1Spatial has published a business update for the financial year ending January 31st 2024 (FY2024). A global leader in the Location Master Data Management (“LMDM”) sector, the firm is listed on the LSE. The company enjoyed double-digit growth across the UK, US and Australia during its fiscal year 2024. As it looked to capture a greater share of the LMDM market, estimated to reach $26.4bn by 2025.
Claire Milverton, CEO of 1Spatial, said, “We had a great year with our enterprise business, gaining more customers and sales worldwide. Our recurring revenue grew, setting us up for long-term success. Our new SaaS products are a game-changer for our financial performance and I am proud of the 1Streetworks deal with UK Power Networks, a leading utility company. With our strong enterprise business and profitable SaaS solutions, we are ready to grow and succeed in the market.”
Key figures for the last financial year include:
- Total revenue for the year is expected to be no less than £32.1m (FY2023: £30.0m)
- The percentage of recurring revenue is expected to have increased by 5% to 55% (FY2023: 50%)
- Software term licence revenue increased by approximately 70% to £8.7m (FY23: £5.2m)
- Adjusted EBITDA is expected to be no less than £5.5m (FY2023: £5.0m)
- Profit before tax not less than £1.0m (FY2023: £1.0m)
- The Group’s net cash was £1.1m at January 31st 2024 (£3.1m at January 31st 2023),
These are provisional figures and reflect increased finance costs due to a high-interest rate environment and some restructuring costs. The announcement is a provisional look, and full accounts will be provided in due course.
1Spatial ended the year with strong momentum. With the company securing a €9.0 million three-year contract with a leading Distribution System Operator for electricity and gas networks in Belgium following a competitive tender. It believes these set a solid foundation for growth in the enterprise market through FY25. It closed several other deals, including one with Hunter Water in Australia.
Product investment continues
The firm continues to invest in building its SaaS solutions. It is strengthening both 1Streetworks for the UK market and NG911 for the US. UK Power Networks recently signed a 12-month contract for its Traffic Management Plan Automation (TMPA) solution under the 1Streetworks brand in the UK (1Streetworks).
1Spatial intends to expand its sales and marketing teams for 1Streetworks with the aim of converting opportunities in calendar 2024. In the US, 1Spatial is looking at a partner-led strategy for NG911. It is a sensible approach in the US with such a geographically large market. While 1Spatial did not reveal the size of the order book, it indicates it is strong, and the board hopes to improve market coverage in the US, especially with this approach.
Enterprise Times: What does this mean
Despite the positive results the share price for 1Spatial (LSE:SPA) has dropped around 8% today alone and is down 12.92% over the last five days to 53.99. As the full results emerge, it will be interesting to see the full details of the results in the annual report and see how the market reacts. While there are competitors in the market, such as Precisely and Stibo Systems, the recent 1Spatial wins highlighted by VOX Markets would indicate that its growth trajectory is solid as more and more firms seek an LMDM solution.
