TIDMSPA
RNS Number : 9132A
1Spatial Plc
28 September 2022
28 September 2022
1Spatial plc (AIM: SPA)
("1Spatial", the "Group" or the "Company")
Interim Results for the six-month period ended 31 July 2022 ("H1
2023")
Delivering further revenue and ARR growth
1Spatial, (AIM: SPA), a global leader in Location Master Data
Management (LMDM) software and solutions, is pleased to announce
interim results for the six months ended 31 July 2022.
H1 2023 highlights
-- Group revenue up 11% driven by growth in recurring revenue:
o 18% increase in recurring revenue to GBP6.6m ( H1 2022:
GBP5.6m), representing 47% of total revenue ( H1 2022: 45%)
o 67% increase in Term Licences revenue to GBP1.7m (H1 2022:
GBP1.0m)
-- Annualised Recurring Revenue ("ARR") up 29%:
o ARR* up 29% to GBP15.2m (H1 2022: GBP11.8m at constant
currency)
o 115% increase in Term Licences ARR* to GBP5.2m (H1 2022:
GBP2.4m at constant currency)
-- Profit before tax of GBP0.3m (H1 2022: loss of GBP0.3m)
Financial highlights
Half-year Half-year Change
to 31 to 31 July Growth
July 22 21
GBPm GBPm GBPm %
Group revenue 14.0 12.6 1.4 11
Recurring revenue 6.6 5.6 1.0 18
Term licences revenue 1.7 1.0 0.7 67
Group Total ARR* 15.2 11.8 3.4 29
Term licences ARR* 5.2 2.4 2.8 115
Group gross profit 7.0 6.4 0.6 9
Adjusted EBITDA** 2.0 1.8 0.2 10
Adjusted EBITDA** margin (%) 14.4 14.5 (0.1) (0.1pp)
Operating profit/(loss) 0.4 (0.2) 0.6 n/a
Profit/(loss) before tax 0.3 (0.3) 0.6 n/a
Earnings/(loss) per share - basic
and diluted (p) 0.2 (0.2) 0.4 n/a
Net cash*** 2.3 2.8 (0.5) (17)
* Annualised Recurring Revenue (ARR) is the annualised value at
the period-end of committed recurring contracts for term licences
and support & maintenance. Term licences ARR is the annualised
value at the period-end of committed recurring contracts for term
licences.
** Adjusted EBITDA is a company-specific measure which is
calculated as operating profit/(loss) before depreciation
(including right of use asset depreciation), amortisation and
impairment of intangible assets, share-based payment charge and
strategic, integration and other non-recurring items
*** Net cash is gross cash less bank borrowings but excludes
lease liabilities
Group operational highlights
-- Significant new customer wins, including contracts with High
Speed Two (HS2) and a European Aerospace company
-- P lanned launch of multi-tenancy SaaS-based solutions in H2,
including Next Generation 9-1-1 (NG911) and Traffic Management Plan
Automation, expected to provide significant future growth
opportunities
-- Post period-end secured two significant contracts with the
State of Arkansas and Eastern Transportation Coalition,
demonstrating further US momentum
-- Solid progress made developing an ESG strategy on which the
Board plans to provide an update in the 2023 Annual report
Outlook
-- Trading in the second half has started positively and the
Board remains confident in delivering results for FY 2023 in line
with management's expectations
Commenting on the results, 1Spatial CEO, Claire Milverton,
said:
"This has been another period of solid growth driven by a
combination of new customer wins, expansion of our partner network
and a positive market landscape. Digital transformation and the
growing need for better quality, shareable location data to support
infrastructure investment continue to drive demand for 1Spatial's
solutions.
"We see a substantial opportunity to take further market share
across our key regions as we look to the second half. We have good
visibility into full year revenues and are focussed on continuing
the significant progress made building recurring revenues in line
with our three-year growth plan. With a strong pipeline and
investment made to date, the Board remains confident in delivering
results for FY23 in line with management's expectations."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as amended by The
Market Abuse (Amendment) (EU Exit) Regulations 2019.
For further information, please contact:
1Spatial plc 01223 420 414
Claire Milverton / Andrew Fabian
Liberum (Nomad and Broker) 020 3100 2000
Neil Patel / Cameron Duncan / Kate Bannatyne
/ Miquela Bezuidenhoudt
Alma PR 020 3405 0205
Caroline Forde / Hannah Campbell / Stephen 1spatial@almapr.co.uk
Samuel
About 1Spatial plc
Unlocking the Value of Location Data
1Spatial plc is a global leader in providing Location Master
Data Management (LMDM) software, solutions and business
applications, primarily to the Government, Utilities and Transport
sectors via the 1Spatial platform. Our solutions ensure data
governance, facilitating the efficient, effective and sustainable
operation of customers around the world. Our global clients include
national mapping and land management agencies, utility companies,
transportation organisations, government and defence
departments.
Today, when using and sharing trusted data provides significant
opportunities for businesses and governments to deliver against
important sustainability and Net Zero goals, our vision is clear:
to make the world safer, smarter and more sustainable by unlocking
the value in data, enabling better decisions and greater
insights.
The 1Spatial platform is a comprehensive set of data and system
agnostic LMDM software components which helps ensure master data is
compliant, current, complete, consistent, and coordinated - and
that customers can be confident it will remain that way as it
evolves. It allows them to master their data on any device,
anywhere, anytime and can be deployed as SaaS in the cloud,
on-premise, or as a hybrid of both.
1Spatial plc is AIM-listed, headquartered in Cambridge, UK, with
operations in the UK, Ireland, USA, France, Belgium, Tunisia and
Australia.
www.1spatial.com
Half-year review
Following the launch of our three-year growth plan in 2021, we
are already a financially, operationally, and culturally stronger
business, as demonstrated by the progress made in the first half of
this financial year. The growth in our revenues, annual recurring
term licence revenue and the number of substantial new wins, many
of which have potential for future expansion, confirm that we are
successfully delivering against our three-pillared growth strategy
focused on innovation, customers and smart partnerships.
