REG - 1Spatial Plc - Interim Results
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RNS Number : 0649D 1Spatial Plc 13 October 2025
13 October 2025
1Spatial plc (AIM: SPA)
("1Spatial", the "Group" or the "Company")
Interim Results for the six-month period ended 31 July 2025 ("H1 2026")
Stronger recurring revenue mix and ongoing strategic delivery
1Spatial, (AIM: SPA), a global leader in Location Master Data Management
(LMDM) software and solutions, is pleased to announce interim results for the
six months ended 31 July 2025.
H1 2026 highlights
· Revenue up 9% to £17.7m (H1 2025: £16.2m) driven by:
o 20% increase in recurring revenue to £10.7m (H1 2025: £8.9m), being 61% of
total revenues (H1 2025: 55%)
o 50% increase in SaaS and Term Licences revenues, with fourfold growth in
1Streetworks revenues to £0.8m (H1 2025: £0.2m)
· Annualised Recurring Revenue (ARR) growth of 11% to £19.9m (H1 2025: £17.9m)
· Adjusted EBITDA margin tempered 0.4pps to 11.9% reflecting the H1 revenue mix
(H1 2025: 12.3%)
· Net borrowings increased to £2.5m (H1 2025: £0.9m) primarily reflecting
ongoing investment in product development. This was partially offset by a
reduction in cash outflows to £1.5m (H1 2025: £2.0m), supported by
favourable timing of receipts and payments. The Group expects that the timing
of renewals will continue to underpin financial flexibility going forward.
· Signed strategically important multi-year licence deals with existing clients
including US$1.1m with Montana and £1.1m each with Defra and Network Rail
· Post period end, signed a US$1.7m Enterprise Agreement with the California
Department of Transportation and £1m 1Streetworks contract with UK Power
Networks
· H2 weighting of renewals and a healthy pipeline provide the Board with
confidence in achieving results for FY26 in line with management expectations
Financial highlights
Half-year to 31 July 25 Half-year to 31 July 24
Change
£m £m %
Group revenue 17.7 16.2 +9
Recurring revenue 10.7 8.9 +20
This includes:
Term licences revenue 5.6 4.1 +37
SaaS solutions revenue 0.8 0.2 +300
Group Total ARR 19.9 17.9 +11
Term licences ARR 9.3 8.2 +13
SaaS ARR 1.8 0.3 +500
Group gross profit 8.8 8.5 +4
Group gross profit margin (%) 49.7 52.2 -2.5pp
Adjusted EBITDA 2.1 2.0 +5
Adjusted EBITDA margin (%) 11.9 12.3 -0.4pp
Operating profit 0.0 0.1 -
Loss before tax (0.3) (0.2) -94
Loss per share - basic and diluted (p) (0.3) (0.2) -50
Net borrowings (2.5) (0.9) -178
Outlook
· The second half has started well, with several contract renewals and notable
expansions in the UK (UK Power Networks - 1Streetworks) and the US (California
Department of Transportation).
· The Company has a robust order book and several ongoing European programmes
which underpin the H2 weighted profile and provide the Board with confidence
in achieving management expectations for the full year.
Commenting on the results, 1Spatial CEO, Claire Milverton, said:
"We have delivered a positive first half, despite challenging global market
conditions. We have focused on the successful execution of our strategic
priorities, expanding our engagements with existing customers and securing
some good wins towards the end of the half and into Q3. UK highlights include
the £1m contract at UK Power Networks now embedded into core operations and
tripling the previous contract amount. US highlights include the securing of
an enterprise contract with the Californian Department of Transportation which
delivers 50% licence revenue expansion and simplifies procurement for future
opportunities with the customer.
"As we look ahead, our focus remains on accelerating SaaS adoption, converting
our robust pipeline and deepening our presence in the substantial US market.
We are confident the strength of our IP, breadth of customer base and
expertise across our team mean we are well placed to deliver attractive growth
and cash generation over the medium term."
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 (Joint Broker) 020 7220 0500
Jonny Franklin-Adams / Edward Whiley / Rory Sale
Alma Strategic Communications 020 3405 0205
Caroline Forde / Hannah Campbell / Rose Docherty 1spatial@almastrategic.com
Alternative Performance Measures ('APMs')
The Group uses certain Alternative Performance Measures 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 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. A description of the measures set out above is
included below with a reconciliation to the closest GAAP measure included in
the notes to the consolidated condensed interim financial report.
APM Explanation of APM
Recurring Revenue (s) Recurring Revenue is the value of committed recurring contracts for term
licences and support & maintenance recorded in the year.
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 &
maintenance.
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.
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.
Free cashflow Free cash flow is defined as net increase/(decrease) in cash for the year
before cash flows from the acquisition of subsidiaries, cash flows from new
borrowings and repayments of borrowings and cash flow from new share issue.
But excludes lease liabilities.
Net cash/(borrowings) Net cash/(borrowings) is gross cash less bank borrowings.
About 1Spatial plc
1Spatial is a global leader in Location Master Data Management ('LMDM')
software and solutions. Our global clients include national mapping and land
management agencies, utility companies, transportation organisations,
government, public safety and defence departments.
Our user-friendly, no-code, cloud-enabled solutions and business applications
facilitate automated data governance, while delivering increased efficiencies
and significant cost-savings - contributing to a safer, smarter and more
sustainable world.
