholders’ funds 1079 166
shareholders’ funds at 1 january 23678 23512
shareholders’ funds at 31 december 24757 23678 ubisense group plc annual report 2013 64
ubisense group plc
incorporated and registered in england and wales with registered number 05589712
notice is hereby given that the annual general meeting “meeting” of ubisense group plc the “company” is to be held at the offices 
of fti consulting 200 aldersgate aldersgate street london ec1a 4hd on 15 may 2014 at 100pm
you will be asked to consider and vote on the resolutions below resolutions 1 2 3 4 5 and 6 will be proposed as ordinary resolutions 
and resolution 7 will be proposed as a special resolution
ordinary business
report and accounts
1  that the company’s annual accounts for the financial year ended 31 december 2013 together with the directors’ report and auditors’ report 
on those accounts be received and adopted
reelection of directors
2  that j keith lomas who retires by rotation and offers himself for reappointment by general meeting be reelected as a director 
of the company
3  that dr robert sansom who retires by rotation and offers himself for reappointment by general meeting be reelected as a director 
of the company
4  that robert parker who offers himself for reappointment at the company’s first annual general meeting after his appointment to the board 
be reelected as a director of the company
reappointment of auditors
5  that grant thornton uk llp be reappointed as the company’s auditors to hold office from the conclusion of this meeting until the conclusion 
of the next meeting at which accounts are laid before the company and that the directors be authorised to agree the remuneration of the auditors
special business
issue of ordinary shares
6  that the directors be hereby generally and unconditionally authorised and empowered pursuant to and in accordance with section 551 of the 
companies act 2006 the ”act” to exercise all the powers of the company to allot shares andor grant rights to subscribe for or to convert any 
security into shares “rights”
 a  up to an aggregate nominal value of £166791 being the nominal value of approximately onethird of the issued share capital of the company 
and
 b  up to an aggregate nominal value of £26000 in connection with options granted in accordance with the company’s articles of association 
prior to the company’s admission to trading on aim of the london stock exchange
   such authorities to expire on the earlier of the next annual general meeting of the company held after the date on which this resolution becomes 
unconditional and the date 15 months after the passing of this resolution save that the company may at any time before such expiry make any 
offers or enter into any agreements which would or might require shares to be allotted or rights to be granted after such expiry and the directors 
may allot shares or grant rights in pursuance of any such offers or agreements as if the authority conferred hereby had not expired this resolution 
revokes and replaces all unexercised authorities previously granted to the directors to allot shares or grant rights but without prejudice to any 
allotment of shares or grant of rights already made offered or agreed to be made pursuant to such authorities
notice of annual general meeting  ubisense group plc annual report 2013 65
additional information
7  that subject to and conditional upon the passing of resolution number 6 opposite the directors be and are hereby generally authorised in accordance 
with section 570 of the act to allot equity securities as defined in section 560 of the act of the company for cash as if section 5611 of the act 
did not apply to any such allotment provided that this authority shall be limited to
 a  the allotment of equity securities in connection with an offer by way of rights in favour of the holders of equity securities in proportion as nearly 
as may be possible to the respective number of ordinary shares of £002 each held by them but subject to such exclusions or other arrangements 
as the directors may deem necessary or expedient to deal with fractional entitlements or legal or practical problems in respect of overseas 
holders or otherwise
 b  the allotment of equity securities in connection with options granted in accordance with the company’s articles of association prior to the 
company’s admission to trading on the aim market of the london stock exchange up to an aggregate nominal value of £26000 and
 c  the allotment of equity securities otherwise than pursuant to subparagraphs a and b above up to a maximum aggregate nominal value 
of £75055 being the nominal value of approximately 15 of the issued share capital of the company
  and this authority shall expire on the earlier of the conclusion of the next annual general meeting of the company held after the date on which 
this resolution becomes unconditional and the date 15 months after the passing of this resolution save that the company may make any offers 
or enter into any agreements before such expiry which would or might require equity securities to be allotted after such expiry and the directors 
may allot equity securities pursuant to any such offers or agreements as if the authority conferred hereby had not expired this resolution revokes 
and replaces all unexercised authorities previously granted to the directors to allot equity securities but without prejudice to any allotment of equity 
securities already made offered or agreed to be made pursuant to such authorities
by order of the board
gordon campbell ubisense group plc
company secretary st andrew’s house
