TIDMSPA
RNS Number : 5022A
1Spatial Plc
30 September 2020
30 September 2020
1Spatial plc (AIM: SPA)
("1Spatial", the "Group" or the "Company")
Interim Results for the six-month period ended 31 July 2020
Robust performance, delivering revenue growth and positive
operating cash flow
1Spatial, a global leader in providing Location Master Data
Management (LMDM) software and solutions, is pleased to announce
interims results for the year six months ended 31 July 2020.
Financial Highlights
-- Solid progress against a backdrop of Covid-19, with Group
revenues up 8% to GBP11.7m (H1 2020: GBP10.9m), including full
six-month contribution from Geomap-Imagis
-- Solutions revenues up 21% to GBP10.1m (H1 2020: GBP8.3m)
-- Adjusted EBITDA steady at GBP1.7m (H1 2020: GBP1.7m)
-- Positive operating cashflow of GBP1.7m (H1 2020: outflow GBP1.9m)
-- Net cash position of GBP3.4m at 31 July 2020 (31 January
2020: GBP3.9m) following the payment of GBP0.6m deferred
consideration for the acquisition of Geomap-Imagis
GBPm Half-year Half-year
to to
31 July 31 July % change
20 19
Revenue 11.7 10.9 8%
Gross profit 6.1 5.7 6%
Adjusted EBITDA * 1.7 1.7 1%
Operating loss (0.8) (0.6) 23%
Loss after tax (0.7) (0.6) 16%
Operating cash inflow/(outflow) 1.7 (1.9) n/a
* Adjusted for strategic, integration, other irregular items and
share-based payments
Operational Highlights
-- US$2.6m 5-year contract with the US State of Michigan
-- Further wins across all geographic markets, including the
Environment Agency and Greater London National Underground Asset
Register in the UK
-- Expansion contracts with existing customers, including Google and Northern Gas Networks
-- Migrations from Elyx to Esri platform commenced in France with seven projects now underway
-- Launched 1Data Gateway, the first 1Spatial cloud-based offering
-- Some delay to customer decision making due to Covid-19, but
overall the business remained resilient
Current trading and Outlook
-- Trading in H2 has begun in line with management's
expectations, including winning new contract with the US Geological
Survey
-- We are seeing an increased number of sales opportunities,
both from our direct sales activities and via partners
-- While decision-making may continue to be protracted in the
short-term, the breadth of our opportunity, combined with the
quality of our offering and people, mean we are increasingly
confident with regards to the long-term future of 1Spatial
-- The Board has reinstated full year guidance, expecting H2
revenues to be at a similar level to H1
Commenting on the results, 1Spatial CEO, Claire Milverton,
said:
"We continued to make progress with our strategy in the first
half of the year, delivering a robust trading performance against
the backdrop of Covid-19, expanding our existing customer
relationships, winning new strategic accounts and continuing to
enhance the capabilities of our Location Master Data Management
offering. We are pleased to present these results, where we have
delivered positive free cash flow in the first six months,
demonstrating the Group's strengthening financial position.
"We have entered the second half of the year with an increased
order book of contracted revenues, providing us with a good level
of revenue visibility. T he breadth of our opportunity combined
with the quality of our offering and people, mean we are
increasingly confident with regards to the long-term future of
1Spatial."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No.596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
The Company will host an analyst presentation at 11am today and
for those wishing to register, please email
1spatial@almapr.co.uk
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/ Ed Phillips /
Miquela Bezuidenhoudt
Alma PR 020 3405 0205
Caroline Forde / Justine James / Harriet Jackson 1spatial@almapr.co.uk
About 1Spatial plc
1Spatial plc is a global leader in providing Location Master
Data Management (LMDM) software and solutions, primarily to the
Government, Utilities and Transport sectors. Our global clients
include national mapping and land management agencies, utility
companies, transportation organisations, government and defence
departments.
Today - as location data from smartphones, the Internet of
Things and great lakes of commercial Big Data increasingly drive
commercial decision-making - our technology drives efficiency and
provides organisations with confidence in the data they use.
We unlock the value of location data by bringing together our
people, innovative solutions, industry knowledge and our extensive
customer base. We are striving to make the world more sustainable,
safer and smarter for the future. We believe the answers to
achieving these goals are held in data. Our 1Spatial Location
Master Data Management (LMDM) platform incorporating our 1Integrate
rules engine delivers powerful data solutions and focused business
applications on-premise, on-mobile and in the cloud. This ensures
data is current, complete, and consistent through the use of
automated processes and always based on the highest quality
information available.
1Spatial plc is AIM-listed, headquartered in Cambridge, UK, with
operations in the UK, Ireland, USA, France, Belgium, Tunisia and
Australia.
For more information visit www.1spatial.com
Half-year review
We have continued to progress our strategy in the first half of
the year, delivering a robust trading performance against the
backdrop of Covid-19, expanding our existing customer
relationships, winning exciting new strategic accounts and
continuing to enhance the capabilities of our Location Master Data
Management offering.
