5th Sep 2018 11:47
LONDON (Alliance News) - Software company Location Services Group PLC on Wednesday reported a narrowed interim loss due to a large revenue increase.
In the six months ended June, the mobile phone location data company posted an pretax loss of GBP1.1 million from GBP2.2 million the year before.
Revenue increased to GBP234,307 from GBP48,952.
Location Sciences said it is "gaining traction" and adding "large and established" businesses to its clients. The company also said it is seeing a "significant" amount of repeatable business across all its products.
As a result, revenue is increasing as planned. The mobile location technology company believes the market is still too new for large recurring licence fees but the company is still seeing the growth it hoped for.
Location Sciences said its sales run rate is close to GBP50,000 per month "and growing".
Administration expenses decreased 43% to GBP1.3 million from GBP2.3 million.
Location Sciences said that after a "cautious" first month, "confidence" is returning to the market after the introduction of general data protection regulations earlier this year.
The company believes it is the "biggest event to impact the data industry since its inception" but is happy to report 90% of its data providers re-opted in to the new regulations.
Looking ahead, Location Sciences said it entered the second half with a "strong pipeline and good visibility" and the expectation its monthly revenue will keep growing.
Chief Executive Mark Slade said: "We have made excellent progress during the six months under review, during which we successfully launched our Verify product and assembled a management team with the necessary skills and experience to drive our future growth. We are also delighted to have met all our KPIs and revenue targets for the period.
"The directors believe that our investments in educating the market regarding location data will begin to pay off in the second half of this year, when we expect to further increase our marketing efforts. In addition, we continue to invest in our products and have some significant enhancements planned over the next few months. Alongside our organic growth plan, we have also identified certain acquisition opportunities that would offer strategic benefits to the business."
Shares in Location Sciences were up 1.1% Wednesday at 0.027 pence each.
Related Shares:
LSAI.L