1) HIGH DEMAND.
2) WITH GROWING DEMAND FROM EXISTING AND NEW CUSTOMERS IN THE COUNTRY.
Read carefully, Mexico is now open, they couldn't install in the past as there were no approvals. Now they can. Look at the list of EXISTING customers there where UBI have already sold kit in other geographies. AN OPEN DOOR. Also mentions NEW CUSTOMERS.
Mexico is a workshop for North America.
This is excellent upside potential not RNS'ed but in plain view for those caring to look.
Decent margins in all probability too.
"Ubisense Group plc (AIM:UBI), the global leader in enterprise location intelligence solutions, has received Mexican approval for its Dimension4 Ultra-wideband (UWB) real time location system following high demand from manufacturers with plants in the region.
Ubisense already works with many of the worlds leading manufacturers in aerospace and automotive, as well as general industry, including nine of the top ten automotive manufacturers and aerospace customers including Airbus and Lockheed Martin.
Mexico has been a major focus for manufacturing investment in recent years. More than $20 billion has been invested in automotive manufacturing by companies that include existing Ubisense customers such as Ford, General Motors, Mazda, Honda, Nissan, Toyota and Volkswagen. Aerospace is also an increasingly important industry for Mexico - between 2010 and 2014 the average Gross Domestic Product (GDP) growth rate of the industry was around 21%.
Ubisense Dimension4 (D4) is a best-in-class precision Real-Time Location System (RTLS), consisting of hardware, firmware and server-based software components that work together to locate people and objects inside buildings, to provide visibility and control of industrial processes. D4 has become the most widely-deployed, high-accuracy and production-proven location system in the world, and is the only UWB RTLS to accurately measure angles, providing far higher redundancy and precision in like-for-like configurations than any other UWB RTLS. D4 is a proven solution, with some individual systems consisting of more than a thousand sensors working seamlessly together and providing machine-level, real-time response.
Andy Ward, CTO at Ubisense, said: Our UWB systems are already certified for use in Europe, the US, Canada, Japan, Korea, China and Singapore, and Mexico was the obvious next step for us. With growing demand from existing and new customers in the country, we are looking forward to helping them benefit from what we believe to be the best UWB RTLS on the market, and the first to receive certification in Mexico."
Important - Mexico approvals for Dimension4.
The first to be approved.
Why important? Roll-out to existing customer plant so easier sell at lower cost.
This could feed through to the revenue quite quickly and I think it's big news.
Looking at UBI revenue minus net cash, recent trading update, Mexico news, forward look at then the market cap. It doesn't add up.
I think someone is selling down for end of tax year purposes and this is a good time to buy so I have added.
Now we know why the share price has been managed down. 1.39m of shares this morning is the end of the Livingbridge stake, I think. And to get the placing away of course, assuming the vote is carried.
Once this has happened it is over to the new management to grow the business. Let's hope they can use shareholder money better than Green and Hopper. Goodness knows they were unbeatable at raising cash and squandering it.
I am optimistic that there is latent value in both divisions. Let's hope so!
Silver Spring is not closely comparable but interesting it is now being taken over.
IoT in control of cities.
UBI will be bought IMHO or at least spin off one part.
IIoT should be big and only just beginning to see adoption and location and smart space control is an important part of the puzzle.
For the first time in the years I have followed this company Ubisense has generated positive cashflow and by my calculation £3m in the first 6 months.
That is quite a change from the past so not sure why the share price has gone down since the trading update.
IMO - as good a time as any to get some exposure to a recovery play that looks well past its worse, is no longer on life support and is on the way to living up to its outstanding technology and products that were never in doubt.
Good news re banking covenant compliance (first time in how long?!), products continue to attract powerful clients, management team in place and incentivised.
Understandably sentiment is turning. Fundamental investors need to see numbers though to make some idea how to value this company. Lack of numbers in updates like this frustrate, as if we are only interested in speculation on the 'story'.
End game still looks the same.
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