We achieved Group revenues of GBP14.0m (H1 FY 2022: GBP12.6m),
whilst at the same time increasing investment in the business.
At our FY 2022 results, I stated that the Board and I believed
we were embarking on a transformational growth opportunity based on
three key reasons:
- The customer and partner credibility we are gaining in the market
- The significantly growing market that we operate in
- The investment we have made in our market leading software platform
During the first half of FY 2023, these reasons have become even
more apparent.
Customer and partner credibility
We have achieved significant wins with new customers including
HS2, a major European Aerospace company, the first win with the
State of New York and a framework contract with the Eastern
Transportation Coalition. Post period end, we secured our eighth
NG911 competitive contract with the State of Arkansas. These new
clients provide us with secure long-term levels of ARR and they
provide excellent references and opportunities to increase revenues
within these accounts.
Our relationship with key partners continues to expand and
during the period we have signed a teaming agreement (delivery
partnership) with CGI Inc., one of the world's largest independent
IT and business consulting services firms, to be a strategic
delivery partner on a five-year contract with the Home Office.
Whilst we have no current indication of the value of our element,
the total contract for CGI is initially valued at GBP95m. We have
also started working in partnership with ATOS, a global leader in
digital transformation and Rizing (now part of Wipro), a global SAP
partner. The four-year contract with the California Department of
Transportation (Caltrans) was won in conjunction with Rizing and is
an indication that our strategic growth plan in the US continues to
bear fruit and our reputation within the largest transportation
system in the nation continues to strengthen.
Work on the large contracts secured in the previous financial
year continue to progress well, enabling us to strengthen our
relationships with key partners including the Geospatial
Commission, QinetiQ and Atkins, adding to our credibility in the
market by working with large customers and partners.
Significantly growing market
We are global leaders in providing Location Master Data
management and this proposition is at the intersection of two
global growing markets. Firstly, the Geospatial Information Systems
Market is currently worth US$10bn, which is estimated to more than
double by 2027 to US$21bn, and secondly, the mainstream Master Data
Management market, which is worth US$12bn but estimated to
quadruple by 2027 to US$47bn.
Despite the current macro-economic conditions, digital
transformation, and the growing need for better, more accurate and
shareable data to support infrastructure investment continues to
drive demand for our solutions within our target markets, being
Utilities, Transport and Government, where we are increasingly
considered as specialists in this area. We are also continuing to
see significant budgets in these areas committed from governments
globally.
Investment in our market leading software platform
We have continued to invest in our market leading platform
including investment in:
- Our core data management solutions such as our patented
1Integrate rules engine and our cloud-enabled portal, 1Data
Gateway, to improve the user experience
- Our Esri based Business Applications such as 1Water and
1Telecomms which are currently focused on the European market
- Our cloud platform ready for the launch of multi-tenancy
cloud-based solutions, which are still on track to launch before
the end of H2 2023. This includes Traffic Management Plan
Automation (TMPA) in the UK and NG 9-1-1 in the USA for the cities
and the counties.
Growth strategy
UK
We have seen strong growth in the UK during the half, with the
signing of our first significant contract with HS2, to build a data
validation gateway, which has significant potential for further
expansion. The total contract value over the two years is GBP0.9m,
with potential options to extend for a further two years.
The gateway solution will enable HS2 to validate the quality,
conformance and design of construction-related data submitted by
their Supply Chain, which in turn will contribute to the efficiency
and effective information delivery on Europe's largest
infrastructure project. This is a demonstration of 1Spatial's
increasing ability to secure larger contracts across our key
geographies and to design, deliver and implement large-scale
critical systems.
We also signed a multi-year 1Integrate call-off contract with
the Department for Environment, Food and Rural Affairs (DEFRA). The
contract enables DEFRA and its associates to license 1Integrate and
procure its data management implementation services through the
enterprise licence agreement on G-Cloud 12. DEFRA is responsible
for improving and protecting the environment and this contract
complements our relationship of over ten years in supporting and
developing its data management, data governance and data quality
capabilities.
We are also making good progress on implementing the solutions
on the two major contracts (UK Government contract and NUAR) signed
in FY 2022, and these are expected to provide growth opportunities
in the future.
Successes such as these, and the considerable size of our sales
pipeline, give us the confidence to continue to invest in the
business, to ensure we have the right structure to deliver on the
growing opportunity as we move into the second half of the year and
beyond.
Europe
We continue to push the European market to transition from the
perpetual licence model to the term licences structure but this is
not as well advanced as in the UK and US. We signed a major
five-year contract with a European aerospace company with a total
value over the five years of approximately EUR3m including around
EUR0.7m implementation services and around EUR0.6m per annum (for
four years commencing in FY 2024) of software licence and managed
services revenue. The timing of closing this contract combined with
fewer recurring term licences impacted the revenue in the period
which grew at 2% at constant currency.
US
The US is a key geography for our growth strategy to provide
scalability. For example, there is only one department of transport
(DOT) in the UK whereas there are 50 in the US, presenting a major
opportunity for the business going forward. The success of our
strategy can be seen in our growing profile in North America.
During the first half, we successfully sold and implemented
1Integrate and 1Data Gateway in a number of clients, both new and
expanding on existing contracts, building our annual recurring
revenue from our repeatable solutions such as NG 9-1-1.
Notable new customer wins in the US in the period include:
-- US$1.4m expansion contract with the State of California over
four years - secured in partnership with Rizing (now Wipro), a
global SAP partner. T he State of California is an existing client
of 1Spatial, having already selected 1Spatial's Next Generation
9-1-1 solution.
-- First contract with University of Maryland CATT Labs -
Five-year contract with initial value of around $0.6m, which will
be recognised over the five-year period, adding to the Group's
annual recurring revenue.
