1Spatial Plc Trading Update (1122H)

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RNS Number : 1122H

1Spatial Plc

23 March 2020

23 March 2020

("1Spatial", the "Group" or the "Company")

Trading Update

Solid strategic and financial progress

1Spatial, (AIM: SPA), a global leader in Location and Geospatial Software Solutions and Location Master Data Management (LMDM), today provides an update on trading for the financial year ended 31 January 2020.

The Board is pleased to report on another year of solid strategic progress and strengthening financials, delivering double-digit revenue and adjusted EBITDA* growth.

The Company expects to report revenue and adjusted EBITDA for the year ended 31 January 2020 in-line with consensus expectations, with revenues of no less than GBP23.0m (FY19: GBP17.6m) and adjusted EBTIDA* of at least GBP3.0m (FY19: GBP1.2m). Revenues include recurring software revenues of GBP9.5m (FY19: GBP7.5m).

The Company was Free Cash Flow positive in H2, with a gross cash balance at 31 January 2020 of GBP5.1m (GBP3.9m net of loans) (31 July 2019: GBP4.0m, GBP3.3m net of loans) not withstanding some delay in cash collection at year end, and exceptional cash outgoings of GBP1.0m relating to the acquisition and integration of Geomap-Imagis ("GI").

Following the acquisition of GI in May 2019, the Company expects to report an amortisation of acquired intangibles charge of approximately GBP0.8m for FY20. This charge has no impact on Group cash flow.

A key focus in the year was the successful integration of the acquisition of GI in France and closer integration with the Esri, Inc platform, the global market leader in GIS software. These initiatives have increased new customer wins and cross-selling to existing customers in France in the second half of the year.

The US division was a strong growth driver for the Group, securing contracts with five US State Departments for Transport, and has a growing pipeline of additional customer opportunities for the year ahead, demonstrating the potential for this market.

Importantly, the Group increased R&D investment in the year, and in March 2020 the Company announced the launch of 1Data Gateway, a web based Portal through which cloud-versions of its Apps will be accessible, with the first App being in relation to Data Supply Chain Management.

COVID-19

Coronavirus (COVID-19) continues to have an unprecedented impact globally and we have updated our business continuity plans accordingly. We have always made use of remote working and have now extended this to all our staff. So far we are continuing business as usual, signing and delivering on contracts. We have seen little disruption in the day to day business in our key territories which include the UK, US, France, Belgium and Australia but we are cognisant that this could change. If in the coming months we were to see some slow- down in our customer win rate and activities, then we would take appropriate action.

Given our high level of recurring revenue, our strong backlog of contracted future revenue, and our software supporting mission critical operations at many of our customers, we believe our business to be well positioned to withstand this period.

We continue to monitor the situation closely as it develops and will update investors further at the time of our Final Results, to be released in May 2020.

Claire Milverton, CEO of 1Spatial, commented, "This has been another year of strategic progress for 1Spatial, delivering growth in multiple geographies while investing for the future. The team completed the acquisition and successful integration of Geomap-Imagis, which was both immediately earnings enhancing and strategically important, strengthening our position in France and Belgium as well as our relationship with Esri Inc. The US division has been an excellent growth driver and we are encouraged by the scale of the opportunity it represents, demonstrated by the growing pipeline of opportunities. We secured a greater number of new customers in the year across the Group, indicating a growing ability to deliver on our sales pipeline.

"Our focus on transitioning the business model away from the perpetual software licence model towards higher margin, recurring software revenues is resulting in an increased quality of earnings. While cognisant of the rapidly evolving situation with COVID-19, our high levels of recurring revenues, strong balance sheet and wide spread of customers provide the business with a level of resilience and we are confident in our ability to work through these challenging times ."

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

For further information, please contact:

 
 1Spatial plc                             01223 420 414 
 Claire Milverton / Nicole Payne 
 
 N+1 Singer                               020 7496 3000 
 Shaun Dobson / Tom Salvesen / 
  Alex Bond 
 
 Alma PR                                  020 3405 0205 
 Caroline Forde/ Justine James/Harriet    [e-mail] 
  Jackson 
 

1Spatial plc

1Spatial provides software and services for the management of geospatial data, for industries where the accuracy of location and geospatial data is key. The Group's patented core rules-engine, 1Integrate, ensures that the underlying data is current, complete and consistent using automated processes. This ensures that decisions are always based on the highest quality information available.

Today - as location data from smartphones, the Internet of Things and great lakes of commercial Big Data increasingly drive commercial decision-making - 1Spatial's technology is used by a wide range of commercial and government organisations, including utilities businesses, national mapping and land management agencies, transportation organisations, government departments, emergency services, defence, census bureaus and facilities management companies.

1Spatial plc is AIM-listed, headquartered in Cambridge, UK, with operations in the UK, Ireland, France, Belgium, Australia and USA.

To find out more, visit www.1spatial.com

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March 23, 2020 03:00 ET (07:00 GMT)