1Spatial to deliver FY loss, sells Avisen business

AIM-listed spatial data company 1Spatial warned on Tuesday that it now expects to deliver an adjusted loss for the full year to the end of January 2017 due to slippage in a number of contracts.

1Spatial said that while its sales pipeline and order book remain robust, due to a number of factors, including transitioning the business model to one of annualised revenues and the extension of the industry sales cycles, timing of certain key contracts is now expected to fall into 2017.

As result, it now expects to deliver a marginal adjusted earnings before interest, taxes, depreciation and amortisation loss for the year.

Still, the group said it expects to end the financial year “comfortably within” its current banking facilities.

In addition, the company announced that as part of its strategic review, it will sell its Avisen business for £100,000 receivable in 12 months’ time and close its Storage Fusion business.

“1Spatial has taken a proactive approach to the short term challenge it faces, assessing both the cost base and assets of the company, as management seek to preserve cash and maintain its core focus.”

At 0953 GMT, the shares were down 28% to 1.99p.