REG - 1Spatial Plc - Final Results
Yesterday 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250507:nRSG5812Ha&default-theme=true
RNS Number : 5812H 1Spatial Plc 07 May 2025
This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by
virtue of the European Union (Withdrawal) Act 2018.
7 May 2025
1Spatial plc
("1Spatial", the "Group" or the "Company")
Final results for the year ended 31 January 2025
1Spatial, (AIM: SPA), a global leader in Location Master Data Management
('LMDM') software and solutions, is pleased to announce its audited final
results for the year ended 31 January 2025.
· Group revenue increased 3% to £33.4 million, resulting in an increased gross
profit of £18.5million (FY 2024: £17.9 million).
· Software sales (term licence and SaaS) increased by 35% to £11.5 million (FY
2024: £8.5 million).
· Recurring revenue of £20.7 million accounted for 62% of total revenue (FY
2024: 56%).
· SaaS solutions revenue increased to £1.0 million (FY 2024: £0.2 million).
· Annualised recurring revenue ('ARR') increased by 14% to £19.7 million.
· Adjusted EBITDA increased to £5.6 million (FY 2024: £5.5 million).
· Operating profit decreased to £0.9 million (FY 2024: £1.4 million) due to
increases in inflationary costs and non-cash amortisation and impairment
charges.
· Cash generated from operating activities grew to £4.9 million (FY 2024:
£4.7million).
· Net borrowings increased to £1.0 million (FY 2024: net cash £1.1 million),
reflecting strategic investments in product development, sales capabilities
and leadership to support growth initiatives.
Financial highlights
31 January 31 January Change
2025 2024
£m £m %
Group revenue 33.4 32.3 3
Recurring revenue 20.7 18.1 14
Term licences revenue 10.5 8.3 27
SaaS solutions revenue 1.0 0.2 400
Group total ARR* 19.7 17.2 14
Term licences ARR 9.5 7.7 23
SaaS ARR 1.8 - 100
Group gross profit 18.5 17.9 3
Adjusted EBITDA** 5.6 5.5 3
Adjusted EBITDA margin (%) 17.0 17.0 -
Operating profit 0.9 1.4 (38)
Profit before tax 0.2 1.1 (79)
Earnings per share - basic (p) 0.2 1.1 (82)
Earnings per share - diluted (p) 0.1 1.0 (90)
Net (borrowings) / cash*** (1.0) 1.1 (191)
* Annualised recurring revenue ('ARR') is the annualised value at the year-end
of committed recurring contracts for term licences and support and
maintenance.
** Adjusted EBITDA is a company-specific measure which is calculated as
operating profit/(loss) before depreciation (including right of use asset
depreciation), amortisation and impairment of intangible assets, share-based
payment charge and strategic, integration, and other non-recurring items.
*** Net (borrowings) / cash is gross cash less bank borrowings.
Operational highlights
· 1Spatial continues to leverage its established customer base and invest in
enhancing the Group's product offerings:
· The UK increased its footprint across the government and utilities sectors,
securing multi-year contract renewals and strengthening collaboration with
government agencies and strategic partners.
· The Company now partners with 22 US states, following the addition of the
States of Georgia and Virginia in the year, and continue to develop expansion
opportunities with existing customers.
· In Europe, 1Spatial secured significant contracts at the beginning of the
year. This has resulted in growth for FY 2025 and is expected to drive further
growth in FY 2026.
· 1Streetworks contracts were secured with two UK County Councils, which will
generate a combined annual value of £1.5 million.
· The Group has continued to invest in high margin solutions targeting utilities
and local government in the UK and US.
Outlook
· FY 2026 has begun positively, particularly in the UK and with 1Streetworks,
with several new customer contracts in the final stages of negotiation.
· A third major 1Streetworks contract has now been secured and with further
deals and renewals in the pipeline, 1Streetworks continues to be an
opportunity for margin growth and cash generation. The Group is confident in
further material growth in our SaaS revenues and ARR this year.
· The slower pace of decision making in H2 FY 2025, most notably in the US, is
likely to continue impacting our growth rate in FY 2026.
· 1Spatial will make select additional investment in the US and UK sales teams,
where it sees considerable long-term opportunity.
· While macro and political volatility is extending procurement cycles, the
Board remains confident in delivering further progress in FY 2026.
Commenting on the update, 1Spatial CEO, Claire Milverton, said:
"We've made good progress across the Group this Year, with software revenues
exceeding expectations and the first meaningful sales of our higher margin
1Streetworks SaaS solution. Recurring revenue now represents 62% of total
revenue, reflecting the benefits of our strategic investments in product
development, sales capability, and leadership. These efforts are driving our
transition toward a higher-margin, recurring revenue model and opening up new
market opportunities.
"The current year has begun positively, particularly in the UK and with
1Streetworks, providing confidence in further material growth in SaaS revenues
and ARR this year.
"While the slower pace of decision making and procurement experienced in the
second half of last year, most notably in the US, is likely to continue,
impacting our overall growth rate in the current year, the strength of our
technology, leadership and expanding presence in key markets provide a solid
foundation for the future. We are confident that 1Spatial is well-positioned
for growth in FY 2026 and beyond."
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
1Spatial plc's LEI Number is: 213800VG7OZYQES6PN67
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.
1Spatial plc is AIM-listed, with operations in the UK, Ireland, USA, France,
Belgium, Tunisia, and Australia.
www.1spatial.com (http://www.1spatial.com/)
Chairman's Statement
This has been a good year of strategic progress for 1Spatial. Our Enterprise
business continues to provide us with a strong foundation to support our move
to higher margin Software and SaaS based solutions.
1Spatial made notable strides in its Software and SaaS offerings during the
year. In FY 2025, Software and SaaS revenues increased by over 35% to £11.5m
(FY 2024: £8.4m) with recurring revenue of £20.7m accounting for 62% of
total revenue recorded (FY 2024: 56%).
However, this success was offset by worse than expected performance in US
Professional Services and the delay of a large, but lower margin, Belgian
Contract. This impacted our closing revenue, EBITDA and cash position. Action
has already been taken in our US operation to concentrate our business
development activities on resilient market sectors outside the federal
government, particularly Utilities, Transport and Public Safety and
strengthening the connection between senior management and field sales
activity. Progress is being closely monitored on-site in the US and our
pipeline of opportunities has significantly improved since the start of the
financial year.
Progress in 1Streetworks in FY 2025 and into the current year has been good.
We have delivered on our first three major 1Streetworks contracts, provided a
resilient and functional service to our customers and proved beyond doubt the
capability and economic benefits of implementing a modern digital approach to
a complex and costly problem. It is also gratifying to see the number of
Proof-of-Concept projects from significant organisations being conducted.
During the year we have continued to invest in People and Leadership,
including the appointment of a new Managing Director (Nabil Lodey) for the UK
and Ireland, and new Sales Director for 1Streetworks, and in the US a new
Director of Professional Services a new industry focussed Business Development
Team for NG9-1-1.
Summary and Outlook:
1Spatial has the right technology and team in place to execute on our strategy
to grow our Software Solutions and SaaS businesses in FY 2026 and beyond.
Payback from our investment in our business development teams is at the head
of our agenda, focussed on converting our improved pipeline in the year,
whilst keeping tight control of costs and maintaining a close watch on the big
opportunities.
I am confident that the Group is well positioned for growth in 2026 and
beyond.
Andy Roberts
Non-Executive Chairman
CEO Review
1Spatial has made good progress this year, increasing levels of recurring
licence revenue ahead of our initial targets, whilst focussing on our
strategic priorities as we seek to build a software company with global reach
solving complex geospatial data challenges that are arising with growing
trends towards automation and digitisation across governments and industry.
We set ourselves four key objectives at the start of the year: 1) to progress
the 1Streetworks opportunity; 2) setting up the US for further success; 3)
strengthening our leadership and sales teams; and 4) delivering ongoing land
and expand momentum. We have delivered well against each of these four
objectives, particularly with the success of 1Streetworks which now has three
contracts secured and is in ongoing discussions with UK Power Networks for an
extension. We also hired Nabil Lodey as the UK and Ireland MD. There remains
work to be done in the US around sales and marketing, however we have built a
highly experienced public safety team (NG9-1-1).
