Location Sciences: Reassuring trading update

Location Sciences (LON:LSAI), the world leader in location verification for mobile advertising, recently released a trading update for the six months to 30 June. The company ended the period with cash reserves of £1.7mln, which the company believes provides sufficient funding through to Q2 2021. The loss at the EBITDA level reduced to £0.7mln reflecting cost-cutting measures.

Location Sciences reports that H1 revenues were approximately £0.65mln, a 43% increase year-on-year (yoy). This includes some £0.19mln of securitisation of revenues relating to the partnership with X-Mode that was announced in January. The company prefers to focus on the “core” revenue (wholly managed business), which came in at £0.46mln, up slightly yoy. We regard this as a good outcome against a very challenging mobile advertising market backdrop.