-- First contract with the State of New York - for various proof
of concept projects using 1Integrate and 1Data Gateway.
-- First contract with the State of Arkansas - for NG 9-1-1, a
seven-year contract for $1.2m over the period and now the eighth US
State to select the solution.
Post-period end we also closed the following sales:
-- First contract with the Eastern Transportation Coalition, a
partnership of 18 US east coast States and Washington DC, which has
secured its first contract through the marketplace, for US$400k
with Massachusetts Department of Transportation. The total
potential contract value for conflation within this ETC framework
agreement is estimated to be up to US$15m over eight years.
-- First contract with the State of Indiana - for various proof
of concept projects using 1Integrate and 1Data Gateway.
People
At the heart of our growth pillars is our 1Team, a world class,
committed team of people who embody our values of We Respect, We
Innovate, We Collaborate, We Trust and We Care.
During the period we were delighted to have been certified as a
Most Loved Workplace(R), backed by Best Practice Institute (BPI)
research and analysis. This was based on our scores on their Love
of Workplace Index(TM), which surveys employees on various elements
around employee satisfaction and sentiment, including the level of
respect, collaboration, support, and sense of belonging they feel
inside the Company.
Communication with our staff and maintaining wellbeing is
crucial, especially in the current macroeconomic environment. We
have regular global company meetings and actively promote the
importance of mental health. As part of our commitment to their
well-being, we continue to roll out initiatives such as mental
health awareness training, internal events and initiatives to
encourage staff to take time out from their working day and have
appointed mental health first aiders. We kicked off our annual
wellbeing month in September 2022 and we are planning a range of
activities including an employee volunteering community clean-up
day in the UK.
We are always looking at ways to ensure equality and diversity
across our company and an inclusive, welcoming working environment
for everyone. Over the past year, we have created global
initiatives to celebrate: International Women's Day, World Food
Day, Diwali, Thanksgiving, Mental Health Awareness Week, Earth Day
and Health and Happiness month.
The teams continue to show ingenuity and commitment day-to-day,
for which the Board and I thank them wholeheartedly. Their ability
to innovate continually whilst delivering the highest levels of
customer satisfaction means that our growth pillars are built on
very secure foundations.
ESG
We made good progress with the development of our ESG strategy.
In March we kicked off a stakeholder materiality assessment to
determine the priority areas of our ESG strategy. We consulted with
more than 150 stakeholders during this process, consisting of
customers, employees, board members and senior management
(representing 'the business'), shareholders, partners and
suppliers. During this process, we identified 13 issues that were
considered of high importance. These 13 issues will be consolidated
into key focus areas, linked to specific targets and objectives.
These objectives will be developed through industry benchmarking,
peer review and business consultations. We aim to complete this
process during this financial year and expect to report back on our
ESG strategy in our 2023 Annual Report.
Strategic priorities for H2 2023
Our focus remains on the three pillars of our growth strategy
and we continue to invest in order to position the business to take
advantage of the huge opportunity ahead.
The expansion of the 1Spatial Cloud platform will be a key
strategic focus for the Group and the planned launch of our
multi-tenancy SaaS based solutions later in H2 2023, including
NG911 and Traffic Management Plan, will enable us to increase our
addressable market and existing customer demand for web-based
access to our solutions.
We will continue to grow our pipeline and invest in the business
and its people to support our expanded customer base. In terms of
our financial goals, the Group remains focused on increased revenue
growth, underpinned by growing annual recurring revenue and to
continue our trajectory of increased profitability at adjusted
EBITDA level and higher cash generation over the long-term.
Current trading and outlook
We believe we are just at the start of the transformation of our
market. Evidenced by the number and size of wins in this half, we
sit right at the heart of the changes across multiple sectors.
With a strong sales pipeline in all regions, positive market
landscape and the investments we continue to make in our
technology, we are well-positioned to capitalise on the expanding
market opportunity. Our expanding partner networks and growing
levels of recurring revenue will enable us to continue to execute
successfully on the remainder of our three-year growth plan.
Trading in the second half is in line with Board expectations
with several new contracts secured. While cognisant of inflationary
cost pressures, the Board remains confident in delivering results
for FY 2023 in line with management's expectations.
Claire Milverton
Chief Executive Officer
Financial performance
Summary
The Group delivered a solid financial performance in the period,
with further growth in revenues, ARR and adjusted EBITDA profit
levels, while increasing its spending on innovation, pre-sales and
delivery capacity in order to continue to secure higher value
longer-term recurring contracts.
Revenue
Group revenue increased by 11% to GBP14.0m (11% at constant
currency) from GBP12.6m in H1 2022. The business strategy is to
grow recurring revenue from repeatable business solutions on
longer-term contracts, including recurring term licences, rather
than one-off perpetual licences. In FY 2021, the Board approved a
three-year revenue growth plan, with increased planned spending on
technology, sales and delivery capacity in order to effect a step
change in revenue growth. As a result of this focus, recurring
revenue in the period increased by 18% to GBP6.6m from GBP5.6m and
the Group achieved organic growth in revenue of 11%. The revenue by
type is shown below:
Revenue by type
H1 2023 H1 2022 % change
Recurring revenue * 6.62 5.63 18%
Services 6.44 5.93 9%
Revenue (excluding perpetual
licences) 13.06 11.56 13%
Perpetual licences 0.97 1.08 (10%)
Total revenue 14.03 12.64 11%
* Recurring revenue comprises term licences and support and
maintenance revenue.
Growth in term licence ARR
We are growing term licences from our proprietary solutions but
we also sell third-party products on a standalone basis or to
support our own solution sales. In the twelve-month period to 31
July 2022, we have increased the annualised value of term licences
by 115% overall (141% for 1Spatial solutions), as shown in the
table below.
H1 2023 H1 2022* Growth
ARR for term licences - owned 4.07 1.69 141%
ARR for term licences - third
party 1.09 0.71 54%
-------- ---------
ARR for term licences - total 5.16 2.40 115%
* ARR for H1 2022 has been restated at constant fx.