Our patented rules engine powers a cutting-edge software platform, as well as
a suite of proprietary business applications and SaaS products, including
1Streetworks which revolutionises traffic management in the UK.
1Spatial plc is AIM quoted, with operations in the UK, Ireland, USA, France,
Belgium, Tunisia, and Australia.
www.1spatial.com (http://www.1spatial.com)
Half-year review
We are pleased to report a positive first-half performance despite challenging
trading conditions in certain markets which has caused delays in contract
signings. Revenues were up 9% to £17.7m and Annual Recurring Revenues (ARR)
were up 11% to £19.9m. This result reflects the resilience of our business
model, underpinned by robust annual recurring revenues across a diversified
customer base of over 1,000 clients. Our consistently high contract renewal
rate of 94%, combined with healthy expansion sales from existing customers,
contributed to this positive outcome.
Key renewal and expansion contracts secured during the period included a
four-year expanded renewal with the State of Montana for our NG9-1-1 solution,
alongside multiple UK-based renewals, many of which were third-party
technologies with strategic clients such as Network Rail and Defra. While
these agreements carry lower margins than our proprietary offerings, they
remain central to our broader value proposition, enabling us to deliver the
optimal technology mix and reinforce our position as a trusted adviser to
government stakeholders. Building on the Defra agreement signed in January, we
also secured further significant contracts with the Rural Payments Agency in
June and the Environment Agency in July, both centred on the deployment of
1Spatial's proprietary technology.
Post period end, on 30 September we entered into an expanded US$1.7m
enterprise agreement with the California Department of Transportation
(Caltrans). This enterprise agreement streamlines procurement and deployment,
enabling rapid scaling of the relationship and underpins the growing strategic
importance of our technology in supporting Caltrans' data governance
initiatives. We look forward to continuing to deliver impactful solutions that
help shape the future of transportation infrastructure in California and
beyond.
On 3 October, 1Spatial was awarded a £1 million SaaS contract by UK Power
Networks for our 1Streetworks solution. The direct single source award
demonstrates the unique proposition 1Spatial has developed with its
1Streetworks SaaS product, as well as the measurable efficiency gains,
enhanced customer service, and reduction in road closures the product
delivers. We believe the success of this programme will be a catalyst for the
broad applicability across electricity, gas, water, and telecommunications
sectors.
These contracts announced post period end provide a good underpin for revenue
progression in H2 FY26 and FY27 and beyond.
We remain focused on expanding our US operations and SaaS businesses,
particularly 1Streetworks, by leveraging the strength of our established
Enterprise business. The targeted investments in sales and marketing capacity
in FY25 have delivered an increase in pipeline, which we are focused on
converting. The Board is currently considering its strategic options for its
Australian business. If value was realised, it would allow accelerated
investment into our next generation data platform and SaaS products which
would accelerate the development of these key growth drivers.
1Streetworks
The first half of FY26 saw steady progress for our innovative SaaS-based
1Streetworks offering, with revenue increasing to £0.8m (H1 FY25: £0.2m).
This growth was underpinned by ongoing successful implementations at UK Power
Networks, Surrey and Kent County Councils providing a strong reference clients
for future commercial and public sector opportunities.
The market opportunity remains substantial at £400 million and interests
across all target customer segments (County Council, Utilities providers and
Tier 1 street work contractors) continues to build, with opportunities
progressing through each stage of our sales pipeline.
The £1 million contract awarded, post period end, by UKPN (with a one-year
extension option) marks a significant expansion from the initial £0.34
million agreement signed in 2024 for deployment in its Southern region. This
reflects UKPN's decision to embed 1Streetworks into its core business
operations, enabling broader rollout across its network. Over the next 15
months, the platform is expected to support planning and delivery for up to
30% of UKPN's works, with expansion into London, the South-East, and East of
England, as well as new operational teams focused on fault response and
reactive works. The solution is designed to deliver measurable improvements in
operational efficiency and customer service - reducing road closures by up to
39%, accelerating time-to-quote and time-to-connect, and streamlining supply
chain collaboration. Our current engagement represents the early phase of a
wider opportunity within UK Power Networks, providing a strong foundation for
continued growth and long-term adoption.
Our commercial sales model is now more established, beginning with paid trials
that lead to regional or divisional rollouts and subsequent scaling. The
pipeline for 1Streetworks has increased in value by 60% since January. As the
solution becomes increasingly validated the sales cycle should shorten with
growing industry awareness aiding adoption.
With 1Streetworks now firmly case-proven, we intend to further invest in sales
resources, to accelerate market penetration.
Ongoing enhancement of the platform remains a strategic priority, focused on
expanding use cases, broadening market applicability, and supporting scalable
commercial models.
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:
United States
The United States continues to represent a substantial market opportunity for
the Group, driven by the quality of our product offering, strong customer
relationships and the significant market size. We continue to focus on key
sectors of State Government, Transportation, Public Safety (NG9-1-1) and
Utilities.
Despite the slower pace of decision making in the US, we have been able to
grow our ARR levels by 5%. In June we were pleased to sign a four-year
contract renewal valued at US$1.1 million with the US State of Montana for
1Spatial's NG9-1-1 Enterprise software solution. Other expanded renewals in
the period included Georgia and Arkansas Geospatial offices and Los Angeles
County.
The US$1.7 million annually renewing enterprise agreement with Caltrans,
signed post period end, reflects the strength of our platform and the depth of
our relationship with Caltrans, built over six years. We anticipate further
growth in FY27.
