1Spatial points to growth in FY adjusted EBITDA

Software group 1Spatial says the transition of its business model is well underway, as it reported a wider first-half pre-tax loss and pointed to growth in full-year adjusted EBITDA.

The company booked a six-month pre-tax loss of £2.1m, from a year-earlier loss of £1.5. Revenue rose to £13.4m, from £8.4m.

"Geospatial sales bookings have increased by 30% during the period, now at £5.2m," said chief executive Marcus Hanke in a statement.

He added that revenues were significantly up on the prior year, however "due to revenue recognition, higher margin revenues from the Geospatial business were down and this impacted the overall Adjusted EBITDA."

Hanke said the monetisation of 1Spatial's development strategy of moving our portfolio of IP and developing a modular solution stack, was expected to be seen more clearly over the coming periods.

"Therefore, the full year results will have a greater weighting to the second half, particularly in the high margin Geospatial business," he added, pointing a strong pipeline and order book.

"Based on the current pipeline of licence deals due to the close in the second six months of the financial year, the board still expects to deliver growth in adjusted EBITDA for the full year to January 2017 in line with market expectations."

At 10:31 BST, shares in 1Spatial were down 3.23% to 3.75p.