- 1Spatial
- 02 June 2025 11:14:37
Source: Sharecast
Canaccord Genuity noted that 1Spatial's interim earnings had confirmed revenue of £33.4m, up 3% year-on-year, with software & SaaS sales increasing 35% to £11.5m and recurring revenues growing to 62% of total revenue, up from 56% in FY24. Service revenues, on the other hand, declined by -9% due to procurement delays.
In terms of profit, Canaccord noted that inflationary cost pressures and increased amortisation charges from recent platform R&D resulted in adjusted underlying earnings of £1.4m, down 32% year-on-year.
Despite this, the Canadian bank stated that 1Spatial's outlook offered "cautious optimism", with FY26 starting well as the group secured its third significant contract for 1Streetworks worth £500,000 with Kent County Council and a had a number of proof of concepts ongoing.
"However, management remains cognisant of persisting macro uncertainties and subsequent procurement delays. As such, we update our FY26 forecasts, modeling yoy sales growth of 9%. Whilst this is undoubtedly a more subdued short-term outlook, we are encouraged by ARR growth (+14% to £19.7m), which indicates strength in demand for its software portfolio (evidenced in consistent renewals at 93%), and provides 54% coverage of our FY26E sales estimate," said Canaccord Genuity, which kept its 'buy' rating on the stock.
Reporting by Iain Gilbert at Sharecast.com