Caltrans is one of the most influential Departments of Transport (DOT) in the
US and use cases that have been implemented within California are replicable
with the other DOTs. 1Spatial has ongoing projects with seven additional
DOTs, each with expansion opportunities.
We continued to build our seven enterprise Next Generation 9-1-1 (NG9-1-1)
enterprise accounts, including renewals in Montana and Georgia. While SaaS
sales are at an early stage, momentum is building through increased visibility
at industry events and the expertise of our domain specialists. 1Locate,
designed for telecom providers and government agencies, is gaining interest
from customers and partners as a real-time location validation solution that
supports accurate, standards-compliant emergency call routing. The NG9-1-1
pipeline continues to strengthen, positioning us well for future growth.
United Kingdom
1Spatial UK delivered a strong performance in the period, securing a series of
high-value contracts and renewals across utilities, infrastructure, and public
sector clients growing ARR by 11% against H1 FY25. Notably, we won a new
contract with Heathrow Airport supporting its data migration programme in
collaboration with Esri UK and establishing a strategic foothold for future
expansion. We deepened engagement with key government stakeholders through
expansion agreements with our own proprietary technology to the Rural Payments
Agency, The Environment Agency, Yorkshire Water and HS2.
During the period, we renewed several third-party software licences. One of
these was with Defra for a software licence centred on FME technology. The
Defra account is important to us, serving as the lead engagement across the
wider Defra group, which includes the Environment Agency, Rural Payments
Agency, and the Animal and Plant Health Agency. We also renewed with Network
Rail delivered through VertiGIS technology, supporting their digital
transformation and asset management programmes. These third-party strategic
renewals reinforce our position as a trusted advisor and enable us to maintain
and expand our footprint across central government and infrastructure sectors.
We continue to advance our strategic project with QinetiQ and a major UK
Government agency, combining service delivery with the development of our
aeronautical technology. Originally scheduled for completion in 2024, the
programme remains in progress, with full deployment now expected in Q2 FY27.
Upon completion, the project is anticipated to contribute £1 million in
Annual Recurring Revenue. In addition, the transition will enable a reduction
in our cost base by phasing out high-cost contractors and allowing R&D
investment to be redirected.
The UK pipeline has grown notably since January, supporting continued momentum
across our target markets.
Europe
We have increased our ARR in Europe by 7%, despite some delays in
government-related projects during the period.
Our flagship project with a leading utility distribution system operator (DSO)
in Belgium (€9 million contract announced in January 2024) continues to
progress, with software and services being successfully deployed to digitise
the operator's gas and electricity networks.
As of 31 July 2025, our pipeline remains healthy, driven by deferred decisions
from several potential customers across our core target sectors: Telecoms,
Utilities, and Local Government.
Australia
Australia's business is primarily driven by third-party software sales,
notably FME by Safe Software.
During the period, Annual Recurring Revenue (ARR) increased by 31%
year-on-year, supported by new licence agreements and renewals with key
organisations including the Department of Energy, Environment and Climate
Action, the Department of Transport and Planning, Geoscience Australia, and
Endeavour Energy.
Total revenue in Australia was lower than the prior period, primarily due to
the absence of a large consultancy engagement that contributed materially last
year. While equivalent service activity was more limited during the period,
the region continues to demonstrate strong demand for both software and
services.
The region maintains a healthy pipeline of opportunities across both software
and services.
R&D, Innovation and AI strategy
During the period, we continued to invest in our core technology portfolio,
including the 1Spatial Location Master Data Management (LMDM) platform,
sector-specific applications for Water, Telecoms, and Local Government in
Europe, our 1Streetworks solution, our NG9-1-1 solution and aeronautical
products for defence customers.
We also initiated a review of our LMDM platform to align with industry best
practice and integrate emerging AI capabilities. With over 30 years of
expertise in managing complex, location-centric data, 1Spatial is well
positioned to capitalise on the growing demand for validated, structured data
in AI-driven environments. Our next-generation platform will be designed to
accelerate specification development, rule creation, and corrective actions
which will enhance time-to-value and ROI for customers, while increasing
partner-led scalability. We are now working with key customers and
partners on proof-of-concept deployments of our AI-enabled platform.
Development of our aeronautical products is expected to complete by Spring
2026, with associated investment redirected to support the next-generation
platform roadmap.
Current trading and outlook
The second half of the year has started well, despite a challenging market
environment, with major contract renewals secured in both UK and US. Notably,
we have achieved a material uplift on renewals to both Caltrans and UK Power
Networks contracts. We see continued progress on key renewals and expansions
across all regions. The Company has good visibility going into the second
half, supported by a robust order book, a growing pipeline, and the typical H2
weighting of term licence renewals and services delivery.
The Board remains confident in delivering further progress in FY26,
maintaining discipline on costs and cash conversion while continuing to
selectively invest in the growth of 1Streetworks, our US go-to-market strategy
and the next generation of our industry leading platform.
Claire Milverton
Chief Executive Officer
Financial performance
Summary
The Group delivered a satisfactory financial performance during the period,
marked by continued growth in recurring revenues and a further shift towards
subscription-based income streams. Enhanced sales capabilities and a focus on
higher-quality contracts contributed to increased revenues, while cost
management remained disciplined. The business continues to invest in its sales
resources to secure long-term, high-value contracts and drive sustained
pipeline growth.
