Ubisense Group PLC Ubisense Group plc Annual Report 2017 (7707H)

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Ubisense	LSE:UBI	London	Ordinary Share	GB00B3NCXX73	ORD 2P

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.00	0.00%	67.50	65.00	70.00				0.00	01:00:00

Industry Sector	Turnover	Profit	EPS - Basic	PE Ratio	Market Cap
	0	0		N/A	0

Ubisense (LSE:UBI)
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TIDMUBI

RNS Number : 7707H

Ubisense Group PLC

15 March 2018

Ubisense Group plc

("Ubisense" or the "Company" or the "Group")

Final results for the year ended 31 December 2017

Ubisense Group Plc (AIM: UBI) a market leader in high performance Enterprise Location Intelligence Solutions, announces its final results for the year ended 31 December 2017.

Strategic highlights

-- 2017: Strong progress was demonstrated in terms of revenue growth of our own products, cost management and order book

-- Software focus: New strategy is delivering significant wins across both sides of the business, with a 21% increase in software sales

-- Global growth: Demand for Ubisense solutions has increased across new centres of manufacturing such as Turkey and Thailand

-- RTLS SmartSpace product development: Modularised the enterprise software platform to address Industry 4.0 and emerging opportunities for Industrial Internet of Things ("IIoT") applications

-- Geospatial myWorld product development: Extended the product portfolio to include an analytics suite that significantly reduces time to market for cable and telecoms network builds and upgrades

Financial highlights

-- Revenue generated from Ubisense's own products increased by 28% and now represents over 60% of revenue (2016: 49%)

-- Total revenue increased to GBP27.3 million (2016: GBP26.5 million) while managing a 22% planned decline in services associated with third party products

-- Operating loss reduced to GBP3.1 million (2016: GBP6.2 million) and adjusted EBITDA* profits of GBP0.4 million (2016: GBP0.3 million)

-- GBP5.5 million (gross) raised from shareholders in November 2017 to accelerate go-to-market and development activity

-- Cash balance of GBP9.1 million (2016: GBP3.5 million) and net cash of GBP6.6 million (2016: 0.2 million)

Richard Petti, Chief Executive Officer, commented,

"I am pleased to report on Ubisense's first full year of results since becoming CEO. The Company made strong progress in 2017 and we sold more of our own products to more customers than ever before, resulting in a 28% increase in Ubisense' own product sales. Our solutions are chosen because they combine industry-leading technology that includes: indoor and outdoor geolocation, wirelessly enabled machine-to-machine and machine-to-device communication, advanced analytics and big data middleware. By accelerating the sales of our own products, we plan to drive improved gross margins and profitability. We have an exciting pipeline of opportunities in both divisions and look forward to delivering for our customers in 2018."

* Measured as operating loss excluding depreciation, amortisation, unrealised intercompany foreign exchange, share based payments and non-recurring costs.

 
 
 Contact 
 Ubisense Group plc              Tel: + 44 (0) 1223 535170 
 Richard Petti, Tim Gingell 
 
   Numis Securities Limited        Tel: + 44 (0) 20 7260 
   Jamie Lillywhite, Toby          1000 
   Adcock 
 Tulcan Communications           Tel: +44 (0) 20 7353 
  LLP                             4200 
  James Macey White, Matt 
  Low, Deborah Roney 
==============================  ============================

About Ubisense

Ubisense (AIM: UBI), a global leader in enterprise location intelligence solutions, helps businesses in sectors including manufacturing, communications and utilities to improve operational efficiency, data quality and boost profitability. Ubisense location intelligence systems bring clarity to complexity, enabling customers to revolutionise their operational effectiveness in a measurable way. Founded in 2002, Ubisense is headquartered in Cambridge, England, with offices in North America, France, Germany and Japan. For more information visit: www.ubisense.net.

Chairman's statement

Results overview

2017 results continued to demonstrate that Ubisense has excellent products which deliver measurable benefits for customers as they strive for productivity improvements. In total, Ubisense has delivered 28% revenue growth for the company's own products, RTLS SmartSpace and Geospatial myWorld, offsetting the planned decline in Geospatial revenues associated with third party products. We have continued to see growth in our own software revenues, which remains of key importance to us as we drive growth in new and recurring revenues.