Annualised Recurring Revenue
The Annualised Recurring Revenue ("ARR") (annualised value at
the period-end of committed recurring contracts for term licences
and support and maintenance) increased by 29% (at constant
currency) from GBP11.8m at 31 July 2021 to GBP15.2m as at 31 July
2022. The growth rates varied by region as shown in the table below
with all regions growing total ARR and the UK growing at the
fastest rate of 58%. The US and Australia also had excellent growth
rates. Europe's ARR growth rate was modest at 6% reflecting a
slower transition to recurring term licences in the region. The
overall renewal rate remains high at around 94%.
ARR by region
H1 2023 H1 2022* Growth
UK/Ireland 6.30 4.00 58%
Europe 5.09 4.82 6%
US 2.09 1.65 27%
Australia 1.72 1.32 30%
-------- --------- -------
Total ARR 15.20 11.79 29%
-------- --------- -------
* ARR for H1 2022 has been restated at constant fx.
Committed services revenue
The level of committed services revenue, which has reduced since
the start of the year as services revenue on our major projects won
last year is recognised, nevertheless remains historically high at
GBP11.6m and provides strong revenue visibility, underpinning the
Group's strong financial footing.
The combination of growing ARR, committed services revenue
backlog and a strong pipeline of prospects means that the business
is on track to make further progress on its revenue growth plan.
With the business focus on developing and selling repeatable
software solutions under a SaaS model, there is an increased level
of revenue visibility, which allows the Board to continue to invest
with confidence.
Regional revenue
Revenue by region is shown in the table below:
Regional revenue
Growth
Growth % (constant
H1 2023 H1 2022 % fx)
UK/Ireland 5.62 4.45 26% 26%
Europe 5.31 5.31 0% 2%
US 1.80 1.55 16% 6%
Australia 1.30 1.33 (2)% (5)%
-------- --------
14.03 12.64 11% 11%
-------- --------
It was pleasing to achieve double-digit revenue growth overall,
which was driven mainly by the strong growth in the UK and US
following excellent contract wins last year, offset by the results
in Europe and Australia. In Europe, revenue was impacted by the
timing of closing a major contract and a slower transition to a
recurring term licence model, resulting in only modest growth of 2%
at constant currency. In Australia, where revenue is primarily
derived from third party software deals, we experienced more
competitive pricing pressure, combined with the transition from
perpetual to term licences, which resulted in a 5% fall in revenue
at constant currency. Going forward, all regions will continue to
focus on increasing their sales of higher margin owned technology
sold as term licences.
Gross profit margin
As we moved into a higher inflationary environment, the business
increased its pricing and charge out rates to offset actual and
expected cost increases. However, the gross margin reduced to 50%
compared to 51% and this was partly due to the timing impact of
cost increases being ahead of the effect of increased prices.
Cost management continues to be an important focus during FY
2023, although the business is incurring some planned increases in
costs in order to support future revenue growth. The management
team decided to increase employee salaries at a higher level than
in the past with the aim of retaining and motivating our skilled
team and this had an impact on gross margin and EBITDA margin.
Going forward, the management team are focused on driving
improvements to the gross margin levels, through revenue growth of
higher margin term licences.
Adjusted EBITDA
The adjusted EBITDA increased by 10% to GBP2.0m from GBP1.8m in
the prior period. The EBITDA margin was slightly lower than the
prior period at 14.4% (H1 2022: 14.5% ).
Operating profit and profit before tax
The Group recorded an operating profit of GBP0.4m compared to a
loss of GBP0.2m in the prior year, continuing the improving
financial trend of the business. Profit before tax was GBP0.3m ( H1
2022: loss before tax GBP0.3m).
Taxation
The tax charge for the period was GBP0.1m (H1 2022: credit of
GBP0.1m).
Balance sheet
The Group's net assets increased to GBP15.7m at 31 July 2022 (H1
2022: GBP14.6m). Trade and other receivables increased year on year
to GBP12.3m (H1 2022: GBP9.4m), mainly due to increased accrued
income at period end following recent contract wins.
Cash flow
Operating cash flow inflow was GBP1.3m (H1 2022: GBP0.6m). This
was higher than the prior year primarily due to the reversal of
some Covid support and the cash impact of the European integration
costs incurred in H1 FY 2022. Cash flow has also been impacted by
the requirement for higher working capital on larger projects and
the planned increase in R&D expenditure, which is incurred
ahead of expected higher future licence revenue. Whilst the free
cash flow* was negative in H1 2023 (H2 is typically stronger for
cash generation than H1), there was nevertheless an improvement
year on year, even after increased R&D spending, as shown in
the table below:
Free cash flow H1 2023 H1 2022
GBP'000 GBP'000
-------- --------
Cash generated from operations 1,343 646
Net interest paid (75) (105)
Net tax paid (26) -
Expenditure on product development and
intellectual property capitalised (1,563) (1,291)
Purchase of property, plant and equipment (104) (88)
Lease payments (454) (580)
-------- --------
Free cash flow * (879) (1,418)
-------- --------
* Free cash flow is defined as net increase/(decrease) in cash
for the year before cash flows from the acquisition of
subsidiaries, cash flows from new borrowings and repayments of
borrowings and cash flow from new share issue.
After the period end, GBP0.2m has been received in relation to
R&D tax credit from HMRC. We also paid earlier in September
2022, EUR408k related to the remaining deferred consideration on
the GI acquisition completed in 2019.
Investment in R&D
Development costs capitalised in the period amounted to GBP1.6m
(H1 2022: GBP1.3m). Amortisation of development costs was GBP0.7m
(H1 2022: GBP0.9m). The increased R&D expenditure primarily
relates to the investment in cloud-based SaaS solutions.