Revenue
Group revenue grew by 9% to £17.65m in HY26, up from £16.24m in the same
period last year. The Group's strategic focus is on transitioning to a
recurring revenue model, prioritising term licence and SaaS sales from
repeatable business solutions over perpetual licences and services. Recurring
revenue increased by 20% to £10.7m from £8.9m and now represents
approximately 61% of Group revenues (H1 2025: 55%). The revenue by type is
shown below:
Revenue by type
H1 2026 H1 2025 % change
Recurring revenue (term licences, SaaS + S&M) 10.70 8.91 20%
Services 6.81 6.85 (1%)
Revenue (excluding perpetual licences) 17.51 15.76 11%
Perpetual licences 0.14 0.48 (71%)
Total revenue 17.65 16.24 9%
Growth in term licence and SaaS ARR
We drive growth across our portfolio through continued expansion in term
licence sales and the conversion of our significant SaaS pipeline. In the
twelve months to 31 July 2025, the annualised value of term licences and SaaS
solutions grew by 31%, with SaaS delivering exceptional growth of 604%.
H1 2026 H1 2025 Growth
ARR for term licences 9.34 8.24 13%
ARR for SaaS solutions 1.76 0.25 604%
ARR for licences - total 11.10 8.49 31%
Annualised Recurring Revenue
Annualised Recurring Revenue (ARR) grew by 11%, from £17.92m at 31 July 2024
to £19.87m at 31 July 2025. Growth rates varied by region, with Australia
delivering the strongest performance at 31%. Renewal rates remain robust at
approximately 94%.
ARR by region
H1 2026 H1 2025 Growth
UK/Ireland 7.82 7.07 11%
Europe 6.27 5.80 7%
US 3.36 3.21 5%
Australia 2.42 1.84 31%
Total ARR 19.87 17.92 11%
Committed services revenue
Committed services revenue decreased by 22%, from £14.5m to £11.3m in H1
2026, reflecting the planned delivery of significant contracts previously
secured in Europe. However, the backlog remains strong and provides revenue
visibility for the rest of the year and into FY27.
The combination of growing ARR, a healthy backlog of committed services
revenue, and a strong pipeline of opportunities positions the business well to
achieve its revenue growth objectives. The Company's strategic focus on
developing and selling repeatable software solutions enables the Board to
invest with confidence.
Regional revenue
Revenue by region is shown in the table below:
Regional revenue
H1 2026 H1 2025 Growth %
UK/Ireland 7.25 5.86 23%
Europe 5.80 5.69 2%
US 2.61 2.53 4%
Australia 1.99 2.16 (9%)
17.65 16.24 9%
We are pleased to report a 9% increase in revenue driven primarily by
double-digit growth in the UK&I following significant contract wins and
expansions. While the Australia region experienced a decline of 9% compared to
the prior year, we anticipate continued growth in all regions in the full year
through increased sales of higher-margin, proprietary technology sold under
term license agreements.
Gross profit margin
Gross profit for the period increased by 4% to £8.8m (H1 FY25: £8.5m). As
a result of a higher proportion of lower-margin third-party term licence sales
with certain strategically important government customers in H1, the gross
profit margin reduced to 49.7% (HY25: 52.2%). While the business is making
planned investments to support future revenue growth, the management team
continue to focus on driving improvements to gross margin levels through sale
of higher-margin proprietary term licences and SaaS products.
Adjusted EBITDA
Adjusted EBITDA increased slightly to approximately £2.1m, with EBITDA margin
slightly lower year‑on‑year. Targeted investment in people remains
critical to deliver strategic sales, and we will continue to invest. We
expect a stronger second half, reflecting the typical weighting of term
licence renewals and increased revenue from major European programmes, with
our sales teams well positioned to drive term licence and SaaS growth.
Operating profit
The Group recorded an operating result of £0.0m, broadly in line with the
previous year.
Taxation
The tax charge for the period was £0.1m (H1 2025: £0.1m).
Balance sheet
The Group's net assets increased to £18.4m at 31 July 2025 (H1 2025:
£18.2m). The primary driver of this increase was a rise in intangible assets
to £22.5m (H1 2025: £20.5m) offset by the increase in bank borrowings to
£5.9m (H1 2025: £3.6m).
The increase in the net intangible asset balance is primarily due to
investment in products specifically for UK Government customers which remain
under development. Product release is expected in Q1 2027. Development costs
capitalised on all other products are at least offset by their amortisation
charges. The net intangible asset balance is expected to decrease from next
financial year.
In H1 2026 the Group negotiated loan finance for the specific purpose of
developing product for the French government contract expected to be awarded
in coming months.
Cash flow
As at 31 July 2025, the Group had net borrowings of £2.5m. This represents an
increase in the net debt position of £1.5m compared to 31 January 2025, and
£1.7m on 31 July 2024. The main components of the cash flows in the first
half of the year are attributable to the following movements:
· Cash generated from operations increased to £1.5m in the first
half of 2025, up from £1.3m in the same period last year. This was primarily
driven by similar EBITDA and favourable working capital movements due to the
timing of payments and receipts.
· Capitalised expenditure on software, product development, and
intellectual property amounted to £2.2m for the first half of the year
compared to £2.1m for the same period last year. We expect lower capitalised
R&D spending in the current year due to in year restructuring.
· Expenditure on PPE, lease payments and net tax payments remained
broadly consistent with last year at approximately £0.5m while interest paid
increased to £0.3m due to the drawn RCF.
