Aim-listed Ubisense (UBI), which provides real-time location intelligence for manufacturers such as BMW and Volkswagen as well as utilities and telecoms companies, continued to expand internationally in the first half. It grew its order book by 12 per cent year on year to nearly £16m -almost two-thirds of which it expects to recognise in the current half.
Sales surged 46 per cent at Ubisense’s solutions segment, which packages software with installation, hardware, maintenance and support. That reflected the deployment of its Smart Factory System with seven manufacturers worldwide and strong demand for its myWorld software, which combines Google Maps data with other enterprise and geospatial information. The group’s focus on higher-margin solutions helped it widen its gross margin by 5.2 percentage points to almost 34 per cent.
Ubisense also made headway in the enormous manufacturing markets of South Korea and Japan. For instance, it partnered with Japanese material-handling specialist Daifuku to launch a Smart Warehouse System. That project, together with ongoing investment in its flagship offerings, meant its product development spending rose 17 per cent to roughly £2m. Operating expenses also rose by more than half to £8m, but that mainly reflects the company's increased size after it acquired geospatial-data specialist Geoplan last December.
Broker Canaccord expects a full-year pre-tax loss of £2m, giving a loss per share of 2.6p.
| UBISENSE (UBI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 172p | MARKET VALUE: | £43m | |
| TOUCH: | 168-176p | 12-MONTH HIGH: | 275p | LOW: 170p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 82p* | NET CASH: | £0.8m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 12.4 | -1.5 | -7.0 | nil |
| 2014 | 17.3 | -2.1 | -8.8 | nil |
| % change | +40 | - | - | - |
*Includes intangible assets of £15.8m, or 63p a share | ||||
