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1Spatial's FY25 results outline a company on a journey towards a software-centric business model, despite challenging market conditions. The ‘Location Master Data Management’ specialist delivered a 3% revenue increase to £33.4m, with software sales (term licence and SaaS) climbing an impressive 35% to £11.5m (progress we reported on at the halfway point in the year – see 1Spatial gets its ducks in a row).
Particularly noteworthy is the significant uplift in recurring revenue, now representing 62% of total income (up from 56% in FY24). SaaS solutions revenue surged fivefold to £1.0m, highlighting the firm's successful pivot towards higher-margin subscription offerings (see 1Spatial working to deliver on SaaS potential).
The company's 1Streetworks SaaS solution emerges as a bright spot, having secured three major contracts including Surrey County Council (£1.0m) and post-year-end, Kent County Council (£0.5m). The solution has demonstrated tangible benefits, including a 40% reduction in road closures for UK Power Networks.
However, operational challenges persist. US professional services underperformed, and the delayed start of a large Belgian contract impacted overall results. Operating profit declined 38% to £0.9m, reflecting increased costs and non-cash charges.
Looking ahead, management expects government procurement delays to continue hampering growth in FY26, particularly in the US. Nevertheless, the company remains committed to investments in sales capabilities across its key markets.
Overall, 1Spatial presents a mixed picture - strong progress in high-margin software offerings, tempered by public sector procurement headwinds. The company's shift towards recurring revenue streams does, however, suggest long-term resilience despite some near-term challenges.
Posted by: Marc Hardwick at 09:04
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results
data
location services