14th Oct 2024 12:22
(Alliance News) - 1Spatial PLC on Monday said it has narrowed its pretax loss in the first six months of its financial year, following a growth in contract wins and recurring revenue.
The Cambridge, England-based data management software company said pretax loss for the six months ended July 31 narrowed to GBP162,000 from GBP456,000 the year before. Revenue grew 4.5% to GBP16.2 million from GBP15.5 million.
Recurring revenue increased 8.5% to GBP8.9 million from GBP8.2 million year-on-year, and now represents 55% of the company's total revenue, up from 53% last year.
Since July, 1Spatial has seen a "significant" contract renewals with an unnamed French government agency, and has signed a new contract with the US Forest Service. The company said it has a "substantial number of prospects across all geographies", driving pipeline expansion within its target markets of government, utilities, transport and street works.
1Spatial remains confident in meeting its 2025 market expectations for the year due to end January 30, 2025, which broker Cavendish forecasts to be pretax profit of GBP2.2 million and revenue of GBP36.1 million. This would be double the GBP1.1 million in pretax profit reported in financial 2024 and represent a 12% growth in revenue from GBP32.3 million.
Chief Executive Officer Claire Milverton said: "We have enjoyed a positive first half of the year, successfully executing on our key strategic initiatives. Notable achievements include the timely deployment of 1Streetworks within UK Power Networks, strategic expansion into new US states and sectors and strategic hires to set the business up for further growth. Looking forward, our primary focus will be on accelerating the momentum of our software-as-a-service offerings, converting our expanding pipeline and further penetrating the substantial US market. The notification of the award of a second major 1Streetworks deal for USD1.0 million, subject to contract, coupled with a growing NG9-1-1 pipeline, reinforces our confidence in continued progress throughout the remainder of the year."
Shares in 1Spatial were up 1.6% at 65.50 pence each in London at midday on Monday.
By Emily Parsons, Alliance News reporter
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