· In H1 FY25, a contract with a major European customer
necessitated the deposit of £0.4m in escrow. This amount is scheduled to be
repaid to us in instalments throughout the contract term.
The first six months are typically cash-consumptive due to the timing of
renewals and investment in research and development. This year, the first half
benefited from cash collected ahead of expected payment dates, resulting in
better-than-expected cash performance and an improvement compared to the same
period last year. The high weighting of renewals in the fourth quarter is
expected to support higher gross cash inflows in H2, consistent with previous
years.
Free cash flow H1 2026 H1 2025
£'000 £'000
Cash generated from operations 1,500 1,259
Expenditure on software, product development and intellectual property (2,191) (2,096)
capitalised
Lease payments (331) (391)
Purchase of property, plant and equipment (80) (133)
Net interest paid (312) (228)
Net tax paid (49) (34)
Bank guarantee - (385)
Free cash flow (1,463) (2,008)
Financing
The Group maintains a £5.4m Revolving Credit Facility to support its working
capital needs. The secured facility, renewed in May 2024, has a three-year
commitment period and is priced on competitive terms. As at 31 July 2025,
£4.5m was drawn from the facility.
In addition to the Group's Revolving Credit Facility, €1.5 million of French
government-backed loans were drawn during the period. These loans are
specifically allocated to support development activities required under the
large contract with the French government. The loans carry competitive
interest rates and are repayable over a five-year term.
Condensed consolidated statement of comprehensive income
Six months ended 31 July 2025
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
31 July 2025 31 July 2024 31 January 2025
Note £'000 £'000 £'000
Revenue 4 17,653 16,246 33,383
Cost of sales (8,847) (7,759) (14,842)
Gross profit 8,806 8,487 18,541
Administrative expenses (8,808) (8,421) (17,669)
(2) 66 872
Adjusted EBITDA 3 2,102 2,009 5,616
Less: depreciation (66) (71) (149)
Less: depreciation on right of use asset (294) (342) (743)
Less: amortisation and impairment of intangible assets 8 (1,532) (1,484) (3,305)
Less: share-based payment charge (24) (46) (11)
Less: strategic, integration and other non-recurring items (188) - (536)
Operating profit/(loss) (2) 66 872
Finance income 7 9 22
Finance cost (319) (237) (677)
Net finance cost (312) (228) (655)
(Loss)/profit before tax (314) (162) 217
Income tax charge 5 (20) (34) (50)
(Loss)/profit for the period (334) (196) 167
Other comprehensive income
Items that may subsequently be reclassified to profit or loss: - - (2)
Actuarial gains/(losses) arising on defined benefit pension, net of tax - - -
Exchange differences on translating foreign operations 215 (70) (128)
Other comprehensive (loss)/income for the period, net of tax 215 (70) (130)
Total comprehensive (loss)/gain for the period attributable to the equity (119) (266) 37
shareholders of the Parent
(Loss)/profit per ordinary share from continuing operations attributable to
the equity shareholders of the Parent during the period (expressed in pence
per ordinary share):
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
31 July 2025 31 July 2024 31 January 2025
Basic (loss)/earnings per share 6 (0.3) (0.2) 0.2
Diluted (loss)/earnings per share 6 (0.3) (0.2) 0.1
Condensed consolidated statement of financial position
As at 31 July 2025
Unaudited Audited Unaudited
As at As at As at
31 July 2025 31 January 2025 31 July 2024
Note £'000 £'000 £'000
Assets
Non-current assets
Intangible assets including goodwill 8 22,458 21,512 20,451
Property, plant and equipment 277 266 257
Right-of-use assets 1,164 1,190 1,003
Restricted cash 460 460 460
Total non-current assets 24,359 23,428 22,171
Current assets
Trade and other receivables 9 15,106 14,386 12,556
Cash and cash equivalents 10 3,733 3,627 3,111
Total current assets 18,839 18,013 15,667
Total assets 43,198 41,441 37,838
Liabilities
Current liabilities
Bank borrowings 10 (380) (369) (319)
Trade and other payables 11 (15,319) (14,956) (12,992)
Current income tax payable (124) (171) (25)
Lease liabilities (497) (422) (363)
Provisions (316) (316) -
Total current liabilities (16,636) (16,234) (13,699)
Non-current liabilities
Bank borrowings 10 (5,876) (4,273) (3,647)
Lease liabilities (791) (911) (737)
Provisions - (75) -
Defined benefit pension obligation (1,266) (1,226) (1,238)
Deferred tax (236) (241) (337)
Total non-current liabilities (8,169) (6,726) (5,959)
Total liabilities (24,805) (22,960) (19,658)
Net assets 18,393 18,481 18,180
Share capital and reserves
Share capital 12 20,194 20,191 20,179
Share premium account 30,601 30,597 30,577
Own shares held (14) (14) (14)
Equity-settled employee benefits reserve 4,124 4,100 4,135
Merger reserve 16,465 16,465 16,465
Reverse acquisition reserve (11,584) (11,584) (11,584)
Currency translation reserve 393 178 235
Accumulated losses (41,309) (41,975) (41,336)
Purchase of non-controlling interest reserves (477) (477) (477)
Equity attributable to shareholders of the Parent company 18,393 18,481 18,180
Total equity 18,393 18,481 18,180
Condensed consolidated statement of changes in equity
Period ended 31 July 2025
