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Location Sciences - Trading Update and Partnership with X-Mode

RNS Number : 9231Z
Location Sciences Group PLC
15 January 2020
 

15 January 2020

 

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

 

Trading Update

and

Global Data Partnership with X-Mode Social, Inc. ("X-Mode")

 

 

Location Sciences (AIM: LSAI), the leading location data verification company, is pleased to announce strong progress in Q4 2019 and that it expects to report results for the year ended 31 December 2019 in line with market expectations. All figures in this trading update remain subject to audit.

 

Trading highlights:

 

·    Revenues of approximately £1.2 million, up 60 per cent. (2018: £0.751 million)

·   Revenues for Verify - Location Sciences' proprietary platform - up more than 9 times compared to 2018 (2018: £53,922)

·    More than 100 brands are now using Verify

·    Verify has been adopted globally by more 20 media agencies and suppliers

·    More than one billion impressions verified to date

·    Verify's Media Rating Council ("MRC") accreditation process underway

·    Year-end cash reserves c. £1.3 million

 

In line with the refined strategy implemented by the Directors in the second half of 2019, measures were taken to reduce the overheads of the business and, consequently, EBITDA is expected to be significantly ahead of market expectations, which is reflected in the enhanced cash reserves at year end.

Commenting on the Company's trading performance, Mark Slade, Chief Executive Officer of Location Sciences, said: "We are pleased with the strong revenue growth driven by Verify and its increasing adoption globally by media agencies and suppliers. However, there is still some way to go. We will be continuing our efforts to overcome market inertia, with brands only just beginning to understand the value of transparency to their location campaigns. With the talented team we have put together, I am confident of delivering further growth in 2020 and building long-term shareholder value."

 

Global Data Partnership with X-Mode

 

Location Sciences is also pleased to announce that it has agreed to a global data partnership with X-Mode, the foremost location data provider globally. This follows the decision by the Board to focus the Company and its resources on Verify, thereby maximising the Company's growth potential in the next few years. The partnership also gives Location Sciences the opportunity to extend its insights product reach internationally, which gives a further opportunity for growth in the foreseeable future.

 

X-Mode is acquiring Location Sciences' location data collection assets for a consideration of up to US$640,000 to be satisfied in cash. The consideration comprises an initial payment of up to US$180,000 with the balance to be paid monthly until December 2021. The total amount of the consideration payable is subject to the timing of the transfer of the data collection assets and certain performance criteria.

 

X-Mode is a leading global provider of location data and following the partnership with Location Sciences becomes the largest provider of GDPR compliant location data in the UK and a leading provider in the European Union (EU). The partnership gives Location Sciences access to the largest pool of quality location data globally, which will help the Company broaden its insights customer base, while securing its status as the premier location insights company in the UK.

 

The deal allows Location Sciences to focus on Verify as its sole business going forward, positioning itself as a pure play location verification and insights company, while ensuring access to the largest pool of quality location data globally, giving the Company a distinct competitive advantage in the market place.

 

Joshua Anton, Founder and Chief Executive Officer of X-Mode, comments: "This is a very strategic and timely deal for X-Mode as, in the future, as a result of recent regulation in the US and the UK, the volume of quality location data is shrinking due to the inability to obtain consent at scale from traditional location data sources, such as bidstream data and ad-based SDK data. We are very eager to serve the UK and the greater European Union as the leader in the space with the highest quality data available."

 

David Rae, Chief Financial Officer and Commercial Director of Location Sciences, commented: "We are delighted to enter into this global data partnership with the pre-eminent location data provider, X-Mode.  The combination of their unrivalled quality location data and our powerful data science team and products will serve as a great marriage between us. This is the start of a new journey for both of us. As we leverage the strengths and leadership of both companies, we will be able to expand our customer base both in the UK and globally."

 

Mark Slade, Chief Executive Officer of Location Sciences, commented: "Strategically, this deal fulfils the Board's decision to focus the team and our resources on the scalable business model - verification and measurement insights. Significantly, X-Mode's international data allows us to offer greater location insights products to our US Verify customers. We received a few offers for the Company's location data collection assets, but X-Mode stood out due to its international scale and ambitious plans to grow its business and reach globally. We look forward to working closely with Josh and his team."

 

For further information please contact:

 

Location Sciences Group PLC

via Milk & Honey PR

Mark Slade, Chief Executive Officer

 

David Rae, CFO and Commercial Director

 

 

 

Shore Capital (Nominated Adviser and Broker)

Tel: +44 (0)20 7408 4090

 

Tom Griffiths/David Coaten

 

 

Milk & Honey PR

Tel: +44 (0)20 3637 7310

Kirsty Leighton

 

Jessica Ballinger

 

 

About Location Sciences Group PLC:

Location Sciences is the pre-eminent global location verification provider to the $160 billion digital advertising industry. Working in partnership with brands, media agencies and suppliers to reduce ad-wastage and improve the effectiveness of location-based advertising campaigns. 

The digital advertising market place remains unregulated and un-monitored, with an estimated $19 billion wasted on ad-fraud in 2018. Location Sciences has developed Verify, the world's first independent location verification product. Utilising sophisticated machine learning and pattern recognition technologies, Verify detects location ad-fraud and shines a light on location data inaccuracy with the aim of bringing back integrity, transparency and trust to the market place.

About X-Mode Social, Inc:

X-Mode is creating the new standard for accuracy and transparency in location data, bridging gaps in the industry by building the world's largest, most accurate, first-party privacy-conscious location data panel at scale. Powered by the XDK -- X-Mode's industry-leading location data SDK -- this new standard will improve the entire location data ecosystem, and allow companies to develop disruptive tools built on a foundation of quality data. Whether it is through their suite of popular safety apps, the solutions they offer to data sellers and licensors, or their newly-launched social impact initiative Picket, the company is dedicated to creating a more efficient, just, and sustainable world, and constantly aims to power innovation with quality location.

About MRC:

MRC, a US-based non-profit organisation that manages accreditation for media research and rating purposes, works to ensure that measurement services are valid, reliable, and effective, and that MRC-accredited measurement services meet rigorous standards for quality and accuracy. Gaining MRC's assurance of measurement quality will give Verify users further confident in the product and allow the Company to effectively market the product in the US, where MRC accreditation is required.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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