Shares in location data firm 1Spatial were down as much as 10% on Wednesday morning as a trading update revealed delays have eaten into revenue.
In an update for the year ending January 2025, 1Spatial said it had seen a “greater than expected decrease in services revenue” over the past year, largely due to delays in the start of a €9m Belgian-based contract to produce a digital twin of the distribution network of an unnamed client.
The company said net borrowing was at £1.1m in January 2025, down from its net cash of £1.1m the previous year. This £2.2m outflow was due to an “expansion in working capital movement” and a “financial bond for the large Belgian contract”.
1Spatial said delivery on the contract has now begun and despite the delay impacted the pace of growth, its overall revenue grew 3% to £33.4m in 2025.
“We’ve made some good progress across the group this year and I’m especially pleased that we’ve delivered an increase in software revenues ahead of our expectations, as well as reporting the first significant sales of our higher margin 1Streetworks SaaS solution, with a further material contract in advanced negotiations,” said CEO Claire Milverton.
“With recurring revenue now accounting for 62% of total revenue, the investments that we’ve made in our software platform as well as new sales resource and leadership hires, we look forward to a positive year ahead.”
1Spatial’s audited financial results for FY25 are expected to be released on 7 May.
The Cambridge-based company specialises in geospatial data, working with organisations to manage and improve the quality of location-based information.
Shares in 1Spatial are trading at 57.5p as of Wednesday morning, down nearly 20% since the start of the year.
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