Financing
As the number of higher value sales contracts has increased, the
Board decided that it would be prudent to put in place a GBP3m
Revolving Credit Facility to ensure that the Group's working
capital position is strengthened. The resulting secured facility,
arranged in June 2022, is committed for three years and priced on
competitive terms. As at 31 July 2022 the facility was undrawn.
The Group repaid as scheduled GBP0.2m (H1 2022: GBP0.2m) in
relation to its existing long-term bank loans. At the period-end
the total loans outstanding were GBP2.2m (H1 2022: GBP2.7m). With a
gross cash position of GBP4.5m at 31 July 2022 (H1 2022: GBP5.5m)
and with a growing order backlog and pipeline, and with the
revolving credit facility in place, the business is in a strong
financial position, which gives the Board the confidence to
continue to invest.
Going forward, the Board and management teams are focused on
increasing revenues, in particular recurring revenues, whilst
improving the Group's profitability and cash generation.
Andrew Fabian
Chief Financial Officer
Condensed consolidated statement of comprehensive income
Six months ended 31 July 2022
Unaudited Audited Unaudited
Six
months Year ended Six months
ended ended
31 July 31 January 31 July
2022 2022 2021
Note GBP'000 GBP'000 GBP'000
---------------------------------------- ----- ---------- ------------ -----------
Revenue 3 14,028 27,027 12,637
Cost of sales (7,078) (13,078) (6,237)
---------------------------------------- ----- ---------- ------------ -----------
Gross profit 6,950 13,949 6,400
Administrative expenses (6,589) (13,534) (6,556)
---------------------------------------- ----- ---------- ------------ -----------
361 415 (156)
---------------------------------------- ----- ---------- ------------ -----------
Adjusted EBITDA* 2,017 4,182 1,830
Less: depreciation (105) (198) (99)
Less: depreciation on right of use
asset (491) (989) (503)
Less: amortisation and impairment
of intangible assets 7 (915) (2,254) (1,184)
Less: share-based payment charge (145) (326) (200)
---------------------------------------- ----- ---------- ------------ -----------
Operating profit/(loss) 361 415 (156)
Finance income 7 14 5
Finance cost (101) (209) (110)
---------------------------------------- ----- ---------- ------------ -----------
Net finance cost (94) (195) (105)
Profit/(loss) before tax 267 220 (261)
Income tax (charge)/credit 4 (60) (43) 61
---------------------------------------- ----- ---------- ------------ -----------
Profit/(loss) for the period 207 177 (200)
Other comprehensive income
Items that may subsequently be reclassified
to profit or loss:
Actuarial gains/(losses) arising on - 113 -
defined benefit pension, net of tax
Exchange differences on translating
foreign operations 210 (246) (166)
Other comprehensive income/(loss)
for the period, net of tax 417 (133) (166)
======================================== ===== ========== ============ ===========
Total comprehensive gain/(loss)
for the period attributable to the
equity shareholders of the Parent 417 44 (366)
======================================== ===== ========== ============ ===========
* Adjusted EBITDA is a company-specific measure which is calculated
as operating profit/(loss) before depreciation (including right
of use asset depreciation), amortisation and impairment of intangible
assets, share-based payment charge and strategic, integration
and other non-recurring items
Profit/(loss) per ordinary share from continuing operations
attributable to the equity shareholders of the Parent during
the period (expressed in pence per ordinary share):
Unaudited Audited Unaudited
Six months Six months
ended Year ended ended
31 July 31 January 31 July
2022 2022 2021
Basic earnings/(loss) per share 5 0.2 0.2 (0.2)
Diluted earnings/(loss) per share 5 0.2 0.2 (0.2)
Condensed consolidated statement of financial position
As at 31 July 2022
Unaudited Audited Unaudited
As at As at As at
31 July 31 January 31 July
2022 2022 2021
--------------------------------------------------- ----- ----------- ------------ -------------
Note GBP'000 GBP'000 GBP'000
--------------------------------------------------- ----- ----------- ------------ -------------
Assets
Non-current assets
Intangible assets including goodwill 7 15,940 15,003 14,994
Property, plant and equipment 376 350 376
Right-of-use assets 2,000 1,747 2,144
Total non-current assets 18,316 17,100 17,514
--------------------------------------------------- ----- ----------- ------------ -------------
Current assets
Trade and other receivables 8 12,305 12,271 9,353
Current income tax receivable 179 124 279
Cash and cash equivalents 9 4,529 5,623 5,493
--------------------------------------------------- ----- ----------- ------------ -------------
Total current assets 17,013 18,018 15,125
--------------------------------------------------- ----- ----------- ------------ -------------
Total assets 35,329 35,118 32,639
--------------------------------------------------- ----- ----------- ------------ -------------
Liabilities
Current liabilities
Bank borrowings 9 (643) (531) (468)
Trade and other payables 10 (12,741) (13,284) (10,469)
Lease liabilities (621) (748) (847)
Deferred consideration (370) (340) -
Total current liabilities (14,375) (14,903) (11,784)
--------------------------------------------------- ----- ----------- ------------ -------------
Non-current liabilities
Bank borrowings 9 (1,562) (1,861) (2,217)
Lease liabilities (1,348) (976) (1,276)
Deferred consideration - (27) (376)
Defined benefit pension obligation (1,319) (1,276) (1,594)
Deferred tax (1,058) (970) (823)
Total non-current liabilities (5,287) (5,110) (6,286)
--------------------------------------------------- ----- ----------- ------------ -------------
Total liabilities (19,662) (20,013) (18,070)
Net assets 15,667 15,105 14,569
=================================================== ===== =========== ============ =============
Share capital and reserves
Share capital 11 20,150 20,150 20,150
Share premium account 30,479 30,479 30,479
Own shares held (303) (303) (303)
Equity-settled employee benefits
reserve 4,075 3,930 3,804
Merger reserve 16,465 16,465 16,465
Reverse acquisition reserve (11,584) (11,584) (11,584)
Currency translation reserve 296 86 166
Accumulated losses (43,434) (43,641) (44,131)
Purchase of non-controlling interest
reserves (477) (477) (477)
--------------------------------------------------- ----- ----------- ------------ -------------
Equity attributable to shareholders
of the Parent company 15,667 15,105 14,569
--------------------------------------------------- ----- ----------- ------------ -------------
