RNS Number : 6962A
Location Sciences Group PLC
27 September 2022
 

 

27 September 2022

 

This announcement contains inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

 

Location Sciences Group PLC

("Location Sciences" or the "Company" or the "Group")

 

Interim Results for the six months ended 30 June 2022

 

 

Location Sciences (AIM: LSAI), the leading location data insight and verification company, announces its interim results for the six months ended 30 June 2022.

CHAIRMAN'S REPORT FOR THE PERIOD ENDED 30 JUNE 2022

Introduction

Following the funding round in May 2021 which introduced new strategic investors to the shareholder register and two new Board members, the executive team successfully exited the location insights space, selling the Group's insights dashboard and certain customer contracts to Digital Envoy, Inc, a leading US IP intelligence business for US$700,000.

The proceeds from the aforementioned sale and the Group's share placing in May 2021, which raised approximately £3.74 million (before expenses), provided the Group with a solid financial platform from which to increase shareholder value which management and the Board are fully engaged in. As at 30 June 2022, the net current assets of the Company were £4.4 million, including net cash of £4,227,685.

 

Trading performance

Unaudited revenues for the six months ended 30 June 2022 were £145,430, which included £99,022 of earn-out income from the sale of the Insights business during 2021. Underlying Verify revenues were £46,408 in the period, representing a decrease of 9% compared to H1 2021 revenues of £50,968.

Administration expenses were £489,552 in H1 2022 compared to £429,652 in H1 2021. The increase of 14% in administration expenses is due to the impact of fee shares issued to the non-executive directors in the period and was not a cash cost to the Company. Cash costs have been reduced during the period with a number of staff cuts and overhead reductions being implemented by the Board.

EBITDA loss for the six months to 30 June 2022 was £362,809, representing a decrease of 10% on the EBITDA loss in the six months to 30 June 2021 of £404,628.

Loss before tax for the six months to 30 June 2022 was £492,353, representing an decrease of 7% on the loss before tax in the six months to 30 June 2021 of £527,237.

 

Outlook

 

The Board continues to review how best to maximise the value of the Company's assets and will update shareholders in due course.

 

 

Simon Wilkinson

Chairman


LOCATION SCIENCES GROUP PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 30 JUNE 2022


Note

Six months
ended
30 June
2022
Unaudited
£

Six months
ended
30 June
2021
Unaudited
£

Year ended
31 December 2021
Audited
£

Revenue

4

145,430

50,968

167,940

Cost of sales


(18,686)

(25,944)

(77,243)

Gross profit


126,743

25,024

90,697

Grant income


-

-

-

Other income


-

-

11,267

Administrative expenses


(489,552)

(429,652)

(801,432)

Amortisation and depreciation


(130,524)

(122.610)

(216,392)

Exceptional administrative expenses


-

-

(283,210)

Operating loss

4

(493,333)

(527,238)

(1,199,070)

Finance income


980

1

2

Finance expense


-

-

-

Loss before tax


(492,353)

(527,237)

(1,199,068)

Taxation


-

71,514

113,871

Loss for the financial year from continuing operations


(492,353)

(455,723)

 

(1,085,197)

Discontinued Operations





Loss for the year from discontinued operations


-

(163,613)

 

(298,161)

Loss for the financial year


(492,353)

(619,336)

(1,383,358)

 

Earnings per share






Loss per share - basic and diluted

(0.02p)

(0.06p)

(0.076p)


 

The above results were derived from continuing operations.


LOCATION SCIENCES GROUP PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2022


Six months
ended
30 June
2022
Unaudited
£

Six months
ended
30 June
2021
Unaudited
£

Year ended
31 December
2021
Audited
£

Loss for the year

(492,353)

(619,336)

(1,383,358)

 

Foreign currency translation losses

-

(4,719)

(4,718)

 

Total comprehensive income for the year attributable to owners of the company

(492,353)

(624,055)

(1,388,076)

 


LOCATION SCIENCES GROUP PLC

 

CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2022


Note

30 June
2022
Unaudited
£

30 June
2021
Unaudited
£

31 December
2021

Audited
£

 

Non-current assets





 

Intangible assets


406,967

1,153,954

537,491

 

Property, plant and equipment


-

3,198

-

 




1,157,152

537,491

 

Current assets





 

Trade and other receivables


259,564

505,232

331,559

 