Our strong growth in SaaS and software revenue, ahead of expectations offset a
decline in services revenue in the year. We delivered total revenue of £33.4m
and Adjusted EBITDA of £5.6m, against a backdrop of contract delays due to
governmental changes in the UK and US. We have delivered double digit growth
in SaaS revenue with the first year of a material contribution from our
1Streetworks solution. Our 1Streetworks solution now has commercial
validation, growing industry awareness and is starting to gain market
acceptance. The Group secured a £1.0m contract win with Surrey County Council
in the year and the post-year end win with Kent County Council for £0.5m. In
addition, negotiations remain ongoing to extend the existing UK Power Networks
contract.
We have invested in our teams across our key markets to deliver on the
pipeline of prospects ahead and we are starting to see an uptick in pipeline
conversion.
The Company's strong credentials in supporting the digital transformation of
the emergency services, as well as key sectors such as Telecoms, Transport and
1Streetworks each represent major growth opportunities, and we are confident
that we are getting the right people and offerings in place.
SaaS solutions
1Streetworks
During the year we secured a 12-month contract with Surrey County Council for
£1m. The purpose of this was not only for the creation of automated traffic
management plans but also to act as a collaboration tool ensuring consistency
across all stakeholders in the planning process. Utilities and contractors
across the county are using the solution, improving awareness and in some
cases becoming the catalyst for independent national trials within these
organisations.
We secured a contract with Kent County Council, valued at £0.5m, after the
year end which will see 1Streetworks being used to review road closure
requests and adjust plans to use less disruptive traffic management.
Importantly, the work done with UK Power Networks (UKPN) has provided
significant efficiency savings across areas such as planning and delivery,
road closures (around 40% reduction in these) coupled with improvements in
environmental metrics and improved Ofgem measures. We are currently
progressing a renewal of this contract but for an increased scope in the
Southern Region and expanding into the Eastern region.
1Streetworks success has been supported by Steve Hanks, our new Business
Development Director, with a number of other important industry hires.
We continue to see strong interest in 1Streetworks from both new and existing
customers, with several trials underway across the UK. We received a customer
testimonial from Matt Jezzard (Traffic Manager at Surrey County Council), who
stated: "1Streetworks represents the future of the industry, an industry where
digital collaboration and coordination becomes the norm".
We are confident that this will continue to be a significant growth vector for
the Group.
NG9-1-1
We have appointed several industry experts to our team for this key growth
area who have extensive domain expertise and strong network of contacts.
Our NG9-1-1 SaaS solution, 1Engage, is designed to meet the NG9-1-1 data
requirements of the 23,000 cities and counties across the US. Sales of this
solution had been slower than anticipated but during the year we made
improvements to the software including the Esri 'Add-In' and a new spatial
interface. Given the scale of this opportunity, we have collaborated with
industry leaders such as Esri and other selected systems integrators. We now
see a growing level of prospects and pipeline building.
We are also investing in a comparable SaaS solution focused on the telecoms
market named 1Locate. this serves participants of the telecoms market who need
to have NG9-1-1 validation tools in place to comply with forthcoming
government requirements. We are at early stages of discussions with several
large integrators and telecommunications companies with very positive
indications so far.
Whilst we have experienced delays with the traction in this area, indications
in the current financial year give us confidence in this opportunity.
Enterprise business expansion
Our Enterprise business, which comprises revenues from geospatial software and
services across our key regions of UK and Ireland, Europe (France and
Belgium), USA and Australia, provides the foundation and cash resources to
invest in our SaaS solutions. Key highlights are set out below:
UK
Key wins and expansions include:
· Our first engagement with Welsh Water, through our partner Enzen Global.
· Secured a further one-year agreement with HS2 for 1Integrate and 1Datagateway.
This enables HS2 to pull together data from its supply chain of contractors,
to create a Digital Twin to plan, build and maintain the HS2 rail network in
the UK.
· Continued collaboration with Atkins Realis on the National Underground Asset
Register (NUAR). The platform has expanded significantly, now incorporating
data from over 350 asset owners.
· Continuation of work on a large government contract with Qinetiq which, once
delivered in 2025, will drive significant incremental ARR from licences.
· Two new UK customers for our Pipe Inference solution and four new customers
for our Utility Network Migration application, in deals up to £0.3m each.
Both solutions are supporting growing demand for digital transformation within
the utilities sector as organisations transforming into digital organisations
with machine learning, digital twins and preventative action being common
practice. Our AI-powered software is key to this.
· After the year end, we secured a three-year deal with DEFRA for £1.2m
expanding our reach across this important customer.
Our new UK MD Nabil Lodey who joined in October 2024, is focused on building a
high-performing team to drive long-term growth. With strengthened leadership
and an expanding customer base, we are well-positioned to continue growing the
UK business.
Europe
Europe continues to be an important growth engine for 1Spatial, presenting a
unique set of opportunities, with increasing adoption of geospatial
technologies especially within utilities, transportation and government
sectors.
In FY 2025, the European business has grown from both services and recurring
revenue though these were slightly behind expectations due to a delay in the
start of the large Belgian contract announced in February 2024 for €9m. The
contract has now begun. The Group continued to secure new wins across the
region, including:
· A four-year renewal with the French Cadastre (French national mapping agency).
· Two significant contracts new customers, Paris Est and Hydracos, utilising our
data services team in Tunisia.
· Continued expansion on our 1Telecomm contract with Airbus and additional work
for our Belgian utility customers.
US
The US market is an important part of our strategy, and whilst performance was
lower during FY25 than the prior year due to a drop in professional services
revenues, driven by governmental delays, ARR was up 21% due to, driven by a
high level of renewals across the business and new licence wins. A focus on
pipeline generation through events and digital marketing over the last few
months has started to bear fruit in utilities which is less sensitive to
governmental issues.
Significant wins and renewals in FY25 include:
· Secured positions on two additional frameworks, with the State of Texas and
State of Tennessee, in partnership with Rizing Geospatial. We now have
contracts or framework agreements with 22 US States, up from 18 at FY 2024.
Each one provides expansion potential.
· Secured contracts with the City of Irving, via the Texas framework, and
Holland Board of Public Works in Michigan. These contracts were for the
1Spatial Utility Network application. This marks our first major utilities
customer in the US, a key focus sector for the Group given our strength in
utilities in other geographies.
· Acquired two new Departments of Transport (DOT) customers for the automated
traffic conflation solution, the State of Virginia and State of Georgia,
bringing our total number of DOT customers to six.
· Renewed a two-year enterprise NG9-1-1 contract with the State of Minnesota.
· Secured a five-year contact with the US Forest Service.
Australia
Our Australian operation continues to perform well with 16% annualised revenue
growth. The main revenue stream is professional services to support third
party software solutions but we have seen some sales of the 1Spatial product
starting to come through during the year.
Innovation
In April 2025 I gave a keynote speech at the Geospatial World Forum in Madrid
on the vital role that trusted location data plays in creation of digital
twins and AI based solutions. There are serious global issues that need to be
resolved using digital twins and AI including planning, building and
maintaining climate resilient infrastructure. At 1Spatial, we already use our
data and system agnostic platform to work on high profile projects such as the
National Underground Asset Register (a digital twin of all the underground
utilities). During FY 2026 we will be investing in our core platform to
enhance our capabilities in this area to really power our revenue growth.
During FY 2025 we made the following key changes to our platform to support
and enable revenue growth:
· Expanded our cloud services to more global regions, enhancing our customer
reach.
· Made updates to our platform to focus on security enhancements ensuring a
secure environment for our customers.
· Our self-service web portal, 1Data Gateway, saw improvements in observability
and data integration (extending our non-GIS data support), including enhanced
notifications, detailed reporting, and a comprehensive approach to role-based
access groups, aiding customers in managing their growing user base and
digitalisation strategies.
· Enhanced the 1Streetworks platform to include diversion routing, traffic
signal matrix diagrams and the collaboration view.
ESG and People
We have made good progress on our ESG initiatives prioritising employee
well-being and sustainability. We have identified a number of critical success
factors to achieving our ambitious ESG goals, with a strong focus on People
and Culture. To foster community and support our employees, we implemented
initiatives such as hosting fireside chats led by senior management.
To reduce our environmental impact and boost employee engagement, we signed a
contract for a new shared office space in the UK in December 2024 with a
smaller footprint, aligning with our hybrid working model.
Our revamped 1Awards program, recognises team members who demonstrate and live
the Company's values. The nominations and winners are all voted for by the
1Spatial employees. In February 2025 we had a dedicated global awards event,
attended by everyone, where we celebrated successes and understood the reasons
why the awards were made; it was a huge success.
At 1Spatial, we are passionate about making the world safer, smarter and more
sustainable and I thank the incredible team we have at 1Spatial for their
unwavering efforts as we continue our growth journey.
