While 1Spatial's (SPA) loss widened at the half-year stage, the group - which makes software that stores and interprets location-based data - is making progress. Revenue rose especially sharply, significantly reflecting the inclusion of the Star-Apic acquisition - that deal has opened the door to the French-speaking market.
Admittedly, the increasing geographic focus has meant higher costs - reflecting rebranding and a need to boost global staff numbers - and administrative expenses jumped 47 per cent year on year to £5.9m. Currency headwinds also delivered a £210,000 hit. But a spate of contract wins, including one with the Ministry of Defence, has brought the order book to about £7m.What's more, and following the success of its US Census contract, management has plans to raise the group's profile in the US. In October, meanwhile, management also announced a strategic relationship with Esri, an international supplier of geographic information system software - it's global reach should present significant opportunities for 1Spatial.
A number of further acquisition opportunities were also identified during the period and these remain under review. More generally, management plans to utilise the strong balance sheet to support growth and to continue with international expansion.
Broker N+1 Singer expects full-year pre-tax profit of £1.3m, giving EPS of 0.1p (from a 0.4p loss in 2013-14), rising to 0.2p in 2016.
| 1SPATIAL (SPA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 6.5p | MARKET VALUE: | £42.3m | |
| TOUCH: | 6.3-6.8p | 12-MONTH HIGH: | 11p | LOW: 5p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 3p* | NET CASH: | £9.8m | |
| Half-year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 7.6 | -0.37 | -0.11 | nil |
| 2014 | 10.1 | -0.68 | -0.12 | nil |
| % change | +33 | - | - | - |
Ex-div:- Payment:- *Includes intangible assets of £14.6m, or 2p a share | ||||