The RTLS SmartSpace agreement with Lockheed Martin for the F35 program highlighted the productivity gains that industrial customers need to make, with integration of location information a key success-enabling factor. The strength of our technology alongside a flexible, highly scalable software platform that can integrate multiple location technologies were key factors in this aerospace win. A win in the satellite and space sector highlights the further opportunities that exist in high-tech manufacturing.

Our Geospatial myWorld customers are now exploiting the flexibility of the platform to create new use cases liberating geospatial information across their organisation, integrating with other platforms and driving productivity improvements. For Ubisense, this drives sales of additional licences, further services engagements and involvement in customers' longer term IT strategy.

Board of directors and Governance

At the end of 2016, we welcomed Richard Petti to the Board as the new Chief Executive Officer. I'm delighted that he has stepped into the role successfully, enabling me to resume my non-Executive Chairman role in August 2017. Richard has led the business, clarifying the positioning and strategy of the company's two product portfolios, focusing and training the sales force whilst we continue to build the sales capacity.

The structure of the Board and individual responsibilities remain unchanged from last year. We ensure that the Company adopts proper standards of corporate governance and that the principles of best practice as set out in the UK Corporate Governance Code are followed where reasonably practicable. The Board continually reviews its composition and that of its committees and feels that, at this stage of the Group's development, the skills and mix of its members best serves our current needs.

Group strategy

In October 2017 we led a successful GBP5.5 million fundraise with new and existing shareholders, to allow us to capitalise on our strategy and accelerate our go-to-market and development activity.

Some of the customer productivity improvement opportunities based on Ubisense software platforms include:

RTLS SmartSpace: substantial investment in Industry 4.0 / Smart Factory / Industrial Internet of Things (IIoT) in industry with automation of non-linear processes using location information.

Geospatial myWorld: communications and utility operators spending billions of dollars upgrading their networks, needing to optimise the workflow across their organisation with accurate real-time geographically-based information.

For the Geospatial business, we will continue to leverage the highly specialist skills that we have in the team, focusing on increasing the volume of myWorld activity. In line with our strategy to reduce third party Geospatial consulting services, agreement was reached in March 2018 to dispose of that part of the Japanese business effective 30 March 2018.

To strengthen sales of our own products we have recruited strong new sales leadership in Japan and are making good progress on sales of myWorld and SmartSpace with our Japanese and Thai partners.

Corporate social responsibility

We are committed to corporate social responsibility that is tangible, practical and fits with the ethos of the business; this ensures that it is supported globally. During 2017 we continued our charity day program, allowing employees to take time off to support their charity of choice as well as organising local fundraising events. We continue to collaborate with local and national organisations to engage interns, industrial placements, apprenticeships and mentoring schemes, as well as being active members of local networks and clubs.

Current trading and outlook

The market opportunity for the Group is excellent for both divisions, with software-led strategies targeting productivity-enhancing opportunities in industry sectors that are growing and investing heavily in digitisation. By enabling our customers to create digital twins of their physical environments, we are helping companies worldwide to improve their profitability and meet the most stringent quality control requirements.

Trading in the first two months of 2018 has been in line with our expectations and we intend to build on our strengths through continued focus on developing and commercialising our software portfolio. We have improved the sales and go-to-market skills of the organisation and intend to further accelerate the momentum of sales of our own products through both divisions, which will ultimately drive improved gross margin and profitability.

We expect that the run-off of legacy third party services revenues will largely complete over the course of 2018, following which our results should better reflect the growth we are targeting in our own products, and as the proportion of third party services revenue in our mix declines, our gross margin will also naturally increase.

The growing success of our products, our stronger pipeline and discussions with customers lead us to be very excited about the prospects for our myWorld and RTLS SmartSpace products.

Our success is thanks to our people; we have a great team who have not only made this growth possible but are well positioned to take the business forwards.

I would like to thank our shareholders - old and new - for their continued support and our employees for their commitment in delivering success across both divisions.

Peter Harverson

Chairman

14 March 2018

Chief Executive's statement

Market opportunity

Ubisense excels at helping customers to convert their physical worlds into a living, breathing digital twin of their core operational assets, products and processes. In fact, Lockheed Martin, a giant in the aerospace industry, recently listed digital twins as the number one technology trend of 2018. This is why in 2017 we have sold more of our own products to more customers.