Current tax asset


113,871

71,514

113,871

 

Cash and cash equivalents


4,227,685

4,333,115

4,378,825

 



4,601,120

4,909,861

4,824,255

 

Current liabilities





 

Trade and other payables


(202,088)

(148,577)

(183,175)

 



(202,088)

(148,577)

(183,175)

 

Net current assets


4,399,032

4,761,284

4,641,080

 

Net assets


4,805,999

5,918,436

5,178,571

 

Capital and reserves





 

Called up share capital

5

16,340,507

16,298,007

16,298,007


Share premium reserve


20,088,118

21,170,312

20,034,993

 

Merger relief reserve


11,605,556

11,605,556

11,605,556

 

Capital reserve


209,791

209,791

209,791

 

Other reserves


(9,225,108)

(9,225,108)

(9,225,108)

 

Equity Reserve


1,135,319

-

1,135,319

 

Retained earnings


(35,348,184)

(34,140,122)

(34,879,987)

 

Total equity


4,805,999

5,918,436

5,178,571

 


LOCATION SCIENCES GROUP PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2022

EQUITY ATTRIBUTABLE TO THE PARENT COMPANY


Share capital
£

Share premium
£

Merger relief reserve
£

Capital reserve
£

Reverse acquisition reserve
£

 

Equity reserve
£

Retained earnings
£

Total
£

At 1 January 2021

14,280,258

19,315,231

11,605,556

209,791

(9,225,108)

-

(33,540,223)

2,645,505

Loss for the period

-

-

-

-

-

-

(619,336)

(619,336)

Other comprehensive income

-

-

-

-

-

-

(4,719)

(4,719)

Issue of shares

2,017,749

1,855,081

-

-

-

-

-

3,872,830

Share based payments

-

-

-

-

-

-

24,156

24,156

At 30 June 2021

16,298,007

21,170,312

11,605,556

209,791

(9,225,108)

-

(34,140,122)

5,918,436

 

At 1 January 2021

14,280,258

19,315,231

11,605,556

209,791

(9,225,108)

-

(33,540,223)

2,645,505

Loss in year

-

-

-

-

-

-

(1,383,358)

(1,383,358)

Other Comprehensive Income

-

-

-

-

-

-

(4,718)

(4,718)

Issues of shares

2,017,749

1,855,081

-

-

-

-

-

3,872,830

Warrants issued

-

(1,135,319)

-

-

-

1,135,319

-

-

Share based payments

-

-

-

-

-

-

48,312

48,312

At 31 December 2021

16,298,007

20,034,993

11,605,556

209,791

(9,225,108)

 

1,135,319

(34,879,987)

5,178,571

 

At 1 January 2022

16,298,007

20,034,993

11,605,556

209,791

(9,225,108)

1,135,319

(34,879,987)

5,178,571

Loss for the period

-

-

-

-

-

-

(492,353)

(492,353)

Other comprehensive income

-

-

-

-

-

-

-

-

Issue of shares

42,500

53,125

-

-

-

-

-

95,625

Share based payments

-

-

-

-

-

-

24,156

24,156

At 30 June 2022

16,340,507

20,088,118

11,605,556

209,791

(9,225,108)

1,135,319

(35,348,184)

4,805,999


LOCATION SCIENCES GROUP PLC

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 JUNE 2022


Note

Six months
ended
30 June
2022
Unaudited
£

Six months
ended
30 June
2021
Unaudited
£

Year ended
31 December
2021
Audited
£

Cash flows from operating activities

Loss for the year from continuing activities


(492,353)

(455,723)

(1,085,197)

Loss for the year from discontinued activities


-

(163,613)

(298,161)

Adjustments to cash flows from non-cash items:





Depreciation and amortisation


130,524

204,351

508,862

Impairment charge


-

-

283,210

Foreign exchange (gains) / losses


-

(4,719)

(4,718)

Finance income


(980)

(1)

(2)

Finance costs


-

-

-

Share based payment transactions


24,156

24,156

48,312

Income tax expense


-

(71,514)

(113,871)

Up lift in fair value of directors' fees


10,625

195,500

195,500

Shares issued other than for cash


85,000

120,000

120,000



(243,028)

(151,563)

(636,705)

Working capital adjustments





Decrease in trade debtors


71,995

(90,128)

