1Spatial success cannot stem share price fall
Based on the unaudited financial results, the group said it expects to report significant progress against key financial metrics, providing a strong platform for further growth in future years.
Total revenue for the year is expected to be no less than £32.1 million (FY2023: £30m) with approximately 55 per cent (50 per cent) represented by recurring revenue.
Within recurring revenues, software term licence revenue has increased by around 70 per cent to £8.7m (£5.2m) with double digit growth across the UK, US and Australia.
Despite the impact of inflationary cost increases, adjusted EBITDA is expected to be no less than £5.5m (£5m) and reported profit before tax not less than £1m – the same as last year – reflecting increased finance costs due to the high interest rate environment and certain exceptional charges relating to the restructuring.
The group's net cash was down roughly two-thirds to £1.1m, reflecting the increased investment into the business, targeted restructuring activities and timing of certain working capital flows which have reversed since year end.
1Spatial ended the year with significant momentum, successfully closing a number of high value, multi-year contracts across all territories. These provided a strong foundation for the sustained growth of the company‘s Enterprise operations in FY25.
The group continues to invest in its SaaS based solutions, notably 1Streetworks in the UK alongside NG911 in the US. It says trials for both these products have progressed well over the last 12 months, resulting in the first 12-month licence for 1Streetworks with UK Power Networks and five annual NG911 SaaS licences.
Building on the success of the first customer use case, the company plans to invest in the expansion of the 1Streetworks sales and marketing teams. This investment will accelerate conversion of the substantial opportunities identified over the past year.
For the NG911 SaaS application, the company is exploring a partner-led go to market strategy to accelerate the growth. This will provide wider market coverage of this key market.
With a healthy sales pipeline, strong order book and increased recurring revenues, the board says it is confident that the progress made over the past year is set to continue.
1Spatial CEO, Claire Milverton, said: “We had a great year with our enterprise business, gaining more customers and sales worldwide. Our recurring revenue grew, setting us up for long-term success.
“Our new SaaS products are a game-changer for our financial performance and I am proud of the 1Streetworks deal with UK Power Networks, a leading utility company. With our strong enterprise business and profitable SaaS solutions, we are ready to grow and succeed in the market.”