Share capital Share premium Own shares held Equity-settled employee benefits reserve Merger reserve Reverse acquisition reserve Currency translation reserve Purchase of non-controlling interest reserve Accumulated losses
account
£'000 Total
equity
Balance at 31 January 2024 (Audited) 20,155 30,508 (14) 4,089 16,465 (11,584) 305 (477) (41,140) 18,307
Comprehensive income/(loss)
Profit for the year - - - - - - - - 167 167
Other comprehensive income/(loss)
Actuarial gains arising on defined benefit pension - - - - - - - - (2) (2)
Exchange differences on translating foreign operations - - - - - - (127) - - (127)
Total other comprehensive (loss)/income - - - - - - (127) - (2) (129)
Total comprehensive (loss)/income - - - - - - (127) - 165 38
Transactions with owners recognised directly in equity
Recognition of share-based payments - - - 11 - - - - - 11
Issue of shares held in treasury (including exercise of share options) 36 89 - - - - - - - 125
36 89 - 11 - - - - - 136
20,191 30,597 (14) 4,100 16,465 (11,584) 178 (477) (40,975) 18,481
Balance at 31 January 2025 (Audited)
Comprehensive income/(loss)
Profit for the period - - - - - - - - (334) (334)
Other comprehensive income
Exchange differences on translating foreign operations - - - - - - 215 - - 215
Total other comprehensive (loss)/income - - - - - - 215 - (334) (119)
Total comprehensive (loss)/income - - - - - - 215 - (334) (119)
Transactions with owners recognised directly in equity
Recognition of share-based payments - - - 24 - - - - - 24
Issue of share capital 3 4 7
3 4 - 24 - - - - - 31
20,194 30,601 (14) 4,124 16,465 (11,584) 393 (477) (41,309) 18,393
Balance at 31 July 2025 (Unaudited)
Share capital Share premium Own shares held Equity-settled employee benefits reserve Merger reserve Reverse acquisition reserve Currency translation reserve Accumulated losses
account
£'000 Purchase of non-controlling interest reserve Total
equity
Balance at 31 January 2024 (Audited) 20,155 30,508 (14) 4,089 16,465 (11,584) 305 (477) (41,140) 18,307
Comprehensive loss
Profit for the period - - - - - - - - (196) (196)
Other comprehensive (loss)/income
Exchange differences on translating foreign operations - - - - - - (70) - - (70)
Total other comprehensive (loss)/income - - - - - - (70) - (196) (269)
Total comprehensive (loss)/income - - - - - - (70) - (196) (269)
Transactions with owners recognised directly in equity
Recognition of share-based payments - - - 46 - - - - - 46
Issue of share capital 24 69 93
24 69 - 46 - - (70) - (196) (130)
20,179 30,577 (14) 4,135 16,465 (11,584) 235 (477) (41,336) 18,180
Balance at 31 July 2024 (Unaudited)
Condensed consolidated statement of cash flows
Period ended 31 July 2025
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
31 July 2025 31 July 2024 31 January 2025
Note £'000 £'000 £'000
Cash flows from operating activities
Cash generated from operations 10 1,500 1,259 4,942
Interest received 7 9 22
Interest paid (319) (237) (677)
Tax paid (49) (34) (218)
Tax received - - -
Deposit - (385) 75
Net cash from operating activities 1,139 612 4,144
Cash flows from investing activities
Purchase of property, plant and equipment (80) (133) (216)
Expenditure on product development and intellectual property capitalised (2,191) (2,096) (4,839)
Performance deposit - - (460)
Net cash used in investing activities (2,271) (2,230) (5,515)
Cash flows from financing activities
Proceeds from loans and borrowings 1,796 1,120 2,120
Repayment of loans and borrowings (202) (318) (633)
Repayment of lease obligations (331) (391) (843)
Net proceeds from share issue 7 93 125
Net cash used in financing activities 1,270 504 769
Net increase / (decrease) in cash and cash equivalents 138 (1,114) (602)
Cash and cash equivalents at start of period 3,627 4,260 4,260
(32) (35) (31)
Effects of foreign exchange on cash and cash equivalents
Cash and cash equivalents at end of period 10 3,733 3,111 3,627
Notes to the Interim Financial Statements
1. Principal activity
1Spatial plc is a public limited company which is listed on the AIM London
Stock Exchange and is incorporated and domiciled in the UK. The address of
the registered office is Unit F7, Stirling House, Cambridge Innovation Park,
Denny End Road, Waterbeach, Cambridge, CB25 9PB. The registered number of the
Company is 5429800.
The principal activity of the Group is the development and sale of software
along with related consultancy and support.
2. Basis of preparation
This condensed consolidated interim financial report for the half-year
reporting period ended 31 July 2025 has been prepared in accordance with UK
adopted IAS 34 Interim Financial Reporting. The interim report does not
include all the information required for a complete set of IFRS financial
statements. Accordingly, this report is to be read in conjunction with the
annual report for the year ended 31 January 2025 and any public announcements
made by 1Spatial Plc during the interim reporting period. The annual financial
statements of the Group were prepared in accordance UK adopted international
accounting standards.
The accounting policies adopted in the preparation of the interim financial
statements are consistent with those followed in the preparation of the
Group's consolidated financial statements as at and for the year ended 31
January 2025.The Group has not early adopted any standard, interpretation or
amendment that has been issued but is not yet effective.
