27th Sep 2021 09:28
(Alliance News) - Shares in 1Spatial PLC rose on Monday morning after the company announced it has secured a multi-year contract with the UK government.
The location data software provider's stock was trading 7.8% higher at 44.20 pence each in London. Shares have risen 59% so far this year.
The five-year contract is aimed at delivering a digital transformation programme for a government department, which the company didn't name, and is expected to have a total value of GBP8.0 million, with a significant weighting towards recurring revenue.
Over the contract's first three years, around GBP5.6 million of revenue is already committed, meaning 1Spatial now expects revenue and earnings before interest, tax, depreciation and amortisation for the financial year ending January 31, 2023 to be slightly ahead of forecasts.
1Spatial reported adjusted Ebitda of GBP3.6 million in financial 2021.
"We are thrilled to have secured this second landmark contract for 1Spatial," commented Chief Executive Claire Milverton.
"The structure and scale of this contract is transformational for our business from a recurring revenue perspective and aligns completely with our growth strategy to focus on repeatable software solutions."
By Will Paige; willpaige@alliancenews.com
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