 st andrew’s road
 chesterton
 cambridge
 cb4 1dl
 24 march 2014 ubisense group plc annual report 2013 66
entitlement to attend and vote
1  pursuant to regulation 41 of the uncertificated securities regulations 2001 the company specifies that only those members registered on the 
company’s register of members at
 » at the time which is 48 hours prior to the meeting or
 » if this meeting is adjourned at the time which is 48 hours prior to the adjourned meeting
 shall be entitled to attend and vote at the meeting
appointment of proxies
2  if you are a member of the company at the time set out in note 1 above you are entitled to appoint a proxy to exercise all or any of your rights to 
attend speak and vote at the meeting and you should have received a proxy form with this notice of meeting you can only appoint a proxy using 
the procedures set out in these notes and the notes to the proxy form
3  if you are not a member of the company but you have been nominated by a member of the company to enjoy information rights you do not 
have a right to appoint any proxies under the procedures set out in this “appointment of proxies” section
4  a proxy does not need to be a member of the company but must attend the meeting to represent you details of how to appoint the chairman 
of the meeting or another person as your proxy using the proxy form are set out in the notes to the proxy form if you wish your proxy to speak on 
your behalf at the meeting you will need to appoint your own choice of proxy not the chairman and give your instructions directly to them
5  you may appoint more than one proxy provided each proxy is appointed to exercise rights attached to different shares you may not appoint more 
than one proxy to exercise rights attached to any one share to appoint more than one proxy you may photocopy the proxy form please indicate 
the proxy holder’s name and the number of shares in relation to which they are authorised to act as your proxy which in aggregate should not 
exceed the number of shares held by you please also indicate if the proxy instruction is one of multiple instructions being given all forms must 
be signed and should be returned together in the same envelope failure to specify the number of shares to which each proxy appointment 
relates or specifying more shares than the number of shares held by you at the time set out in note 1 above will result in the proxy appointments 
being invalid
6  a vote withheld is not a vote in law which means that the vote will not be counted in the calculation of votes for or against the resolution if no voting 
indication is given your proxy will vote or abstain from voting at his or her discretion your proxy will vote or abstain from voting as he or she thinks 
fit in relation to any other matter which is put before the meeting
appointment of proxies using hard copy form
7 the notes to the proxy form explain how to direct your proxy how to vote on each resolution or withhold their vote
 to appoint a proxy using the proxy form the form must be
 » completed and signed
 » sent or delivered to the computershare investor services plc the pavilions bridgewater road bristol bs99 6zz or emailed to the 
company secretary at companysecretaryubisensenet and
 » received by the company secretary no later than 48 hours prior to the time set for the start of the meeting
  crest members should use the crest electronic proxy appointment service and refer to note 8 below in relation to the submission of a proxy 
appointment via crest
  in the case of a member which is a company the proxy form must be executed under its common seal or signed on its behalf by an officer of the 
company or an attorney for the company
  any power of attorney or any other authority under which the proxy form is signed or a duly certified copy of such power or authority must be 
included with the proxy form
  in each case the proxy appointment must be received not less than 48 hours before the time for the holding of the meeting or adjourned meeting 
together except in the case of appointments made electronically with any authority or notarially certified copy of such authority under which it 
is signed
notice of annual general meeting continued ubisense group plc annual report 2013 67
additional information
appointment of proxies through crest
8  as an alternative to completing the hard copy proxy form crest members who wish to appoint a proxy or proxies by utilising the crest 
electronic proxy appointment service may do so for the meeting and any adjournments of it by using the procedures described in the crest 
manual crest personal members or other crest sponsored members and those crest members who have appointed a voting service 
providers should refer to their crest sponsor or voting service providers who will be able to take the appropriate action on their behalf 
  in order for a proxy appointment made by means of crest to be valid the appropriate crest message a “crest proxy instruction” must 
be properly authenticated in accordance with euroclear uk  ireland limited’s “eui” specifications and must contain the information required 
for such instructions as described in the crest manual the message regardless of whether it constitutes the appointment of a proxy or an 
amendment to the instruction given to a previously appointed proxy must in order to be valid be transmitted so as to be received by the company’s 
agent id 3ra 50 by not later than 48 hours prior to the time appointed for the meeting or adjourned meeting for this purpose the time of receipt 
