Ubisense Group PLC Trading Statement (7812L)
April 30 2015 - 2:01AM
UK Regulatory
TIDMUBI
RNS Number : 7812L
Ubisense Group PLC
30 April 2015
Trading Update
Ubisense ("Ubisense" or the "Company") (LON:UBI), a market
leader in enterprise location intelligence solutions, announces an
update on current trading.
Following the end of the Company's seasonally quiet first
quarter ended 31 March 2015, the Board has reviewed the outlook for
the half year to 30 June and the full year to 31 December 2015. As
highlighted in the 2014 preliminary results, the Company continues
its transition towards a greater emphasis on its Solutions business
and a lesser focus on the lower gross margin Services business;
strategically the Board believes this is the right way for Ubisense
to maximise its market opportunity, albeit that it reduces revenue
visibility in the short and medium term.
As an example of the success of this strategy, the company has
recently completed a first-time Solutions sales of Smart Factory
into General Motors, one of the top three global automotive
manufacturers with over 45 vehicle production plants worldwide.
However, as a result of two specific installation contract
delays with existing customers in the automotive segment, it now
appears that contract additions in the second quarter will be lower
than the Board had anticipated, which is likely to result in
Solutions revenues for the first half of 2015 being broadly in line
with the first half of 2014. Services revenues for the first half
remain in line with the Board's expectations.
The contracts in question are now seen as more likely to be
installed in the second half of 2015. The Board considers it
prudent to plan on the basis that not all of the H1 revenue
shortfall will be recovered in H2. Tight cost control and deferral
of planned recruitment will partly mitigate any profit impact for
the full year.
In order to help drive the necessary improvements in sales
effectiveness and pipeline conversion, the Board is pleased to
announce that Peter Harverson, a current non-executive director of
the Company with a wealth of sales and operations experience at Sun
Microsystems, Intel and Texas Instruments, will become Vice
Chairman, with immediate effect, and will provide senior oversight
and leadership to the sales team on an interim basis.
The Company continues to enjoy a supportive relationship with
its main lending bank and is in compliance with all applicable
covenants under its principal committed bank facilities expiring
August 2016 and August 2018. The Board is also in discussions with
its brokers Numis Securities regarding the timing and amount of a
possible equity fundraising to strengthen the balance sheet.
Enquiries:
Ubisense Group plc +44 (0) 1223 535170
Richard Green, Chief Executive
Robert Parker, Chief Financial Officer
Numis Securities Limited +44 (0) 7260 1000
Rupert Krefting (Corporate Broking)
Simon Willis, James Lillywhite (Corporate Finance)
Montfort Communications +44 (0) 20 3514 0897
Nick Miles +44 (0) 7973 130669
This information is provided by RNS
The company news service from the London Stock Exchange
END
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