Total equity 15,667 15,105 14,569
=================================================== ===== =========== ============ =============
Condensed
consolidated
statement
of changes in
equity
Period ended
31 July 2022
Purchase
Equity-settled of
Share Own employee Reverse Currency non-controlling
Share premium shares benefits Merger acquisition translation interest Accumulated Total
GBP'000 capital account held reserve reserve reserve reserve reserve losses equity
Balance at 31
January 2021
(Audited) 20,150 30,479 (303) 3,604 16,465 (11,584) 332 (477) (43,931) 14,735
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Comprehensive
income/(loss)
Profit for the
year - - - - - - - - 177 177
Other
comprehensive
income/(loss)
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Actuarial
gains arising
on
defined
benefit
pension - - - - - - - - 113 113
Exchange
differences
on
translating
foreign
operations - - - - - - (246) - - (246)
Total other
comprehensive
(loss)/income - - - - - - (246) - 113 (133)
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Total
comprehensive
(loss)/income - - - - - - (246) - 290 44
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Transactions
with owners
recognised
directly in
equity
Recognition of
share-based
payments - - - 326 - - - - - 326
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
- - - 326 - - - - - 326
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Balance at
31 January
2022
(Audited) 20,150 30,479 (303) 3,930 16,465 (11,584) 86 (477) (43,641) 15,105
=============== ======== ======== ======= =============== ======== ============ ============ ================ ============ ========
Comprehensive
income/(loss)
Profit for the
period - - - - - - - - 207 207
Other
comprehensive
income
Exchange
differences
on
translating
foreign
operations - - - - - - 210 - - 210
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Total other
comprehensive
income - - - - - - 210 - 207 417
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Total
comprehensive
income - - - - - - 210 - 207 417
Transactions
with owners
recognised
directly in
equity
Recognition of
share-based
payments - - - 145 - - - - - 145
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
- - - - - - - - - -
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Balance at
31 July 2022
(Unaudited) 20,150 30,479 (303) 4,075 16,465 (11,584) 296 (477) (43,434) 15,667
=============== ======== ======== ======= =============== ======== ============ ============ ================ ============ ========
Purchase
Equity-settled of
Share Own employee Reverse Currency non-controlling
Share premium shares benefits Merger acquisition translation interest Accumulated Total
GBP'000 capital account held reserve reserve reserve reserve reserve losses equity
Balance at 31
January 2021
(Audited) 20,150 30,479 (303) 3,604 16,465 (11,584) 332 (477) (43,931) 14,735
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
Comprehensive
loss
Loss for the
period - - - - - - - - (200) (200)
Other
comprehensive
(loss)/income
Exchange
differences
on
translating
foreign
operations - - - - - - (166) - - (166)
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
Total other
comprehensive
(loss)/income - - - - - - (166) - (200) (366)
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
Total
comprehensive
(loss)/income - - - - - - (166) - (200) (366)
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
Transactions
with owners
recognised
directly in
equity
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
Recognition of
share-based
payments - - - 200 - - - - - 200
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
- - - 200 - - - - - 200
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
Balance at
31 July 2021
(Unaudited) 20,150 30,479 (303) 3,804 16,465 (11,584) 166 (477) (44,131) 14,569
=============== ======== ======== ======= =============== ======== ============ ============ ================= ============ ========
Condensed consolidated statement of cash flows
Period ended 31 July 2022
Unaudited Audited Unaudited
Six months Six months
ended Year ended ended
31 July 31 January 31 July
2022 2022 2021
Note GBP'000 GBP'000 GBP'000
---------------------------------------- ----- ----------- ------------ -----------
Cash flows from operating activities
Cash generated from operations 9 1,343 2,497 646
Interest received 6 12 5
Interest paid (81) (146) (110)
Tax paid (26) (24) -
Tax received - 200 -
Net cash from operating activities 1,242 2,539 541
---------------------------------------- ----- ----------- ------------ -----------
Cash flows from investing activities
Purchase of property, plant and
equipment (104) (164) (88)
Expenditure on product development
and intellectual property capitalised (1,563) (2,449) (1,291)
Net cash used in investing activities (1,667) (2,613) (1,379)
---------------------------------------- ----- ----------- ------------ -----------
Cash flows from financing activities
Repayment of borrowings (206) (423) (218)
Repayment of obligations under
leases (454) (1,088) (580)
Net cash used in financing activities (660) (1,511) (798)
---------------------------------------- ----- ----------- ------------ -----------
Net decrease in cash and cash
equivalents (1,085) (1,585) (1,636)
Cash and cash equivalents at start
of period 5,623 7,278 7,278
Effects of foreign exchange on
cash and cash equivalents (9) (70) (149)
Cash and cash equivalents at
end of period 9 4,529 5,623 5,493
---------------------------------------- ----- ----------- ------------ -----------
Notes to the Interim Financial Statements
1. Principal activity
1Spatial plc is a public limited company which is listed on the
AIM London Stock Exchange and is incorporated and domiciled in the
UK. The address of the registered office is Tennyson House,
Cambridge Business Park, Cowley Road, Cambridge, CB4 0WZ. The
registered number of the Company is 5429800.
The principal activity of the Group is the development and sale
of software along with related consultancy and support.
2. Basis of preparation
This condensed consolidated interim financial report for the
half-year reporting period ended 31 July 2022 has been prepared in
accordance with UK adopted IAS 34 Interim Financial Reporting. The
interim report does not include all the information required for a
complete set of IFRS financial statements. Accordingly, this report
is to be read in conjunction with the annual report for the year
ended 31 January 2022 and any public announcements made by 1Spatial
Plc during the interim reporting period. The annual financial
statements of the Group were prepared in accordance UK adopted
international accounting standards.
