1Spatial Plc – Interim Results

1Spatial Plc – Interim Results


·    Good progress during the period, with underlying growth in existing Solutions business, completion of strategic acquisition Geomap-Imagis ("GI") and further investment in its strategic cloud-based SaaS platform

·    Acquisition of GI in France for £6m coupled with the signing of a significant global commercial partnership agreement with Esri Inc.  The acquisition, partly funded by an oversubscribed placing of £2.9m, is immediately earnings-enhancing and integrating well.

·     Adjusted EBITDA at £1.7m, an increase of 170% YoY (including 3 months of GI post-acquisition results and IFRS 16 'Leases' adjustments)

·      Development of strategic multi-tenancy cloud-based SaaS platform for LMDM Application Services

·      As a result we are confident of delivering full year results in line with expectations


Half-year to

Half-year to

31 July 19

31 July 18







Continuing operations






Gross profit





Adjusted* EBITDA





Operating loss





Loss after tax





Continuing operations on a like-for-like ("LFL") basis

Revenue - existing business





Revenue - acquisition (3 months)



Total revenue



Adjusted* EBITDA - existing business





Adjusted* EBITDA - acquisition (3 months)



Adjusted* EBITDA impact of IFRS 16 'Leases'



Total Adjusted EBITDA




* Adjusted for strategic, integration, other irregular items and share-based payment charge 


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

"Today's results demonstrate that 1Spatial is coming to the end of the three-year turnaround phase of our vision for the business. We have improved visibility of recurring revenues and growth in profits. 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.

Looking forward we believe the future is extremely exciting.  We are looking to accelerate growth, improve our customer proposition and invest in repeatable spatial solutions. Our goal is to  become a market leader in Location Master Data Management through our strategic cloud-based SaaS platform.  The platform we have now laid provides the Company with opportunities perfectly suited to our heritage and innovation abilities, providing significant potential for accelerating growth."


Financial highlights



·      Higher-quality revenues:

Strategic shift from perpetual revenues in prior half-year to term revenues

Good visibility on future results with over 43% of run-rate revenue now recurring with both a strong pipeline and a significant order backlog at 31 July 2019

·      Revenue growth in existing business of £0.1m despite strategic shift from perpetual to term licencing.  The revenue can be split into two streams as follows:

Core spatial Solutions revenues of £6.4m (72% of total existing business revenue) increased by £0.5m (8%) - progress in all geographies

Non-core GIS (Geographic Information System) revenues of £2.5m (28% of total existing business revenue) decreased by £0.4m (13%) in line with management expectations, and will transition to Solutions revenues following the acquisition of GI

·      3-month revenue contribution from the acquisition of GI of £2m



·   Like-for-like Adjusted* EBITDA of £0.8m in existing business (both Solutions and GIS) in line with management's expectations for the half-year

·     Significant contribution from GI acquisition to adjusted* EBITDA of £0.5m in the first 3 months.

·    Operating loss improved by £0.1m to £0.6m despite an increased share-based payment charge for new share-based plans issued in September 2018, an increase in amortisation of intangible assets and one-off deal costs in relation to the acquisition of GI



·     Cash and cash equivalents of £4m at 31 July 2019 with net cash of £3.3m

·     £2.9m (net) raised from shareholders and £1.5m of own cash resources used to fund the initial acquisition payment for GI (£4.4m in total)

·     Cash used in operations, including one-off deal costs for acquisition, of £1.8m

Operating cash outflow of £1.9m before strategic, integration and other exceptional items, reflecting our seasonal renewal cycle and a concentration of sales being delivered/closed in June/July with resulting cash being received in the second half

·     In August and September 2019, €1.8m of bank loans were secured to provide additional working capital during seasonal cycles and support the integration phases of the French acquisition


Acquisition of Geomap-Imagis group

·    Total consideration of £6m of which £4.4m paid in cash and £0.6m of shares issued upon completion in May 2019.  A further £0.6m to be paid in cash 13 months following completion and £0.4m of shares to be issued in March 2023

·    GI is a geospatial solutions company based in France and an Esri Gold partner.  GI have a number of innovative solutions built on the Esri platform and a 4D infrastructure solution on their own platform

·    The strategic acquisition supported the Global partner agreement that 1Spatial signed with Esri in May 2019, which provided a migration path for existing 1Spatial customers in France and Belgium as well as training on the Esri platform


Operational highlights

Continued investment in technology and multi-tenancy cloud-based SaaS platform to maintain our leading position in the industry  

·     Dedicated team focussed on the development of our strategic multi-tenancy cloud-based SaaS platform for Application Services including Location Master Data Management (LMDM)

·     Continued development of our core solutions and consolidation of technology suite post-acquisition of GI

Spatial Solutions business

·    Growth in Spatial Solutions business continued, driven by  strategy of "land and expand" within the three key sectors of Government, Utilities and Transportation

·    The integration of GI is on track, with initial cost synergies already actioned and taking effect.  Additional cost and revenue synergies have been identified and the majority of these are expected to take effect from the start of the next financial year

·     New significant customer wins in:

§ Government

o    France- Sale of Arcopole software solution to a number of local governments for €0.4m

o   UK and Ireland - software and services contract for £0.9m to support Ireland's Property Registration Authority ("PRA") with the digital transformation of its land records

o    UK - No1 Aeronautical Information Documents Unit ("No1 AIDU") contract for over £1m for software and services

§ Utilities

o    UK - Contract with Enterprise Innovation Centre for development of a proof of concept for our Traffic Management Plan Automation solution for £0.4m

o    France (GI*) - Sale of Telco network management solutions to Mont-Blanc Tunnel Company for €0.2m

§ Transportation

o    France (GI*) - Road and street management solutions to county councils for €0.4m

o    USA - Expansion contract with Caltrans (California Department of Transport) for US$0.4 to improve their Transport Asset Management database

*Sales made since acquisition by 1Spatial


Post balance sheet events

·    Significant contract wins across all geographies including a strategic win with the Greater London Authority on the London Underground Asset Register (LUAR) pilot contract, following a competitive tender process

·   €1.8m of bank loans were secured in August and September 2019 providing additional working capital during seasonal cycles and supporting the integration phases of the French acquisition

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