REG - 1Spatial Plc - Trading Update and Notice of Results

1SpatialAnnouncement

19/03/2025 07:15

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RNS Number : 2010B  1Spatial Plc  19 March 2025

19 March 2025

 

1Spatial plc

("1Spatial", the "Group" or the "Company")

 

Trading Update and Notice of Results

Increase in Term and SaaS licence revenue by over 35% exceeding expectations
and delivering significant progress against strategic objectives

 

1Spatial, a global leader in Location Master Data Management ("LMDM") software
and solutions, is pleased to provide an update on trading for the financial
year ended 31 January 2025 ("FY2025").

 

Based on the unaudited financial results, the Group is pleased to report
another year of significant progress against its strategic objectives; to
build a software company solving complex geospatial data challenges which in
turn drives higher margin recurring software revenue.

 

During FY2025, the Group exceeded expectations from software sales (term
licence and SaaS), with this higher gross margin revenue increasing by over
35% to £11.5m (FY2024: £8.5m). Recurring revenue* for FY2025 was
approximately £21.0m accounting for c.62% of total revenue recorded (FY2024:
56%).

 

The Group has seen a greater than expected decrease in services revenue,
primarily due to a delay in the start of the large Belgian contract announced
in February 2024. Although delivery on this contract has now begun and
activity continues to increase, the initial delay impacted the overall pace of
growth across the Group. However, the Group's revenues continue to increase,
with growth to c.£33.4m (FY2024: £32.3m) during FY2025.

 

The impact of lower services revenues on Adjusted EBITDA was offset by the
business mix of higher margin software revenues coupled with a reduced cost
base. Adjusted EBITDA is expected to be at least £5.6m (FY2024: £5.5m).
These results have been delivered against a backdrop of contract delays due to
governmental changes in the UK and US.

 

The Group's net borrowings were £1.1m on 31 January 2025 (net cash of £1.1m
on 31 January 2024). The £2.2m outflow is predominantly due to an expansion
in working capital movement anticipated to reverse in FY2026 and a financial
bond for the large Belgian contract noted above. Finance charges were also
higher than anticipated due to increased interest rates and drawdown of the
bank facility.

 

Positive Outlook

 

FY2026 has begun positively with a number of new customer contracts in the
final stages of negotiation. The Company is pleased to receive industry
recognition for its 1Streetworks SaaS solution and maintains a robust pipeline
for new business and renewals, with a third significant contract for
1Streetworks expected to be announced in Q1. The investment in further sales
resource and new leadership in the UK gives the Board confidence in making
further progress in FY2026.

 

Commenting on the update, 1Spatial CEO, Claire Milverton, said:

 

"We've made some good progress across the Group this year and I'm especially
pleased that we've delivered an increase in software revenues ahead of our
expectations, as well as reporting the first significant sales of our higher
margin 1Streetworks SaaS solution, with a further material contract in
advanced negotiations.

 

"With recurring revenue now accounting for 62% of total revenue, the
investments that we've made in our software platform as well as new sales
resource and leadership hires, we look forward to a positive year ahead."

 

*Includes recurring revenue from term licences, SaaS and support and
maintenance

 

Notice of results

 

The Company expects to announce its audited results for the year ended 31
January 2025 on 7 May 2025.

 

For further information, please contact:

 

 1Spatial plc                                                           01223 420 414
 Claire Milverton / Stuart Ritchie

 Panmure Liberum (Nomad and Broker)                                     020 3100 2000
 Max Jones / Edward Mansfield / Gaya Bhatt

 Cavendish Capital Markets Limited (Joint Broker)                       020 7220 0500

 Jonny Franklin-Adams / Edward Whiley / Rory Sale (Corporate Finance)

 Sunila de Silva (Corporate Broking)

 Alma Strategic Communications                                          020 3405 0205
 Caroline Forde / Hannah Campbell / Kinvara Verdon                      1spatial@almastrategic.com

 

About 1Spatial plc

 

1Spatial plc is a global leader in Location Master Data Management (LMDM)
solutions, headquartered in Cambridge with over 1,000 customers around the
world. Our software is used by enterprises and government bodies to make
better business decisions through improved data governance.

 

Our patented rules engine powers a cutting-edge software platform, as well as
a suite of proprietary business applications and SaaS products. Our flexible
deployment options, including cloud-based SaaS, on-premise and hybrid
solutions, are designed to meet our clients' diverse organisational needs.

 

Over the last 12 months, we launched two SaaS offerings with considerable
potential: 1Streetworks which revolutionises traffic management in the UK,
through the automated creation of accurate, compliant and sharable traffic
management plans, diversion routing and asset inventory lists; and Public
Safety NG-9-1-1 solution, which enables US Cities and Counties to comply with
the latest data regulations around public safety and emergency response.

 

1Spatial plc is AIM-listed, with operations in the UK, Ireland, USA, France,
Belgium, Tunisia, and Australia.

www.1spatial.com (http://www.1spatial.com)

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