Climate Change Data

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• Expansion of the Leadership Team: Appointed Donnie Williams (Chief Digital Officer of Horizon Media) and Niall Hogan (Managing Director at Integral Ad Science Southeast Asia) as non-executive directors.

Governance Achievements

• Formal evaluation of Board effectiveness and performance.

Climate Goals & Targets

Environmental Challenges

• Slower than expected market adoption of Verify in the US.
• Minimal market awareness of the problems Verify solves.
• Cash consumption phase.
• Potential for changes in regulation to negatively impact the market.

Mitigation Strategies

• Adjusted investment plans in the second half of 2019 to align overheads with the actual pace of market adoption and conserve cash reserves.
• Continued investment in overall market awareness and direct business development.
• Raised £0.6 million in new funds during 2019.
• Diversified product range.
• Monitoring requirements and compliance for privacy regulations.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• The team has been doing everything possible to support the NHS since the pandemic hit. Our data insights products continue to help to inform the ongoing response to COVID-19. Through its long-term partnership with CACI, Location Sciences is supplying data to support NHS England and members of the Scientific Pandemic Influenza Group on Modelling (SPI-M) in their analysis of how movement of individuals is impacting the reproduction number (R) and growth rate of COVID-19 in the UK.

Governance Achievements

• The size of the Board has been reduced following the year end, with both Donald Williams and Niall Hogan stepping down.

Climate Goals & Targets

Environmental Challenges

• The business being significantly adversely impacted by the COVID-19 pandemic. Reduced media spends in location-based advertising resulted in a significantly reduced number of campaigns for location verification. A dispute with Blis Global Ltd.
• The Verify platform needs a direct sales channel into brands and for the budget holders to see the problem our products are solving.
• Changes in regulation negatively impact the Group’s market.
• The impact of the COVID-19 pandemic on existing and potential customers.

Mitigation Strategies

• Swift response from the management team, shifting the Group’s resources to revenue growth areas and reducing costs.
• Exploring options for our location verification products that could support the brand direct channel strategy.
• The Board takes account of commentators and industrial bodies as to the direction of policy change. The Group has also diversified its product range, reducing any potential legislative impact on the business going forward.
• The Board is monitoring the ongoing impact of the COVID-19 pandemic and national vaccination programmes. Meanwhile the Board has delivered a substantial cost reduction programme and shifted focus of the business towards the data and insights solutions which are more resilient to effects of the pandemic.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Environmental Challenges

• The Group’s strategic review does not deliver the expected improved shareholder returns
• Location Sciences Group PLC continues to be in a cash consumption phase.
• Changes in regulation negatively impact the Group’s market.

Mitigation Strategies

• The Board conducted a thorough strategic review during the year to identify the most viable options for sustainable growth and shareholder value creation.
• The Group had in excess of £4 million in net cash resources as at 31 December 2022, which is more than sufficient for the Groups requirements for the foreseeable future.
• The Board takes account of commentators and industrial bodies as to the direction of policy change. The Board meets regularly to review specific and general risks that face the Group. The Board strives to position the Group in a way that any risks can be minimised and met, should the need arise.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Decline in revenue to £53,066 (2022: £110,856)
• Cash consumption phase
• Potential negative impact of regulatory changes on the market

Mitigation Strategies

• Secured convertible bridge loan agreement with Sorted Holdings Limited for up to £2.6 million
• Exclusive non-binding heads of terms for a potential acquisition of Sorted Holdings Limited
• Proposed Acquisition of SHL completed on 19 February 2024
• £2 million fundraise
• £3 million Bidco 3 Limited loan facility
• Reduction in overhead costs by 23.7% year on year
• Monitoring of policy change and risk mitigation strategies

Supply Chain Management

Climate-Related Risks & Opportunities