Looking at the trends in our main markets of automotive, aerospace, telecoms and utilities we see some common challenges such as increased competition from globalisation, more demanding technical savvy customers and ageing workforces with skill gaps.

However, as we look more closely within our target segments we also see some very positive indicators including automotive manufacturing output at an all-time high of 93.5m units, aircraft order backlogs at an all-time high of 8-10 years and global rollout plans for millions of homes worldwide to be connected to fibre broadband services in the next few years.

These long term trends are creating tremendous opportunities for us. This is why Lockheed Martin has trusted Ubisense with its mission critical function of controlling all shop floor tool operations for its high profile F-35 fighter program. This is also why Daimler has standardised every plant worldwide to work with our SmartSpace software to deliver their global vision of a "paperless factory". And this is why one of the largest North American utilities business has employees using our myWorld solution every day.

Our solutions are chosen because they combine industry-leading technology that includes: indoor and outdoor geolocation, wirelessly enabled machine-to-machine and machine-to-device communication, advanced analytics and big data middleware.

Underlying strategic focus

Our progress in 2017 can most easily be measured by observing the percentage of revenue our own products generate. For 2017 I am proud to report that not only did we break the 50% barrier but that we exceeded 60%. This important shift in our revenue mix has been achieved by focusing on a three-point strategy:

1. Refocusing the business:

Since 2016 we have been growing our focus on own-product sales into four main verticals: automotive, aerospace, telecoms and utilities. In doing so we are actively managing out our legacy third-party Geospatial service business which has now been reduced by 22% year on year. This has allowed greater management focus on building a stronger business that is based on our own products. Our goal is to become a market standard in each of our chosen verticals, we are focusing on the top global quartile of our selected market, which means concentrating our efforts on a group of approximately 200 global companies worldwide.

Focusing ensures that we develop a deeper understanding of our chosen markets. In 2017 we seeded our product roadmaps with extensive customer research which has helped us understand new areas where existing and prospective customers are facing specific problems. This market research has led to the launch of important new products in both product lines and increased pipeline generation. By increasing our focus on specific verticals we have been able to offer existing customers new product roadmaps that align with their challenges, and give new customers reasons to adopt Ubisense technology.

2. Improved sales execution:

Within our own organisation we have strengthened our go-to-market capabilities by recruiting market leading sales, pre-sales and marketing talent over 2017 and we have invested in training to help our organisation successfully complete complex multi-stakeholder buying processes.

As a result of this we have seen a significant shift in the shape of our pipeline, and across both business lines we have seen increases in the number of opportunities in the GBP250K-GBP1m band by an average of 115% and the GBP1M+ band by 25%. We have also increased our presence in new markets such as Thailand and Turkey by signing new distribution agreements with carefully selected partners that have both sales and delivery capabilities into our strategic markets of automotive, aerospace, telecoms and utilities.

3. Repositioning the product portfolio:

Thanks to our renewed engagement with our chosen markets we have invested in the development of our two enterprise class software solutions: SmartSpace and myWorld. Both product sets have been elevated from a positioning perspective so that our ability to solve enterprise level problems are more clearly communicated to our target markets. This elevation takes the form of positioning our products in the context of enterprise systems already in place (in manufacturing, for example, this is referred to as the 'manufacturing enterprise systems stack') and targeting our messaging directly at specific job roles.

In addition to elevating the two products, we have invested in modularising them, separating functionality into applications which can be packaged to address customer specific needs. This approach allows us to position both products along the value chains of our target market and illustrates how our products can improve core operations at each node in the value chain of their added-value operations. By positioning our product along the value chain we have been able to offer specific solutions to the challenges in particular areas, thereby eliminating the need to purchase enterprise licenses to solve discrete problems and preserving more value for future sales.

Financial results

The repositioning work has allowed us to increase the percentage of software across the board and in a typical transaction software will be the dominant source of revenue and margin. This ability to drive software sales underpins our goal of increasing margin and recurring revenue by way of maintenance and support services.

With respect to financial performance, we were able to grow our top line to GBP27.3 million, more than overcoming the decline in our legacy third party service revenues. This top line growth is thanks to the increased sales of our own products, which grew at an impressive rate of 28%. Our margins made some positive progress which will improve further as the momentum builds from the sales of our own products.

