1Spatial |
Recovery plan |
Full year results |
Software & comp services |
14 September 2017 |
Share price performance
Business description
Next events
Analysts
1Spatial is a research client of Edison Investment Research Limited |
1Spatial’s restructured management team has made brisk progress in reducing overheads and realigning the business to deliver on the client-centric solutions model. The turnaround is still in its early stages, but we believe it could yield good results in a relatively short timeframe. The market for GIS technology is large and growing at a double-digit rate and we believe that 1Spatial has the customer base, technology and expertise to capitalise on this. Recent contract wins in the UK and the US indicate the turnaround is on track. We believe there is substantial intrinsic value within the business, which with continued execution should be unlocked.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
EV/sales |
P/E |
01/16 |
18.3 |
1.1 |
0.16 |
0.0 |
1.5 |
23 |
01/17 |
22.1 |
(2.4) |
(0.33) |
0.0 |
1.3 |
N/A |
01/18e |
23.8 |
(0.6) |
(0.08) |
0.0 |
1.2 |
N/A |
01/19e |
25.6 |
(0.2) |
(0.03) |
0.0 |
1.1 |
N/A |
Note: *PBT and EPS are normalised, excluding intangible amortisation, exceptional items and share-based payments.
Rapid progress with restructuring
The new model integrates 1Spatial’s own software with third-party software and services to provide complete geospatial solutions to its traditional customer base of geospatial information users. The board and management teams have been reshaped, annualised costs have been reduced by £2.5m, and the company has exited non-core, loss-making businesses Avisen and Storage Fusion, while 1Spatial Inc and Sitemap have been brought under full control.
Contract wins indicate recovery is on track
Progress so far in FY18 looks encouraging. In Europe the company has secured a number of new customers, the most recent of which was a significant contract with Northern Gas Networks. Recent wins in the US, with US Federal Highways (USFH) and National Oceanic Atmospheric Administration (NOAA) are strategically important, given size of opportunity in the US and in the case of USFH, the potential for this relationship to be a platform for sales to other providers who feed data into the USFH. The company continues to work with key GIS players such as Esri and anticipates sales growth from these relationships during FY18.
Valuation: Good recovery credentials
We reinstate forecasts at a cautious level (8% FY18 revenue growth), mindful that recoveries following substantial restructuring are often not smooth. However, if deal flow remains robust we could see upside and with the business forecast to trade close to break-even, any upside should gear strongly into earnings – particularly licensing income. In the medium term, we believe that the core GIS business should be able to achieve mid-teens operating margins. If the Geospatial business continues to show that it is on a growth and margin expansion trajectory, we believe that a 2x EV/sales ratio (implying 4.7p a share) would be readily justifiable. Valuing Enables IT at 5-7x EBITDA (0.3-0.4p a share) would suggest a 5p value for the group.
Investment summary
Company description: Spatial software and solutions
1Spatial’s core technology enables the provision of software and services for managing geospatial data. Its customers include some of the largest and most sophisticated geospatial data users globally, including the US Census Bureau, Ordnance Survey Great Britain, United Utilities and many others. The proprietary platform (1SMS) correlates location specific data from multiple sources simultaneously. It can then identify data errata, before automatically correcting and enhancing them with additional information from other sources, due to the multi-layered nature of spatial data. Following the extensive strategic review in December, management has made rapid progress with restructuring. 1Spatial will integrate the company’s own software with third-party software and services to provide complete geospatial solutions to the company’s traditional customer base of heavy-duty GIS (geographical information systems) users, particularly national mapping agencies, data providers, government departments and utility companies. 1Spatial is also expanding into new sectors such as transport and is increasing its geographic reach for its traditional customer base by having a greater focus on the US. 1Spatial continues to work with key GIS players such as Esri and anticipates sales growth from these relationships during FY18.