We delivered positive free cash flow in the first six months,
demonstrating the Group's strengthening financial position and
providing us with the increased flexibility as we implement our
growth strategy.
Our Location Master Data Management solutions business delivered
revenue growth of 21% overall, benefitting from a full six-month
contribution from Geomap-Imagis and continued uptake of our data
management solutions and business applications.
We enter the second half of the year with an increased order
book of contracted future revenue and a growing sales pipeline.
While sales cycles continue to be protracted, our expanded business
provides us with a strong platform to capitalise on the growing
demand for usable location-based data in our target industries and
geographic markets. Given the Board's confidence in the business,
we have reinstated full year guidance.
Delivering our strategy
We help customers make better business decisions and move
forward to a smarter world by unlocking the value of location data.
We are building our highly scalable business on three pillars:
Innovation, Customer Relationships and Smart Partnerships.
1. Innovation
Innovation lies at the heart of 1Spatial. Our technology
development hubs in the UK (Cambridge) and France (Paris) have been
at the forefront of continually adapting to provide innovative
solutions to manage location data for over 50 years. We help
organisations build strong spatial data infrastructures, leading to
better business decisions. We do this using our automated,
rules-based approach to data validation, integration and
enhancement. We have continued our development work in the period
across the three areas of our Location Master Data Management
offering.
Data Management Solutions - 1Integrate and 1Data Gateway
The landscape within the public sector is increasingly dominated
by the need to establish higher levels of geospatial data integrity
and assurance. The Geospatial Commission published its 5-year
national Geospatial Strategy, the "Power of Place", in May 2020,
advocating greater exploitation of geospatial data. The rise of
Digital Twins has also reinforced the need for greater trust in
data and the revived motivation for developing an Information
Management Framework. These developments place greater importance
on the capabilities of 1Spatial's core Location Master Data
Management technology and products, like 1Integrate, which has
helped us secure key wins.
Development work in the period included the addition of 3D
capability to the 1Integrate rules engine, with early pre-beta
releases enabling pre-sales and marketing engagements with
customers, providing the ability for increased engagement with
national mapping agencies and the Building Information Modelling
(BIM)/construction sector.
We launched 1Data Gateway in March 2020, supporting the cloud
platform. This product enables customers to validate data
throughout the data supply chain and was a key component of State
of Michigan win in the US.
We launched an internal training programme within our Tunisian
operation in the period, upskilling the team in the Location Master
Data Management products, starting with 1Integrate. This will
expand our capacity and speed to implement rules for projects
within our data digitisation business.
Business Applications
The Group continues to review and develop its portfolio of
Business Applications and is prioritising investment based on
repeatable solutions driven by market needs.
We continue to invest in the 1Water solution, built on the Esri
technology platform, including use of the new Utility Network
Model. This brings together the expertise of 1Spatial's water
network management and Esri's platform. It is being rolled out in
incremental releases in H2 2021 and beyond.
We continue to develop our Traffic Management Plan Automation
(TMPA) Business Application, which uses the 1Integrate rules engine
to automate the complex manual process of designing traffic control
layouts following the traffic management rulebook.
Other innovations at an earlier stage include ecology survey and
machine learning capabilities for water leakage detection.
Cloud platform
Product and technology evolution continue to underpin the cloud
platform. Architectural changes such as the 1Data Gateway portal
and docker containerised deployments have been completed or are
underway. Additional capabilities such as remote data access
services will continue to be added through H2 2021. This will
result in a scalable cloud deployment to underpin TMPA and other
solutions, as well as SaaS product delivery for those
components.
2. Customer Relationships
We want to be our customers' strategic partner and trusted
advisor in Location Master Data Management in our chosen industries
and geographies.
Land
We continued to secure new customers across our geographies and
markets. In the UK, the Environment Agency selected 1Spatial to
develop their new Digital Asset Data and Information system for
developing digital twins of key assets. We secured the second phase
of the Greater London National Underground Asset Register project,
and Laing Murphy JV invested in 1Data Gateway as they roll out
their HS2 supply chain data quality process.
In France, new wins include a 4-year framework agreement with
Seine Grand Lac, which manages flood prevention in the City of
Paris, a contract with Etablissement Public Foncier d'Ile de
France, who manage the public properties in the Paris Region and
several local authorities. In the US, the Michael Baker
partnership, underpinned by 1Integrate, continues to win business,
with 10 new clients added to date in the year. We also secured a
new 1integrate licence sale to Farm Credit Services.
Expand
We continued to expand sales to existing customers in the
period, with continued investment in 1Spatial products and services
demonstrating clients' trust in our people and technology.
In the UK, 1Spatial delivered two new enterprise mobile
applications across Northern Gas Networks for field reporting of
emergency incidents and asset maintenance. RPA (Land Management
System) and DAERA (FARMAP) have both extended their service
management and software contracts with 1Spatial, as well as
continued software upgrades at PRAI in Ireland and Ordnance Survey
Ireland. Our expertise in building practical business solutions is
becoming more deeply integrated at OSGB as we help develop their
new generation of open source products under the PSMA.
