Ubisense Share Discussion Threads

[aishah] 04/3/2017 20:00

#Ubisense has big plans for 2017 and we're now #hiring across the globe to help us grow. Check out our #careers page hxxps://t.co/b59JMFFQgU

[p1nkfish] 04/3/2017 19:16

15th Aug onwards is the covenant to consider.
Subsequently Director buys.

Working capital - all being equal, if ANGLEID takes off, the working capital needs could be reduced from 20% on the basis of it being user installable.

Will be interesting to see if there will be much symmetry in the chart going forward from Nov '15. Very much hope so.

[p1nkfish] 04/3/2017 19:09

Brummy, that doesn't worry me. 7th April 2016 they stated the below, none of which have been breached and 750K£ partial loan repayment before 31st Dec 2016........

"........the Group anticipates further covenant breaches in the next 12 months until the full effect of the restructuring actions taken in 2015 are delivered........"

That was the old covenant, it was replaced with the below they say they haven't breached,

"As at 30 June 2016, the Group had an £8.0 million bank loan facility agreed with HSBC Bank Plc to provide working capital........repayable in full in June 2018........ an interest charge of LIBOR + 3%.........30 June 2016, £4.0 million of the £8.0 million facility was drawn down and is subject to certain operating and net worth covenants of the business, being:

· Total senior debt (net of cash balances) not exceeding 2x Adjusted EBITDA;

· Interest charges and repayments of principal due in the next 12 months in respect of borrowings whose original stated term to maturity exceed 12 months not exceeding 3x Adjusted EBITDA; and

· Total senior debt (net of cash balances) not exceeding 2.5x the aggregate of trade debtors (net of provisions) and work-in-progress (Amounts recoverable on contracts).

15 August 2016........finalising a new repayment loan facility for £4.0 million with HSBC Bank Plc and will repay the outstanding balance on the existing £8.0 million facility. ........the new loan........interest charge of LIBOR + 3%. Repayments........ at £0.75 million per annum on 31 December. ........covenant linked to "operating cashflow" performance (profit or loss before tax adding back any non-recurring items, finance costs, foreign exchange costs, depreciation, amortization or capitalization of product development) as follows: 2016 £2.25 million negative, 2017 £nil, 2018 and beyond £1 million positive."

[brummy_git] 04/3/2017 17:38

I hope you're right p1nkfish.

Just mentioning (see below) that they are in compliance with their banking covenants on 27th Jan, suggests to me that there is not too much breathing space.... especially considering how capital intensive their working capital is (ie 20% of sales) wrt top line growth.

"The Company expects to report a net cash positive position as at 31 December 2016, which has improved in January through significant debtor collections, and is in compliance with the banking covenants on its new HSBC facility".

[p1nkfish] 04/3/2017 15:50

I doubt it.
Net cash next target.
Kestrel close to 29%.
Last update was positive.

[brummy_git] 04/3/2017 11:58

Another fund raise coming?

[p1nkfish] 04/3/2017 11:22

Results with forward look soon. Interesting to see how price responds. Livingbridge couldn't wait but Threadneedle took up some of the slack.

[p1nkfish] 07/2/2017 07:19

One concern is the lack of Asset/Geospatial news out of the UK.

Yotta have launched Alloy today, it doesn't yet look very visual but is UK and will be gaining UK exposure. Concentration on the US is understandable but there are UK needs that we don't hear Ubi addressing? This could be a weakness, not addressing Ubi's own back yard.

[aishah] 06/2/2017 13:12

#Ubisense has big plans for 2017 and we're now #hiring across the globe to help us grow. Check out our #careers page hxxps://t.co/b59JMFFQgU

[p1nkfish] 06/2/2017 08:45

This from the Guardian today. Could this offer pull-through for UBI if the increase is in markets they are suporting? Automotive, Bosch types etc.

"German factory orders, released this morning, have smashed forecasts by growing by a whopping 5.2% in December. That's the best result since July 2014, and crushing the 0.5% expected by economists."

[hastings] 31/1/2017 07:59

Received and replied

[p1nkfish] 30/1/2017 21:27

There's a message Hastings in your inbox.

[hastings] 30/1/2017 13:21

Hi p1nkfish any chance you could email me for a catch up.

[p1nkfish] 29/1/2017 01:15

Hastings, the interesting comparison might be that relative to 2013-14 & 2014.
Where does the debt level and balance sheet now sit in comparison?

I would guess they won't divulge before finals announced.

Any chance some of the previously cancelled work is on the horizon to return? I think it might have been VW that went into cancellation mode due to dieselgate and needing to conserve cash that set Ubi falling. If it comes back it would be a big fillip.

How is business now split bt geography and sector?

A diversification out of Automotive would be good.

Anything more out of Magna? Sometime ago GM was alluded to in North America if I remember correctly.

Look forward to any write-up.

[hastings] 28/1/2017 08:10

Speaking with the company early next week and should hopefully pen an article on the back of that. It's the first time they've been open to engaging in close to a year, so it will be interesting to hear what they have to say.