Current trading and outlook
Trading in the new year has started positively in the UK and with
1Streetworks, and we are confident in further material growth in our SaaS
revenues and ARR this year. However, we believe it prudent to assume that the
slower pace of decision making and procurement experienced in H2 FY 2025, most
notably in the US, is likely to continue, impacting our overall growth rate in
the current year.
This year we are focused on four core areas: 1) maintaining our enterprise
business and ensuring tight cost control; 2) delivering and scaling our
1Streetworks opportunity; 3) capitalising on our investment in the US; and 4)
targeted innovation where we see significant commercial opportunities to widen
adoption of our market leading solutions.
Looking ahead, we are confident that 1Spatial is well-positioned for growth in
FY 2026 and beyond. Our technology, leadership and expanding presence in key
markets provide a solid foundation for the future.
Claire Milverton
Chief Executive Officer
CFO Review
The Group delivered 3% Revenue and Adjusted EBITDA growth in the year, despite
a challenging political and macro-economic landscape. An increase of 35% in
Term and SaaS licence revenue, significantly exceeding expectations,
demonstrates further progress against strategic objectives. The 9% decrease in
services revenue, primarily due to the delay in the commencement of a
significant contract, was offset by a 14% increase in higher margin recurring
revenues.
Revenue
Group revenue increased by 3% to £33.4 million from £32.3 million in FY
2024.
Recurring revenue
Our strategy is to grow revenue from repeatable business solutions on
long-term contracts by increasing sales of term licences (rather than one-off
perpetual licences) and increasing the proportion of recurring revenue
compared to services. Recurring revenue, as a percentage of total revenue,
increased to 62% (FY 2024: 56%).
Revenue by type
FY 2025 FY 2024 % change
£m £m
Recurring revenue 20.73 18.11 14%
Services 11.79 12.93 (9%)
Revenue (excluding perpetual licences) 32.52 31.04 5%
Perpetual licences 0.86 1.27 (32%)
Total revenue 33.38 32.31 3%
Percentage of recurring revenue 62% 56%
Annualised Recurring Revenue
The Annualised Recurring Revenue ('ARR') increased by 14% to £19.7 million
(FY 2024: £17.2 million) with ARR attributable to term licences growing by
£3 million. The overall renewal rate for existing customers has been
maintained at 93% (FY 2024: 93%) which provides a strong platform for the
current year.
ARR by region
FY 2025 FY 2024 % growth
£m £m
UK/Ireland 8.50 7.24 17%
Europe 6.03 5.63 7%
US 3.07 2.54 21%
Australia 2.10 1.80 17%
Total ARR 19.70 17.21 14%
Committed services revenue
Committed services revenue remains high at £9.9 million (FY 2024: £10
million) as services revenue recognised on the major projects we won last year
has been replaced by new project work. This key metric provides strong revenue
visibility for FY 2026 and beyond.
The combination of growing ARR from SaaS and other software products,
committed services revenue backlog and a strong pipeline of prospects for FY
2026 means that we anticipate making further progress on our revenue growth
plan, albeit at a lower rate than previously anticipated, given the
challenging macroeconomic backdrop.
Regional revenue
Regional revenue - point of origin
FY 2025 FY 2024 % change
£m £m
UK/Ireland 13.61 13.25 3%
Europe 11.79 11.03 7%
US 4.48 4.71 (5%)
Australia 3.50 3.32 5%
Total revenue 33.38 32.31 3%
Total revenue increased by 3% to £33.4 million (FY 2024: £32.3 million) with
all operating regions recording modest levels of growth in FY 2025 except for
the US, where strong software revenue growth was offset by lower levels of
Services revenue. All regions have a strong government sector focus and the
changes in the political landscape in the UK, the US and Europe negatively
impacted performance in these geographies.
The UK recovered from a weaker performance in the H1 FY 2025 to report a small
increase in revenue for the full year as contracts with government agencies
closed towards the end of the year. Continued uncertainty in the US federal
landscape, recently compounded by the California fires, resulted in a weaker
second half performance by the US with certain deals delayed to FY 2026. In
Europe, revenue was impacted by the delay in commencement of a large Belgian
contract at the start of FY 2025. In Australia, despite competitive pricing
pressure, revenue grew by 5%.
Gross profit margin
Gross margin grew by £0.6 million (3%) in value terms and remained in line
with the prior year at 55%. Cost increases have been more than offset by
increases in higher margin recurring revenue. Going forward, the management
team will continue to focus on driving improvements to gross margin through
revenue growth of higher margin term licences and SaaS solutions.
Adjusted EBITDA
The adjusted EBITDA increased by 2.5% to £5.6 million from £5.5 million in
the prior year with the EBITDA margin maintained at 17.0% (FY 2024: 17.0%).
Inflationary cost increases have been offset by increases in levels of
recurring revenue. Cost management remains an important focus.
Strategic, integration and other non-recurring items
Costs amounting to £0.6 million relate primarily to the restructuring of the
UK business during the year and settlement post year end of a customer claim.
The UK business restructuring is expected to yield annualised savings of
approximately £0.5 million.
Operating profit and profit before tax
Operating profit decreased by 38% to £0.9 million (FY 2024: £1.4 million)
due to inflationary cost increases and increased non-cash amortisation and
impairment charges. The profit before tax decreased to £0.2 million (FY 2024:
£1.1 million) due to interest charges on the Group's facilities.
Taxation
The net tax charge for the period was £50k (FY 2024: credit of £123k).
Balance sheet
The Group's net assets increased to £18.5 million at 31 January 2025 (FY
2024: £18.3 million), mainly due to the overall profit after tax adjusted for
currency differences in reserves.
Trade and other receivables increased in the year to £14.4 million (FY 2024:
£12.8 million), due to the timing of receivable collections around year end.
Trade and other payables increased in the year to £14.9 million (FY 2024:
£14.0 million) due primarily to the timing of payments around year end.
Cash flow
Operating cash inflow before strategic, integration and other non-recurring
items was lower than the prior year at £5.1 million due to adverse working
capital timing differences. Free cash outflow increased by £0.3 million to
£2.2 million due to:
· £0.3 million decrease in cash generated from operations due to
adverse working capital timing differences
· £0.3 million increase in interest paid on financing
· £0.4 million increase in net taxes paid
· £0.2 million increase in property, plant and equipment relating to
office fixtures and fittings
· £0.3 million increase in contract guarantees predominantly related
to the large Belgian contract which will be repaid to the Group over the next
three years
These outflows are partly offset by a reduction of £0.5 million in R&D
spend and a decrease in cash outflows from strategic, integration and other
non-recurring items to £0.1 million.
Operating cash flow FY 2025 FY 2024
£'000 £'000
Cash generated from operations 4,942 4,674
Add back: Cash flow on strategic, integration and other non-recurring items 123 667
Cash generated from operations before strategic, integration and other 5,065 5,341
non-recurring items
Free cash flow FY 2025 FY 2024
£'000 £'000
Cash generated from operations before strategic, integration and other 5,065 5,341
non-recurring items
Expenditure on product development and intellectual property capitalised (4,839) (5,295)
Lease payments (843) (904)
Net interest paid (655) (355)
Net tax (paid)/ received (218) 140
Purchase of property, plant and equipment (216) (67)
Performance deposits (385) (75)
Free cash flow before strategic, integration and other non-recurring items (2,091) (1,215)
Cash flow on strategic, integration and other non-recurring items (123) (667)
Free cash flow (outflow) (2,214) (1,882)
Investment in R&D
Development costs capitalised in the year decreased to £4.8 million (FY 2024
£5.3 million) in line with planned reductions in our product portfolio.
Amortisation and impairment of development costs was £2.9 million (FY 2024
£2.0 million) due to increased levels of amortisation on completed products
and impairment of a mature European product.
Financing
The Group's financial position is supported by a committed Revolving Credit
Facility in the UK by 1Spatial plc ("RCF") and bank loans taken out by
1Spatial France during the COVID-19 pandemic ("French bank loans"). The RCF is
a £5.4 million 3-year committed facility priced on competitive terms which
expires on 31 January 2027. The French bank loans were taken out in 2020 in
response to the COVID-19 pandemic and will be repaid over the next 2 years.
At the end of January 2025, the remaining principal balance outstanding on the
Group's loans was £4.6 million (FY 2024: £3.2 million), with £4.0 million
relating to the RCF and £0.6 million relating to the French bank loans. The
amount repayable in FY 2026 is approximately €0.5 million (FY 2024: €0.7
million). In year investments made in the sales and product development
functions continue to lay a strong foundation for future performance. Combined
with the UK restructuring and focus on a more discrete product portfolio, we
have the resources to continue to grow.