Financials: A return to growth
FY17 results highlighted the need for change but also bore the impact of substantial restructuring towards the end. Revenues from the core geospatial business declined by 20% organically, net free cash outflow was £4.4m while the net loss was £18.4m (including discontinued operations and write downs of £11.2m). We reinstate forecasts at a conservative level, assuming 9% growth from Geospatial and 5% growth from Enables IT in FY18. The Geospatial growth compares with double-digit expansion of the wider GIS market (P&S Market Research). Post restructuring, 1Spatial has reduced its annualised cost base by £2.5m, while the company also incurred an exceptional operating cost of £1m in its FY17 results, burning £4.4m of cash over the period. With the business forecast to trade close to break-even, any upside should gear strongly into earnings – particularly licensing income – and we believe that mid-teens operating margins should be achievable for the Geospatial business in the medium term. We forecast a return to modest cash generation in FY18. Furthermore, 1Spatial has a £3m overdraft facility, so we do not expect it to need to raise additional funds, assuming delivery of our estimates.
Valuation: Firm evidence of a recovery should prompt upside
1Spatial currently trades on an FY18e EV/sales multiple of 1.2x, a significant discount to its GIS peers (typically 2x+). This is understandable given the recent history of the stock, but we see it as low considering its IP, customer base, and expertise within a large and growing geospatial market. The Geospatial business needs to demonstrate that it is on a sustainable growth and margin expansion trajectory over the course of FY18. If it does, we believe that a 2x EV/sales ratio (implying 4.7p a share) would be readily justifiable. Valuing Enables IT at 5-7x FY18e EBITDA (0.3-0.4p a share) would suggest a 5p value for the group.
Sensitivities
1Spatial is a business in transition, during which time financial visibility is typically reduced and returns more difficult to gauge. We believe that continued deal flow and particularly progress in the US are the key milestones upon which to gauge progress. On the basis of our forecasts we do not anticipate that the company will need to raise more cash, but cash flows will need to be managed carefully.
Company update
Transformation programme well underway
Having undertaken a full strategic review following the profit warning and departure of ex-CEO Marcus Hanke in December, management has made brisk progress in restructuring the group.
At the group level, the structure has been simplified so that it now consists of two fully owned business units, the core Geospatial business and Enables IT, a managed IT service provider.
Exhibit 1: FY17 group divisional revenue profit and EBITDA (pre central costs) |
Source: 1Spatial accounts |
The cost base of the ongoing businesses has been reduced by £2.5m, while the exits from the loss-making Avisen and Storage Fusion businesses would save the business £0.8m on the FY17 run rate.
We highlight the key changes made in Exhibit 2.
Exhibit 2: Key elements of the execution plan (Geospatial)
Already executed |
Near-term priorities |
Medium-term goals |
|
Leadership changes |
■ Board changes ■ Appointed senior management team and defined roles |
■ Strengthen board |
|
Restructuring |
■ £2.5m reduction in run-rate costs. ■ C £0.8m benefit from exiting loss-making businesses. (Disposal of Avisen, closure of Storage Fusion – combined £10.4m write down.) ■ Acquisition of remaining 27% stake in 1Spatial Inc (£0.8k) and of remaining 51% in Sitemap for £0.2m. |
Consolidate solutions provider structure ■ New customer support & maintenance initiatives. Build business in the US ■ Strengthen US team – new sales person for federal government accounts and marketing. |
|
Product/service development |
■ Focus majority of R&D on near-term client needs. ■ IP development focused on initiatives with clear visibility of commercialisation. |
■ Complete development of 1Integrate with major ERP platform. |
■ Recycle IP from solutions operations into products. |
Commercial development |
■ Positive start to Q1. Three new customers signed in Q1 across three different geographies, being UK, Europe (Spain) and US. ■ Important strategic win with the US Federal Highways. Another with the National Oceanic Atmospheric Administration |
Consolidate client-centric solutions model ■ Build business focusing on key verticals – National mapping/data providers, government and utilities. ■ Strengthen platform in the US. ■ Continue to support Esri commercial relationship. |
Continued execution ■ Expand US business into utilities and transport. ■ Support platform relationships with Esri and ERP vendors. |
Source: Edison Investment Research
Geospatial shift to client-facing solutions provider vs IP
The company’s migration towards a more client-centric solutions provider model from the previous IP-centric indirect channel strategy is now taking shape. Under the new model, 1Spatial will integrate the company’s own software with third-party software and services to provide complete geospatial solutions to the company’s traditional customer base of heavy-duty GIS users. The Geospatial business represented 68% of revenues in FY17, and is expected to be the company’s key driver of growth.