Above all, the Ubisense team continues to work hard to deliver improved returns for your investment.

Richard Petti

Chief Executive Officer

14 March 2018

Chief Financial Officer's statement

I'm pleased to present the 2017 results which reflect the continued progress that we've made in redefining our software-led strategy and building our go-to-market activity. Our strategy to enable digital twins for both divisions is aligned to our customers' desire to drive productivity and operational performance improvements in line with the digitisation and Industry 4.0 themes which are attracting significant investment spend. With our new modularised software offerings aiding the Return on Investment proposition to our target customers, we have developed a stronger pipeline of better qualified opportunities including increased software values, which will lead to further growth in orders, revenues and margins delivering profitability.

A 28% increase in revenues of Ubisense products has exceeded the decline in services associated with third-party and non-core products within the Geospatial division. The successful placing in November 2017 supports the future growth plans of the Group through investment in go-to-market and product development capacity.

Revenue

The Group is organised into two divisions, RTLS SmartSpace and Geospatial myWorld. Both divisions provide software solutions and services to enterprise customers, with RTLS SmartSpace additionally providing hardware solutions. The revenue composition by division is summarised in the table below:

 
 Revenue by division       2017     % of     2016     % of       Year 
                            GBP     total     GBP     total     on year 
                             m     revenue     m     revenue    growth 
------------------------  -----  ---------  -----  ---------  --------- 
 RTLS SmartSpace 
  revenue                  10.8     40%      9.1      34%        18% 
------------------------  -----  ---------  -----  ---------  --------- 
  - Geospatial myWorld     5.8      21%      3.8      15%        52% 
  - Geospatial services 
   from third party 
   products                10.7     39%      13.6     51%        -22% 
------------------------  -----  ---------  -----  ---------  --------- 
 Total Geospatial 
  revenue                  16.5     60%      17.4     66%        (5%) 
------------------------  -----  ---------  -----  ---------  --------- 
 Total revenue             27.3     100%     26.5     100%        3% 
------------------------  -----  ---------  -----  ---------  ---------

Further revenue composition detail is summarised in the table below:

 
 Revenue detail             2017     % of     2016     % of       Year 
                             GBP     total     GBP     total     on year 
                              m     revenue     m     revenue    growth 
-------------------------  -----  ---------  -----  ---------  --------- 
 Software                   3.9      14%      3.2      12%        21% 
 Maintenance and 
  support                   1.8       7%      1.4       5%        34% 
 Hardware                   4.8      18%      3.8      14%        30% 
 Services                   6.1      22%      4.5      18%        31% 
-------------------------  -----  ---------  -----  ---------  --------- 
 Total revenue generated 
  from own products         16.6     61%      12.9     49%        28% 
-------------------------  -----  ---------  -----  ---------  --------- 
 Geospatial services 
  from third party 
  products                  10.7     39%      13.6     51%        -22% 
-------------------------  -----  ---------  -----  ---------  --------- 
 Total revenue              27.3     100%     26.5     100%        3% 
-------------------------  -----  ---------  -----  ---------  ---------

The software focus in both divisions delivered good progress in 2017 with sales into new sectors as well as expanding deployments with existing customers. Modularisation of our software platform offerings together with sales of the new myWorld Fiber Planning product have been key factors in supporting 2017 growth and provide a foundation for growth in future years. The increase in software revenue leads directly to increasing maintenance and support revenues with a 34% increase shown in 2017 over 2016. These maintenance and support revenues are recurring contracts, which are expected to be renewed by customers annually.

Orders

Bookings for own products in 2017 were GBP17.5 million (2016: GBP15.5 million). The increase was in line with the strategy to focus on our own products. GBP10.7 million of new orders related to RTLS SmartSpace (2016: GBP10.9 million), GBP6.8 million related to Geospatial myWorld (2016: GBP4.6 million). Total bookings of new customer orders in 2017 were GBP22.7 million (2016: GBP29.3 million).

The order book backlog as at 31 December 2017 was GBP8.7 million (2016: GBP12.6 million), most of which will be recognised during 2018. GBP3.6 million of this related to RTLS SmartSpace (2016: GBP3.7 million), GBP2.9 million related to Geospatial myWorld (2016: GBP1.8 million) and GBP2.2 million to Geospatial third party Services (2016: GBP7.1 million).

