1Spatial Holdings Share News (SPA)

LONDON (Alliance News) - 1Spatial PLC said Thursday full year trading was in line with its core business ahead of expectations, as it also sold a non-core business and saw a non-executive depart from the company.

For the year ended January 31, the geospatial software firm said it expects to deliver results in line with market expectations. It added it is making "clear progress" in its strategy to sustainably grow profit and cash flows.

"The results are a significant improvement on the prior year and are testament to the quality of the strategy, solutions and the high class team at 1Spatial," the company said in a statement.

1Spatial's core geospatial business had a "better year" than management had expected with higher revenue, margins and earnings before interest, tax, depreciation and amortisation.

"The board is extremely pleased to report that Adjusted EBITDA profits for the full year are expected to be in line with market expectations," 1Spatial Chief Executive Officer Claire Milverton said

"The group has won a number of cornerstone contracts during the year and this is testament to the strong 1Spatial team and its innovative technology-led solutions."

"There is now a clear focus on becoming a leader in our chosen sectors in the fast growing Geospatial industry where our people and solutions position us for success", Milverton concluded. "We delivered well against our stated strategy and remain well positioned to grow a substantial, profitable and cash-generative business out into the future."

In a separate announcement, 1Spatial said it had sold an 80% stake in its wholly-owned Enables IT Group Ltd business to company owned by Enables founder Michael Walliss, Champall Consultancy Ltd.

The Enables stake was sold for a nominal GBP1 consideration. 1Spatial will also contribute GBP150,000 for Enables near-term working capital needs and extend a GBP85,000 interest free loan. The loan will be repayable in ten equal monthly payment from the end of September 2019.

1Spatial reduced its stake as it considered Enables as a non-core business. It will retain a 20% stake in Enables, however, after acquiring the business in 2015.

Champall has the option to buy 1Spatial's remaining stake for GBP100,000 two years after the disposal completes.

"This disposal represents an important step forward for the 1Spatial Group allowing the board and management team to focus on the core Global Geospatial business which has a high potential for growth and where we have technology based solutions to address this exciting opportunity," 1Spatial Chief Executive Officer Claire Milverton said.

"I would like to take this opportunity to wish Mike and his team future success as they embark on the next step of Enables' development. "

1Spatial also announced Non-Executive Director Nick Habgood stepped down from the board on Wednesday. A search for a replacement has begun.

Shares in 1Spatial were 1.1% lower at 3.51 pence on Thursday.