We had gross cash of £3.6 million at 31 January 2025 (FY 2024: £4.3
million), undrawn liquidity on the committed RCF of £1.4 million, a growing
adjusted EBITDA and positive operating cash generation. The free cash outflow
of £2.1 million before strategic, integration and other non-recurring items
is expected to decrease in FY 2026 as we increase the conversion of higher
margin pipeline opportunities, notably for our 1Streetworks product, a
reduction in the product development cost as ongoing projects reach completion
in FY 2026 and in year inflows as customer guarantees reach maturity.
Alternative Performance Measures
Throughout this announcement, certain analyses include Alternative Performance
Measures ('APMs') which are not defined by generally accepted accounting
principles ('GAAP') as defined under UK-adopted international accounting
standards or other generally accepted accounting principles. We believe this
information, along with comparable GAAP measurements, is useful to investors
because it provides a basis for measuring our operating performance. Our
management and Board of Directors uses these financial measures, along with
the most directly comparable GAAP financial measures, in evaluating our
operating performance. Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information presented in
compliance with GAAP. Wherever appropriate and practical, we provide
reconciliation to relevant GAAP measures.
APMs have been provided for the following reasons:
· to present users of the Annual Report with a clear view of what we consider to
be the results of our underlying operations, aiding the understanding of
management analysis and enabling consistent comparisons over time
· to provide additional information to users of the Annual Report about our
financial performance or financial position
The following APMs appear in this annual report.
# APM Explanation of APM
1 Recurring revenue (s) Recurring revenue is the value of committed recurring contracts for term
licences and support & maintenance recorded in the year.
2 Annualised recurring revenue ('ARR') Annualised recurring revenue ('ARR') is the annualised value at the year-end
of committed recurring contracts for term licences and support and
maintenance.
3 Adjusted EBITDA Adjusted EBITDA is a company-specific measure which is calculated as operating
profit/(loss) before depreciation (including right of use asset depreciation),
amortisation and impairment of intangible assets, share-based payment charge
and strategic, integration, and other non-recurring items.
4 Operating cashflow Operating cashflow is a company-specific measure which is calculated as cash
generated from operations excluding cash flow on strategic, integration and
other non-recurring items.
5 Free cashflow Free cash flow is cash from operations after deducting cash outflows for
interest, capital expenditure and lease payments.
6 Net (borrowings) / cash Net (borrowings) / cash is gross cash less bank borrowings.
7 Available Liquidity Available liquidity is the Group's gross cash balances less the undrawn
element of the Group's revolving credit facility.
Stuart Ritchie
Chief Financial Officer
Consolidated statement of comprehensive income
For the year ended 31 January 2025
2025 2024
£'000 £'000
Note
Revenue 3 33,383 32,315
Cost of sales (14,842) (14,389)
Gross profit 18,541 17,926
Administrative expenses (17,669) (16,514)
872 1,412
Adjusted EBITDA 5,616 5,479
Less: depreciation (149) (180)
Less: depreciation on right of use asset 11 (743) (787)
Less: amortisation and impairment of intangible assets 6 (3,305) (2,440)
Less: share-based payment credit/(charge) (11) 33
Less: strategic, integration and other non-recurring items 4 (536) (693)
Operating profit 872 1,412
Finance income 22 52
Finance costs (677) (407)
Net finance cost (655) (355)
Profit before tax 217 1,057
Income tax (charge)/ credit 5 (50) 123
Profit for the year 167 1,180
Profit for the year attributable to:
Equity shareholders of the Parent 167 1,180
167 1,180
Other comprehensive income
Items that may subsequently be reclassified to profit or loss:
Actuarial (loss)/gains arising on defined benefit pension, net of tax (2) (43)
Exchange differences arising on translation of net assets of foreign (128) (196)
operations
Other comprehensive (loss)/income for the year, net of tax (130) (239)
Total comprehensive gain for the year 37 941
Total comprehensive gain attributable to the
equity shareholders of the Parent 37 941
2025 2024
£'000 £'000
Note
Earnings per Ordinary Share attributable to the owners of the Parent during
the year (expressed in pence per Ordinary Share):
Basic earnings per share 15 0.2 1.1
Diluted earnings per share 15 0.1 1.0
Registered company number (England): 5429800
Consolidated statement of financial
position
As at 31 January 2025
2025 2024
£'000 £'000
Note
Assets
Non-current assets
Intangible assets including goodwill 6 21,512 19,951
Property, plant and equipment 266 192
Right of use assets 11 1,190 1,306
Performance deposits 460 75
Total non-current assets 23,428 21,524
Current assets
Trade and other receivables 7 14,386 12,770
Cash and cash equivalents 8 3,627 4,260
Total current assets 18,013 17,030
Total assets 41,441 38,554
Liabilities
Current liabilities
Bank borrowings 9 (369) (647)
Trade and other payables 10 (14,956) (14,004)
Current income tax payable (171) (99)
Lease liabilities 11 (422) (584)
Provisions 12 (316) -
Total current liabilities (16,234) (15,334)
Non-current liabilities
Bank borrowings 9 (4,273) (2,534)
Lease liabilities 11 (911) (820)
Provisions 12 (75) -
Defined benefit pension obligation (1,226) (1,222)
Deferred tax 13 (241) (337)
Total non-current liabilities (6,726) (4,913)
Total liabilities (22,960) (20,247)
Net assets 18,481 18,307
Share capital and reserves
Share capital 14 20,191 20,155
Share premium account 14 30,597 30,508
Own shares held 14 (14) (14)
Equity-settled employee benefits reserve 4,100 4,089
Merger reserve 16,465 16,465
Reverse acquisition reserve (11,584) (11,584)
Currency translation reserve 178 305
Accumulated losses (40,975) (41,140)
Purchase of non-controlling interest reserve (477) (477)
Total equity 18,481 18,307
Consolidated statement of changes in equity
For the year ended 31 January 2025 Share capital Share premium account Own shares held Equity-settled employee benefits reserve Merger reserve Reverse Currency translation reserve Purchase of non-controlling interest reserve Accumulated losses Total equity
£'000 acquisition
reserve
Balance at 31 January 2023 20,155 30,488 (139) 4,122 16,465 (11,584) 501 (477) (42,180) 17,351
Comprehensive profit
Profit for the year - - - - - - - - 1,180 1,180
Other comprehensive loss
Actuarial loss arising on defined benefit pension - - - - - - - - (43) (43)
Exchange differences on translating foreign operations - - - - - - (196) - - (133)
Total other comprehensive loss - - - - - - (196) - (43) (176)
Total comprehensive income - - - - - - (196) - 1,054 921
Transactions with owners
Recognition of share-based payment credit - - - (33) - - - - - (33)
Issue of shares held in treasury (including exercise of share options) - 20 125 (97) 48
- 20 125 (33) - - - - (97) 15
Balance at 31 January 2024 20,155 30,508 (14) 4,089 16,465 (11,584) 305 (477) (41,140) 18,307
Comprehensive profit
Profit for the year - - - - - - - - 167 167
Other comprehensive loss
Actuarial loss arising on defined benefit pension - - - - - - - - (2) (2)
Exchange differences on translating foreign operations - - - - - - (127) - - (127)
Total other comprehensive loss - - - - - - (127) - (2) (129)
Total comprehensive income - - - - - - (127) - 165 38
Transactions with owners
Recognition of share-based payment charge - - - 11 - - - - - 11
Issue of shares (exercise of share options) 36 89 - - - - - - - 125
36 89 - 11 - - - - - 136
Balance at 31 January 2025 20,191 30,597 (14) 4,100 16,465 (11,584) 178 (477) (40,975) 18,481
Consolidated statement of cash flows
For the year ended 31 January 2025
Note 2025 2024
£'000 £'000
Cash flows from operating activities
Cash generated from operations 8 (a) 4,942 4,674
Interest received 22 52
Interest paid (677) (407)
Tax paid (218) (35)
Tax received - 175
Deposits
75 (75)
Net cash generated from operating activities 4,144 4,384
Cash flows from investing activities
Purchase of property, plant and equipment (216) (67)
Expenditure on development costs and other intangibles 6 (4,839) (5,295)
Performance deposits (460) -
Net cash used in investing activities (5,515) (5,362)
Cash flows from financing activities
Proceeds from loans and borrowings 2,120 1,900
Repayment of loans and borrowings (633) (639)
Repayment of lease obligations 11 (843) (904)
Net proceeds from share issue 125 19
Net cash used in financing activities 769 376
Net decrease in cash and cash equivalents (602) (602)
Cash and cash equivalents at start of year 4,260 5,036
Effects of foreign exchange on cash and cash equivalents (31) (174)
Cash and cash equivalents at end of year 8 (b) 3,627 4,260
Notes to the financial statements
For the year ended 31 January 2025
1. Basis of preparation
The preliminary information of 1Spatial plc has been prepared in accordance
with international accounting standards in conformity with the requirements of
the Companies Act 2006. The consolidated financial statements have been
prepared under the historical cost convention.
