1Spatial Plc – Final results for the year end

1Spatial Plc – Final results for the year end

The Board of directors of 1Spatial, the global spatial software and solutions company which manages the world’s largest spatial data is pleased to announce the Company and consolidated group’s audited final results for the year ended 31 January 2019.

Highlights             

Group financial highlights

  • Revenue grew 4.1% to £17.6m (2018: £16.9m).  On a like-for-like basis*, prior to the adoption of IFRS 15, revenue grew 5.3% to £17.8m
  • Adjusted** EBITDA grew £0.8m to £1.2m profit ahead of market expectations (2018: £0.4m profit)
  • Operating losses improved by £0.2m, from a £1.8m loss to a £1.6m loss
  • Disposal of Enables IT, creating single focus on development of the Group’s global Geospatial business
  • £8m raised in an oversubscribed fundraise with strong support from existing shareholders and new institutional investors
  • Post-period acquisition of Geomap-Imagis, strategic agreement with Esri and an oversubscribed £3.1m fundraise

 

31 January 2019

31 January 2018

Y-o-Y Change

Continuing operations

£m

£m

Revenue

17.6

16.9

4.1%

Gross profit

9.2

8.9

3.4%

Adjusted** EBITDA

1.2

0.4

200%

Operating loss

(1.6)

(1.8)

(11.1%)

Loss after tax

(1.4)

(1.2)

16.7%

Discontinued operations***

Loss after tax

(0.3)

(1.3)

(76.9%)

*  On a like-for-like basis, before adjustments for IFRS 15 ‘Revenue from Contracts with Customers’, at constant currency.  The IFRS 15 adjustment in the year ended 31 January 2019 decreases the GIS (Geographic Information System) business’ service revenues by £0.2m
** Adjusted for strategic, integration, other irregular items and share-based payment charge
*** Discontinued operations include Storage Fusion Limited, Enables IT Inc., Enables IT Limited and Enables IT Group Limited

Continuing operations

  • Revenues year-on-year, prior to the adoption of IFRS 15, increased £0.9m (5.3%) from £16.9m to £17.8m
    Solutions revenues increased £1.6m (15.1%)
    – GIS revenues decreased £0.7m (11.1%) 
  • Focus on driving higher quality revenue:
    – Licence revenues increased 33% to £1.6m (2018: £1.2m)
    – Strategic shift to term licences increasing recurring revenue base
    Support & maintenance revenues broadly maintained  
  • Increase in adjusted** EBITDA on prior year, up £0.8m to £1.2m profit (2018: £0.4m profit)
  • Improvement in operating losses to £1.6m (2018: £1.8m)
  • Cash used in operations of £0.7m (2018: cash from operations £0.2m)
    Operating cash inflows before strategic, integration and other irregular items, tax and interest of £0.5m (2018: £0.6m).

Discontinued operations

  • Loss from discontinued operations of £0.3m (2018: £1.3m loss)

All operations

  • Loss after tax of £1.7m (2018: £2.5m)
  • After £8m raised, net cash of £6.4m (2018: £0.3m)

Group operational highlights

  • Focussed approach to sales in three key sectors of Government, Utilities and Transportation, giving rise to key customer wins in the period as follows:
    UK
    – Transportation – major UK infrastructure client – following a Proof of Concept (“PoC”) in October 2017, delivery of an LMDM solution in excess of £2m
    – Government – Land and Property Services – five-year €1m contract for software and services secured
    – Utilities – Northern Gas Networks (“NGN”) – continuing with another three projects including mobile applications
    USA
    – Government – National Oceanic and Atmospheric Association (“NOAA”) – following a PoC in September 2017, contracting for a two-year term licence and services worth US$0.6m
    – Utilities – National Grid and East Bay Municipal Utility District – both being new customer wins, to provide both with 1Integrate software and services (US$0.2m annual value)
    – Facilities Management – Google – following a small PoC in 2017, one-year term licence and services deal was won for US$0.4m
  • Market-led innovation with returns on investment coming through in the last part of the year ended 31 January 2019 and significant returns anticipated in coming years, including:
    – Re-purposing and enhancing existing technology to address customer-specific needs
    – Continued development of Location Mobile Application Platform (LMAP)
    – Initial development phases of Location Master Data Management (SaaS) platform.

Post year-end highlights

  • Acquisition of Geomap-Imagis, announced on 7 May 2019, substantially strengthens and provides greater alignment of our French and Belgian business with the rest of the Group as a solutions provider
  • Since the year-end we have continued our momentum via a number of significant contract wins and renewals which will secure revenue for FY20 and beyond as follows:
    USA
    – Kansas State Department and Kansas Department of Transport – contracts to provide software and services in excess of US$0.2m
    – Google – this has now been extended with a further services draw-down contract for £0.3
    UK and Ireland
    – Ireland’s Property Registration Authority (“PRA”), to provide £0.9m of software and services to support PRA’s transformation of land records
    – No1 Aeronautical Information Documents Unit (“No1 AIDU”), with a value of over £1m
    – Three-year Framework contract with Ordnance Survey (“OS”), extending and enhancing the relationship with OS
    – Additional contracts with NGN in excess of £0.5m

Commenting on the results, 1Spatial CEO, Claire Milverton said:

“I am pleased to announce another solid year for 1Spatial with contract wins and renewals and continued financial progress, including an adjusted EBITDA performance ahead of market expectations.  Our focus on the quality of revenues and our strategic shift to term licences will have a positive impact on the visibility and quality of revenues in future years.

After the year-end, we announced the acquisition of Geomap-Imagis which will significantly strengthen and greater align our French and Belgian businesses with the rest of the Group.

Looking forward, we will continue to deliver on our growth strategy and the longer-term goal to establish a leading position in Location Master Data Management, which we believe will enhance the value of the Group in the future.”

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