88,225

Increase in trade creditors


18,913

(62,480)

(33,114)

Cash used in operations


(152,120)

(304,171)

(581,594)

Income taxes received


-

166,272

166,272

Net cash used in operating activities


(152,120)

(137,899)

(415,322)

Cash flows from investing activities





Interest received


980

1

2

Disposals of discontinued operations


-

-

450,138

Acquisitions of tangible assets


-

-

-

Acquisition of intangible assets


-

(214,435)

(341,441)

Net cash used in investing activities


980

(214,434)

(108,699)

Cash flows from financing activities





Proceeds from issue of ordinary shares, net of issue costs


-

3,557,330

3,557,330

Net cash generated from financing activities


-

        3,557,330

        3,557,330

Net (decrease)/increase/ in cash and cash equivalents


(151,140)

3,204,997

3,250,707

Cash and cash equivalents at beginning of period


4,378,825

1,128,118

1,128,118

Cash and cash equivalents at end of period


4,227,685

4,333,115

4,378,825

 





 

Note

Six months
ended
30 June
2022
Unaudited
£

Six months
ended
30 June
2021
Unaudited
£

Year ended
31 December
2021
Audited
£

Non-cash financing activities





Share warrants exercised in period


-

-

10,000

Fees settled by share issues


-

265,500

120,000

Directors' fees settled by share issues


95,625

280,500

163,625

 

LOCATION SCIENCES GROUP PLC

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2022

            1          General information

Location Sciences Group PLC and its subsidiary Location Sciences AI Limited (together the "Group") provide location verification services, utilising sophisticated machine learning and pattern recognition technologies Verify detects location ad-fraud and checks the accuracy and quality of location signals used to improve the performance of digital advertising.

 

The Company is a public limited company which is quoted on the AIM market of the London Stock Exchange and is incorporated and domiciled in the United Kingdom.

            2          Basis of preparation

The financial information has been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, IFRIC interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The accounting policies adopted are consistent with those of the financial statements for the year ended 31 December 2021, as described in those financial statements.

 

The figures for the six-month periods ended 30 June 2022 and 30 June 2021 have not been audited. The figures for the year ended 31 December 2021 have been extracted from, but do not constitute, the consolidated financial statements of Location Sciences Group PLC for that year. Those financial statements have been delivered to the Registrar of Companies and included an unqualified auditors' report and did not contain a statement under Section 498(2) or Section 498(3) Companies Act 2006.

3              Loss per share

                                                                                                                                                                                                      


Six months
ended
30 June
2022
Unaudited
£

Six months
ended
30 June
2021
Unaudited
£

Year ended
31 December
2021
Audited
£

Loss attributable to shareholders

(492,353)

(619,336)

(1,383,358)

 


No.

No.

No.

Weighted average number of shares (basic)

2,611,934,620

990,887,398

1,814,571,645

 

The calculation of basic loss per share of 0.02p (June 2021: 0.06p; December 2021: 0.076p) is based on loss after taxation and the weighted average number of ordinary shares in issue during the period.

            4          Segmental analysis

Operating segments are based on internal reports about components of the Company, which are regularly reviewed and used by the Board of Directors being the Chief Operating Decision Maker ("CODM") for strategic decision making and resource allocation, in order to allocate resources to the segment and to assess its performance.

 

During the first half of 2022 the Group has operated through its trading company Location Sciences AI Limited. The business provides location verification services, utilising sophisticated machine learning and pattern recognition technologies Verify detects location ad-fraud and checks the accuracy and quality of location signals used to improve the performance of digital advertising.

 

It should be noted that a segmental analysis of the Consolidated Statement of Financial Position is not part of routine management reporting and, consequently, no segmental analysis of assets is shown here.