Gross margin

The Group gross margin increased to 40% in 2017 from 39% in 2016.

Gross margin by division is summarised as follows;

 
 Gross margin by       2017    Gross    2016    Gross      Gross 
  division              GBP    margin    GBP    margin     margin 
                         m       %        m       %       movement 
--------------------  -----  --------  -----  --------  ---------- 
 RTLS SmartSpace       4.5      42%     4.0      44%       (2%) 
 Geospatial            6.4      39%     6.2      36%        3% 
--------------------  -----  --------  -----  --------  ---------- 
 Total gross margin    10.9     40%     10.2     39%        1% 
--------------------  -----  --------  -----  --------  ----------

The gross margin of the RTLS SmartSpace division has reduced compared to 2016 due to a revenue mix with a higher proportion of lower margin hardware and services revenues. The Geospatial division's gross margin increased due to growth in myWorld software revenues partially offset by the 3rd party costs of the mathematical model embedded in the myWorld Fiber Planning product.

Operating expense and adjusted EBITDA

Operating expenses were GBP13.9 million (2016: GBP16.4 million) and are summarised as follows:

 
                                2017    2016 
                                GBP m   GBP m 
-----------------------------  ------  ------ 
 Other operating expense        10.5     9.9 
 Depreciation                    0.4     0.3 
 Amortisation and impairment     2.4     8.4 
 Share based payments            0.3      - 
  expense 
 Unrealised forex on 
  intercompany trading 
  balances                       0.3    (1.9) 
 Non-recurring items              -     (0.3) 
-----------------------------  ------  ------ 
 Total operating expense        13.9    16.4 
-----------------------------  ------  ------

Other operating expenses include sales, marketing, product development, administration. Operating loss reduced to GBP3.1 million (2016: GBP6.2 million) due to impairments recognised in 2016. Share based payments expense of GBP0.3 million (2016: GBPnil) relates to shares options granted in December 2016.

Adjusted EBITDA excludes amortisation and impairment, depreciation, share based payments, unrealised foreign exchange gains on intercompany trading balances and non-recurring items and is reported as it reflects the performance of the Group. Adjusted EBITDA was GBP0.4 million (2016: GBP0.3 million) with the improvement driven by higher revenues at an increased gross margin.

Finance costs

Net interest payable for the period was GBP0.1 million (2016: GBP0.3 million) with reduced costs in 2017 following the restructuring of the HSBC debt in 2016.

Income tax

The Group has a net tax credit of GBP0.1 million (2016: GBP1.1 million) as a result of non-cash deferred tax movements. The Group does have substantial tax losses carried forward but does not currently recognise a deferred tax asset in respect of these losses.

Earnings and dividend

Loss before tax reduced to GBP3.1 million (2016:GBP6.4 million) and loss after tax was GBP3.1 million (2016: GBP5.3 million).

The adjusted diluted loss per share was 4.3 pence (2016: 3.9 pence loss per share). Reported basic and diluted loss per share was 5.2 pence (2016: 10.4 pence).

The Board does not propose a dividend for the year.

Impact of IFRS 15

IFRS 15 Revenue from Contracts with Customers will replace IAS 18 Revenue. The new standard is applicable from 1 January 2018, however 2017 comparatives will be restated under IFRS 15. IFRS 15 introduces a number of new concepts and requirements relating to revenue recognition, and also provides guidance and clarification on existing practice.

The Group has assessed the impact of IFRS 15 and the results of the assessment are stated in note 2 to the financial statements. The majority of Ubisense's sales are for products sold on a standalone basis and it is expected that the revenue recognition policy applied to these sales will be unaffected by the application of IFRS 15. Larger, more complex contracts, which involve multiple performance obligations, that include a combination of products and services, are affected by the application of IFRS 15. IFRS 15 requires the Group to evaluate the performance obligations for the contracted products and services to identify to whether these components are distinct. Accordingly, the significance of the impact of IFRS 15 is dependent upon the details of those complex contracts particularly those with delivery close to a financial reporting period end.

The financial impact of the adoption of IFRS 15 will be disclosed within the interim results to 30 June 2018.