More pragmatic strategy, focus on execution
We believe that management’s decision to pursue this more pragmatic path is the right one, especially given recent trading and the company’s current financial position. While the new model does sacrifice some potential operational scalability versus the old one, the reality is that integrating a product into a major software vendor’s platform requires significant upfront investment and time does not guarantee significant sales. The solutions model provides a more reliable strategy (with a shorter sales cycle) for leveraging the company’s deep domain expertise, technology and tier one customer base.
Getting closer to the customer base
Building closer relationships with the client base is a key part of the turnaround strategy. Management has spent time re-engaging with customers as part of the strategic review in order to better understand clients’ needs and how 1Spatial can provide solutions to address these. Major account plans are being put in place and new customer support and maintenance initiatives are being introduced.
Unlocking a strong level of latent demand
We believe that the initiatives have the potential to produce meaningful results in the near term. 1Spatial’s customer base includes some of the largest and most sophisticated geospatial data users, spanning national mapping agencies, utility companies, transportation companies and government agencies. Whereas with the previous IP-focused strategy, engagement with this customer base dropped off and this resource remained largely untapped, management initiatives to re-engage with this customer base suggest that there is a strong level of latent demand.
Large and growing addressable market
The industry is also large and growing. A May 2017 report by market analyst P&S Market Research estimates the size of the global GIS software, services and hardware market at $9.0bn and forecasts that it will grow at a 10.1% CAGR to reach $17.5bn by 2023. Software is estimated to account for around half of this market at present, with growth forecast at circa 9% through 2023, whereas the revenue opportunity for services is expected to grow more rapidly – at c 12% from around $3.5bn currently.
Exhibit 3: Forecast growth of the global GIS Market |
Source: P&S Market Research (Geographic Information System Market report) |
Growth driven by increased volumes, complexity and criticality
There are multiple factors driving growth in the GIS market, the combination of which should create a fertile growth environment for 1Spatial, particularly given the company’s core strength in enabling the management and correlation of large volumes of data from different sources.
In parallel with all types of data, the amount of GIS data being produced is growing very rapidly. For example, the US Census Bureau has stated that the amount of data it needs to process is increasing by c 15% annually. This growth rate could accelerate with the adoption of 3D mapping and data gathered from “internet of things” connected devices, drones and so on. With this increased volume of data comes increased complexity, and as the industry evolves, geospatial information is increasingly being deployed in mission critical applications demanding a much higher degree of accuracy and real-time data input.
Deal flow suggests recovery is on track
Of 1Spatial’s four key markets, it has made particularly strong progress in utilities. This was a vertical the company invested into in 2017 and the benefits now appear to be coming through.
The company also highlights a number of new client wins, listed below. While some of these are likely to be carried over due to the slippage in the pipeline from Q4, we believe that this momentum gives an encouraging indication that the shift towards a more client-centric solutions model will yield positive results in a relatively short timeframe.
Exhibit 4: H1 new client wins
Solution description |
Geography |
Sector |
Web based mapping |
UK |
Water |
1Integrate for spatial data |
UK |
Water |
Field Engineering Solution |
UK |
Gas |
1Integrate for spatial data |
Europe |
Satellite |
1Integrate for ArcGIS and 1Integrate |
US |
State government – Geo information office |
1Integrate for ArcGIS and 1Integrate |
US |
State GIO office |
Northern Gas Networks – smart work asset management system |
UK |
Gas |
US Federal Highways – automating data integration |
US |
Govt Agencies/transport |
National Oceanic & Atmospheric Administration – software, training and consultancy |
Govt Agencies/research |
Source: 1Spatial
Successful exploitation of the US could drive an acceleration
New business momentum in H1 mainly came out of the UK and Europe, and with a well-established position in these geographies, we believe that 1Spatial could generate solid growth largely from these markets. 1Spatial is significantly under penetrated in the US – FY17 revenues from the US were only £173k, down from £2.1m in FY16, but growing in the region is a key strategic goal and the company does have some promising assets to build upon. In particular, the company’s relationship with the US Census Bureau, with which it has developed an automated conflation process (to bring together geospatial data from varied sources), provides a potentially strong platform to sell into the multiple organisations that supply data into the Census Bureau.
To solidify the platform, the company acquired the remaining 27% stake in 1Spatial Inc for £789k in April 2017 (previously Laser Scan Inc, the company’s sole distributor in the US). The company’s country and pre-sales managers have an Esri background and the company is now looking to strengthen its sales and marketing teams.
