As expected from its July profit warning (see here), Cambridge-based, ‘real-time locations solutions’ company, Ubisense, recorded a steeper net loss in the first 6 months of the year, to the tune of £876k (H1 2011 loss: £254k), as contract signings slipped. However, CEO Richard Green advised that most of these orders have since been signed.
Ubisense is another of those ‘business of two halves’ stories, where all the profit comes from one division (Geospatial), yet, perhaps counter-intuitively, management views the other (loss-making) division (RTLS – Real-Time Location Systems) as the better guide to underlying performance.
Geospatial revenues rose by 4% to £7.7m, mainly due to acquisition (see here and here). Operating margins lost over 4 points to 14.1%. RTLS revenues were up 10% to £4.3m, with operating losses a bit deeper at £183k (H1 2011: £119k). So, there’s obviously more work to be done on both sides of the business.
Ubisense was the first UK SITS (software and IT services) company to break the IPO drought last year, listing in September at 180p (see Ubisense gets off to fine start on AIM). The profit warning took some of the wind out of its billowing sails, with shares now trading at 208p.