7th May 2025 15:33
(Alliance News) - 1Spatial PLC on Wednesday reported a drop in profit despite a rise in revenue for financial year 2025.
1spatial is a Cambridge, England-based software and solutions company.
1Spatial shares fell 13% to 44.39 pence each in London on Wednesday afternoon.
In the year ended January 31, the company's pretax profit was GBP200,000, down 79% from GBP1.1 million the previous year which was attributed to interest charges on the firm's facilities.
However, financial year 2025 revenue of GBP33.4 million, up 3.3% from GBP32.3 million the previous year. This was driven by modest growth across most operating regions.
While the US saw strong growth in its software sales, this was offset by a decline in services revenue, resulting in flat overall performance according to the company, with an overall revenue of GBP4.5 million, down 4.9% from GBP4.7 million.
The UK showed a slight full-year improvement after a slow first half, boosted by government contracts closing late in the year, with revenue of GBP13.6 million, up 23% from GBP13.3 million.
However, political uncertainty in the US, UK, and Europe weighed on performance across these regions, with the US also affected by deal delays linked to federal instability and the impact of the California wildfires.
In Europe, the late start of a major Belgian contract further dampened revenue which was GBP11.8 million, up 6.9% from GBP11.0 million.
Australia stood out with a 5.4% increase in revenue to GBP3.5 million from GBP3.3 million, despite competitive pricing pressures.
Looking forward, 1Spatial said that financial 2026 has started positively, particularly in the UK and with 1Streetworks, having several new customer contracts in the final stages of negotiation.
It added that a slower pace of decision-making, particularly in the US during the second half of financial 2025, is expected to continue affecting 1Spatial's growth into financial 2026. Despite this, the company plans to make targeted investments in its US and UK sales teams, citing strong long-term growth potential.
While ongoing macroeconomic and political uncertainty is lengthening procurement cycles, 1Spatial said it "remains confident" in achieving further progress in the year ahead.
By Olivia Mason-Myhill, Alliance News reporter
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