The preparation of financial statements in conformity with IFRS requires the
use of certain critical accounting estimates. It also requires management to
exercise its judgement in the process of applying the Group's accounting
policies.
The results shown for the year ended 31 January 2025 and 31 January 2024 are
audited. The consolidated financial information contained in this announcement
does not constitute statutory accounts within the meaning of Section 434 of
the Companies Act 2006. Statutory accounts of the Company in respect of the
financial year ended 31 January 2025 were approved by the Board of directors
on 6 May 2025 and will be delivered to the Registrar of Companies in due
course. The report of the auditors on those accounts was unqualified and did
not contain an emphasis of matter paragraph nor any statement under Section
498 of the Companies Act 2006.
2. Going concern
The Board used as its basis for the going concern review the budget for the FY
2026 year, rolled out to 31 May 2026 (the 'Assessment Period') using part of
its forecast for FY 2027, so that a full 12-month period from the date of
signing the FY 2025 Annual Report and Accounts is considered.
All operating regions recorded modest levels of growth in FY 2025 except for
the US. All regions have a strong government sector focus and the changes in
the political landscape in the UK, the US and Europe negatively impacted
performance across these key geographies. Continued uncertainty in the US
federal landscape, recently compounded by the California fires, resulted in a
weaker second half performance by the US with certain deals delayed to FY
2026. However, despite the challenging geopolitical and macro-economic trading
backdrop, the Group's total revenues increased by 3% to £33.4 million (FY
2024: £32.2 million). This growth included a 35% increase in term license and
SaaS revenue, reflecting both an improvement in the quality of revenue
generated and progress towards our strategic objectives. The Group is well
positioned to capitalise on a strong pipeline of opportunities in FY 2026 and
will continue to focus on increasing sales of higher margin owned technology
sold as term licences.
FY 2025 was a year of increased revenue and double-digit growth in recurring
revenue and increased adjusted EBITDA. Metrics for future years are positive
with Annualised Recurring Revenue ('ARR') increasing to approximately £20
million (FY 2024: £17 million) driven primarily by term licence sales in the
UK and the US. Additionally, the value of committed service orders going into
FY 2026 remains strong at approximately £9.9 million. We anticipate that
revenue on the majority of these orders will be recognised in FY 2026. We
entered the current year with significant contracted future revenue.
The operating cash flow generated in FY 2025 was positive but was impacted by
working capital requirements on larger projects and the Group's decision to
continue to invest in growing the business and its product offerings.
The Group's financial position is supported by long-term bank loans,
specifically a committed Revolving Credit Facility in the UK by 1Spatial plc
("RCF") and bank loans taken out by 1Spatial France during the COVID-19
pandemic ("French bank loans"). The RCF is a £5.4 million 3-year committed
facility priced on competitive terms which expires on 31 January 2027. There
are certain covenants associated with the Revolving Credit Facility in
relation to the maximum gearing of the Group. The French bank loans were taken
out in 2020 in response to the COVID-19 pandemic and will be repaid over the
next 2 years. There are no financial covenants attached to the loans, nor is
there any security applied. The French bank loans are denominated in €.
As at 31 January 2025, the remaining principal balance outstanding on the
Group's loans was £4.6 million (FY 2024: £3.2 million), with £4.0 million
relating to the RCF and £0.6 million relating to the French bank loans. The
amount repayable in FY 2026 is approximately €0.5 million (FY 2024: €0.7
million). The Group started the current financial year on 1 February 2025 with
cash of £3.6m plus the undrawn Revolving Credit Facility to give the Group
Available Liquidity of approximately £5.0m.
Based on management's base case forecast the Group is able to meet liabilities
as they fall due, meet covenant tests and operate within available facilities
throughout the assessment period. In addition to the base case, management
also considered sensitivities in respect of potential stress tests, a reverse
stress test and the mitigating actions available to management. The modelling
of the downside scenarios assessed the level of risk to the Group's liquidity.
These scenarios make assumptions on revenue declines and costs savings in
relation to people and other operating costs. As part of the sensitivity
analysis, the Directors have noted that should the forecasted revenues not be
achieved, mitigating actions can be taken to address any cash flow concerns.
These actions include the utilisation of the undrawn RCF, deferral of capital
expenditure, reduction in marketing and other variable expenditure as well as
a hiring freeze and in extreme cases, reducing pay rises, discretionary
bonuses and headcount. Under the stress tests the Group is still able to meet
liabilities as they fall due, meet covenant tests and operate within available
facilities throughout the assessment period.
The reverse test was used to find what would be the level of revenue decline
that would lead to insufficient liquidity in the Group before the end of the
assessment period. The available liquidity would be breached if revenues were
13% below management's forecast in the assessment period and no action was
taken on costs. As a result of completing this assessment management
considered the likelihood of the reverse stress test scenario arising to be
remote. In reaching this conclusion management considered:
● Revenue - the revenue pipeline, the level of annual recurring
revenue and the positive progress on SaaS sales
● Flexible cost base - a portion of the Group's costs are
discretionary in nature
● The ability to reduce development expenditure if revenue growth is
lower than forecast
The Directors continue to carefully monitor the current macroeconomic
environment, and its impact on the on the operations, revenues and growth
plans of the Group. The Group's most significant exposure to inflationary cost
rises is from staff costs and infrastructure services. The Group is only
marginally exposed to changes in interest rates as the interest charged on the
RCF is 2.95% per annum over the Bank of England Sterling Overnight Index
Average ('SONIA'). Interest on the French bank loans is charged on a fixed
rate basis.
The Directors have also considered the conflict in Ukraine and Middle East,
and whilst the impact on the Group is currently deemed nil, the Directors
remain vigilant and ready to implement mitigation action in the event of any
impact.
The Directors are also not aware of any significant matters that occur outside
the going concern period that could reasonably impact the going concern
conclusion. The RCF (which has a limit of £5.4m and was £4m drawn at year
end) has an expiry date of 31 January 2027.
The Board has concluded, after reviewing the work detailed above, that the
Group has adequate resources to continue in operation for at least 12 months
from the date of approval of the financial statements. Accordingly, they have
adopted the going concern basis in preparing these financial statements.
Alternative Performance Measures
The Group uses certain Alternative Performance Measures ("APMs") to enable the
users of the Group's financial statements to understand and evaluate the
performance of the Group consistently over different reporting periods. APMs
are non-GAAP company specific measures. As these are non-GAAP measures, they
should not be considered as a replacements for IFRS measures. The Group's
definition of non-GAAP measures may not be comparable to other similarly
titled measures reported by other companies. Details of the Alternative
Performance Measures used together with a reconciliation to the closest GAAP
measure is included below:
Recurring Revenue FY 2025 FY 2024
Total Revenue 33,383 32,315
Adjustments:
Services (11,792) (12,935)
Perpetual Licences - own (103) (397)
Perpetual Licences - third party (759) (876)
Recurring Revenue 20,729 18,107
Annualised Recurring Revenue FY 2025 FY 2024
Recurring Revenue 20,729 18,107
Adjustments:
Timing difference on Net New Revenue in period (1,026) (899)
Annualised Recurring Revenue 19,703 17,208
Adjusted EBITDA FY 2025 FY 2024
Profit before tax 217 1,057
Adjustments:
Depreciation 892 967
Amortisation and impairment of intangible assets 3,305 2,440
Share-based payment (credit)/charge 11 (33)
Strategic, integration and other one-off items 536 693
Net finance cost 655 355
Adjusted EBITDA 5,616 5,479
Operating Cashflow FY 2025 FY 2024
Cash generated from operations 4,942 4,674
Adjustments:
Cash flow on strategic, integration and other non-recurring items 123 667
Cash generated from operations before strategic, integration and other 5,065 5,341
non-recurring items
Free cash flow FY 2025 FY 2024
Cash generated from operations before strategic, integration and other 4,942 5,341
non-recurring items
Adjustments:
Net interest paid (655) (355)
Net tax (paid)/ received (218) 140
Deposits (385) (75)
Expenditure on product development and intellectual property capitalised (4,839) (5,295)
Purchase of property, plant and equipment (216) (67)
Lease payments (843) (904)
Free cash flow before strategic, integration and other non-recurring items (2,214) (1,215)
Cash flow on strategic, integration and other non-recurring items (123) (667)
Free cash flow (2,337) (1,882)
Net (Borrowings)/ Cash FY 2025 FY 2024
Cash and cash equivalents 3,627 4,260
Adjustments:
Bank Borrowings - current (369) (647)
Bank Borrowings - non current (4,273) (2,534)
Net (Borrowings) / Cash (1,015) 1,079
3. Segmental information
The chief operating decision-maker has been identified as the Board of
Directors, which makes the Group's strategic decisions. The Group is now
focused on developing and selling repeatable solutions and recurring term
licences globally, with associated support services. As such, the Board
considers that the Group operates with only one segment under one global
strategy and the results are accordingly presented as Group results only.