US Federal Highways deal provides a good platform for growth
In this context, the company’s two recent wins in the US are an encouraging indicator of the company’s potential to execute on its opportunity in the world’s largest GIS market. The larger and more important of these, is with the US Federal Highways (FHWA) worth an initial license value worth $339k with an estimated total contract value of over $500k with consultancy work. The solution from 1Spatial will enable FHWA's to automate currently mostly manual processes to ensure regulatory requirements and compliance are met.
The deal is strategically interesting because FHWA collects highway information from individual US State Departments of Transport and feeds this data into the National Data Inventory which is used to determine the extent, usage, condition and performance of the Nation’s highways. Consequently, we believe that this deal could provide a significant support for the company’s sales drive to the State Departments of Transport which feed data to the FHWA.
The other US deal 1Spatial with the National Oceanic & Atmospheric Administration (NOAA), is smaller $127k plus $16k support and maintenance, but provides further evidence of forward progress.
Still potential from integration into major software platforms
It should be noted that while R&D efforts have been trimmed to focus on projects with a high probability of generating a return, the company has not completely jettisoned its initiatives to embed its software into the offerings of larger software companies. Whereas previously the company’s strategy and investment case revolved around this strategy, we now see this as useful upside.
The company’s initiatives in this area are focused around two key players: Esri and a very large ERP platform vendor. The integration of 1Integrate into Esri’s ArcGIS is complete, but sales progress has been slow, although some tier one key customers such as the State of Arizona in the US and Ordnance Survey Great Britain have signed up. We expect this relationship with Esri to generate increased revenues this year. The development work to integrate 1Integrate into a major ERP platform is ongoing.
The timing and rate of revenue build from these embedded products is very difficult to forecast, but given the indirect model, any revenue should drop directly through to the bottom line. We no longer break out revenues from these channels explicitly in our forecasts, but in keeping GIS gross margin broadly flat, we are implicitly assuming minimal uptake during our forecast period.
Enables IT
Post restructuring, Enables IT is now the group’s only non-geospatial business line. Enables provides a range of IT managed services, from consultancy and project management to the installation of physical infrastructure. It is primarily a UK-based business with some operations in Europe. The majority of Enables IT’s clients are based in the UK with sector expertise across healthcare, legal services and education. While the business is non-core, it is profitable and cash generative and has a stable customer base (75% of revenues are generated from customers who have been with the company over five years), although low-margin hardware sales add volatility to revenues. We believe management sees value in retaining the business and the cash flows it generates in the near term.
Financials
FY results highlighted the need for change
Highlighting the need for change, financial performance in FY17 reflected the lack of structure and sales execution that prevailed for the majority of the year and there was substantial restructuring at a cost of c £0.9m towards the end of the period. Headline P&L figures flatter performance due to the contribution from FY16 and H117 acquisitions Enables IT and Laser Scan and £3.5m of capitalised R&D versus a £1m amortisation charge. On a like-for-like basis, revenues in the core Geospatial business fell by 20% year-on-year, while the company burned through £4.4m of cash over the year. Of a total of £11.2m impairments, £9.4m related to continuing business, with £5.1m on goodwill, £1.5m of intangibles and £2.8m of capitalised development costs.
Net cash at year-end was £0.6m and the company has recently renewed its £3m overdraft facility.
Reinstating forecasts at a cautious level
We are reinstating our forecasts, having withdrawn them in January, as the company was undergoing management changes and shaping its restructuring programme. We show our breakdown of forecasts for the Geospatial and Enables IT businesses in Exhibit 5.
We believe that our FY18 revenue growth estimates should be very achievable (9% growth from Geospatial and 5% growth from Enables) especially given the encouraging trading in Q1, but turnarounds are rarely smooth and therefore we believe that a cautious stance is merited.
Through the restructuring, the company has reduced its annualised cost base by £2.5m, while the FY17 results included £1m of operating exceptional cost. These cost savings are not fully reflected in the group EBITDA, however, as the reduction in speculative R&D reduces the capitalised development charge.