In France, seven existing customers have commenced migration
from the Group's legacy platform, to the Esri platform, paving the
way for future expansion. The Group secured four expansion
contracts in the French utility and government sectors. We also
extended a key support and maintenance contract for a European
national cadastre agency for four years with a total contract value
of EUR1.3m.
The highlight in the US was the significant contract secured
with the State of Michigan to deliver the second phase of their
Geographic Framework. This is a five-year contract with an expected
total contract value of at least $2.6m. We have continued to win
new work with Google Inc., the Federal Highways and US Census, and
expansion wins with LA County, Ventura County and the State of
Minnesota.
3. Smart Partnerships
We use smart partnerships to extend our market reach, providing
additional scale to our capabilities. We target three types of
partners: major technology consultancies, software platform
providers, and adjacent industry specialists.
A new partnership agreement with global engineering firm Black
& Veatch has led to early success in the UK with potential to
expand this technology collaboration overseas. Our strong
partnership with E sri France is generating increasing interest in
the local authority and utility market and our Michael Baker
relationship in the US continues to bring new customers. We
continue to work on new partnership opportunities in all geographic
markets.
Covid-19
Coronavirus (Covid-19) continues to have an unprecedented impact
globally and our business continuity plans remain robust. Most
sites continue to work on a remote basis, providing outstanding
support to our customers, with some beginning a phased return to
the office.
We have seen some lengthening of sales cycles across all
territories but continue to see new opportunities entering our
pipeline. As described in the update provided at the time of the
AGM, our French business saw the greatest impact, with the
suspension of local government contracting activity impacting both
licence and service revenue generation. However, the suspension has
now been lifted.
We chose to maintain all of our skilled workforce during the
Covid-19 period, receiving no support under the UK Government job
retention scheme, although, we did utilise financial support in
some overseas territories, where there was a greater impact.
As flagged in our Final Results announced on 11 June 2020, we
increased our funding from corporate lenders in H1 2021 by GBP1.8m
to provide extra resources as we entered a period of uncertainty.
We have controlled expenditure tightly through the deferment of
some discretionary spending. If we were to see a slow-down in our
customer win rate and activities, we would take appropriate action.
However, our extensive customer base, healthy levels of recurring
revenue and growing contracted order book provide us with
confidence in the resilience of the business.
Current Trading & Outlook
We have entered the second half of the year with an increased
order book of contracted revenues, providing us with a good level
of revenue visibility. Trading in the second half of the year has
begun in line with management's expectations, including new
contract wins, such as with the US Geological Survey, and we expect
H2 revenues to be at a similar level to H1 . We are seeing an
increased number of sales opportunities, both from our direct sales
activities and via partners, and both the breadth and size of
opportunity continues to increase. While decision-making may
continue to be protracted in the short-term due to Covid-19, the
breadth of our opportunity combined with the quality of our
offering and people, mean we are increasingly confident with
regards to the long-term future of 1Spatial.
Claire Milverton
Chief Executive Officer
Financial performance
Summary
The Group delivered a robust financial performance in the first
half of the year, growing revenues, maintaining adjusted EBITDA
profit levels and, importantly, generating positive cash flow.
Although the business reported an overall loss before tax (which
was impacted by a number of non-cash charges), with the positive
free cash flow and increased order book of committed revenue, the
Board believes the business is in a much stronger financial
position than in the prior period.
Revenue
Group revenue increased by 8% to GBP11.7m compared to GBP10.9m
in H1 2020. Whilst this included the full six months of the
acquisition of Geomap-Imagis (GI), compared to 3 months in the
prior year, it was a solid result against the backdrop of the
Covid-19 pandemic. The core Solutions revenue stream (now around
86% of Group revenues) increased by 21% year on year, as the
business focuses on developing and selling repeatable software
solutions under a SaaS model.
Core revenue growth
H1 2021 H1 2020 % change
Solutions 6.63 6.39 4%
GI acquisition 3.47 1.94 79%
-------- -------- ---------
Total solutions 10.10 8.33 21%
GIS 1.63 2.53 (36%)
-------- -------- ---------
Total revenue 11.73 10.86 8%
-------- -------- ---------
In the prior period, we had only three months' benefit of the GI
acquisition in Europe and the table below shows the change in
Solutions revenue on a like for like basis (i.e. including only Q2
revenue in H1 2021 for the acquisition). Whilst there was a revenue
drop compared to the prior period, mainly due to Covid-19-related
project delays following the postponement of the French local
elections, the overall profitability of the acquisition was
maintained at a similar level.
Core revenue growth - on
like for like basis
H1 2021 H1 2020 % change
Solutions 6.63 6.39 4%
GI acquisition (Q2) 1.75 1.94 (10%)
-------- -------- ---------
Total Solutions 8.38 8.33 1%
-------- -------- ---------
The business is transitioning towards selling term subscription
licences rather than perpetual licences, and the level of revenue
from perpetual licences is expected to continue to decrease as a
percentage of revenue. Non-core Geographic Information Systems
("GIS") revenue decreased as expected, (although the decline was
also impacted by project delays due to Covid-19) to GBP1.6m from
GBP2.5m, and now accounts for only c. 14% of Group revenues.
