1Spatial Plc: Trading update
3 March 2022
1Spatial, a global leader in Location Master Data Management (LMDM) software and solutions, today provides an update on trading for the financial year ended 31 January 2022.
Based on the unaudited financial results, the Group expects to report further progress in key financial metrics, due to a robust performance in the second half of the year, which has seen the Group secure some of its largest contracts to date, providing a strong platform for growth in future years.
Revenue for the year is expected to be in excess of £26.4m (FY 2021: £24.6m), with double digit growth in recurring revenue year on year. The order book of committed revenue and longer-term contracts also increased year on year.
Adjusted EBITDA is expected to be no less than £3.8m (FY 2021: £3.6m) in line with expectations and the Group's planned spending in the year.
The Group's net cash increased in H2 to approximately £3.2m as at 31 January 2022, from £2.8m at 31 July 2021 (31 January 2021: £4.3m). The net cash was lower than expectations primarily due to the working capital requirements on larger contracts signed in H2, and the decision to invest free cash in expanding the sales and delivery team and cloud technology, as part of the three-year growth plan.
Outlook
With a healthy sales pipeline and increased levels of recurring revenue, the Board is confident that the Group's progress over the last year is set to continue in the coming year. The Company will provide a further update on trading at the time of the final results, expected to be released on 27 April 2022.
Commenting on the update, 1Spatial CEO, Claire Milverton, said: "We are delighted to report on a year of growth, fuelled by significant wins. We have exited the year with increased levels of recurring revenues, an expanded customer base and strengthening partner network - all of which provide us with a valuable base on which to expand in the year ahead.
"With the validation and sharing of location data sitting at the heart of many areas of digital transformation, we are seeing a growing number of opportunities entering our sales pipeline across all our regions and markets and look to the future with confidence."