The following table provides an analysis of the Group's revenue by type.
Revenue by type
2025 2024
£'000 £'000
Term licences 10,475 8,311
SaaS solutions 984 154
Support and maintenance - own 6,286 6,764
Support and maintenance - third party 2,984 2,878
Recurring revenue 20,729 18,107
Services 11,792 12,935
Perpetual licences - own 103 397
Perpetual licences - third party 759 876
Total revenue 33,383 32,315
The Group's operations are located in the United Kingdom, Europe (Ireland,
France and Belgium) the United States, Tunisia and Australia. The following
table provides an analysis of the Group's revenue by geographical destination.
Revenue by region
2024 2024
£'000 £'000
UK 11,736 11,967
Europe 13,306 11,887
US 4,499 4,735
Rest of World 3,842 3,726
Total revenue 33,383 32,315
The Board assesses the performance of the Group based on adjusted EBITDA.
Adjusted EBITDA is a company-specific measure which is calculated as operating
profit before depreciation (including right of use asset depreciation),
amortisation and impairment of intangible assets, share-based payment charge
and strategic, integration, and other non-recurring items (see note 4). As
these are non-GAAP measures, they should not be considered as replacements for
IFRS measures. The Group's definition of these non-GAAP measures may not be
comparable to other similarly titled measures reported by other companies.
The following table provides an analysis of the Group's revenue by country of
domicile of the selling entity, split by whether the revenue is recognised at
a point in time or over time.
2025 2024
£'000 £'000
UK/Ireland 13,608 13,252
At a point in time 5,071 3,935
Over time 8,537 9,317
Europe 11,793 11,030
At a point in time 1,812 2,160
Over time 9,981 8,870
United States 4,485 4,713
At a point in time 3,136 2,613
Over time 1,349 2,100
Australia 3,497 3,320
At a point in time 1,675 1,567
Over time 1,822 1,753
33,383 32,315
Total revenue at a point in time 11,694 10,275
Total revenue over time 21,689 22,040
As at 31 January 2025, costs to obtain and fulfil a contract of £28,000 were
included in other receivables (2024: £52,000). Amortisation of costs to
obtain and fulfil a contract for the year ended 31 January 2025 were £27,000
(2024: £67,000). The Group has no significant concentration risk with no
major customers representing more than 10% of Group revenue (2024: nil).
The Group has significant contract balances (both assets and liabilities),
which arise out of the ordinary course of its operations. Contract assets
include accrued income, which arises where chargeable work is performed, and
the revenue is recognised based upon satisfaction of performance obligations
in advance of invoicing the client. This can arise because, particularly for
some larger projects, client invoicing may be in stages and linked to project
milestones. Once an invoice is raised then the related accrued income will be
reduced by the invoiced amount.
Significant contract liabilities arise when a client has been invoiced
annually in advance (for example, for annual support and maintenance
contracts) and the revenue is recognised on a monthly basis over the year. In
that case, the initial invoiced amount is fully deferred and then released to
the profit and loss over the course of the contract.
The following table provides an analysis of the Group's non-current assets by
location.
2025 2024
£'000 £'000
UK/Ireland 11,430 9,455
Europe 8,047 8,355
United States 3,947 3,711
Rest of World 4 3
Total 23,428 21,524
4. Strategic, integration and other non-recurring items
In accordance with the Group's policy for strategic, integration and other
non-recurring items, the following charges were included in this category for
the year:
2025 2024
£'000 £'000
Restructuring 103 693
Customer settlement 433 -
Total 536 693
Restructuring costs of £103,000 were incurred during FY 2025. These relate
primarily to our UK operation, including the removal of certain positions
across the region. Costs incurred include redundancy costs and related legal
fees.
Customer settlement costs of £433,000 include related legal fees of £42,000.
Further details are included in note 12.
The cash impact in FY 2025 relating to the strategic, integration and other
non-recurring items was £123,000 (2024: £667,000).
5. Income tax charge/ (credit)
2025 2024
£'000 £'000
Current tax
UK corporation tax on income for year - 1
Foreign 198 126
tax
Adjustments in respect of prior years (52) (42)
Total current tax charge 146 85
Deferred tax (note 13)
Origination and reversal in temporary differences 4 (208)
Effect of tax rate change on opening balance - -
Adjustments in respect of prior years (100) -
Total deferred tax (96) (208)
Total tax charge/ (credit) 50 (123)
Factors affecting the tax credit for the year:
The differences between the standard rate of corporation tax in the UK and the
actual tax credit are explained below:
2025 2024
£'000 £'000
Profit on ordinary activities before tax 217 1,057
54 254
Profit on ordinary activities before tax multiplied by the effective rate of
corporation tax in the UK of 25% (2024: 24.03%)
Effect of:
Expenses not deductible for tax purposes 157 15
Adjustment in respect of R&D tax credits (282) (280)
Effect of movement in deferred tax rate - 6
Adjustments to deferred tax in respect of prior years (100) -
Utilisation of losses not previously recognised for tax purposes (95) -
Deferred tax not recognised on losses carried forward 362 (71)
Adjustments in respect of prior years (52) (42)
Differences in tax rates applicable to overseas subsidiaries 19 (3)
Other differences (13) (2)
Total tax (charge) / credit for the year 50 (123)
The relevant deferred tax balances have been measured at 25% for the current
year-end, being the tax rate enacted by the reporting date (2024: 25%).
6. Intangible assets including goodwill
Goodwill Brands Customers and Software Development Intellectual property Total
related contracts costs
£'000
£'000
£'000 £'000 £'000 £'000 £'000
Cost
At 1 February 2024 17,449 455 4,630 6,695 30,508 83 59,820
Additions - - - - 4,839 - 4,839
Effect of foreign exchange (42) (5) (70) (46) (149) - (312)
At 31 January 2025 17,407 450 4,560 6,649 35,198 83 64,347
Accumulated impairment and amortisation
At 1 February 2024 11,409 338 3,997 5,465 18,631 29 39,869
Amortisation - 22 147 223 2,620 3 3,015
Impairment - - - - 290 - 290
Effect of foreign exchange (71) (2) (59) (48) (160) - (340)
At 31 January 2025 11,338 358 4,085 5,640 21,381 32 42,834
Net book amount at 6,069 92 475 1,009 13,817 51 21,513
31 January 2025
Net book amount at 6,040 117 633 1,230 11,877 54 19,951
31 January 2024
The net book amount of development costs includes £13,817,000 (2024:
£11,877,000) internally generated capitalised software development costs that
meet the definition of an intangible asset. The amortisation charge of
£3,015,000 (2024: £2,440,000) is included in the administrative expenses in
the statement of comprehensive income. An impairment charge of £290,000
(2024: Nil), is included in the administrative expenses in the statement of
comprehensive income that relates to a recently discontinued European product.
Goodwill Brands Customers and Software Development Intellectual property Total
related contracts costs
£'000
£'000
£'000 £'000 £'000 £'000 £'000
Cost
At 1 February 2023 17,672 462 4,738 6,799 25,597 72 55,340
Additions - - - 1 5,283 11 5,295
Effect of foreign exchange (223) (7) (108) (105) (372) - (815)
At 31 January 2024 17,449 455 4,630 6,695 30,508 83 59,820
Accumulated impairment and amortisation
At 1 February 2023 11,517 318 3,933 5,294 16,847 23 37,932
Amortisation - 23 151 237 2,023 6 2,440
Effect of foreign exchange (108) (3) (87) (66) (239) - (503)
At 31 January 2024 11,409 338 3,997 5,465 18,631 29 39,869
Net book amount at 6,040 117 633 1,230 11,877 54 19,951
31 January 2024
Net book amount at 6,155 144 805 1,505 8,750 49 17,408
31 January 2023
Impairment tests for goodwill
Goodwill is tested for impairment as a group of CGUs as the business operates
under one global go to market strategy and product set. All aspects of the
business are focusing now on growing recurring revenue of repeatable solutions
using technology that will be deployed globally under a single strategy.
