1spatial Share Discussion Threads

[hubshank] 14/5/2014 15:06

Second Online Poker Bill Introduced in New York

MAY 13, 2014 BY DAVID SHELDON






New York State online poker bills
New York State has now seen two online poker bills introduced by legislators in recent months.
Along with California, New York is one of the most desirable targets for online poker in the United States. As another large, affluent state, there's certainly a big enough market for the game there to provide plenty of players and keep games running all day long. And while a single bill being introduced doesn't mean much, a second companion bill might signal that some New York lawmakers are ready to push for the games sooner rather than later.

Assemblyman J. Gary Pretlow (D-Mt. Vernon) has introduced Bill A09509 to the New York Assembly, a piece of legislation that would allow the state to license interactive poker games including Texas Hold'em and Omaha. The bill is very similar to one submitted just last month by state Senator Jon Bonacic (R-42nd District), known as S 6913.

The bill would authorize the New York State Gaming Commission to license Internet poker games – starting with Hold'em and Omaha, but potentially growing from there – through an amendment of racing and parimutuel wagering laws.



Read more: hxxp://www.casino.org/news/second-online-poker-bill-introduced-new-york#ixzz31hO8zj1M

[yump] 14/5/2014 12:28

"The whole is greater than the sum of the parts. Proven."

That is a cliche that is simply not true. The business only grew courtesy of the Star-Apic acquisition.

That's the reality. Words don't make it better.

[woodcutter] 14/5/2014 09:13

mwaller all you say is true, of that there's no doubt, but as a holder myself the financials need to back up the story. I held LRM for several years and the growth story was compelling but i sold out last interims and yesterdays full results proved me right.

You can't keep capitalising your software development costs and adding them to the balance sheet. At some point you have to generate cash. They're capitalising 30% of their labour costs and for three consecutive years have capitalised more then their profits.

The only reason i didn't sell yesterday was the rate of increase in sales is by far outstripping the rate of COS and admin spend. I will take a further view at the interims and if that continues then great but any signs of a reversal and i'll have to consider my position.

At the end of the day the financials have to back up the story.

Woody

[mwaller] 13/5/2014 23:36

Had a chance to study the results in detail. They are very solid and well on track with analyst projections, on all measures you would want. I am happy to extend my position to capitalise on this years projected growth outlook. The underlying good news is the very hard high risk integration work of company people and technology with Star into an end to end offering is done now. This is a huge amount of work including development and the Star business which is the front end (business user) of the business is growing well. They did not kill the business - they helped it grow. The whole is greater than the sum of the parts. Proven. Hanke deserves credit for the placing and this acquisition, and the team has made it work. This growth story has been helped by the original SPA spatial database engine adding to the Star core proposition and its subsequent integration. They are stronger together. This is proof the strategy is good and will continue to help growth of the whole business. Then look to integrated product line, the Spatial Big Data Management Suite, including the revolutionary 1Edit - enabled by SPA database engines (read competitive advantage also for SPA customers who have huge rapidly changing datasets) is now available. SPA have successfully in the past 12 months transitioned into a software company with development teams working on a common solution and platform - unique to the industry. This will enable them to differentiate and compete and accelerate features and offerings and partner far more strategically. They have also invested in expanding their sales capability, and an international leadership structure, to capture the key growth areas They are geared in a nutshell to execute on growth and have cash to do that, along with a solid order backlog. Let's also not forget that Spatial Big Data market continues to mature and move towards SPA as SPA extend their reach. Growth prospects are good. I think the leadership team deserve a credit for bringing all the parts together to make this a seamless world class spatial big data offering to the most demanding of Spatial Big Data customers, and having assembled the core capabilities and structure to execute this. I look forward to continued progress and growth.

[fgump] 13/5/2014 14:44

mgmt have no record of every delivering a profit. Very poor review by megabyte of the results. Wait for the annual report to see what the CEO paid himself this year....last year was £500K and central costs are now over £3m!!

[smithie6] 13/5/2014 12:42

nice to see that the investors that got shares at 6p ....while the normal shareholders were not invited to subscribe ! have seen their paper profit almost completely vaourised....(although many will have sold imo and taken profits, sold to ...normal shareholders !! je je !)


one has to question whether the dirs. are interested in creating value for normal shareholders or for themselves....

issuing 300M shares to double the number of shares......was imo ....nuts.

sitting on 11M cash.....and so far that appears to have been a mistake (wrt interests of normal shareholders, greater dilution etc)...

but the dirs. may not care since they get many more options, and hence possible profit, by issuing many more shares...

at present I see the share price as having a higher risk of going down than up...recent trend is down...and shares do not look attractive with current loss making results or high cap. value wrt turnover, around 3.5.

If improved profit by 3M to report 1M profit instead of 2M loss then the P/E would be around 40.

[woodcutter] 13/5/2014 11:24

my concerns with software companies is always the amount of development that is capitalised. For SPA it's almost 20% of COS, i'd like to see that down by half if possible to 10% which would bring it more into line with the amortisation charge.

The market may have great potential, that's why i made my investment but they have got to either improve their cost base or grow revenue significantly in order to generate cash.

WC

[tsmith2] 13/5/2014 10:58

Lower revenues higher marginsMoving clients on to better margin contracts..

[peterwaller395] 13/5/2014 10:54

Well I'm happy to continue holding a fairly substantial amount. Just be patient, this market is massive and 1spatial will be part of it :)

[woodcutter] 13/5/2014 10:44

The points made by yump are very valid points, particularly in relation to growth, yet there are both concerns and grounds for optimism too.

the revenue growth was almost 43%
however the administration costs only grew by 5%
Gross margins also increased from 42% to 47%

So it seems they've decent cost control and if this differential can be maintained then i'm optimistic.

