1Spatial loss narrowed following Geomap-Imagis acquisition

1Spatial on Monday reported a narrowed interim loss before tax as revenue increased on the back of its acquisition of Geomap-Imagis Group.

The location data software provider booked a loss before tax of £0.7m for the six month period ended 31 July, compared to a loss of £0.8m in the same period the year before, as sales climbed by 23% to £10.9m.

Geomap-Imagis Group (GI), a geospatial solutions firm which the AIM traded company acquired for €7.0m in May, contributed £2.0m towards this revenue, while turnover from existing business increased by just 1% to £8.9m.

The period also saw the signing of a global commercial partnership agreement with geographic information system software provider Esri, which the company said will improve its market reach and ensure that customers have solutions which meet their business needs.

Chief executive Claire Milverton said that the results demonstrated that 1Spatial is coming to the end of the turnaround plan which it announced in January 2017.

"We are improving our technology and customer service proposition, and the acquisition of GI coupled with the significant commercial partnership with Esri has allowed us to align our French & Belgian business to the rest of the group, thereby executing on one of the last major strategic issues of the turnaround," said Milverton.

The company said it remained on track to meet its full-year expectations after the second half began with new contract wins in its target sectors of government, utilities and transportation.

1Spatial shares were up 5.13% at 35.74p at 0941 BST.