Products developed by regional development teams are marketed globally.
2025 2024
Goodwill Total Total
£'000 £'000
Opening carrying value 6,040 6,155
Effect of foreign exchange 29 (115)
Closing carrying value 6,069 6,040
Basis for calculation of recoverable amount
The Group has prepared a five-year plan for the group of CGUs (based on a
formally approved one year plan extended for four more projected years). The
detailed plan put together by the management team and the Board makes
estimates for revenue and gross profit expectations. This is from both
contracted and pipeline revenue streams. It also takes account of historical
success of winning new work and has been prepared in accordance with IAS 36:
"Impairment of Assets".
The key assumptions used in the value in use calculation were the pre-tax
discount rate applied (13% (FY 2024: 14%)), revenue growth rates of 7% per
annum and cost growth rates of 4% per annum for the five-year period from 1
February 2025 to the year ending 31 January 2030 and the EBITDA to cash
conversion is assumed to be 60% or greater. The Board approved budget for the
year ending 31 January 2026 was used as the basis for the value in use
calculation. Results for the next four years were calculated using the above
assumptions to derive the value in use. No impairment is required as no
individual asset has a higher carrying value than its value in use.
The rates used in the above assumptions are consistent with management's
knowledge of the industry and strategic plans going forward. The assumptions
noted above have been given in terms of revenue and overhead percentage
growth. For 2026 and subsequent years, the assumption has been provided in
terms of growth on the prior year EBITDA. The terminal growth rate of 2% does
not exceed the long-term growth rate for the business in which the group of
CGUs operate. The discount rate used is pre-tax and reflects specific risks
relating to the Group. The forecasts are most sensitive to changes in revenue
and overhead assumptions (taken together as the EBITDA). However, there are no
major changes to the key assumptions which would cause the goodwill to be
impaired.
There would have to be a reduction in forecast EBITDA by 15% for each year of
the five-year period ending 31 January 2030 for the headroom to be removed.
7. Trade and other receivables
Current 2025 2024
£'000 £'000
Trade receivables 4,708 4,423
Less: provision for impairment of trade receivables (16) (19)
4,692 4,404
Other receivables 1,205 1,338
Prepayments and accrued income 8,489 7,028
14,386 12,770
Below is a reconciliation of the movement in accrued income:
2025 2024
£'000 £'000
At 1 February 2024 5,996 6,004
Accrued revenue invoiced in the year (5,996) (6,004)
Revenue accrued in the year 6,982 5,927
Foreign exchange difference 32 69
At 31 January 2025 7,014 5,996
The fair value of the Group's trade receivables and other receivables is the
same as its book value stated above. No interest is charged on overdue
receivables.
At 31 January 2025, trade receivables of £4,097,000 (2024: £3,405,000) were
fully performing. Before accepting any new customer, the Group assesses the
potential customer's credit quality and defines credit limits by customer.
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses using a lifetime expected credit loss provision for trade receivables
and contract assets. To measure expected credit losses on a collective basis,
trade receivables and contract assets are grouped based on similar credit risk
and aging. The contract assets have similar risk characteristics to the trade
receivables for similar types of contracts. The expected credit losses are
based on the Group's historical credit losses which are then adjusted for
current and forward-looking information on macroeconomic factors affecting the
Group's customers. The Group has identified gross domestic growth rates,
unemployment rates, interest rates and inflation rates as the key
macroeconomic factors in the countries in which the Group operates.
At 31 January 2025, trade receivables of £595,000 (2024: £1,003,000) were
past due but not impaired. The ageing analysis of these customers is set out
below. There has been no change in the credit quality of these balances; they
relate to customers where there is no history of default and are still
considered fully recoverable.
The ageing of these receivables is as follows:
2025 Weighted average loss rate Impairment loss allowance
£'000 £'000
Current 4,097 0.1% 4
Up to 3 months overdue 435 0.5% 2
3 to 6 months overdue 99 2.0% 2
6 to 12 months overdue 3 5.0% 0
> 12 months overdue 74 10.0% 8
4,708 16
2024 Weighted average loss rate Impairment loss allowance
£'000 £'000
Current 3,405 0.1% 4
Up to 3 months overdue 826 0.5% 4
3 to 6 months overdue 74 2.0% 2
6 to 12 months overdue 46 5.0% 2
> 12 months 72 10.0% 7
4,423 19
As of 31 January 2025, trade receivables of £16,000 were impaired (2024:
£19,000) and provided for.
The trade receivables above include performance retentions on long-term
contracts.
Movements on the Group provision for impairment of trade receivables are as
follows:
2025 2024
£'000 £'000
At 1 February 19 29
(Decrease) / increase (3) (10)
At 31 January 16 19
The other classes within trade and other receivables do not contain impaired
assets and the Group expects to recover these in full. There are no financial
assets whose terms have been renegotiated that would otherwise be past due or
impaired.
The maximum exposure to credit risk at the reporting date is the carrying
value of each class of receivable noted above. The Group does not hold any
collateral as security.
8. Cash and cash equivalents and notes to the consolidated statement of
cash flows
2025 2024
£'000 £'000
Cash at bank and in hand 3,627 4,260
3,627 4,260
The fair value of the Group's cash and cash equivalents is the same as its
book value stated above.
Notes to the consolidated statement of cash flows
(a) Cash generated from operations
Note 2025 2024
£'000 £'000
Profit before tax 217 1,057
Adjustments for:
Finance income (22) (52)
Finance cost 677 407
Depreciation 892 967
Amortisation of acquired intangibles 395 391
Amortisation and impairment of development costs 2,910 2,049
Share-based payment charge/ (credit) 11 (33)
Decrease/(increase) in trade and other receivables (1,658) 1,196
(Decrease)/increase in trade and other payables 1,536 (1,314)
Increase in defined benefit pension obligation (16) 6
Cash generated from operations 4,942 4,674
2025 2024
£'000 £'000
Cash generated from operations before strategic, integration and other 5,065 5,341
non-recurring items
Cash flow on strategic, integration and other non-recurring items (note 4) (123) (667)
Cash generated from operations 4,942 4,674
(b) Reconciliation of net cash flow to movement in net (borrowings) / funds
2025 2024
£'000 £'000
(Decrease) in cash in the year (602) (602)
Changes resulting from cash flows (602) (602)
Net cash outflow in respect of borrowings repaid 633 639
Net cash inflow in respect of new borrowings (2,120) (1,900)
Effect of foreign exchange (5) (112)
Change in net funds (2,094) (1,975)
Net funds at beginning of year 1,079 3,054
Net (borrowings)/ funds at end of year (1,015) 1,079
Analysis of net (borrowings)/ funds
Cash and cash equivalents classified as:
Current assets 3,627 4,260
Bank loans (4,642) (3,181)
Net (borrowings)/ funds at end of year (1,015) 1,079
Net (borrowings)/ funds is defined as cash and cash equivalents net of bank
loans (and excluding lease liabilities).
c) Reconciliation of movement in liabilities from financing activities
Bank borrowings and leases due within 1 year Bank borrowings and leases due after 1 year Total
£'000 £'000 £'000
Total debt (including lease liabilities) as at 1 February 2024 1,231 3,354 4,585
Borrowings at 1 February 2024 647 2,534 3,181
Repayment of borrowings (633) - (633)
New borrowings - 2,120 2,120
Foreign exchange difference (14) (12) (26)
Borrowings before transfer - 4,642 4,642
Transfer from due after 1 year to due within 1 year 369 (369) -
Borrowings as at 31 January 2025 369 4,273 4,642
Lease liability at 1 February 2024 584 820 1,404
Cash movements:
Lease payments (843) - (843)
Non-cash movements:
Additions in the year 129 495 624
Interest cost 130 - 130
Foreign exchange difference - 18 18
Lease liability before transfer - 1,333 1,333
Transfer from due after one year to due within one year 422 (422) -
Lease liability as at 31 January 2025 422 911 1,333
Total debt (including lease liabilities) as at 31 January 2025 791 5,184 5,975
9. Bank borrowings
2025 2024
£'000 £'000
Current bank borrowings 369 647
Non-current bank borrowings 4,273 2,534
4,642 3,181
Bank borrowings
Bank borrowings relate to amounts drawn on the Revolving Credit Facility
('RCF') amounting to £4.0m at 31 January 2025 (2024: £1.9m) together with
bank loans taken out by 1Spatial France totalling €0.7m (2024: €1.5m) in
2020 during the COVID-19 pandemic ('French bank loans'). The interest rate for
any drawn amounts on the RCF is 2.95% per annum over the Bank of England
Sterling Overnight Index Average ('SONIA'). Interest on the French bank loans
is charged on a fixed rate basis with interest rates ranging between 0% and
3.6%.