As part of this transition, recurring revenue increased by 15%
compared to H1 2020 and is now 44% of total revenues, up from 42%
in the comparative period.
Revenue by type
H1 2021 H1 2020 % change
Recurring revenue* 5.19 4.52 15%
Services 5.52 4.95 12%
Perpetual licences 1.02 1.39 (27%)
-------- -------- ---------
Total revenue 11.73 10.86 8%
-------- -------- ---------
Percentage of recurring
revenue 44% 42%
* Recurring revenue comprises term licences and support and
maintenance revenue.
Revenue in the European business was lower on a like for like
basis due to both the reduction in the GIS revenue (all within
Europe) and also the lower solutions revenue from the GI
acquisition, although overall revenues in Europe grew by 14%,
benefitting from three additional months of acquired revenues.
Revenue increased in all other regions compared to H1 2020, and in
the US, which represents 10% of Group revenue, the growth was 12%
compared to the prior year.
Regional revenue
H1 2021 H1 2020 % change
UK/Ireland 4.34 4.28 1%
Europe 5.09 4.48 14%
US 1.16 1.04 12%
Australia 1.14 1.06 8%
-------- -------- ---------
Total revenue 11.73 10.86 8%
-------- -------- ---------
Committed revenue
The levels of both contracted revenue and revenue expected from
recurring support contracts increased compared to last year. This
increased level of visibility allows the Board to plan future
investment with confidence.
Gross profit margin
The gross margin was down slightly year on year to 52% from 53%
and this is mainly attributable to lower levels of new licences due
to the impact of Covid-19 delaying some decisions and a lower level
of utilisation realised on services. Offsetting this in the cost of
sales, the Group received GBP0.3m of grants from overseas
governments as part of business support schemes in relation to
Covid-19. Going forward, the management team are focused on driving
improvements to the gross margin levels.
Adjusted EBITDA
The adjusted EBITDA was at a similar level to the prior year at
GBP1.7m with a margin of 14.2%. Whilst lower than H1 2020, the
EBITDA margin was marginally ahead of FY 2020 of 13.8%. Cost
management has been an important focus during H1 2021 and expenses
are constantly reviewed to ensure the level is appropriate for the
structure of the business. Administrative expenses increased over
the comparable period mainly because of the additional three months
of the acquired business.
The Board is focused on improving the Group's profitability and
cash generation going forward whilst balancing the needs for
further investment in sales infrastructure (for example, in the US
region), marketing initiatives (such as the new website launch) and
product development (improvements to existing and new repeatable
solutions) to grow the business.
Operating loss and loss before tax
The Group recorded an operating loss of GBP0.8m compared to
GBP0.6m in the prior period being impacted by increases in non-cash
items such as amortisation of acquired intangibles. This resulted
in the Group's loss before tax increasing to GBP0.7m from GBP0.6m
for the comparable period.
Taxation
The net tax credit for the period was GBP0.1m (H1 2020:
GBP40k).
Balance sheet
The Group's net assets reduced to GBP15.3m from GBP15.5m at 31
January 2020 (and GBP16.6m at 31 July 2019). The reduction was
mainly due to the overall loss after tax offset by currency gains
in reserves.
Cash flow
Operating cash flow improved significantly to an inflow of
GBP1.7m in H1 2021 compared to an outflow of GBP1.9m in H1 2020.
Indeed, the focus on cash flow has also resulted in free cash flow
being GBP0.5m positive even after irregular one-off items, as shown
in the table below:
H1 FY 2020 H1 2020
Free cash flow 2021
GBP'000 GBP'000 GBP'000
-------- -------- --------
Cash generated from/(used in) operations
before strategic, integration and other
irregular items 1,773 1,861 (1,275)
Net interest (72) (144) (62)
Net tax (70) 313 149
Expenditure on product development and
intellectual property capitalised (965) (2,188) (874)
Purchase of property, plant and equipment (102) (132) (70)
-------- -------- --------
Free cash flow before strategic, integration
and other irregular items 564 (290) (2,132)
Cashflow on strategic, integration and
other irregular items (29) (1,289) (652)
-------- -------- --------
Free cash flow 535 (1,579) (2,784)
-------- -------- --------
Within investing activities, the deferred consideration of
EUR0.7m (GBP0.6m) on the acquisition of Geomap Imagis, was paid as
planned in H1 2021. The level of R&D increased slightly to
GBP1.0m from GBP0.9m in H1 2020; the level of R&D for the full
year is expected to be at a similar level to last year.
The business took advantage of available bank loans offered on
reasonable commercial terms as part of the Covid-19 support
initiatives in Europe and this has boosted the Group's gross cash
position to GBP6.6m. With a net cash position of GBP3.4m at 31 July
2020 and positive operating cash flow, the business is in a much
stronger financial position than in the prior period and this gives
the Board the confidence to continue to invest in its
three-pillared strategy for growth.
