Location Sciences - Trading Update
("Location Sciences" or the "Company")
Location Sciences (AIM: LSAI), the leading location data verification company, provides the following trading update for the six months to
Unaudited revenues (including X-Mode securitisation) for the six months ended
To mitigate the impact of COVID-19, the Company's directors implemented a cost reduction programme and are pleased to report this has seen cash administrative expenses being reduced to approximately
The combination of the
Impact of COVID-19
Verify revenues were adversely impacted by significantly reduced advertising spend in Q2 2020. In particular, it has been a challenging time for location-based advertising within sectors that rely on people's movement, such as retail and QSR. As these sectors come back to life, the Board expects a focus on local advertising which should be a positive driver for the Company's media verification revenues in H2 2020 and especially in Q4 when the Board expects the majority of the Company's Verify revenues to be secured. However, overall, the Board believes that advertising spend will be lower in 2020 compared to 2019.
The Company has worked hard to replace these revenues, investing significant time and energy into enlarging its data insights customer base, including making its location data available to
The cash impact of the lower Verify revenues was mitigated quickly through making operational overhead cutbacks, which included reducing the Board's and senior management's remuneration.
As announced in its COVID-19 update on
In addition, Location Sciences launched its Verify Audience product in the US. Verify Audience allows brands, agencies and suppliers to check the validity of location based derived audience segments, a review of historical movements in contrast to proximity which validates the real time locations as digital advertising campaigns are delivered. To date eight paid for tests have been undertaken with the initial feedback from agencies and suppliers being very encouraging and the Company expects to be able to announce further news in the coming months.
The Company's partnership with X-Mode is progressing well and has allowed it to expand its insights customer base and, in particular, pitch for insight deals outside the
As a consequence of its partnership with X-Mode and specifically the initial transfer of some its data contracts, the Company has been required to recognise an additional approximately
iOS 14 - Changing the Location Landscape
The upcoming changes caused by iOS 14, Apple's latest iOS update due in
The Board expects that these changes will be welcomed by consumers which will, as a result, increase the volume of location data being shared - albeit the increase in volume is likely to be driven with the sharing of approximate location (rather than not sharing at all).
In the second half of 2020, we expect advertising revenues to return, albeit perhaps not to 2019 levels, however, with a renewed focus on local marketing, something which Location Sciences is ideally positioned to benefit from. I am confident we will emerge from this global crisis as a stronger company and better able to deliver shareholder value."
A further update on trading and prospects will be provided at the time of the release of the Company's unaudited interim results due to be released in
For further information please contact:
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via Milk & Honey PR
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Shore Capital (Nominated Adviser and Broker)
Tel: +44 (0)20 7408 4090
Peterhouse Capital (Joint Broker)
Tel: +44 (0) 20 7220 9791
Milk & Honey PR
Tel: +44 (0)20 3637 7310
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Location Sciences is the pre-eminent global location verification provider to the
The digital advertising market-place remains unregulated and un-monitored, with an estimated
This information is provided by RNS, the news service of the
Quick facts: Location Sciences Group PLC
Market Cap: £2.46 m
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