will be taken to be the time as determined by the timestamp applied to the message by the crest applications host from which the company’s 
agent is able to retrieve the message by enquiry to crest in the manner prescribed by crest after this time any change of instructions to 
proxies appointed through crest should be communicated to the appointee through other means
  crest members and where applicable their crest sponsors or voting service providers should note that eui does not make available special 
procedures in crest for any particular messages normal system timings and limitations will therefore apply in relation to the input of crest 
proxy instructions it is the responsibility of the crest member concerned to take or if the crest member is a crest personal member or 
sponsored member or has appointed a voting service providers to procure that his crest sponsor or voting service providers takes such 
action as shall be necessary to ensure that a message is transmitted by means of the crest system by any particular time in this connection 
crest members and where applicable their crest sponsors or voting service providers are referred in particular to those sections of the 
crest manual concerning practical limitations of the crest system and timings
  the company may treat as invalid a crest proxy instruction in the circumstances set out in regulation 355a of the uncertificated securities 
regulations 2001
appointment of proxy by joint members
9  in the case of joint holders where more than one of the joint holders purports to appoint a proxy only the appointment submitted by the most 
senior holder will be accepted seniority is determined by the order in which the names of the joint holders appear in the company’s register of 
members in respect of the joint holding the firstnamed being the most senior
changing proxy instructions
10  to change your proxy instructions simply submit a new proxy appointment using the methods set out above note that the cutoff time for 
receipt of proxy appointments see above also apply in relation to amended instructions any amended proxy appointment received after the 
relevant cutoff time will be disregarded
  where you have appointed a proxy using the hard copy proxy form and would like to change the instructions using another hard copy proxy 
form please contact the computershare investor services plc the pavilions bridgewater road bristol bs99 6zz
  if you submit more than one valid proxy appointment the appointment received last before the latest time for the receipt of proxies will take precedence
termination of proxy appointments
11  in order to revoke a proxy instruction you will need to inform the company by sending a signed hard copy notice clearly stating your intention to 
revoke your proxy appointment to the computershare investor services plc the pavilions bridgewater road bristol bs99 6zz in the case of 
a member which is a company the revocation notice must be executed under its common seal or signed on its behalf by an officer of the company 
or an attorney for the company any power of attorney or any other authority under which the revocation notice is signed or a duly certified copy 
of such power or authority must be included with the revocation notice
  the revocation notice must be received by the company secretary not less than 48 hours before the time for holding the meeting 
or adjourned meeting
  if you attempt to revoke your proxy appointment but the revocation is received after the time specified then subject to the paragraph directly 
below your proxy appointment will remain valid
  appointment of a proxy does not preclude you from attending the meeting and voting in person if you have appointed a proxy and attend the 
meeting in person your proxy appointment will automatically be terminated ubisense group plc annual report 2013 68
corporate representatives
12  a corporation which is a member can appoint one or more corporate representatives who may exercise on its behalf all its powers as 
a member provided that no more than one corporate representative exercises powers over the same share
issued shares and total voting rights
13  as at 500pm on the day before this notice the company’s issued share capital comprised 25018652 ordinary shares of £002 each 
each ordinary share carries the right to one vote at a general meeting of the company and therefore the total number of voting rights 
in the company as at 500pm on the day before this notice is 25018652
communication
14  except as provided above members who have general queries about the meeting should use the following means of communication
 » calling the company secretary on 44 0 1223 535165 or
 » calling our shareholder helpline on 0870 707 4081 or 44 0 870 707 4081 from outside of the uk lines are open monday to friday 830am 
to 530pm or
 » emailing the company secretary at companysecretaryubisensenet
 you may not use any electronic address provided either
 » in this notice of annual general meeting or
 » any related documents including the proxy form
 to communicate with the company for any purposes other than those expressly stated
notice of annual general meeting continued ubisense group plc’s commitment to environmental issues is reflected 
in this annual report which has been printed on symbol freelife satin an 
fsc
®
 mix certified paper which ensures that all virgin pulp is derived 
from wellmanaged forests and other responsible sources
corporate directory
registered office
st andrew’s house 
st andrew’s road 
chesterton 
cambridge cb4 1dl 
uk
website
wwwubisensenet
registered number
05589712
company secretary
gordon campbell
