Join our community of smart investors

Ubisense back on track

The tracking technology supplier produced subdued results, but signed up two more major car makers
September 6, 2012

First-half results from Ubisense were subdued, but management had already forewarned investors about delayed contracts in the US. These have mostly now started moving forward and the smart technology business announced two further contracts wins with global auto manufacturers.

IC TIP: Buy at 212p

An unnamed German auto manufacturer is taking Ubisense's tools-tracking technology for an assembly line, the third German car maker to do so. A new US customer is taking the e-kaizen package, which models the efficiency of workers.

First-half revenues were up 6.2 per cent at £12m and losses widened from £320,000 to £830,000. Meanwhile, via a deal with Atlas Copco, trials are running with five further car makers. Management is looking at a similar partnership for Asia, with Korea and Japan a focus.