Andrew Fabian
Interim CFO
Condensed consolidated statement of comprehensive income
Six months ended 31 July 2020
Unaudited Audited Unaudited
Six months Six months
ended Year ended ended
31 July 31 January 31 July
2020 2020 2019
Continuing operations Note GBP'000 GBP'000 GBP'000
-------------------------------------------- ----- ----------- ------------ -----------
Revenue 11,726 23,385 10,861
Cost of sales (net of government
grants of GBP346,000 (H1 2020: nil)) (5,655) (11,123) (5,138)
-------------------------------------------- ----- ----------- ------------ -----------
Gross profit 6,071 12,262 5,723
Administrative expenses (6,861) (13,800) (6,363)
-------------------------------------------- ----- ----------- ------------ -----------
(790) (1,538) (640)
-------------------------------------------- ----- ----------- ------------ -----------
Adjusted* EBITDA 1,666 3,226 1,655
Less: depreciation (97) (152) (48)
Less: depreciation on right of use
asset (559) (878) (458)
Less: amortisation and impairment
of intangible assets 7 (1,500) (2,169) (974)
Less: share-based payments (175) (398) (222)
Less: strategic, integration and
other irregular items 6 (125) (1,167) (593)
-------------------------------------------- ----- ----------- ------------ -----------
Operating loss (790) (1,538) (640)
Finance income 13 40 36
Finance cost (85) (235) (62)
-------------------------------------------- ----- ----------- ------------ -----------
Net finance cost (72) (195) (26)
Loss before tax (862) (1,733) (666)
Income tax credit 135 248 40
-------------------------------------------- ----- ----------- ------------ -----------
Loss for the period (727) (1,485) (626)
Other comprehensive income
Items that may subsequently be reclassified
to profit or loss:
Actuarial gains arising on defined benefit - 40 -
pension, net of tax
Exchange differences on translating
foreign operations 381 (120) 358
Other comprehensive income/(loss)
for the period, net of tax 381 (80) 358
============================================ ===== =========== ============ ===========
Total comprehensive loss for the
period (346) (1,565) (268)
============================================ ===== =========== ============ ===========
* Adjusted for strategic, integration and other irregular items
(note 6) and share-based payments.
Loss per ordinary share from continuing operations attributable
to the owners of the parent during the year (expressed in pence
per ordinary share):
Basic loss per share 4 (0.65) (1.37) (0.60)
Diluted loss per share 4 (0.65) (1.37) (0.60)
Condensed consolidated statement of financial position
As at 31 July 2020
Unaudited Audited Unaudited
As at As at As at
31 July 31 January 31 July
2020 2020 2019
-------------------------------------- ----- ---------- ------------ ----------
Note GBP'000 GBP'000 GBP'000
-------------------------------------- ----- ---------- ------------ ----------
Assets
Non-current assets
Intangible assets including goodwill 7 15,590 15,560 16,331
Property, plant and equipment 415 374 442
Right-of-use assets 3,265 3,272 3,365
Total non-current assets 19,270 19,206 20,138
-------------------------------------- ----- ---------- ------------ ----------
Current assets
Trade and other receivables 8 8,951 9,930 9,431
Current income tax receivable 308 233 156
Cash and cash equivalents 10 6,569 5,108 4,001
-------------------------------------- ----- ---------- ------------ ----------
Total current assets 15,828 15,271 13,588
-------------------------------------- ----- ---------- ------------ ----------
Total assets 35,098 34,477 33,726
-------------------------------------- ----- ---------- ------------ ----------
Liabilities
Current liabilities
Bank borrowings 10 (1,267) (135) (732)
Lease liabilities (985) (957) (931)
Trade and other payables 9 (10,861) (11,439) (9,641)
Deferred consideration 12 - (599) (613)
Provisions - - (81)
Total current liabilities (13,113) (13,130) (11,998)
-------------------------------------- ----- ---------- ------------ ----------
Non-current liabilities
Bank borrowings 10 (1,869) (1,086) -
Lease liabilities (2,330) (2,340) (2,432)
Deferred consideration 12 (398) (370) (380)
Defined benefit pension obligation (1,567) (1,417) (1,504)
Deferred tax (537) (679) (836)
Total non-current liabilities (6,701) (5,892) (5,152)
-------------------------------------- ----- ---------- ------------ ----------
Total liabilities (19,814) (19,022) (17,150)
Net assets 15,284 15,455 16,576
====================================== ===== ========== ============ ==========
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 3,507 3,332 3,156
Merger reserve 16,465 16,465 16,465
Reverse acquisition reserve (11,584) (11,584) (11,584)
Currency translation reserve 565 184 662
Accumulated losses (43,518) (42,791) (41,972)
Purchase of non-controlling interest
reserves (477) (477) (477)
-------------------------------------- ----- ---------- ------------ ----------
Equity attributable to shareholders
of the parent company 15,284 15,455 16,576
-------------------------------------- ----- ---------- ------------ ----------
Total equity 15,284 15,455 16,576
====================================== ===== ========== ============ ==========
Condensed
consolidated
statement
of changes in
equity