The accounting policies adopted in the preparation of the
interim financial statements are consistent with those followed in
the preparation of the Group's consolidated financial statements as
at and for the year ended 31 January 2022.The Group has not early
adopted any standard, interpretation or amendment that has been
issued but is not yet effective.
Several amendments and interpretations apply for the first time
in 2022, but do not have a material impact on the interim financial
statements of the Group.
The financial information for the six months ended 31 July 2022
and 31 July 2021 is neither audited nor reviewed and does not
constitute statutory financial statements within the meaning of
section 434(3) of the Companies Act 2006 for 1Spatial plc or for
any of the entities comprising the 1Spatial Group. Statutory
financial statements for the preceding financial year ended 31
January 2022 were filed with the Registrar and included an
unqualified auditors' report.
After making enquiries, the Directors have a reasonable
expectation that the Company and the Group have adequate resources
to continue in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in
preparing the half-yearly condensed consolidated financial
statements.
These interim financial statements were authorised for issue by
the Company's Board of Directors on 27 September 2022.
3. Revenue
The following table provides an analysis of the Group's revenue
by type:
Revenue by type
H1 2023 H1 2022
GBP000 GBP000
Term licences - own 1.14 0.61 87%
Term licences - third party 0.55 0.40 38%
-------- --------
Term licences - total 1.69 1.01 67%
Support & maintenance 4.93 4.62 7%
-------- --------
Recurring revenue 6.62 5.63 18%
-------- --------
Services 6.44 5.93 9%
Perpetual licences - own 0.27 0.31 (13%)
Perpetual licences - third party 0.70 0.77 (9%)
-------- --------
Perpetual licences - total 0.97 1.08 (10%)
-------- --------
Total revenue 14.03 12.64 11%
-------- --------
Percentage of recurring revenue 47% 45%
4. Taxation
The tax charge on the result for the six months ended 31 July
2022 is based on the estimated tax rates in the jurisdictions in
which the Group operates for the year ending 31 January 2023.
5. Earnings/(loss) per share
Basic earnings/(loss) per share is calculated by dividing the
profit/(loss) attributable to equity holders of the Company by the
weighted average number of ordinary shares in issue during the
period plus the EUR0.03m deferred shares to be satisfied in March
2023.
Unaudited Audited Unaudited
Six months Six months
ended Year ended ended
31 July 31 January 31 July
2022 2022 2021
GBP'000 GBP'000 GBP'000
Profit/(loss) attributable to equity
holders of the Parent 207 177 (200)
-------------------------------------- ----------- ------------- -----------
Number Number Number
000s 000s 000s
-------------------------------------- ----------- ------------- -----------
Ordinary shares with voting rights 110,486 110,486 110,486
-------------------------------------- ----------- ------------- -----------
Deferred consideration payable
in shares 56 58 72
-------------------------------------- ----------- ------------- -----------
Basic weighted average number
of ordinary shares 110,542 110,544 110,558
-------------------------------------- ----------- ------------- -----------
Impact of share options/LTIPs 3,890 4,008 -
-------------------------------------- ----------- ------------- -----------
Diluted weighted average number
of ordinary shares 114,432 114,552 110,558
-------------------------------------- ----------- ------------- -----------
Unaudited Audited Unaudited
Six months Six months
ended Year ended ended
31 July 31 January 31 July
2022 2022 2021
Pence Pence Pence
----------------------------------- ----------- ------------- -----------
Basic earnings/(loss) per share 0.2 0.2 (0.2)
----------------------------------- ----------- ------------- -----------
Diluted earnings/(loss) per share 0.2 0.2 (0.2)
----------------------------------- ----------- ------------- -----------
There is no material difference between basic earnings per share
and diluted earnings per share.
For H1 FY 2022, basic loss per share and diluted loss per share
are the same because the options are anti-dilutive. Therefore, they
have been excluded from the calculation of diluted weighted average
number of ordinary shares.
6. Dividends
No dividend is proposed for the six months ended 31 July 2022
(31 January 2022: nil; 31 July 2021: nil).