Impact of IFRS 16

IFRS 16 Leases will replace IAS 17 and three related interpretations. Leases will be recorded on the statement of financial position in the form of a right-of-use asset and a lease liability. The consolidated income statement will be impacted through reduced operating expenses, and higher depreciation and finance costs. The new standard is applicable from 1 January 2019 with an option to adopt it early. The Group intend to early adopt IFRS 16 from 1 January 2018 alongside IFRS 15 Revenue.

The Group leases all of the premises from which it conducts business with annual commitments under operating leases totalling GBP0.7 million and therefore the impact of IFRS 16 will be material to the financial statements. The Group has assessed the impact of IFRS 16 and the results of the assessment are stated in note 2 to the financial statements.

Consolidated statement of financial position

In November 2017, the Group completed a share placing raising gross proceeds of GBP5.5 million with the placement of 17,187,500 new ordinary shares at a price of GBP0.32 per share with new and existing shareholders. The net proceeds of GBP5.2 million from the placing will be used to grow the business, investing in go-to-market capacity and product development.

Alongside the fundraise, the terms of the HSBC loan were renegotiated and this is discussed further in note 17 to the consolidated financial statements.

As at 31 December 2017, the Group had a positive net cash position of GBP6.6 million (2016: GBP0.2 million) being GBP9.1 million of cash and GBP2.5 million of debt. In January 2018 a further repayment of GBP0.8 million was made.

Non-current assets

Total non-current assets were GBP3.5 million (2016: GBP4.4 million).

Capitalised development costs represent the key intangible assets of the Group whereby this investment in Ubisense's own products will deliver the future growth of the business. Capitalised development costs of GBP1.6 million (2016: GBP1.9 million) were recognised in 2017 offset by amortisation of GBP2.2 million (2016: GBP2.6 million). The appropriateness of the assessment of the useful life of current development projects was reviewed, but no change has been made to the current three year amortisation period, due to the fast moving nature of the technology. The recoverable amount of the capitalised development costs is supported through the growth in revenues of Ubisense's own RTLS SmartSpace and myWorld products achieved in 2017 and anticipated in future periods.

Current assets

Total current assets increased to GBP21.1 million (2016: GBP17.8 million).

Cash increased to GBP9.1 million (2016: 3.5 million).

Trade receivables net of provisions decreased to GBP6.2 million (2016: GBP9.2 million) due to the timing of deals during the year.

Amounts recoverable on contracts totaled GBP2.7 million (2016: GBP2.9 million) which are generated from services contracts or end of period deliveries, and are then invoiced in the following month or as the relevant milestone is reached.

Hardware inventories increased to GBP1.5 million (2016: GBP1.1 million) due to the completion of a RTLS SmartSpace sensor build program prior to the year end. The Group continues to manage its investment in inventory through the sales forecasting process and regular review of the expected lead times to create RTLS SmartSpace hardware. The sensor build programs are sized to try to balance volume demands against unit cost efficiency and need to work on a 4-6 month lead time as increased global demand is extending component lead times.

Total assets

Total assets increased to GBP24.6 million (2016: GBP22.1 million).

Current liabilities

Total current liabilities decreased to GBP10.0 million (2016: GBP9.0 million). Trade payables increased to GBP3.0 million (2016: GBP1.5 million) which was partly due to inventory related purchases close to the year end.

Non-current liabilities

Total non-current liabilities decreased to GBP2.5 million (2016: GBP3.4 million) following the reduction in long-term debt from GBP2.5 million in 2016 to GBP1.8 million as at 31 December 2017.

Net assets

Net assets increased to GBP12.1 million (2016: GBP9.8 million) following the placement of 17,187,500 new ordinary shares at GBP0.32 in November 2017.

Cash and cash flow

Operating cash flow before working capital movement was GBP0.4 million inflow (2016: GBP0.3 million).

Operating cash flows from operating activities after adjusting for working capital and tax was GBP3.6 million inflow (2016: GBP2.0 million outflow). Working capital improvements were driven by a reduction in the trade receivables balance at year end.

The Group had investment outflows of GBP2.1 million (2016: GBP2.0 million), which is largely made up of expenditure on product development.

Cash inflows from financing activities were GBP4.3 million (2016: GBP1.8 million). This included net proceeds from placings of GBP5.2 million (2016: GBP4.5 million) offset by repayment of borrowings and interest on those borrowings.

Tim Gingell

Chief Financial Officer

14 March 2018

Consolidated income statement