Ubisense Limited, to be renamed Ubisense Group plc, the Cambridge headquartered real-time location solutions company, has announced its intention to float on AIM and an associated institutional fundraising which is expected to raise in the region of £6 million.
Ubisense to float on AIM
Ubisense intends to accelerate the development of its technology which enables multi-national manufacturers, energy and telecoms corporates and range of other companies to track, in real-time, the location of physical and human assets with a very high degree of accuracy. This enables Ubisense’s customers to lower their costs and drive logistical efficiencies.
Since 2008, Ubisense has delivered compound annual revenue and gross profit growth of more than 35% and 32% respectively. Results for the year to 31 December 2010 show a 18% increase in turnover to £17.7 million and gross profits up 11% to £5.9 million. The Ubisense group employs 127 staff mainly in the UK, Germany, the US, France and Canada.
The placing is being led by Canaccord Genuity, who also arranged for a number of new investors to participate alongside existing shareholders in a £5 million fund raising in November 2010.
Ubisense operates through two complementary divisions which make use of a common technology skill set. Ubisense’s Real Time Location Systems (RTLS) division uses proprietary technology to track critical assets, such as tools, people and vehicles, to within 15 cm in three dimensions in real time. It provides high levels of accuracy in factories and other indoor environments and has successfully been adopted within the automotive industry by several large scale manufacturers (including BMW and Aston Martin) and within the aerospace industry by the EADS Group (notably in its Airbus and Eurocopter divisions).
Ubisense’s Geospatial division serves the utilities, telecommunications and petrochemical industries helping these operators of complex networks with the detailed mapping of their assets and network management planning and design. The division’s clients include Deutsche Telekom and General Electric.
The proceeds of the placing will principally be used to provide working capital so that the Ubisense group can expand its RTLS offering to new customers and enter new markets whilst continuing to grow steadily its Geospatial division, both organically and potentially through acquisition.
Richard Green, Chief Executive, said: “After a number of years of strong and profitable growth, a listing on AIM is the next logical step in our development. It provides us with additional funds to support the rapid growth of our RTLS division and the opportunity to take advantage of some exciting opportunities to build on our competitive position in the Geospatial market.
“By 2018 the market for RTLS is anticipated to be worth over $2.7 billion and we are well positioned to be a significant player in that market. Our RTLS have been proven in industrial environments and shown to improve efficiency by reducing both operating costs and errors in manufacturing.
“We have a significant opportunity to leverage our existing customer relationships on a global scale. Our relationship with Atlas Copco for example has created a new generation of intelligent, location-aware tools that will help manufacturers around the world to achieve significant improvements on their production lines.
“The listing will also provide us with funds to develop our Geospatial business both organically and by acquisitions in a fragmented market. Infrastructure companies are increasingly recognising the benefits of using advanced geospatial tools to manage and optimise their networks.”
Ubisense is a world leader in precise RTLS, tracking people and assets with a very high degree of accuracy in three dimensions. The Directors believe that Ubisense’s technology has the ability to revolutionise visibility and control in industries today.
Ubisense’s system includes wireless tags that transmit their position to nearby receivers, with location tracking information analysed and visualised using Ubisense’s software. The Ubisense system provides dynamic and precise indoor tracking and ensures that its users have greater visibility of industrial processes.
Ubisense and Atlas Copco, the leading industrial tool company, have launched a new generation of intelligent, location-sensitive tools for use on production lines and other industrial environments. Branded “TLS” (Tool Location System), Atlas Copco’s power tools are equipped with Ubisense location tags that accurately transmit their position to a control centre.
By introducing location-aware tools and Ubisense’s system, customers have achieved significant efficiency gains and enjoyed reduced error rates caused by the incorrect use of tools. For example, BMW use Ubisense tags to identify each vehicle on the line, which means that power tools can then be programmed automatically to the correct parameters when a specific vehicle enters a work zone. The TLS technology is also being used by BMW to provide analytical data that helps improve the efficiency of the overall production process itself.
The rollout of RTLS across Airbus factories to track assets ranging from tools to aircraft wings and the tracking of Aston Martin cars as they pass through the off-line finishing processes are further examples of the capability of Ubisense’s technology. The technology has a wide range of applications and has also been used, for example, to track buses as they arrive at the depot, so they can be correctly scheduled for the next day; track opera singers to optimise sound balance in the O2 Arena’s production of Bizet’s Carmen; and monitor the behaviour of cows in a cow shed on a Danish dairy farm.
In its Geospatial division, Ubisense helps infrastructure companies map, plan, manage and optimise their networks across large geographic areas. The Geospatial division offers consulting, software implementation, data analysis and managed services to clients.
Ubisense was ranked as one of the UK’s fastest-growing companies in the Deloitte Fast 50 2010. Chief Executive Richard Green was honoured by Ernst & Young UK as its Science and Technology Entrepreneur of the Year for 2010.
This announcement is issued by Ubisense Limited (the “Company”) in connection with the proposed placing of ordinary shares in the capital of the Company (“Ordinary Shares”) and the proposed application for admission of the whole of the ordinary share capital of the Company, issued and to be issued, to trading on the AIM market of London Stock Exchange plc. The information in this announcement, which is for background purposes only, is preliminary in nature and is subject to change. No representation or warranty express or implied is made as to the fairness, accuracy or completeness of the information contained herein and no reliance should be placed upon it. Application for shares in the Company may be made only on the basis of the admission document relating to the Company which is expected to be published in June 2011 and the risk factors set out in that admission document. A copy of the admission document will be available on the Company's website and from the offices of Mills & Reeve LLP, 130 Fenchurch Street, London EC3M 5DJ following admission.
This announcement does not constitute an offer to sell or issue, or the solicitation of an offer to subscribe for or buy, Ordinary Shares to any person in any jurisdiction to whom it is unlawful to make such offer or solicitation. In particular, this announcement is not for distribution in or into the United States of America, Canada, Japan, the Republic of Ireland, the Republic of South Africa, Australia or New Zealand. The issue of the Ordinary Shares has not been, and will not be, registered under the applicable securities laws of the United States of America, Canada, Japan, the Republic of Ireland, the Republic of South Africa, Australia or New Zealand and the Ordinary Shares may not be offered or sold directly or indirectly within the United States of America, Canada, Japan, the Republic of Ireland, the Republic of South Africa, Australia or New Zealand or to, or for the account or benefit of, any persons within the United States of America, Canada, Japan, the Republic of Ireland, the Republic of South Africa, Australia or New Zealand.
This announcement may contain forward-looking statements. These statements relate to the Company's future prospects, developments and business strategies. Forward looking statements are identified by their use of terms and phrases such as "belief", "could", "would", "envisage", "estimate", "intend", "may", "plan", "will", "should" or the negative of those, variations or comparable expressions, including references to assumptions. Any such forward looking statements in this announcement are based on current expectations and intentions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements.
Richard Green, Chief Executive Officer
+44 (0) 1223 535170
Adrian Duffield / Jon Davies
+44 (0) 20 7457 2020
Simon Bridges/Henry Fitzgerald-O'Connor
+44 (0) 20 7050 6500
IQGeo’s end-to-end geospatial software improves productivity and collaboration across enterprise planning, design, construction, maintenance and sales processes for telecoms and utility network operators. Our mobile-first enterprise solutions create and maintain, an accurate view of complex network assets that is easily accessible by anyone, wherever and whenever needed.