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LONDON (Alliance News) - 1Spatial PLC Monday warned it will continue to see significant research and development costs during its current year as it makes further investment in its software, and it posted a narrowed pretax loss for its recently ended financial year.
The mapping software and services company said some of its revenue-generating resources will be used as it develops its software, which will hit revenue growth in its short term, but it believes this is a "necessary investment to secure future scalable growth and value for the group".
1Spatial posted a pretax loss of GBP1.5 million for the year to end-January, narrowed from a pretax loss of GBP2.3 million a year before, as revenue rose to GBP19.6 million from GBP17.3 million.
Revenue growth was boosted by the inclusion of a full year of revenue from its acquisition of Star-Apic. Following the year end the company acquired a 47% stake in US distributor Laser Scan Inc for GBP1.5 million, but it believes will boost its presence in the US market. It has an option agreement to acquire the remaining 53% of the company in 2016 and 2017.
"The company continues to build on the solid foundations and looks forward to the future with confidence," said Chief Executive Officer Marcus Hanke in a statement.
1Spatial said it manages the world's largest spatial big data and works with users and creators of the largest geospatial databases, helping them collect, store, manage and interpret location-specific information. It said its clients include national mapping and cadastral agencies, utility and telecommunications companies, and government departments including emergency services, defence and census bureaus.
Shares in 1Spatial are untraded Monday. It last closed at 6.25 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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