Location Sciences sees growth as it pushes 'Verify' product

5th Sep 2018 14:05

(Sharecast News) - Mobile location data and intelligence company Location Sciences Group issued its unaudited interim results for the six months ended 30 June on Wednesday, reporting that "solid" commercial traction was achieved in all of its core product areas during the period.The AIM-traded firm reported revenue of £0.23m for the half-year, up from £0.05m in the same period last year.It said its sales run rate was close to £50k per month and growing.Gross profit stood at £0.14m, compared to nil in the first half of last year, and equating to a 60% gross margin.Administrative costs were reportedly reduced by 45% to £1.27m, and the company said its loss after tax fell 56% to £1.05m.The company raised £0.41m before expenses by way of a placing in June, to provide resources to launch and grow its 'Verify' product in the UK.Its board also said further cost savings had been implemented, which would be realised in the second half.Location Sciences said its cash balance as at 30 June stood at £0.72m, compared to £0.41m a year earlier."We have made excellent progress during the six months under review, during which we successfully launched our Verify product and assembled a management team with the necessary skills and experience to drive our future growth," said chief executive officer Mark Slade."We are also delighted to have met all our KPIs and revenue targets for the period."Slade said the board believed that the company's investments in educating the market regarding location data would begin to pay off in the second half of the year, when it expected to further increase its marketing efforts."In addition, we continue to invest in our products and have some significant enhancements planned over the next few months."Alongside our organic growth plan, we have also identified certain acquisition opportunities that would offer strategic benefits to the business," Slade explained."With a strong pipeline and good visibility on our forecast numbers we entered the second half of 2018 with confidence."