Tracking and location software specialist Ubisense (UBI) did report a loss at the half-year stage, but that largely reflects increased investment in product development and marketing. Second-half prospects, however, look encouraging as revenue streams begin to benefit from a 38 per cent increase in the order book to £14.1m.
The company should also feel the benefits of merging its two operating divisions into one. Previously, one division provided tracking software - typically for use on a car production line to determine the location of tools and parts - while the other provided software to locate assets outside of the factory. By combining the two, Ubisense can offer a single solution for customers that want indoor and outdoor tracking, where the software can improve efficiency levels and reduce costs.
Ubisense has already scooped up the three main car producers in Germany as customers and has also secured orders from a leading European telecoms network, the largest US tractor maker, and a US energy utility. As well as higher earnings visibility, the group also increased recurring revenue from 24.3 per cent, to 26.8 per cent, of total revenue.
Broker Canaccord Genuity expects full-year adjusted pre-tax profit of £0.9m, giving adjusted EPS of 3.1p, rising to £2m and 7.8p in 2014 (from £0.4m/0.5p in 2012).
| UBISENSE (UBI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 222p | MARKET VALUE: | £49m | |
| TOUCH: | 222-230p | 12-MONTH HIGH: | 237p | LOW: 183p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 79p* | NET CASH: | £38,000 | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 12.0 | -0.83 | -4.00 | nil |
| 2013 | 12.4 | -1.46 | -7.00 | nil |
| % change | +3 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £10.7m, or 48p a share | ||||