Several amendments and interpretations apply for the first time in 2025, but
do not have a material impact on the interim financial statements of the
Group.
The financial information for the six months ended 31 July 2025 and 31 July
2024 is neither audited nor reviewed and does not constitute statutory
financial statements within the meaning of section 434(3) of the Companies Act
2006 for 1Spatial plc or for any of the entities comprising the 1Spatial
Group. Statutory financial statements for the preceding financial year ended
31 January 2025 were filed with the Registrar and included an unqualified
auditors' report.
After making enquiries, the Directors have a reasonable expectation that the
Company and the Group have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the half-yearly condensed consolidated
financial statements.
These interim financial statements were authorised for issue by the Company's
Board of Directors on 12 October 2025.
3. Alternative Performance Measures ('APMs')
The Group uses certain Alternative Performance Measures 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 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. A description of the measures set out above is
included below with a reconciliation to the closest GAAP measure included in
the notes to the consolidated condensed interim financial report.
APM Explanation of APM
Recurring Revenue (s) Recurring Revenue is the value of committed recurring contracts for term
licences and support & maintenance recorded in the year.
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 &
maintenance.
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.
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.
Free cashflow Free cash flow is defined as net increase/(decrease) in cash for the year
before cash flows from the acquisition of subsidiaries, cash flows from new
borrowings and repayments of borrowings and cash flow from new share issue.
But excludes lease liabilities.
Net cash/(borrowings) Net cash/(borrowings) is gross cash less bank borrowings.
Recurring Revenue H1 2026 H1 2025 FY2025
Total Revenue 17,653 16,246 33,383
Adjustments:
Services (6,810) (6,851) (11,792)
Perpetual Licences - own (26) (51) (103)
Perpetual Licences - third party (121) (436) (759)
Recurring Revenue 10,696 8,908 20,729
Annualised Recurring Revenue H1 2026 H1 2025 FY2025
Recurring Revenue 10,696 8,908 20,729
Adjustments:
Timing differences on Net New Revenue in period 9,175 9,014 (1,026)
Annualised Recurring Revenue 19,871 17,922 19,703
Adjusted EBITDA H1 2026 H1 2025 FY2025
(Loss)/profit before tax (314) (162) 217
Adjustments:
Depreciation 360 413 892
Amortisation and impairment of intangible assets 1,532 1,484 3,305
Share-based payment charge 24 46 11
Strategic, integration and other one-off items 188 - 536
Net finance cost 312 228 655
Adjusted EBITDA 2,102 2,009 5,616
Operating Cashflow H1 2026 H1 2025 FY2025
Cash generated from operations 1,500 1,259 4,942
Adjustments:
Cash flow on strategic, integration and other non-recurring items 212 - 123
Cash generated from operations before strategic, integration and other 1,712 1,259 5,065
non-recurring items
Free cash flow H1 2026 H1 2025 FY2025
Cash generated from operations before strategic, integration and other 1,712 1,259 4,942
non-recurring items
Adjustments:
Net interest paid (312) (228) (655)
Net tax (paid)/received (49) (34) (218)
Deposits (385)
Expenditure on product development and intellectual property capitalised (2,191) (2,096) (4,839)
Purchase of property, plant and equipment (80) (133) (216)
Lease payments (331) (391) (843)
Free cash flow before strategic, integration and other non-recurring items (1,251) (1,623) (2,214)
Cash flow on strategic, integration and other non-recurring items (212) - (123)
Free cash flow (1,463) (1,623) (2,337)
Net Cash H1 2026 H1 2025 FY2025
Cash and cash equivalents 3,733 3,111 3,627
Adjustments:
Bank Borrowings - current (380) (319) (369)
Bank Borrowings - non-current (5,876) (3,647) (4,273)
Net Borrowings (2,523) (855) (1,015)
4. Revenue
The following table provides an analysis of the Group's revenue by type:
Revenue by type
H1 2026 H1 2025
£000 £000
SaaS Solutions 0.76 0.20 280%
Term licences - own 2.55 2.94 (13%)
Term licences - third party 3.14 1.15 173%
SaaS and Term licences - total 6.45 4.29 50%
Support & maintenance 4.25 4.62 (8%)
Recurring revenue 10.70 8.91 20%
Services 6.81 6.85 (1%)
Perpetual licences - own 0.03 0.05 (40%)
Perpetual licences - third party 0.11 0.43 (72%)
Perpetual licences - total 0.14 0.48 (69%)
Total revenue 17.65 16.24 9%
Percentage of recurring revenue 61% 55%
5. Taxation
The tax charge on the result for the six months ended 31 July 2025 is based on
the estimated tax rates in the jurisdictions in which the Group operates for
the year ending 31 January 2026.
6. (Loss)/earnings per share
Basic (loss)/earnings per share is calculated by dividing the (loss)/profit
attributable to equity holders of the Company by the weighted average number
of ordinary shares in issue during the period.
Unaudited Unaudited Audited
Six months ended Six months ended
31 July 2025 31 July 2024 Year ended
31 January 2025
£'000 £'000 £'000
(Loss)/profit attributable to equity holders of the Parent (334) (196) 167
Number Number Number
000s 000s 000s
Ordinary shares with voting rights 111,427 110,889 111,063
Basic weighted average number of ordinary shares 111,351 110,859 111,063
Impact of share options/LTIPs 2,765 4,569 3,848
Diluted weighted average number of ordinary shares 114,116 115,459 114,911
Unaudited Unaudited Audited
Six months ended Six months ended
31 July 2025 31 July 2024 Year ended
31 January 2025
Pence Pence Pence
Basic (loss)/earnings per share (0.3) (0.2) 0.2
Diluted (loss)/earnings per share (0.3) (0.2) 0.1
There is no material difference between basic earnings per share and diluted
earnings per share.