Mid-teens EBITDA margins a reasonable mid-term target for Geospatial
If we add capitalised R&D costs back in, we have the core business (Geospatial plus central costs) moving to broadly break-even this year, with the company moving to a 3% EBITDAC margin next year. If the company can execute on its plan then we believe that it should be able to achieve substantially better than this and that a 15% EBITDAC margin would be a reasonable mid-term goal.
We are assuming a broadly steady state for Enables IT.
Exhibit 5: P&L model (continuing operations)
Year end 31 January, £000s |
2016 |
2017 |
2018e |
2019e |
Geospatial |
||||
Revenues |
16,000 |
15,133 |
16,534 |
17,935 |
Growth |
nm |
-5% |
9% |
8% |
Gross profit |
9,785 |
8,265 |
8,965 |
9,746 |
Gross margin |
61% |
55% |
54% |
54% |
Cash opex |
(5,126) |
(6,787) |
(7,126) |
(7,411) |
Adjusted EBITDA contribution |
4,659 |
1,478 |
1,839 |
2,335 |
Share of central costs |
(1,946) |
(2,008) |
(1,324) |
(1,397) |
Capitalised development costs (Geospatial) |
(3,011) |
(3,552) |
(500) |
(537) |
Core business EBITDAC |
(298) |
(4,082) |
15 |
401 |
Enables IT |
||||
Revenues |
2,300 |
6,932 |
7,279 |
7,643 |
Growth |
nm |
nm |
5% |
5% |
Gross profit |
800 |
1,414 |
1,385 |
1,455 |
Gross margin |
35% |
20% |
19% |
19% |
Cash opex |
(452) |
(947) |
(975) |
(1,024) |
Adjusted EBITDA contribution |
348 |
467 |
410 |
430 |
Share of central costs |
(159) |
(344) |
(205) |
(208) |
Enables IT EBITDAC inc central costs |
189 |
123 |
205 |
222 |
Group EBITDA |
2,902 |
(407) |
720 |
1,160 |
Group EBITDAC |
(109) |
(3,959) |
220 |
623 |
Year-end net debt/(cash) |
(4,996) |
(604) |
(656) |
(1,335) |
Source: 1Spatial data, Edison Investment Research
We forecast marginal cash generation this year then a pick-up in cash generation in FY19 (the financial year ending January 2019). With a £3m overdraft facility the company should not require further funds on the basis of these estimates, although careful cash management will be required.
Valuation
1Spatial is valued at typical recovery multiples, with a low EV/sales of 1.2x vs 2x+ for most peers, but a high P/E due to the company’s compressed margins (losses forecast for FY18). The case for upside therefore hinges on the company performing somewhat better than our forecasts, with operational gearing driving a significant improvement in profitability.
As previously discussed, we believe that this is very possible. The market for GIS technology is large and growing at a double-digit rate and we believe that 1Spatial has the customer base, technology and expertise to capitalise on this. A continuation of the encouraging Q1 through the year would, we believe, drive upgrades.
5p a good starting point, if financial performance improves
Looking at the core Geospatial business, if the company can maintain top-line growth and demonstrate that margins are on an expansion track, then a 2x+ FY19e EV/sales ratio would be easily justifiable. This would imply a valuation of £36m or 4.7p per share for the Geospatial business alone.
Enables IT is unlikely to attract a high multiple; we believe that an FY19e EBITDA multiple of 5-7x would be fair, implying a £2.2m to £3m (0.3-0.4p per share) valuation based on our conservative estimates. We see EBITDA multiples as more instructive in this instance due to the steady state nature of the Enables IT business, contrasted with the recently volatile performance of the Geospatial segment.
Together, these multiples would imply that a 5p share price is very achievable in the near term, if financial performance continues to improve.
Cost synergies and strategic assets add value
We also believe that the GIS business could continue to play a role in further industry consolidation. This is an acquisitive space and we believe that 1Spatial is well positioned with its expertise, customer base and technology, augmented by significant potential cost synergies through reducing central costs.