Period ended
31 July 2020
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 1
February 2019 18,971 28,661 (303) 2,934 16,030 (11,584) 304 (477) (41,346) 13,190
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Comprehensive
loss
Loss for the
year - - - - - - - - (1,485) (1,485)
Other
comprehensive
(loss)/income
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Actuarial
gains arising
on
defined
benefit
pension - - - - - - - - 40 40
Exchange
differences
on
translating
foreign
operations - - - - - - (120) - - (120)
Total other
comprehensive
(loss)/income - - - - - - (120) - 40 80
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Total
comprehensive
(loss)/income - - - - - - (120) - (1,445) (1,565)
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Transactions
with owners
recognised
directly in
equity
Issue of share
capital, net
of share
issue costs 1,179 1,818 - - 435 - - - - 3,432
Recognition of
share-based
payments - - - 398 - - - - - 398
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
1,179 1,818 - 398 435 - - - - 3,830
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Balance at
31 January
2020
(Audited) 20,150 30,479 (303) 3,332 16,465 (11,584) 184 (477) (42,791) 15,455
=============== ======== ======== ======= =============== ======== ============ ============ ================ ============ ========
Comprehensive
loss
Loss for the
period - - - - - - - - (727) (727)
Other
comprehensive
income
Exchange
differences
on
translating
foreign
operations - - - - - - 381 - - 381
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Total other
comprehensive
income - - - - - - 381 - - 381
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Total
comprehensive
income/(loss) - - - - - - 381 - (727) (346)
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Transactions
with owners
recognised
directly in
equity
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Issue of share - - - - - - - - - -
capital
Recognition of
share-based
payments - - - 175 - - - - - 175
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
- - - 175 - - 381 - (727) (171)
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ---------------- ------------ --------
Balance at
31 July 2020
(Unaudited) 20,150 30,479 (303) 3,507 16,465 (11,584) 565 (477) (43,518) 15,284
=============== ======== ======== ======= =============== ======== ============ ============ ================ ============ ========
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 1
February 2019 18,971 28,661 (303) 2,934 16,030 (11,584) 304 (477) (41,346) 13,190
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
Comprehensive
loss
Loss for the
period - - - - - - - - (626) (626)
Other
comprehensive
income
Exchange
differences
on
translating
foreign
operations - - - - - - 358 - - 358
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
Total other
comprehensive
income - - - - - - 358 - - 358
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
Total
comprehensive
income/(loss) - - - - - - 358 - (626) (268)
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
Transactions
with owners
recognised
directly in
equity
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
Issue of share
capital 1,179 1,818 - - 435 - - - - 3,432
Recognition of
share-based
payments - - - 222 - - - - - 222
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
1,179 1,818 - 222 435 - - - - 3,654
--------------- -------- -------- ------- --------------- -------- ------------ ------------ ----------------- ------------ --------
Balance at 31
July 2019
(Unaudited) 20,150 30,479 (303) 3,156 16,465 (11,584) 662 (477) (41,972) 16,576
=============== ======== ======== ======= =============== ======== ============ ============ ================= ============ ========
Condensed consolidated statement of cash flows
Period ended 31 July 2020
Unaudited Audited Unaudited
31 July 31 January 31 July
2020 2020 2019
Note GBP'000 GBP'000 GBP'000
---------------------------------------- ------ ---------- ----------- ----------
Cash flows from operating activities
Cash generated from/(used in)
operations a) 1,744 572 (1,927)
Interest received 13 40 -
Interest paid (85) (184) (62)
Tax (paid)/received (70) 313 149
Net cash from/(used) in operating
activities 1,602 741 (1,840)
------------------------------------------------ ---------- ----------- ----------
Cash flows from investing activities
Acquisition of subsidiaries (net
of cash acquired) (585) (2,151) (2,151)
Purchase of property, plant and
equipment (102) (132) (70)
Expenditure on product development
and intellectual property capitalised (965) (2,188) (874)
Net cash used in investing activities (1,652) (4,471) (3,095)
------------------------------------------------ ---------- ----------- ----------
Cash flows from financing activities
New borrowings 1,832 672 -
Repayment of borrowings (6) (133) -
Repayment of obligations under
leases (598) (792) (431)
Net proceeds of share issue - 2,805 2,915
Net cash generated from financing
activities 1,228 2,552 2,484
------------------------------------------------ ---------- ----------- ----------
Net increase/(decrease) in cash
and cash equivalents 1,178 (1,178) (2,451)
Cash and cash equivalents at start
of period 5,108 6,358 6,358
Effects of foreign exchange on