On the other hand even allowing for the adjustments and ignoring the actual loss

EBITDA £1067K.
Capitlisation of software development £1726K.
Amortisation of intangibles £627K (software development and acquisition good will)

This isn't ideal but i've seen much worse. Nevertheless the EBITDA/capitalised intangibles needs to move more in favour of EBITDA. I'd like to see capitalised development in line with amortisation.

Cashflow is also a concern particularly the increase in receivables although in relation to revenue the overall receivables are acceptable. In essence they're not generating any cash and this needs to improve as they grow revenue.

A further area that requires investigation is the size of the share based payments and the number of options currently outstanding, we'll need the annual report to find this but at £601k they are significant in relation to the P&L.

I declare i only have a very small holding here and it's more a punt than an investment.

aimho woody

[yump] 13/5/2014 09:09

If I get time might stick some growth in for Star-Apic for this year, take off some expenses and see where it ends up. I think the problem is going to be generating decent earnings per share, given the wad of shares in issue.

[spcecks] 13/5/2014 09:01

Good outlook happy with results will continue to hold.

[solarno lopez] 13/5/2014 08:58

Good analysis YUMP and the current price chart above tends to agree with you

[yump] 13/5/2014 08:57

I suggest looking a little closer:

"Revenue from operations increased by 43% to GBP17.3m (2013: GBP12.0m) including GBP4.7m from the Star-Apic acquisition made in June 2013."

Take the 4.7mln off the 17.3mln and there's about 12.6mln from the original business.

So the original business has gone from £12mln to 12.6mln; no growth.

Annual run rate for Star-Apic is 9.4mln. For 2012 it was about 6.5mln according to the acquisition statements. So that looks like high growth.

Not surprising they bought Star-Apic then.

Unfortunately it seems to continue the history of being unable to grow anything themselves.

[tsmith2] 13/5/2014 07:18

in line with expectations and good outlook..

[tsmith2] 12/5/2014 16:48

Results tomorrow

[solarno lopez] 09/5/2014 14:24

what about ..Man city are league champions ?

[tsmith2] 09/5/2014 12:49

Expecting good news next week

[morphy_richards] 03/5/2014 00:25

I have a small position here and after a few wobbles am much more inclined to increase it than reduce it. The underlying business seems sound. Not perhaps mind blowing but definitely sustainable. Not a flash in the pan I would say.

[solarno lopez] 02/5/2014 10:51

Well there's a movement to behold

[mwaller] 28/4/2014 11:09

SHARES 1Spatial's time is coming25 April 2014 By Steve Frazer It's been said in the past that 1Spatial (SPA:AIM) was too early to the Big Data space. It struggled simply because many customers and potential clients assumed the theme was for the future, not the present. But this seems to be changing and today's confirmation of in-line results for the year to January 2014 underscores the rapid growth potentially capable by this £44 million business.Today's announcement was relatively short, but sweet too. This line is encouraging: 'The Company produced a solid performance over the year and confirms that adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) and overall results for the year will be in line with market expectations.'Yet this bit is more important for the future: 'The Company enters the new financial year with a strong order back-log in excess of £7 million and a significant pipeline of opportunities.' Investors certainly like the cut of 1Spatial's jib, the shares jumping 8% to 6.75p. This, however, remains way down on the 10.5p levels seen at the start of the year, the shares slumping as part of a wider technology sell-off. To re-cap, 1Spatial's software is used to create, manage, analyse and display geospatial data. Customerso includes Unilever (ULVR), Unisys, US Census, Ordnance Survey GB, the Brazilian Army, and Ordnance Survey Ireland. Tapping investors for £18 million last year to buy a 75% stake in Star-Apic, a Belgium-based provider of Geographic Information Systems software and solutions specialising in land and infrastructure management, it significantly bolster 1Spatial's scope and scale, with sales and support teams bolstered in new Middle East offices. It also helps ongoing R&D and provides the firepower for more acquisitions down the line. It's worth noting that the business now owns all of Star-Apic after buying the last 10% slug of the company in January this year.Interestingly, 1Spatial is not burning cash as fast as it might, or was expected to. With £11.1 million on its books, or 25% of its market value, that's more than the £10.8 million analysts at N+1 Singer anticipated at this stage. And that's after the spending £600,000 for that last Star-Apic stake not expected by the City, equating to nearly £1 million cash better off.Singer forecasts revenue of £18.6 million for the year to January, from which investors can expected rough £1.1 million of adjusted EBITDA. For the financial year to January 2015 the company is forecast to produce £24.2 million revenue and £2.8 million EBITDA.

[geegeeuk] 28/4/2014 10:54

"The market's been agreeing with me since the placing."
Yump you just can't re-write history, last week is the first time the market price has dipped below that price since the placing was announced...

[yump] 25/4/2014 15:51

Geegeeuk

The market's been agreeing with me since the placing.

mwaller

Its news, but not really good or bad, except as a bit of general market news.

As an investor, its relevant news that will affect revenues that's important imo, especially with a company that is either short on new significant contracts, short on details of repeat vs. one-off revenues and generally short on what it is doing with all that cash, apart from spending it.

Did you ever look at the OS disclosed purchase orders ?
Last time I looked they don't seem to have increased (the UK).

So, as I said, the 'news' is neither here nor there.

Customers of OS are just interested in what OS can give them. There is no evidence that OS need increased services from SPA, whenever OS get new sales themselves.