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Location Sciences Group PLC

Location Sciences sales rack up as companies seek accurate data

Snapshot

  • Its core asset is Verify, the world's first independent location verification product
  • Verify rolled out in North America earlier this year
  • Revenues skyrocketed 94% in the first half to nearly half a million
Location Sciences Group PLC -

Quick facts: Location Sciences Group PLC

Price: 1.85 GBX

Market: LSE
Market Cap: £6.85 m
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What it does

Location Sciences Group PLC (LON:LSAI) helps companies connect the online world with the offline world using mobile location technology data.

It taps into the US$160bn digital advertising industry, working in partnership with brands, media agencies and suppliers to reduce ad-wastage and improve the effectiveness of location-based advertising campaigns. 

Its core product is Verify, the world's first independent location verification product, which detects location ad-fraud and shines a light on location data inaccuracy with the aim of bringing back integrity, transparency and trust to the market place.

Among its clients there are billboard advertiser JCDecaux UK, the world's largest outdoor ad company, and the7stars, the UK’s largest independent media agency which serves huge brands such as Papa Johns and Nintendo.

 

How it is doing

The sales run rate across July and August exceeded £100,000 and is expected to grow further with the addition of new contracts such as the group’s partnership with big data firm Blis, announced in early September.

The company is also predicting a “further uplift” in sales from existing customers in the fourth quarter as the busy Christmas season boosts demand from advertisers.

Revenues in the six months to 30 June, when Verify was rolled out in North America, saw revenues skyrocketing by 94% to £454,872 compared to the same period in 2018.

Pre-tax losses widened slightly to £1.14mln from £1.12mln.

 

Inflexion points

In September, the AIM-listed firm raised £600,000 by issuing 27.2mln new shares to support the group’s investments in the US market, specifically the growth of its Verify platform, through new hires and additional marketing spend.

The Verify advisory team includes industry veteran Andy Roberts, the former global head of trading at MindShare, a subsidiary of FTSE 100 media giant WPP PLC (LON:WPP).

 

What the boss says: Mark Slade, chief executive

"In H2 2019, our focus is on converting more trial participants into 'always-on' contracts, helping brands and agencies to get the most out of location advertising and delivering value to our investors."

 

Blue Sky

  • Location Sciences says the digital advertising market place remains unregulated and unmonitored, with an estimated US$19bn wasted on ad-fraud in 2018
  • Analysts say it offers a unique verification solution into a mobile advertising market of more than US$145bn
  • The company says it laid "solid foundations" to grow Verify globally

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Watch

Location Sciences looking to best realise the potential for Verify in the US

Proactive Research analyst Ed Stacey discusses Location Sciences Group PLC (LON:LSAI) following the recent release of the firm's interim results to June 2019. Stacey says the company's undertaking some realignment of its marketing strategy to best realise the potential in the US for its...

on 30/9/19

2 min read