25th Jan 2016 08:49
LONDON (Alliance News) - Ubisense Group PLC said Monday that cost-cutting actions it had taken in its second half to "right-size" its business helped to improve its result for the period, although it still expects to report a fall in revenue for 2015.
The location intelligence services company said it had managed to close many opportunities in the final few weeks of 2015, and as a result expects revenue of around GBP22 million for 2015, down from GBP35.1 million a year before.
Ubisense had issued a profit warning in November, saying that its revenue and profit were at risk of falling short of previous guidance after it was hurt by the emissions-cheating scandal at German car giant Volkswagen AG, which resulted in the delay or cancellation of orders for real-time location technology used in car manufacturing facilities.
Monday the company said that strategic restructuring of its business is now "substantially complete", and has resulted in savings that exceeded the GBP5 million it had previous indicated. As a result it saw a "substantially smaller" adjusted loss before interest, tax, depreciation and amortisation in the second half compared to the first.
Most importantly, Ubisense said,it entered 2016 with a much lower operating-cost base consistent with its current revenue levels.
"Following a challenging year, actions taken in the second half to right-size the business have delivered a significantly improved financial result for the half. The group enters 2016 with a solid order book, including a number of strategic sales awards, and supported by a more appropriately sized cost base," said Chairman Peter Haverson in a statement.
Shares in Ubisense were up 2.3% at 43.99 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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