1Spatial, (AIM: SPA), a global leader in Location Master Data Management (LMDM) software and solutions, has today announced its interim results for the six months ended 31 July 2024.
Highlights include:
· Revenue up 5% to £16.2m (H1 2024: £15.5m) driven by a 9% increase in recurring revenue to £8.9m, representing 55% of total revenue and 26% increase in Term Licences revenue to £4.3m driven by new business wins in the United States
· ARR growth of 7% with a Term Licence ARR growth of 30%
· Group gross profit margin consistent at 52% with careful management of inflationary cost increases
· Adjusted EBITDA increased 18% to £2.0m (H1 2024: £1.7m)
· Growing pipeline for 1Streetworks, with notification of an award of £1m (subject to contract) with a County Council, post-period-end
· Flagship customer, UKPN, has successfully deployed 1Streetworks across multiple divisions. Working in partnership towards their budget submission for 2025.
· Expanded US footprint to 21 US States (from 18 in H1 2024), each with significant expansion opportunity.
· Contract wins secured and strengthened across UK, US, European and Australian arms of the business.
Outlook
· The second half has started well with a significant contract renewal with a French government agency, a new customer win with the US Forest Service and good progress on contract renewals.
· Committed services revenue at period end has increased by 37% to £14.5m, up from £10.6m at H1 2024 following significant contract awards in Europe.
· The Board remains confident in meeting market expectations for FY 2025.
Commenting on the results, 1Spatial CEO, Claire Milverton, said:
“We have enjoyed a positive first half of the year, successfully executing on key strategic initiatives. Notable achievements include the timely deployment of 1Streetworks within UK Power Networks, strategic expansion into new US states and sectors and strategic hires to set the business up for further growth. Looking forward, our primary focus will be on accelerating the momentum of our SaaS offerings, converting our expanding pipeline and further penetrating the substantial US market. The notification of the award of a second major 1Streetworks deal for £1m (subject to contract), coupled with a growing NG9-1-1 pipeline, reinforces our confidence in continued progress throughout the remainder of the year.”