cash and cash equivalents 283 (72) 94
Cash and cash equivalents at end
of period 6,569 5,108 4,001
------------------------------------------------ ---------- ----------- ----------
Notes to the condensed consolidated statement of cash flows
a) Cash used in operations
Unaudited Audited Unaudited
As at 31 As at
As at January 31 July
31 July 2020 2020 2019
GBP'000 GBP'000 GBP'000
------------------------------------------------- ----------------- ---------- -----------
Loss before tax (862) (1,733) (666)
Adjustments for:
Net finance cost 72 144 62
Depreciation 656 1,030 506
Amortisation and impairment 1,500 2,169 974
Share-based payment charge 175 398 222
Decrease/(Increase) in trade and
other receivables 1,392 (2,377) (1,366)
(Decrease)/Increase in trade and
other payables (1,177) 702 (1,498)
Increase in provisions - - 38
Increase in defined benefit pension
obligation 46 72 -
Net foreign exchange movement (58) 167 (199)
Cash from/(used) in operations 1,744 572 (1,927)
------------------------------------------------- ----------------- ---------- -----------
Reconciliation of cash generated before
and after impact of strategic, integration
and other irregular items Unaudited Audited Unaudited
As at As at As at
31 July 31 January 31 July
2020 2020 2019
Cash generated from/(used in) operations
before strategic, integration and other
irregular items 1,773 1,861 (1,275)
Cashflow on strategic, integration and
other irregular items (29) (1,289) (652)
--------------------------------------------- ---------- ------------ ----------
Cash generated from/(used in) operations
after strategic, integration and other
irregular items 1,744 572 (1,927)
--------------------------------------------- ---------- ------------ ----------
b) Reconciliation of net cash flow to movement in net funds
Unaudited Audited Unaudited
As at 31 As at
As at January 31 July
31 July 2020 2020 2019
GBP'000 GBP'000 GBP'000
------------------------------------------------- ----------------- ---------- -----------
Increase/(Decrease) in cash in the
period 1,178 (1,178) (2,451)
------------------------------------------------- ----------------- ---------- -----------
Changes resulting from cash flows 1,178 (1,178) (2,451)
Net cash inflow in respect of new
borrowings (1,832) (672) -
Changes in net funds due to borrowings
acquired - (731) (732)
Net cash inflow in respect of borrowings
repaid 6 133 -
Effect of foreign exchange 194 (23) 94
------------------------------------------------- ----------------- ---------- -----------
Change in net funds (454) (2,471) (3,089)
Net funds at beginning of period 3,887 6,358 6,358
-------------------------------------------------
Net funds at end of period 3,433 3,887 3,269
------------------------------------------------- ----------------- ---------- -----------
Analysis of net funds
Cash and cash equivalents classified
as:
Current assets 6,569 5,108 4,001
Bank and other loans (3,136) (1,221) (732)
Net funds at end of period 3,433 3,887 3,269
------------------------------------------------- ----------------- ---------- -----------
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 2020 has been prepared in
accordance with Accounting Standard IAS 34 Interim Financial
Reporting. The interim report does not include all the notes of the
type normally included in an annual financial report. Accordingly,
this report is to be read in conjunction with the annual report for
the year ended 31 January 2020 and any public announcements made by
1Spatial Plc during the interim reporting period.
The financial information for the six months ended 31 July 2020
and 31 July 2019 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 2020 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.
3. Taxation
The tax credit on the result for the six months ended 31 July
2020 is based on the estimated tax rates in the jurisdictions in
which the Group operates, for the year ending 31 January 2021.
4. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the period plus
the deferred shares to be issued in March 2023 in relation to the
Geomap-Imagis acquisition completed in May 2019 (see note 12).
Unaudited Audited Unaudited
As at As at 31 As at
31 July January 31 July
2020 2020 2019
GBP'000 GBP'000 GBP'000
Loss attributable to equity holders
of the Parent (727) (1,485) (626)
------------------------------------- ---------- --------- ----------
Number Number Number
000s 000s 000s
------------------------------------- ---------- --------- ----------
Basic weighted average number of
ordinary shares 112,114 108,438 104,332
------------------------------------- ---------- --------- ----------
Diluted weighted average number
of ordinary shares 113,469 110,181 106,179
------------------------------------- ---------- --------- ----------
Unaudited Audited Unaudited
As at As at As at
31 July 31 January 31 July
2020 2020 2019
Pence Pence pence
---------------------------------- ---------- ------------ ----------
Basic and diluted loss per share (0.65) (1.37) (0.60)
---------------------------------- ---------- ------------ ----------
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.
5. Dividends
No dividend is proposed for the six months ended 31 July 2020
(31 January 2020: nil; 31 July 2019: nil).
