1Spatial revenues ahead despite macro challenges
Based on unaudited financial results, the Group reports another year of significant progress against its strategic objectives; to build a software company solving complex geospatial data challenges which in turn drives higher margin recurring software revenue.
Revenues continue to increase, with growth to c.£33.4 million (FY2024: £32.3m) during FY2025.
1Spatial exceeded expectations from software sales (term licence and SaaS), with this higher gross margin revenue increasing by over 35 per cent to £11.5m (£8.5m). Recurring revenue for FY2025 was approximately £21m, accounting for c.62 per cent of total revenue recorded (56 per cent).
1Spatial reports a greater than expected decrease in services revenue, primarily due to a delay in the start of a large Belgian contract announced in February 2024.
Although delivery on this contract is underway and activity continues to increase, the initial delay impacted the overall pace of growth across the group.
The impact of lower services revenues on Adjusted EBITDA was offset by the business mix of higher margin software revenues coupled with a reduced cost base.
Adjusted EBITDA is expected to be at least £5.6m (FY2024: £5.5m). These results have been delivered against a backdrop of contract delays due to governmental changes in the UK and US.
The Group’s net borrowings were £1.1m on 31 January 2025 – identical to the previous year. A £2.2m outflow is predominantly due to an expansion in working capital movement anticipated to reverse in FY2026 and a financial bond for the large Belgian contract noted above.
Finance charges were also higher than anticipated due to increased interest rates and drawdown of the bank facility.
1Spatial says the new financial year has begun positively with a number of new customer contracts in the final stages of negotiation. The company says it is pleased to receive industry recognition for its 1Streetworks SaaS solution and maintains a robust pipeline for new business and renewals, with a third significant contract for 1Streetworks expected to be announced in Q1.
The investment in further sales resource and new leadership in the UK gives the Board confidence in making further progress in FY2026.
1Spatial CEO, Claire Milverton, said: “We’ve made some good progress across the Group this year and I’m especially pleased that we’ve delivered an increase in software revenues ahead of our expectations, as well as reporting the first significant sales of our higher margin 1Streetworks SaaS solution, with a further material contract in advanced negotiations.
“With recurring revenue now accounting for 62 per cent of total revenue, the investments that we’ve made in our software platform as well as new sales resource and leadership hires, means we look forward to a positive year ahead.”