7. Intangible assets including goodwill
Goodwill Brands Customers Software Development Intellectual Total
and related costs property
contracts
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 February
2022 17,194 450 4,547 6,574 21,228 72 50,065
Additions - - - 7 1,556 - 1,563
Effect of foreign
exchange 284 2 28 27 106 - 447
------------------------
At 31 July 2022 17,478 452 4,575 6,608 22,890 72 52,075
------------------------ --------- -------- ------------- --------- ------------ ------------- --------
Accumulated impairment
and amortisation
At 1 February
2022 11,330 291 3,640 4,958 14,826 17 35,062
Amortisation - 11 73 103 725 3 915
Effect of foreign
exchange 23 - 20 17 98 - 158
At 31 July 2022 11,353 302 3,733 5,078 15,649 20 36,135
------------------------ --------- -------- ------------- --------- ------------ ------------- --------
Net book amount
at
31 July 2022 6,125 150 842 1,530 7,241 52 15,940
======================== ========= ======== ============= ========= ============ ============= ========
Goodwill Brands Customers Software Development Intellectual Total
and related costs property
contracts
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 February
2021 17,447 464 4,764 6,757 19,285 72 48,789
Additions - - - 22 1,269 - 1,291
Effect of foreign
exchange (214) (8) (130) (125) (285) - (762)
------------------------
At 31 July 2021 17,233 456 4,634 6,654 20,269 72 49,318
------------------------ --------- -------- ------------- --------- ------------ ------------- --------
Accumulated impairment
and amortisation
At 1 February
2021 11,548 252 3,641 4,696 13,454 11 33,602
Amortisation - 23 79 223 856 3 1,184
Effect of foreign
exchange (131) (2) (90) (56) (183) - (462)
At 31 July 2021 11,417 273 3,630 4,863 14,127 14 34,324
------------------------ --------- -------- ------------- --------- ------------ ------------- --------
Net book amount
at
31 July 2021 5,816 183 1,004 1,791 6,142 58 14,994
======================== ========= ======== ============= ========= ============ ============= ========
Goodwill Brands Customers Software Development Intellectual Total
and related costs property
contracts
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 February 2021 17,447 464 4,764 6,757 19,285 72 48,789
Additions - - - 26 2,423 - 2,449
Effect of foreign
exchange (253) (14) (217) (209) (480) - (1,173)
------------------------
At 31 January
2022 17,194 450 4,547 6,574 21,228 72 50,065
------------------------ --------- -------- ------------- --------- ------------ ------------- --------
Accumulated impairment
and amortisation
At 1 February 2021 11,548 252 3,641 4,696 13,454 11 33,602
Amortisation - 42 153 360 1,693 6 2,254
Effect of foreign
exchange (218) (3) (154) (98) (321) - (794)
At 31 January
2022 11,330 291 3,640 4,958 14,826 17 35,062
------------------------ --------- -------- ------------- --------- ------------ ------------- --------
Net book amount
at
31 January 2022 5,864 159 907 1,616 6,402 55 15,003
======================== ========= ======== ============= ========= ============ ============= ========
Net book amount
at
31 January 2021 5,899 212 1,123 2,061 5,831 61 15,187
======================== ========= ======== ============= ========= ============ ============= ========
8. Trade and other receivables
As at As at As at
31 July 31 January 31 July
2022 2022 2021
Current GBP'000 GBP'000 GBP'000
----------------------------------------- --------- ------------ ---------
Trade receivables 2,701 4,895 2,858
Less: provision for impairment of trade
receivables (25) (25) (59)
----------------------------------------- --------- ------------ ---------
2,676 4,870 2,799
Other receivables 1,618 1,413 1,573
Prepayments and accrued income 8,011 5,988 4,981
----------------------------------------- --------- ------------ ---------
12,305 12,271 9,353
----------------------------------------- --------- ------------ ---------
9. Notes to the condensed consolidated statement of cash flows
a) Cash used in operations
Unaudited Audited Unaudited
Six months Six months
ended Year ended ended
31 July 31 January 31 July
2022 2022 2021
GBP'000 GBP'000 GBP'000
-------------------------------------------- ----------- ------------- -----------
Profit/(loss) before tax 267 220 (261)
Adjustments for:
Net finance cost 94 195 105
Depreciation 596 1,187 602
Amortisation of acquired intangibles 190 561 328
Amortisation and impairment of development
costs 725 1,693 856
Share-based payment charge 145 326 200
Decrease/(increase) in trade and other
receivables 216 (1,784) 1,241
(Decrease)/increase in trade and other
payables (668) 206 (2,527)
Increase/(decrease) in defined benefit
pension obligation 24 (108) 43
Net foreign exchange movement (246) 1 59
Cash from operations 1,343 2,497 646
-------------------------------------------- ----------- ------------- -----------
b) Reconciliation of net cash flow to movement in net funds
Unaudited Audited Unaudited
As at As at 31 As at
31 July January 31 July
2022 2022 2021
GBP'000 GBP'000 GBP'000
-------------------------------------------- ----------- ------------- -----------
Decrease in cash in the period (1,085) (1,585) (1,636)
-------------------------------------------- ----------- ------------- -----------
Changes resulting from cash flows (1,085) (1,585) (1,636)
Net cash outflow in respect of borrowings
repaid 206 423 218
Effect of foreign exchange (28) 127 (40)
-------------------------------------------- ----------- ------------- -----------
Change in net funds (907) (1,035) (1,458)
Net funds at beginning of period 3,231 4,266 4,266
--------------------------------------------
Net funds at end of period 2,324 3,231 2,808
-------------------------------------------- ----------- ------------- -----------
Analysis of net funds
Cash and cash equivalents classified
as:
Current assets 4,529 5,623 5,493
Bank and other loans (2,205) (2,392) (2,685)
Net funds at end of period 2,324 3,231 2,808
-------------------------------------------- ----------- ------------- -----------
Net funds is defined as cash and cash equivalents net of bank
loans.
10. Trade and other payables
As at As at As at
31 July 31 January 31 July
2022 2022 2021
Current GBP'000 GBP'000 GBP'000
------------------------------------ --------- ------------ -----------
Trade payables 2,242 2,227 1,789
Other taxation and social security 2,993 2,924 2,792
Other payables 492 534 430
Accrued liabilities 1,651 1,987 1,280
Deferred income 5,363 5,612 4,178
------------------------------------ --------- ------------ -----------
12,741 13,284 10,469
------------------------------------ --------- ------------ -----------
11. Share capital
As
at
As at As at 31
31 July 31 January July
2022 2022 2021
GBP'000 GBP'000 GBP'000
------------------------------------------- --------- ------------ --------
Allotted, called up and fully paid
110,805,795 (H1 and FY 2022: 110,805,795)
ordinary shares of 10p each 11,082 11,082 11,082
226,699,878 (H1 and FY 2022: 226,699,878)
deferred shares of 4p each 9,068 9,068 9,068
------------------------------------------- --------- ------------ --------
20,150 20,150 20,150
------------------------------------------- --------- ------------ --------
There are 110,805,795 ordinary shares of 10p in issue, of which
319,635 ordinary shares are held in treasury. Consequently, the
total number of voting rights is 110,486,160.
The deferred shares of 4p each do not carry voting rights or a
right to receive a dividend. Accordingly, the deferred shares will
have no economic value.
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END
IR KZGZLLNDGZZM
(END) Dow Jones Newswires
September 28, 2022 02:02 ET (06:02 GMT)
1Spatial (AQSE:SPA.GB)
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