TIDMLSAI
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 GBP1.2 million, up 60 per cent. (2018: GBP0.751 million)
-- Revenues for Verify - Location Sciences' proprietary platform
- up more than 9 times compared to 2018 (2018: GBP53,922)
-- 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. GBP1.3 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 Tel: +44 (0)20 7408 4090
and Broker)
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 rns@lseg.com or visit www.rns.com.
END
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