1Spatial expects more growth in US location software market
Interim first half results were strong, although the share price on AIM opened -2.50p lower at 52p. The company reported strengthening recurring revenue mix and ongoing strategic delivery for the six months to July 31.
H1 revenue was up nine per cent to £17.7 million (H1 2025: £17.9m) and 1Spatial reported a 20 per cent rise in recurring revenue to £10.7m. It revealed a 50 per cent increase in SaaS and Term Licences revenues.
Net borrowings increased to £2.5m (£0.9m) primarily reflecting ongoing investment in product development. This was partially offset by a reduction in cash outflows to £1.5m (£2m), supported by favourable timing of receipts and payments. The group expects that the timing of renewals will continue to underpin financial flexibility going forward.
During the period, 1Spatial signed strategically important multi-year licence deals with existing clients including $1.1m with Montana and £1.1m each with Defra and Network Rail.
Post period end, the company signed a $1.7m Enterprise Agreement with the California Department of Transportation and a £1m 1Streetworks contract with UK Power Networks.
1Spatial says the second half has started well, with several contract renewals and notable expansions in the UK (UK Power Networks - 1Streetworks) and the US (California Department of Transportation).
The company has a robust order book and several ongoing European programmes which underpin the H2 weighted profile and provide the Board with confidence in achieving management expectations for the full year.
CEO Claire Milverton, said: “We have delivered a positive first half, despite challenging global market conditions. We have focused on the successful execution of our strategic priorities, expanding our engagements with existing customers and securing some good wins towards the end of the half and into Q3.
“UK highlights include the £1m contract at UK Power Networks now embedded into core operations and tripling the previous contract amount. US highlights include the securing of an enterprise contract with the Californian Department of Transportation which delivers 50 per cent licence revenue expansion and simplifies procurement for future opportunities with the customer.
“As we look ahead, our focus remains on accelerating SaaS adoption, converting our robust pipeline and deepening our presence in the substantial US market. We are confident the strength of our IP, breadth of customer base and expertise across our team mean we are well placed to deliver attractive growth and cash generation over the medium term.”