[p1nkfish] 28/1/2017 02:24

At least another 750K debt reduction too in H2 to meet covenant requirements so should be at least £2.5M bank loan reductions including the H1 of £1.8M.

Find out soon enough but turn around appears set on course and valuation will respond in time.

[p1nkfish] 28/1/2017 02:12

They gave as much colour in the trading update as could be expected.

We know........
Proceeds from issue of share capital was 4.517M net after costs of the raise.

There was at least net repayment of bank loans of £1.8 million, loans accrued prior. Might be more by year end.

Outflows at end of H1 of £0.9 million for capital investment in product development and plant and equipment.

Operating cash outflow of £2.6 million at end H1 of which £1.9 million outflow was working capital related (£0.8 million related to non-recurring costs accrued in 2015).

H1 operating loss was £0.8 million that included amortisation and depreciation charges of £1.6 million.

Expect H2 to be much better overall and with debtor payments Jan 2017 net cash should be much higher than the end of H1 that was £1M.

[wjccghcc] 27/1/2017 21:39

Net cash is only achieved after raising £4.8mm this year. So effectively burnt through nearly 5mm of cash.

Statement was a bit wishywashy - it would have been more useful to see some figures.

[p1nkfish] 27/1/2017 19:10

2016 gross margin SIGNIFICANTLY higher than 35.0% (2015)
2016 order book is SIGNIFICANTLY better than £9.6 million (2015, 31st Dec).
2016 net cash vs net debt of £0.2m (2015), improved further January 2017.
2016 revenue will be > £22.0m (2015)

Valuation has further to rise when you also you take account of the market segment they operate in and the dynamics behind that market going forward. RTLS and Geospatial are due to grow convincingly over the next 3-5 years.

[aishah] 27/1/2017 11:59

The asset management system market is expected to reach USD 25.55 billion by 2022, growing at a CAGR of 15.17% between 2016 and 2022. Asset management systems enable an organization to track and monitor its physical and human assets, along with their associated performance, thus resulting in the efficient utilization of its assets. These key factors are driving the growth of the asset management system market. However, high initial installation cost and significant maintenance cost linked with deployment of asset management system solutions are some of the key factors restraining the growth of the asset management system market.
...
The key players in the asset management system market are Datalogic S.p.A (Italy), Honeywell International Inc. (U.S.), Impinj, Inc. (U.S.), Mojix, Inc. (U.S.), Sato Holdings Corporation (Japan), Stanley Black and Decker, Inc. (U.S.), TomTom International BV (Netherlands), Topcon Corporation (Japan), Trimble Inc. (U.S.), Ubisense Group Plc. (U.K.), and Zebra Technologies Corporation (U.S.) among others.

[p1nkfish] 27/1/2017 11:55

englishlongbow - I don't think there are vast number of speculators here. Some no doubt but having watched the wash out I think there is a high % wanting to see full value unfold over a period of time.

I can see this at £75M market cap, first stop £50M.

The product looks excellent, end customers are global and don't work with noddy outfits. It looks like they tried to run before they could walk but have learnt a lesson or two now and the ship has been righted.

[p1nkfish] 27/1/2017 11:52

Break 50 upwards and off to the races.

May take a few attempts but transactions happening just below so someone willing to pay high 40's.

Give it a bit of time.

More colour on the update in the final results will probably do it along with the forward look.

Been a while since new customer news so there's always some of that to come along too.

[englishlongbow] 27/1/2017 11:17

Sold some UBI and bought BOOM for better value and revenues growth.

[aishah] 27/1/2017 09:29

Nice update. Turnaround under way. It's a huge opportunity:

Research and Markets - Global RTLS Market in the Transportation and Logistics Sector to Grow 49.23%, 2016-2020 with AiRISTA, CSR Group, Samsung, Ubisense & Zebra Technologies Dominating

Research and Markets has announced the addition of the "Global RTLS Market in the Transportation and Logistics Sector 2016-2020" report to their offering.

The global RTLS market in transportation and logistics sector to grow at a CAGR of 49.23% during the period 2016-2020.

Global RTLS Market in Transportation and Logistics Sector 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

The advent of new cost-effective technologies such as UWB and ZigBee are a major contributor to the growth of the global RTLS market for transportation and logistics. These technologies will have a significant influence on the transportation and logistics sector. Apart from being effective in helping to improve day-to-day operations, functions, and efficiency of staff, these technologies help to reduce the operational cost to a great extent.

According to the report, augmented reality technology uses geographic information system (GIS) and 3D platforms to provide virtual information about users and their surroundings. This information helps the firms to understand the needs of users and send targeted announcements to them.

Further, the report states that safety and security is one of the major concerns among enterprises. The RFID tags used in RTLS solutions are creating several security and privacy concerns for SMEs because RFID systems work on Wi-Fi and cellular networks that get very easily congested. This has devastating results in transportation and logistics because if the signal is jammed by unwanted tracking of people, then the lives of employees (driver and co-workers) can be at risk in case of emergencies.

Key vendors

AiRISTA
CSR Group
Samsung
Ubisense
Zebra Technologies

[hew] 27/1/2017 09:16

Been keeping an eye on. Today's news has got me over the line for a few.