Exhibit 6: Peer group multiples
Name |
Price – reporting currency |
Quoted currency |
Market cap (m) |
EV/sales 1FY (x) |
EV/sales 2FY (x) |
EV/EBITDA 1FY (x) |
EV/EBITDA 2FY (x) |
P/E 1FY (x) |
P/E 2FY (x) |
||
GIS related |
|
|
|
|
|
|
|
|
|
|
|
HEXAB SS Equity |
Hexagon AB-B SHS |
41.1 |
SEK |
141510 |
5.0 |
4.7 |
16.3 |
14.2 |
23.5 |
20.9 |
|
TRMB US Equity |
Trimble Inc |
39.9 |
US$ |
10096 |
4.0 |
3.6 |
20.7 |
17.6 |
27.8 |
24.0 |
|
NEM GY Equity |
Nemetschek SE |
65.4 |
€ |
2518 |
6.3 |
5.5 |
24.1 |
20.8 |
40.3 |
34.1 |
|
UK software and services |
|
||||||||||
FDP LN Equity |
First Derivatives |
27.3 |
GBp |
690 |
4.0 |
3.6 |
22.6 |
20.5 |
42.7 |
39.6 |
|
D4T4 LN Equity |
D4T4 Solutions |
1.6 |
GBp |
61 |
2.4 |
2.2 |
11.3 |
10.1 |
15.7 |
13.8 |
|
KNOS LN Equity |
Kainos Group |
3.0 |
GBp |
351 |
3.6 |
3.2 |
20.4 |
17.3 |
29.4 |
24.7 |
|
IDOX LN Equity |
Idox |
0.6 |
GBp |
247 |
2.8 |
2.5 |
10.1 |
8.8 |
13.6 |
11.5 |
|
KBT LN Equity |
K3 Business Technology Group |
1.5 |
GBp |
62 |
0.7 |
1.0 |
9.1 |
10.8 |
23.9 |
18.2 |
|
SDL LN Equity |
SDL |
4.7 |
GBp |
384 |
1.2 |
1.2 |
13.2 |
10.2 |
21.5 |
17.1 |
|
SSY LN Equity |
SCISYS |
1.0 |
GBp |
28 |
0.7 |
0.7 |
6.9 |
6.4 |
9.1 |
8.4 |
|
IOM LN Equity |
Iomart Group |
3.2 |
GBp |
347 |
3.6 |
3.4 |
9.0 |
8.4 |
17.8 |
16.0 |
|
|
|||||||||||
SPA LN Equity |
1Spatial |
3.8 |
GBp |
29 |
1.2 |
1.1 |
126.8 |
44.8 |
N/A |
N/A |
Source: Bloomberg consensus, Edison Investment Research forecasts for 1Spatial. Note: Priced at 13 September 2017.
Sensitivities
US rollout: The US is the largest market for geospatial solutions by some margin and a region in which 1Spatial is substantially underpenetrated. Growing in the US is an element of management’s strategy. Success in the US could transform the company’s financial profile but equally succeeding in the US often takes longer and requires more investment than originally anticipated. We believe that we have taken a conservative stance in our forecasts.
Transitional status reduces visibility: 1Spatial’s business model is still in transition, which inevitably reduces the visibility over future financial performance. Nevertheless, the shift in emphasis towards direct sales rather than relying on channel partners should give the company some better visibility over its pipeline versus the previous strategy.
Balance sheet: On the basis of our forecasts the company should not need to raise more funds although careful cash management will be required and the margin for error is low. It is also possible that the company raises funds to accelerate growth at some stage, although we believe that this would only be likely once the current transformation plan has been shown to deliver material benefits.
Large direct customer engagements: 1Spatial’s direct engagements with clients can be sizeable, and it can be difficult to predict when deals will close.
Currency: 1Spatial reports in sterling and its cost base is sterling weighted, but in FY17 only 48% of revenues came from the UK and this should reduce as the company builds its presence in the US and Europe (18% and 26% of revenues, respectively).