nominated advisor and broker
canaccord genuity limited 
88 wood street 
london ec2v 7qr 
uk
banker
hsbc bank plc 
vitrum 
st johns innovation park 
cowley road 
cambridge cb4 0ws 
uk
solicitor
mills  reeve llp 
francis house 
112 hills road 
cambridge cb2 1ph 
uk
auditor
grant thornton llp 
cambridge office 
101 cambridge science park 
milton road 
cambridge cb4 0fy 
uk
registrar
computershare investor services plc 
the pavilions 
bridgwater road 
bristol 
bs99 6zz 
uk
public relations advisor
fti consulting 
200 aldersgate street 
london 
ec1a 4hd 
uk
shareholder information
shareholder enquiries
any shareholder with enquiries should in the first instance contact our 
registrars computershare using the address provided in the 
corporate directory
share price information
london stock exchange alternative investment market aim symbol ubi
information on the company’s share price is available on the ubisense 
investor relations website at httpwwwubisenseneteninvestorrelations
investor relations
st andrew’s house 
st andrew’s road 
chesterton 
cambridge cb4 1dl 
uk
email corporateubisensenet 
tel  44 0 1223 535 170
financial calendar
financial year end  31 december 2013
full year results announced 25 march 2014
annual general meeting 15 may 2014 st andrew’s house 
st andrew’s road 
chesterton 
cambridge cb4 1dl
tel 44 01223 535 170 
fax 44 01223 535 167
wwwubisensenet


Summary:
 ubisense group plc annual report 2013 2
the necessary investments and efforts we have made 
have allowed ubisense to experience solid growth 
through major new strategic client wins as the use of 
realtime location intelligence solutions is becoming 
increasingly widespread through many industries
the necessary investments and progress we 
have made have allowed ubisense to experience 
solid growth through major new strategic client 
wins as the use of realtime location intelligence 
solutions is becoming increasingly widespread 
through many industries our yearend order 
book is up 755 year on year to £179 million 
– a significant achievement – and this continues 
to provide us with good revenue visibility 
going forward
we have also delivered excellent progress 
and further market traction in the conversion 
of our consulting services customers into 
rtli solutions customers our marketleading 
rtli solutions offering is benefiting from the 
acceleration in enterprise acceptance as it allows 
customers across highvalue manufacturing 
utility and telecommunication sectors to achieve 
substantial improvements in efficiency and cost 
savings our reputation with all our customers 
continues to be one of value reliability and 
exceptional service
our aim is to deliver a single enterprise location 
intelligence platform to address all of our customer 
base and target markets
current trading and outlook
in the period since the year end trading has 
been in line with the board’s expectations 
ubisense has entered 2014 with increasing 
momentum in the business and we are 
extremely well positioned to capitalise 
on the opportunities we see
introduction
2013 was a busy year for the group driving 
forward our aim to be synonymous with enterprise 
location intelligence we have seen significant 
developments in our strategy to transform 
our business to a single realtime location 
intelligence rtli solution fully leveraging 
our product ip across our customer base 
to strengthen this further and expand our 
global footprint on 3 december 2013 we 
completed the acquisition of the geoplan 
interworks kk “geoplan” group of companies
we are still in the early stages of the integration 
process but i am delighted with the progress to 
date and am excited by the potential we see in 
asia over the next few years
overview
group revenue increased by 112 to 
£270 million and we achieved an adjusted 
ebitda of £11 million the group’s gross profit 
was £92 million representing a gross margin 
of 342 the group has a robust balance 
sheet with net assets of £194 million including 
cash and cash equivalents of £40 million
during 2013 we experienced continued 
momentum across the business as we migrated 
to an rtli solutions focused business through 
the strengthening of key customer relationships 
acquisition of new customers improved market 
reach and our approach to product management 
we have also ensured that our resources are 
fully focused on delivering our leading location 
intelligence technology for markets where 
we add the most value
chairman’s statement
 
our aim is to deliver a 
single enterprise location 
intelligence platform to 
address all our customer 
base and target markets overview
ubisense group plc annual report 2013 3
 
our marketleading rtli solutions offering is benefiting 
from the acceleration in enterprise acceptance as it 
allows customers across highvalue manufacturing 
utility and telecommunication sectors to achieve 
substantial improvements in efficiency and cost savings”
we will continue to pursue growth both 
organically and through acquisitions that 
align with our strategic objectives enhance 
our offering and deliver value for our shareholders 
although the world economic recovery is 
still in an early stage we are able to provide 
marketleading innovative solutions for our 
customers and we begin 2014 with a robust 
order book and pipeline which gives us 
confidence for the future 
conclusion
on behalf of the board i would like to thank 
our customers partners and employees for 
their support in making 2013 such a strong 
year for the ubisense group i look ahead 
with confidence for the 2014 financial year
andy hopper cbe
chairman
24 march 2014