1Spatial expecting strong growth in final results

Location software specialist 1Spatial flagged strong results for the financial year recently ended on Monday.

The AIM-traded company said that according to its unaudited accounts, total revenue for the 12 months ended 31 January was set to be at least £29.8m, up from £27.0m year-on-year.

Around 50% of total turnover was represented by recurring revenue, an increase from 45% in the 2022 fiscal period.

Within recurring revenues, term licence revenue was ahead about 80% at £5.2m, while the US was the most significant contributor to annualised recurring revenue growth, delivering 45% growth year-on-year at constant currency.

Despite inflationary cost increases, adjusted EBITDA was expected to be no less than £4.9m, an increase from £4.2m in the prior year, and profit before tax was anticipated to be at least £0.9m, up from £0.2m.

The group said it generated cash from operations of £5.3m, an increase from £2.5m, and continued to invest in the expansion of sales, delivery, and cloud technology teams.

Net cash at year end would be at least £3m, compared to the £2.3m it recorded on 31 July, after the final payment in the second half of the £0.3m in deferred consideration for the acquisition of Geomap Imagis.

Looking ahead, 1Spatial said it was continuing to invest in its software-as-a-service (SaaS) solutions, and trials for those, including Traffic Management Plan Automation (TMPA) in the UK and NG911 in the US, were said to be progressing well.

With a healthy sales pipeline, a strong order book, and increased recurring revenues, the board said it was confident that the progress made over the last year would continue.

“Our strong performance in the year, fuelled by a number of contract wins, demonstrates that 1Spatial and location data sits right at the heart of the digital transformation taking place across multiple sectors,” said chief executive officer Claire Milverton.

“We had a good end to our financial year and this momentum has continued into the 2024 financial year.

“Whilst cognisant of inflationary pressures, we believe the investments we are making in our people and technology will enable us to capitalise on the significant market opportunity and, we look to the future with confidence.”

1Spatial said it would announce its audited results for the year ended 31 January on 26 April.

At 1439 GMT, shares in 1Spatial were down 3.83% at 50.01p.

Reporting by Josh White for Sharecast.com.