6. Strategic, integration and other irregular items
In accordance with the Group's policy for strategic, integration
and other irregular items, the following charges were included in
this category for the period:
Six months Six months
ended Year ended ended
31 July 31 January 31 July
2020 2020 2019
GBP'000 GBP'000 GBP'000
--------------------------------------- ----------- ------------ -----------
Costs associated with the acquisition
and integration of the Geomap-Imagis
Group 125 1,167 593
Total 125 1,167 593
--------------------------------------- ----------- ------------ -----------
7 . Intangible assets including goodwill
Customers
and related Development Website Intellectual
Goodwill Brands contracts Software costs costs property Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 February
2020 17,291 452 4,579 6,487 16,932 30 66 45,837
Additions - - - - 962 - 3 965
Effect of foreign
exchange 351 16 251 258 471 - - 1,347
----------------------
At 31 July 2020 17,642 468 4,830 6,745 18,365 30 69 48,149
---------------------- --------- -------- ------------- --------- ------------ -------- ------------- --------
Accumulated
impairment
and amortisation
At 1 February
2020 11,363 204 3,113 4,185 11,374 30 8 30,277
Amortisation - 23 297 221 957 - 2 1,500
Effect of foreign
exchange 249 1 154 94 284 - - 782
At 31 July 2020 11,612 228 3,564 4,500 12,615 30 10 32,559
---------------------- --------- -------- ------------- --------- ------------ -------- ------------- --------
Net book amount
at
31 July 2020 6,030 240 1,266 2,245 5,750 - 59 15,590
====================== ========= ======== ============= ========= ============ ======== ============= ========
Customers
and related Development Website Intellectual
Goodwill Brands contracts Software costs costs property Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 February 2019 16,161 232 2,843 4,421 15,012 30 66 38,765
Arising on
acquisition 1,338 226 1,847 2,164 - - - 5,575
Additions - - - - 2,188 - - 2,188
Effect of foreign
exchange (208) (6) (111) (98) (268) - - (691)
----------------------
At 31 January 2020 17,291 452 4,579 6,487 16,932 30 66 45,837
---------------------- --------- -------- ------------- --------- ------------ -------- ------------- --------
Accumulated
impairment
and amortisation
At 1 February 2019 11,533 165 2,754 3,850 10,232 30 7 28,571
Amortisation - 40 433 385 1,197 - 3 2,058
Impairment - - - - 111 - - 111
Effect of foreign
exchange (170) (1) (74) (50) (166) - (2) (463)
At 31 January 2020 11,363 204 3,113 4,185 11,374 30 8 30,277
---------------------- --------- -------- ------------- --------- ------------ -------- ------------- --------
Net book amount
at
31 January 2020 5,928 248 1,466 2,302 5,558 - 58 15,560
====================== ========= ======== ============= ========= ============ ======== ============= ========
8. Trade and other receivables
As at As at As at
31 July 31 January 31 July
2020 2020 2019
Current GBP'000 GBP'000 GBP'000
----------------------------------------- --------- ------------ ---------
Trade receivables 3,462 5,012 4,634
Less: provision for impairment of trade
receivables (44) (68) -
----------------------------------------- --------- ------------ ---------
3,418 4,944 4,634
Other taxes and social security - - 168
Other receivables 1,445 1,431 1,739
Prepayments and accrued income 4,088 3,555 2,890
----------------------------------------- --------- ------------ ---------
8,951 9,930 9,431
----------------------------------------- --------- ------------ ---------
9. Trade and other payables
As at As at As at
31 July 31 January 31 July
2020 2020 2019
Current GBP'000 GBP'000 GBP'000
------------------------------------ --------- ------------ ---------
Trade payables 1,587 2,143 2,295
Other taxation and social security 2,829 2,477 2,571
Other payables 693 996 498
Accrued liabilities 1,137 905 455
Deferred income 4,615 4,918 3,822
------------------------------------ --------- ------------ ---------
10,861 11,439 9,641
------------------------------------ --------- ------------ ---------
10. Cash and borrowings
As at As at As at
31 July 31 January 31 July
2020 2020 2019
Analysis of net funds GBP'000 GBP'000 GBP'000
Cash and cash equivalents classified
as:
Current assets 6,569 5,108 4,001
Bank and other loans (3,136) (1,221) (732)
Net funds at end of period 3,433 3,887 3,269
-------------------------------------- --------- ------------ ---------
During the period new loans of GBP1.83m were arranged to
strengthen the Group's financial position.
11. Share capital
As at As at As at
31 July 31 January 31 July
2020 2020 2019
GBP'000 GBP'000 GBP'000
---------------------------------------------- --------- ------------ ---------
Allotted, called up and fully paid
110,805,795 (Jan 2020: 110,805,795) ordinary
shares of 10p each 11,082 11,082 11,082
226,699,878 (Jan 2020: 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
a total of 319,635 ordinary shares are held in treasury. Therefore,
the total number of ordinary shares with 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.
12. Business combinations
In May 2019, the Company entered into two share purchase
agreements to acquire the entire issued share capital of
Geomap-Imagis Participations ("Geomap-Imagis") for a total
consideration of EUR7.0m. The transaction was completed in the last
financial year. In H1 2021, deferred consideration of EUR0.7m
(GBP0.6m) was paid as planned. The remaining balance of EUR0.4m of
the consideration to be satisfied by the issue of shares will be
satisfied on 30 March 2023. Further details of this business
combination were disclosed in note 18 of the Group's annual
financial statements for the year ended 31 January 2020.
The business is now largely integrated from an operational
perspective although there is some rationalisation of internal
systems in order to improve operational efficiencies being
implemented that are expected to be completed during H2 2021.
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END
IR DZGZLNLGGGZM
(END) Dow Jones Newswires
September 30, 2020 02:00 ET (06:00 GMT)
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