 

 

An analysis of operating revenue is as follows:


Six months
ended
30 June
2022
Unaudited
£

Six months
ended
30 June
2021
Unaudited
£

Year ended
31 December
2021
Audited
£

Location data and insights*

-

226,986

373,448

Verify

145,430

50,968

167,940


145,430

277,954

541,388

*disclosed within discontinued operations

 

An analysis of EBITDA is as follows:


Six months
ended
30 June
2022
Unaudited
£

Six months
ended
30 June
2021
Unaudited
£

Year ended
31 December
2021
Audited
£

Location data and insights

-

(397,291)

(299,972)

Verify

362,809

(89,209)

(682,706)


362,809

(486,500)

(982,678)

 

An analysis of loss before tax is as follows:


Six months
ended
30 June
2022
Unaudited
£

Six months
ended
30 June
2021
Unaudited
£

Year ended
31 December
2021
Audited
£

Location data and insights

-

(236,847)

(298,161)

Verify

(492,353)

(454,003)

(1,199,098)


(492,353)

(690,850)

(1,497,229)

 

5              Share capital                                                                                                                                                                            


30 June
2022
Unaudited
£

30 June
2021
Unaudited
£

31 December
2021
Audited
£

2,647,587,398 ordinary shares of 0.1p (June 2021 - 2,605,087,398 of 0.1p, December 2021 2,605,087,398 of 0.1p) each

2,647,587

2,605,087

2,605,087

1,040,712,398 deferred shares of 0.99p each

10,303,054

10,303,054

10,303,054

376,651,734 New Deferred shares of 0.9p each

3,389,866

3,389,866

3,389,866


16,340,507

16,298,007

16,298,007

Share issue

 

On 1 June 2022 42,500,000 ordinary shares of 0.1p were issued at 0.2p per ordinary share to the non-executive directors in settlement of their second-year fees.

 

 

Share rights

Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.

 

Deferred shares have attached to them no voting, dividend or capital distribution (including on winding up) rights; they do not confer any rights of redemption.

 

Warrants in Issue

 

1) Promoter Warrants - non-transferable warrants to subscribe for up to 1,500,000,000 Ordinary Shares, exercisable at the 0.20p for five years from 25 May 2021, were issued to certain members of the Concert Party in consideration of those persons assembling and co-ordinating the Concert Party's investment in the Company in May 2021 and facilitating the appointment of Simon Wilkinson as Non-Executive Chairman.

 

Name                                     Number of Ordinary Shares subject to Promoter Warrants

 

Richard Hughes                   500,000,000

Mahmud Kamani                                500,000,000

Simon Wilkinson                 500,000,000

 

2) Cornerstone Investor Warrants - non-transferable warrants to subscribe for up to 250,000,000 Ordinary Shares, exercisable at 0.20p for five years from 25 May 2021, were issued to the Cornerstone Investors of the May 2021 placing.

 

Name                                     Number of Ordinary Shares subject to Cornerstone Investor Warrants

 

Ben Turner                            50,000,000

Donna Turner                       75,000,000

James Pope                         50,000,000

Maxine Pope                        75,000,000

 

3) Broker Warrants - transferable warrants to subscribe for up to 100,000,000 Ordinary Shares, exercisable at the 0.20p for five years from 25 May 2021 were issued as shown below.

 

Name                                     Number of Ordinary Shares subject to Broker Warrants

 

Turner Pope                         58,750,000

Dr Nigel Burton                    25,000,000

Mark Slade                    10,000,000

David Rae                             6,250,000

 

4) Director Warrants - non-transferable warrants to subscribe for, in aggregate, 120,000,000 Ordinary Shares were issued to the Executive Directors and the Non-Executive Directors, exercisable at 0.20p for five years from 25 May 2021, provided that the Ordinary Shares have traded at a Volume Weighted Average Price (VWAP) at or above 0.30p for 20 consecutive Business Days, or on a change of control of the Company.

 

Name                                     Number of Ordinary Shares subject to Broker Warrants

 

Mark Slade                           30,000,000

David Rae                             30,000,000

Simon Wilkinson                 30,000,000

Dr Nigel Burton                    30,000,000        

 

 

6          Availability of half-year report

 

Copies of the half-year report are available on request from the Company's registered office at First Floor, St James House, St James Square, Cheltenham, Gloucestershire GL50 3PR and can also be viewed at:

 

https://www.locationsciencesgroup.ai/investor-relations/reports-presentations/

 

For further information please contact:

 

Location Sciences Group PLC                                                                                                            via Allenby Capital

Simon Wilkinson, Chairman

 

Allenby Capital Limited (Nominated Adviser)                                                                     Tel: +44 (0)20 3328 5656

David Hart

Vivek Bhardwaj

 

Turner Pope Investments (TPI) Ltd (Broker)                                                                       Tel: +44 (0)20 3657 0050

James Pope

Andy Thacker

 

 

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