(Alliance News) - 1Spatial PLC on Monday reported improved earnings in its recently ended financial year due to a shift in its business model.
The stock was trading 10% higher at 14.89 pence each on Monday afternoon in London.
For its financial year to the end of January, the location data management company expects revenue of no less than GBP23.0 million and adjusted earnings before interest, tax, depreciation and amortization of at least GBP3.0 million. For comparison, in financial 2019, revenue was GBP17.6 million, producing Ebitda of GBP1.2 million.
1Spatial said its performance comes as a result the transition of the business model away from the perpetual software licence model towards higher-margin, recurring software revenues, as well as a focus on in immediately earnings-enhancing R&D investments.
The US division contributed strongly to growth during the period as it won contracts with the transport departments of five US states. 1Spatial also completed the acquisition and successful integration of Geomap-Imagis, strengthening its position in France and Belgium.
1Spatial said the Covid-19 outbreak has not hurt its business, recording "little disruption" in its operations UK, US, France, Belgium and Australia. The company said that although this could change, its high level of recurring revenue and "strong" backlog of contracted future revenue puts it in a good position.
"While cognisant of the rapidly evolving situation with Covid-19, our high levels of recurring revenues, strong balance sheet and wide spread of customers provide the business with a level of resilience, and we are confident in our ability to work through these challenging times," said Chief Executive Claire Milverton.
As at January 31, 1Spatial had cash of GBP5.1 million.
Full unaudited results for financial 2020 will be published in May.
By Ife Taiwo; ifetaiwo@alliancenews.com
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1Spatial Holdings (SPA)