Last checked at 15 Mar 2018 07:00
15 March 2018
1Spatial plc (AIM: SPA)
("1Spatial", the "Company" or the "Group")
Trading Update, Disposal and Board Change
1Spatial, the global geospatial software and solutions company, is pleased to provide an update on the business.
Trading Update
The Company today provides the following trading update for the financial year ended 31 January 2018, based on unaudited results.
As previously announced, the strategy implemented by the new management team in January 2017 was focussed on putting a clear plan in place to achieve strong financial and operational results evidenced through the generation of growing profits, operating cash flows and sustainable growth. The Board is pleased to report that the Group continues to show clear progress against its stated strategy and expects to deliver results in line with market expectations.
The core geospatial business has shown a better year than management expectations with higher revenues, margins and adjusted EBITDA. 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.
Recent significant contract wins demonstrate the value attached to 1Spatial's solutions by its clients, examples include:
· Northern Gas Networks is a key utility framework contract for 1Spatial and demonstrates the Group's ability to grow accounts with the value of the contract now four times that at the time of signing
· The Group continues to see good traction in North America with recent awards from the US government to provide the US Federal Highways Administration software and services. This also offers a strong platform for 1Spatial to provide further services to other States such as Nebraska and Arizona
· Working with its partner Esri, 1Spatial also won a significant State contract in Michigan using its 1Integrate product which is embedded in the Esri platform in this key geographic state.
Disposal of controlling interest in Enables IT
As a result of the Board's primary focus on the core high-margin Geospatial division and an increasing level of risk associated with the recurring revenues of Enables IT, the Board has resolved to dispose of its controlling stake in the business. The Group will retain a 19.9 per cent. interest in the business. Further details of the disposal are set out in an announcement released by the Company in conjunction with this announcement.
With the disposal of Enables IT there is now laser focus on the Group's core Geospatial business. The long term growth prospects of the Geospatial business and position that it enjoys in the global market give the Board great confidence in both the short- and long-term prospects for the company.
Balance Sheet
The Group had a net cash balance at 31 January 2018 of £0.5m from all operations and £0.3m from continuing operations.
Board Change
As also announced separately this morning, the Company confirms that Non-Executive Director, Nick Habgood, has stepped down from the Board, with effect from 14 March 2018. Nick has made a great contribution to the Board over the period of his tenure and given the Company's strengthened position and renewed strategy and focus, he feels it is appropriate to move on and concentrate on other ventures within the Azini Capital portfolio. The Company has begun a search for a replacement non-executive director and will update the market on this process in due course.
Claire Milverton, CEO of 1Spatial commented:
"The Board is extremely pleased to report that Adjusted EBITDA profits for the full year are expected to be in line with market expectations. 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.
We delivered well against our stated strategy and remain well positioned to grow a substantial, profitable and cash-generative business out into the future."
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For further information, please contact:
1Spatial plc 01223 420 414
Andrew Roberts / Claire Milverton
FTI Consulting 020 3727 1000
Dwight Burden / Alex Le May
N+1 Singer 020 7496 3000
Shaun Dobson / Lauren Kettle
LEI Code: 213800VG7OZYQES6PN67
About 1Spatial
1Spatial is a software solutions provider and global leader in managing geospatial data. We work with our clients to deliver real value by making data current, complete and consistent through the use of automated processes - ensuring that decisions are always based on the highest quality information available.
Our unique, rules-based approach delivers enterprise-scale, cross-platform automation to all stages of the data lifecycle. It builds confidence in the data while reducing the time and cost of stewardship.
Our global clients include national mapping and land management agencies, utilities, transportation organisations, government departments, emergency services, defence, and census bureaus.
A leader in our field, we have a wealth of experience and a record of continual innovation and development. We partner with some of the leading technology vendors including, Esri and Oracle.
For more information visit www.1spatial.com