1Spatial riding a see-saw macro economy

Group revenue increased three per cent to £33.4 million, resulting in an increased gross profit of £18.5m (FY 2024: £17.9m). Software sales (term licence and SaaS) increased by 35 per cent to £11.5m while recurring revenue of £20.7m accounted for 62 per cent of total income - again higher than the previous year.

SaaS solutions revenue increased to £1m from £0.2 m although operating profit fell to £0.9m (FY 2024: £1.4 m) due to increases in inflationary costs and non-cash amortisation and impairment charges. Cash generated from operating activities grew slightly to £4.9m (£4.7m).

The company now partners with 22 US states, following the addition of Georgia and Virginia in the year, and says it continues to develop expansion opportunities with existing customers.

In Europe, 1Spatial secured significant contracts at the beginning of the year. This has resulted in growth for FY 2025 and is expected to drive further growth in FY 2026.

1Streetworks contracts were secured with two UK County Councils, which will generate a combined annual value of £1.5 million.

The group says it has continued to invest in high margin solutions targeting utilities and local government in the UK and US.

1Spatial CEO, Claire Milverton, said: “We’ve made good progress across the Group this Year, with software revenues exceeding expectations and the first meaningful sales of our higher margin 1Streetworks SaaS solution. Recurring revenue now represents 62 per cent of total revenue, reflecting the benefits of our strategic investments in product development, sales capability, and leadership.

“These efforts are driving our transition toward a higher-margin, recurring revenue model and opening up new market opportunities. The current year has begun positively, particularly in the UK and with 1Streetworks, providing confidence in further material growth in SaaS revenues and ARR this year.

“While the slower pace of decision making and procurement experienced in the second half of last year, most notably in the US, is likely to continue, impacting our overall growth rate in the current year, the strength of our technology, leadership and expanding presence in key markets provide a solid foundation for the future. We are confident that 1Spatial is well-positioned for growth in FY 2026 and beyond.”