viewLocation Sciences Group PLC

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.


The core business - Verify

The main focus for Location Sciences is its Verify product for enabling accurate geographic targeting of advertising campaigns to mobile phones and devices. Companies often pay for ad campaigns based on how many views their ad receives around a tightly specified physical location. Without Verify they risk paying for inaccurate targeting.

Among the end user base for the Verify product are restaurants and retailers, with a portion of Verify revenues linked directly to their advertising volume. This has been severely impacted by COVID-19. Nonetheless, the company is now reporting that it expects some recovery in advertising revenues in H2.

Furthermore, there is evidence that the advertising industry is becoming more conscious of location data accuracy as a driver – the trading update highlights recent comments from Group M (the world’s leading advertising agency). We believe that the macro trend continues to move in favour of Location Sciences and the Verify product.

In addition, Location Sciences launched a new product during H1 called Verify Audience, which addresses the market for location-based audience segments. This targets consumers based on their previous visiting of a particular physical location, as opposed to proximity marketing (the first application of Verify), which depends on their location at the exact time the ad is viewed. We estimate that location-based audience segments represents a market about four times larger than proximity (which will continue to be important for Location Sciences).

Quick facts: Location Sciences Group PLC

Price: 0.435 GBX

Market: LSE
Market Cap: £2.48 m

What's in the report?

Financial results and forecasts
Growth drivers
Market conditions
Milestones & inflection points


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Location Sciences Group PLC named herein, including the promotion by the Company of Location Sciences Group PLC in any Content on the Site, the...



Proactive Research is a trading name of Proactive Investors Limited which is regulated and authorised by the Financial Conduct Authority (FCA) under firm registration...


Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


Proactive Analyst Ed Stacey's take on Location Sciences

Location Sciences (LON:LSAI) has a trading update out so Ed Stacey's been looking at the highlights as well as delving into the financials. The world leader in location verification for mobile advertising, the company remains focussed on its Verify product which verifies location data for...

on 20/1/20

3 min read