Exhibit 7: Financial summary (continuing operations)
£000s |
2016 |
2017 |
2018e |
2019e |
||
Year end 31 January |
IFRS |
IFRS |
IFRS |
IFRS |
||
PROFIT & LOSS |
||||||
Revenue |
|
|
18,300 |
22,065 |
23,812 |
25,577 |
Delivery costs |
(7,715) |
(12,386) |
(13,461) |
(14,376) |
||
Gross Profit |
10,585 |
9,679 |
10,351 |
11,201 |
||
EBITDA |
|
|
2,902 |
(407) |
720 |
1,160 |
Operating Profit (before amort. and except.) |
1,584 |
(2,071) |
(542) |
(78) |
||
Acquired Intangible Amortisation |
(200) |
(825) |
(400) |
(400) |
||
Exceptionals |
(1,081) |
(11,988) |
0 |
0 |
||
Share based payments |
(976) |
(566) |
(750) |
(750) |
||
Operating Profit |
(673) |
(15,450) |
(1,692) |
(1,228) |
||
Net Interest |
(27) |
(32) |
(42) |
(161) |
||
Other |
(421) |
(266) |
0 |
0 |
||
Profit Before Tax (norm) |
|
|
1,136 |
(2,369) |
(585) |
(240) |
Profit Before Tax (FRS 3) |
|
|
(1,121) |
(15,748) |
(1,735) |
(1,390) |
Tax |
503 |
988 |
347 |
278 |
||
Profit After Tax (norm) |
1,136 |
(2,369) |
(585) |
(240) |
||
Profit After Tax (FRS 3) |
(618) |
(14,760) |
(1,388) |
(1,112) |
||
Average Number of Shares Outstanding (m) |
691.3 |
728.9 |
747.7 |
760.5 |
||
EPS - normalised (p) |
|
|
0.16 |
(0.33) |
(0.08) |
(0.03) |
EPS - normalised fully diluted (p) |
|
|
0.16 |
(0.33) |
(0.08) |
(0.03) |
EPS - (IFRS) (p) |
|
|
(0.09) |
(2.02) |
(0.19) |
(0.15) |
Dividend per share (p) |
0.0 |
0.0 |
0.0 |
0.0 |
||
Gross Margin (%) |
57.8 |
43.9 |
43.5 |
43.8 |
||
EBITDA Margin (%) |
15.9 |
N/A |
3.0 |
4.5 |
||
Operating Margin (before GW and except.) (%) |
8.7 |
N/A |
N/A |
N/A |
||
BALANCE SHEET |
||||||
Fixed Assets |
|
|
22,115 |
13,025 |
12,413 |
11,980 |
Intangible Assets |
18,900 |
11,968 |
11,558 |
11,308 |
||
Tangible Assets |
1,638 |
1,057 |
855 |
672 |
||
Investments |
1,577 |
0 |
0 |
0 |
||
Current Assets |
|
|
16,202 |
10,761 |
12,254 |
12,591 |
Stocks |
0 |
0 |
0 |
0 |
||
Debtors |
10,815 |
8,929 |
8,870 |
9,527 |
||
Cash |
4,996 |
1,285 |
2,837 |
2,516 |
||
Other |
391 |
547 |
547 |
547 |
||
Current Liabilities |
|
|
(11,071) |
(13,029) |
(14,147) |
(14,013) |
Creditors & other |
(11,071) |
(12,348) |
(11,966) |
(12,832) |
||
Short term borrowings |
0 |
(681) |
(2,181) |
(1,181) |
||
Long Term Liabilities |
|
|
(1,579) |
(1,535) |
(1,088) |
(1,088) |
Long term borrowings |
0 |
0 |
0 |
0 |
||
Other long term liabilities |
(1,579) |
(1,535) |
(1,088) |
(1,088) |
||
Net Assets |
|
|
25,667 |
9,222 |
9,431 |
9,469 |
CASH FLOW |
||||||
Operating Cash Flow |
|
|
(722) |
(1,061) |
397 |
1,369 |
Net Interest |
(31) |
(166) |
(42) |
(161) |
||
Tax |
55 |
425 |
347 |
278 |
||
Capex |
(3,800) |
(4,042) |
(750) |
(806) |
||
Acquisitions/disposals |
(1,033) |
(900) |
100 |
0 |
||
Financing |
1,940 |
896 |
0 |
0 |
||
Dividends |
0 |
0 |
0 |
0 |
||
Net Cash Flow |
(3,342) |
(4,848) |
52 |
680 |
||
Opening net debt/(cash) |
|
|
(8,250) |
(4,996) |
(604) |
(656) |
HP finance leases initiated |
0 |
0 |
0 |
0 |
||
Other |
88 |
456 |
0 |
0 |
||
Closing net debt/(cash) |
|
|
(4,996) |
(604) |
(656) |
(1,335) |
Source: 1Spatial reports, Edison Investment Research. Note: Net losses on discontinued businesses in FY17 of £3.5m are not shown in the exhibit above.
|
|
|