Trading Update & additional stake in LSI
2 March 2016
1Spatial plc (AIM: SPA)
("1Spatial", the "Group" or the "Company")
Period end trading update and acquisition of additional stake in LSI
Financial year ends with good momentum and key strategic contract wins
The Board of directors of 1Spatial (the "Board"), the global spatial software and solutions company which manages the world's largest spatial data is pleased to provide an update on trading for the year ended 31 January 2016.
Financial update
The Group has made good progress in the second half of the year and the full year results are expected to be in line with market expectations.
During the period a number of contracts were entered into which will provide incremental revenues for the financial year ending 31 January 2017 and beyond. The Group also continued to grow its recurring revenue base and maintain strong gross margins.
Operational progress
Contract announcements
The momentum in the last six months has clearly illustrated the attractiveness of 1Spatial's solutions in its marketplace having recently secured a number of contracts including:
- US$1m contract with a US Federal Government Agency
- 1Integrate contract for US$1.1 million with HERE USA
- rolling contract with one of the UK's leading transport infrastructure operators
- £3 million contract with a large US healthcare provider
In addition the Group announced a significant strategic partnership with HERE, a leader in navigation and mapping. The combination of 1Spatial's software and services with HERE's high grade maps and content will enable end-customers to benefit from significant improvements in operational performance whilst providing substantial incremental sales opportunities for the Group.
Research and development
During the period, the Group had significant focus on R&D activities with further development of its scalable open technology. This development will enable 1Spatial's products to integrate with enterprise technology vendors, widening the Company's addressable market and global reach. A key vendor that the Group is currently working with is ESRI, a world leader in GIS technology
Marketing and business development
In November 2015, the Group launched its "1Integrate for ArcGIS" product, which runs on the ESRI platform; the ESRI customer base is key growth target for the Company. The R&D investment in this area has been supported by significant investment in sales and marketing to increase customer awareness of 1Spatial, its products and capabilities. This sales and marketing investment will continue in 2016, particularly in the US, to ensure that the Company fully capitalises on this significant opportunity.
Acquisitions
The acquisition of Enables IT in July 2015 has helped provide expertise and capability that augments the Group and significantly enhances its ability to support clients with a full-service managed solution. As a hosted offering, it also allows customers to pilot and adopt 1Spatial's products much more quickly than traditionally would have been possible. Following completion of the acquisition, Enables IT secured a £3 million contract with a large US healthcare provider.
Post Period
1Spatial ended the period with a strong order book and pipeline of opportunities for the coming year, supported by the growing momentum with other vendors in the enterprise market, which includes its relationship with ESRI.
Laser Scan Inc. acquisition
1Spatial is pleased to update that on 29 February 2016, the Group exercised its call option to acquire a further 26% of its US distributor Laser Scan Inc. ("LSI") for US$1.3m payable in cash taking the Group's total holding in LSI to 73%. LSI is the sole distributor of 1Spatial geospatial products and solutions across the Americas, which includes significant contracts with the US Census. The acquisition will strengthen 1Spatial's position within the US market.
The US market is a significant opportunity for the Group and will be a key area of focus for the next financial year.
As part of the agreement signed on 3 February 2015, 1Spatial has the right to acquire the remaining 27% of LSI by 1 February 2017.
Commenting on the results CEO, Marcus Hanke, said:
"The second half of the year has continued to be one of operational progress against our stated aims. We are delighted with the contract wins with well-known, international companies in the period as well as the continued development of our scalable open technology. Both of these, plus our strong relationship with enterprise vendors including ESRI put us in a strong position for scalability and future growth.
The acquisition of a controlling interest in our US distributor LSI further strengthens our excellent platform for growth in this significant market."
For further information, please contact:
1Spatial plc 0203 427 5004
Marcus Hanke / Claire Milverton
FTI Consulting 0203 727 1000
Dwight Burden / Alex Le May / Karen Tang
N+1 Singer 0207 496 3000
Shaun Dobson / Lauren Kettle
About 1Spatial
1Spatial operates globally, and has a portfolio of customers both in the Commercial and Government sector, with headquarters in Cambridge, UK and offices in France, Belgium, Ireland and Australia.
1Spatial 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.
1Spatial's clients include national mapping and cadastral agencies, utility and telecommunications companies, and government departments including emergency services, defence and census bureaus.
A leader in the field, 1Spatial has over forty years' experience and a record of continual innovation and development. Today, with an ever increasing reliance on spatial and location-critical data, demand for its expertise has never been greater.
About 1Integrate
1Integrate is a product from the 1spatial management suite portfolio now full integrated into ESRI's ArcGIS platform.
The 1integrate application allows customers to control, manage and quality assure the vast quantity of geospatial data within their organisation.
1Integrate allows geospatial data from multiple sources to be validated, cleansed, aggregated, repurposed and distributed. As opposed to the traditional user focused applications, 1Integrate allows geospatial data to be integrated into enterprise architectures and maintained and validated online in real time.
To find our more, visit www.1spatial.com
About HERE
HERE is the leading company in the location intelligence industry, delivering highly precise and up-to-date maps, a location platform, and location experiences across multiple screens and operating systems. Built on 30 years of experience in cartography and drawing on more than 80 000 sources of data, HERE offers maps for more than 190 countries, voice guided navigation for 131 countries and territories in more than 50 languages and live traffic information for 50 countries.
About Esri
Esri is one of the largest privately held software companies in the world, and is the market leader in the supply of Geographic Information Systems (GIS) software, web GIS and Geodatabase Management Applications. The company is headquartered in Redlands, California, USA and has over 350,000 clients worldwide serviced by over 3,000 employees operating out of 10 US offices, as well as 1800 partners and 85 distributors employing 7000 people in over 80 countries.
This information is provided by RNS
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