The remaining French bank loans are due for repayment over the next two years
with approximately €0.45m (£0.4m) being due for repayment in FY 2026. There
are no financial covenants attached to the loans, nor is there any security
applied. The French bank loans are denominated in €.
There are certain covenants associated with the Revolving Credit Facility
('RCF') in relation to the maximum gearing of the Group. The Group has
operated within this covenant throughout the term of the RCF. The RCF is
denominated in GBP, the facility limit is £5.4m (2024: £3m) with an expiry
date of 31 January 2027. The interest rate for any drawn amounts is 2.95% per
annum over the Bank of England Sterling Overnight Index Average ('SONIA').
There is a commitment fee of 1.15% per annum of any undrawn part of the
Facility.
10. Trade and other payables
Current
2025 2024
£'000 £'000
Trade payables 4,627 2,788
Other taxation and social security 3,269 2,907
Other payables 211 364
Accrued liabilities 907 1,071
Deferred income 5,942 6,874
14,956 14,004
The Directors consider that the book value of trade payables, taxation, other
payables, accrued liabilities and deferred income approximates to their fair
value at the reporting date.
Below is a reconciliation of the movement in deferred income:
2025 2024
£'000 £'000
At 1 February 6,874 7,548
Revenue recognised in the year (6,874) (7,548)
Revenue deferred at year end 5,991 6,950
Foreign exchange difference (49) (76)
At 31 January 5,972 6,874
11. Leases
Right of use assets Total
£'000
At 1 February 2024 1,306
Additions 624
Depreciation (743)
Foreign exchange difference 3
At 31 January 2025 1,190
2025 2024
£'000 £'000
Buildings 1,045 1,104
Cars 134 178
Others 11 24
1,190 1,306
Lease liabilities
Total
£'000
At 1 February 2024 1,404
Additions 624
Interest cost 130
Cash paid (843)
Foreign exchange difference 18
At 31 January 2025 1,333
2025 2024
£'000 £'000
Current 422 584
Non-current 911 820
1,333 1,404
Amounts recognised in profit or loss:
Depreciation charge of right of use assets 2025 2024
£'000 £'000
Buildings 645 677
Cars 87 99
Others 11 11
743 787
12. Provisions
In March 2025, the Company reached an agreement to resolve a customer claim.
As part of the settlement, the Company agreed to provide software and services
at an estimated cost to the Company of £241,000 and make a cash payment of
£150,000, in two equal instalments. The first instalment was paid on 31 March
2025 with the second due in March 2026. The Company does not expect any
reimbursement associated with this provision and the impact of discounting is
immaterial.
Provisions Total
£'000
At 1 February 2024 -
Charged to profit or loss 391
At 31 January 2025 391
Due within one year or less 316
Due after more than one year 75
391
13. Deferred tax
The following are the major deferred tax liabilities and (assets) recognised
by the Group and movements thereon during the current year and prior reporting
years.
Tax losses Accelerated tax depreciation Intangibles Other temporary differences Total
£'000 £'000 £'000 £'000 £'000
At 31 January 2023 (1,027) - 1,619 (48) 544
Deferred tax (credit)/charge for year in profit or loss (231) - (6) 30 (207)
DT credit OCI - - - 13 13
Foreign exchange difference - - - (13) (13)
At 31 January 2024 (1,258) - 1,613 (18) 337
Deferred tax (credit) / charge for year in profit or loss 77 - (171) (1) (95)
DT charge OCI - - - 1 1
Foreign exchange difference - - - (1) (1)
At 31 January 2025 (1,181) - 1,442 (19) 242
Deferred income tax assets are recognised against tax loss carry-forwards to
the extent that the realisation of the related tax benefit through future
taxable benefits is probable. The Group did not recognise potential deferred
tax assets of £3,380,000 (FY 2024: £3,194,000) in respect of losses
amounting to £13,793,000 (FY 2024: £12,965,000) that can be carried forward
against future taxable income, on the grounds that at the balance sheet date
their utilisation is not considered probable. Losses have no expiry date.
The deferred tax balance is analysed as follows:
Deferred tax Deferred tax liability Total
asset £'000 £'000
£'000
Recoverable within 12 months - - -
Recoverable after 12 months - 1,442 1,442
Settled within 12 months (19) - (19)
Settled after 12 months (1,181) - (1,181)
(1,200) 1,442 242
14. Share capital, share premium account and own shares held
Allotted and fully paid 2025 2024
Number Number
Ordinary Shares of 10p each 111,317,829 110,859,545
226,699,878 226,699,878
Deferred shares of 4p each
Rights of shares
Ordinary Shares
The Ordinary Shares all rank pari passu, have the right to participate in
dividends and other distributions made by the Company, and to receive notice
of, attend and vote at every general meeting of the Company. On liquidation,
Ordinary Shareholders are entitled to participate in the assets available for
distribution pro rata to the amount credited as paid up on such shares
(excluding any premium).
Deferred shares
The deferred shares do not carry voting rights or a right to receive a
dividend. The holders of deferred shares will not have the right to receive
notice of any general meeting of the Company, nor have any right to attend,
speak or vote at any such meeting. The deferred shares will also be incapable
of transfer (other than to the Company). In addition, holders of deferred
shares will only be entitled to a payment on a return of capital or on a
winding up of the Company after each of the holders of Ordinary Shares has
received a payment of £1,000,000 in respect of each Ordinary Share.
Accordingly, the deferred shares will have no economic value. No application
will be made for the deferred shares to be admitted to trading on AIM nor to
trading on any other stock or investment exchange.
Voting Rights
1Spatial Plc has 111,317,829 (2024: 110,859,545) Ordinary Shares of 10p in
issue, of which a total of 15,399 (2024: 15,399) Ordinary Shares are held in
treasury. Therefore, the total number of Ordinary Shares with voting rights is
111,302,430 (2024: 110,844,146).
Number of shares Allotted, called up and fully paid shares Share Own shares held
£'000 premium £'000
account
£'000
At 31 January 2024 337,559,423 20,155 30,508 (14)
Share options exercised 358,500 36 89 -
LTIPs exercised 99,784 - - -
At 31 January 2025 338,017,707 20,191 30,597 (14)
Own shares
The Group has 15,399 (FY 2024: 15,399) Ordinary Shares of 10p each and
3,500,000 deferred shares with a nominal value of 4p each held in treasury.
15. Earnings per Ordinary Share
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of Ordinary
Shares in issue during the year.
2025 2024
£'000 £'000
Profit attributable to equity shareholders of the Parent 167 1,180
2025 2024
Number Number
000s 000s
Ordinary Shares with voting rights 111,063 110,860
Basic weighted average number of Ordinary Shares 111,063 110,860
Impact of share options/LTIPS 3,848 1,842
Diluted weighted average number of Ordinary Shares 114,911 112,702
2025 2024
Pence Pence
Basic earnings/ per share 0.2 1.1
Diluted earnings/ per share 0.1 1.0
16. Availability of annual report and financial statements
Copies of the Company's full annual report and financial statements are
expected to be posted to shareholders in due course and, once posted, will
also be made available to download from the Company's website
at www.1spatial.com (http://www.1spatial.com/) .
1Spatial plc is registered in England and Wales with registered number
5429800. The registered office is Unit F7 Stirling House, Cambridge Innovation
Park, Denny End Road, Waterbeach, Cambridge, Cambridgeshire, CB25 9PB.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR FQLLBEELFBBFRecent news on 1Spatial
See all newsREG - 1Spatial Plc - Final Results
AnnouncementREG - 1Spatial Plc - Notification of Major Holdings
AnnouncementREG - 1Spatial Plc - Notification of major holdings
AnnouncementREG - 1Spatial Plc - Notice of Results Presentations
AnnouncementREG - 1Spatial Plc - 1Streetworks Contract Win with Kent County Council
Announcement