7. Dividends
No dividend is proposed for the six months ended 31 July 2025 (31 January
2025: nil; 31 July 2024: nil).
8. Intangible assets including goodwill
Goodwill Brands Customers and related contracts Software Development costs Intellectual property Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 February 2025 17,407 450 4,560 6,649 35,198 83 64,347
Additions - - - - 2,191 - 2,191
Effect of foreign exchange (61) 7 112 110 381 - 549
At 31 July 2025 17,346 457 4,672 6,759 37,770 83 67,087
Accumulated impairment and amortisation
At 1 February 2025 11,338 358 4,085 5,640 21,381 32 42,834
Amortisation - 11 65 112 1,342 2 1,532
Effect of foreign exchange 44 4 98 80 277 - 503
At 31 July 2025 11,382 373 4,248 5,832 23,000 34 44,869
Net book amount at 5,964 84 424 927 14,770 49 22,218
31 July 2025
Goodwill Brands Customers and related contracts Software Development costs Intellectual property Total
£'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 - - - 23 2,096 - 2,119
Effect of foreign exchange (91) (3) (44) (43) (175) - (356)
At 31 July 2024 17,358 452 4,586 6,675 32,429 83 61,583
Accumulated impairment and amortisation
At 1 February 2024 11,409 338 3,997 5,465 18,631 29 39,869
Amortisation - 11 74 114 1,283 2 1,484
Effect of foreign exchange (44) (1) (36) (30) (110) - (221)
At 31 July 2024 11,365 348 4,035 5,549 19,804 31 41,132
Net book amount at 5,993 104 551 1,126 12,625 52 20,451
31 July 2024
Goodwill Brands Customers and related contracts Software Development costs Intellectual property Total
£'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
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
9. Trade and other receivables
As at As at As at
31 July 2025 31 January 2025 31 July 2024
Current £'000 £'000 £'000
Trade receivables 3,669 4,708 3,892
Less: provision for impairment of trade receivables (16) (16) (19)
3,653 4,692 3,873
Other receivables 1,127 1,205 1,403
Prepayments and accrued income 10,326 8,489 7,280
15,106 14,386 12,556
10. Notes to the condensed consolidated statement of cash flows
a) Cash used in operations
Unaudited Unaudited Audited
Six months ended Six months ended
31 July 2025 31 July 2024 Year ended
31 January 2025
£'000 £'000 £'000
Profit/(loss) before tax (313) (162) 217
Adjustments for:
Net finance cost 312 228 655
Depreciation 360 413 892
Amortisation of acquired intangibles 182 192 395
Amortisation and impairment of development costs 1,350 1,292 2,910
Share-based payment charge 24 46 11
Decrease/(increase) in trade and other receivables (566) 98 (1,658)
(Decrease)/increase in trade and other payables 151 (882) 1,536
Increase/(decrease) in defined benefit pension obligation - 34 (16)
Net foreign exchange movement - - -
Cash from operations 1,500 1,259 4,942
b) Reconciliation of net cash flow to movement in net funds
Unaudited Unaudited Audited
As at As at As at 31 January 2025
31 July 2025 31 July 2024
£'000 £'000 £'000
Increase/ (decrease) in cash in the period 138 (1,113) (602)
Changes resulting from cash flows 138 (1,113) (602)
Net cash inflow in respect of new borrowings (1,796) (1,120) (2,120)
Net cash outflow in respect of borrowings repaid 202 318 633
Effect of foreign exchange (52) (19) (5)
Change in net funds (1,508) (1,934) (2,094)
Net funds at beginning of period (1,015) 1,079 1,079
Net funds at end of period (2,523) (855) (1,015)
Analysis of net funds
Cash and cash equivalents classified as:
Current assets 3,733 3,111 3,627
Bank and other loans (6,256) (3,966) (4,642)
Net funds at end of period (2,523) (855) (1,015)
Net funds are defined as cash and cash equivalents net of bank loans.
11. Trade and other payables
As at As at As at
31 July 2025 31 January 2025 31 July 2024
Current £'000 £'000 £'000
Trade payables 4,978 4,627 3,392
Other taxation and social security 3,494 3,269 2,846
Other payables 275 211 387
Accrued liabilities 1,487 907 1,087
Deferred income 5,085 5,942 5,279
15,319 14,956 12,992
12. Share capital
As at As at As at
31 July 2025 31 January 2025 31 July 2024
£'000 £'000 £'000
Allotted, called up and fully paid
111,427,204 (FY 2025: 111,317,829 H1 FY 2025: 111,197,390) ordinary shares of 11,126 11,123 11,211
10p each
226,699,878 (FY 2025 and H1 FY 2025: 226,699,878) deferred shares of 4p each 9,068 9,068 9,068
20,194 20,191 20,179
There are 111,427,204 ordinary shares of 10p in issue, of which 15,399
ordinary shares are held in treasury. Consequently, the total number of voting
rights is 111,411,805.
The deferred shares of 4p each do not carry voting rights or a right to
receive a dividend. Accordingly, the deferred shares will have no economic
value.
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