Last close As at 05/08/2026
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Research: TMT
1Spatial has completed an accelerated bookbuild, raising net proceeds of £8m. The funds will be invested in customer acquisition, the repayment of the outstanding overdraft and the ongoing development of the company’s core technology suite. The announcement also confirms trading is in line with expectations and that 1Spatial has won a number of new contracts to provide data management solutions to a UK infrastructure provider. We leave our underlying forecasts unchanged at this stage.
Written by
1Spatial |
£8m raise to drive expansion |
Proposed placing |
Software & comp services |
27 July 2018 |
Share price performance
Business description
Analysts
1Spatial is a research client of Edison Investment Research Limited |
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1Spatial has completed an accelerated bookbuild, raising net proceeds of £8m. The funds will be invested in customer acquisition, the repayment of the outstanding overdraft and the ongoing development of the company’s core technology suite. The announcement also confirms trading is in line with expectations and that 1Spatial has won a number of new contracts to provide data management solutions to a UK infrastructure provider. We leave our underlying forecasts unchanged at this stage.
Year end |
Revenue (£m) |
EBITDA (£m) |
PBT* |
EPS* |
DPS |
EV/sales |
P/E |
01/17** |
15.1 |
(0.9) |
(12.8) |
(1.75) |
0.0 |
2.0 |
N/A |
01/18** |
16.9 |
0.4 |
(1.5) |
(0.19) |
0.0 |
1.7 |
N/A |
01/19e |
17.8 |
1.0 |
(1.0) |
(0.13) |
0.0 |
1.7 |
N/A |
01/20e |
18.8 |
1.6 |
0.3 |
0.04 |
0.0 |
1.6 |
99 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **Continuing businesses only.
Subject to investor approval in August, 1Spatial will issue 22.7m new shares at a share price of 3.75p (a discount of 5% vs yesterday’s close), raising net proceeds of £8m. These funds will primarily be used for customer acquisition purposes, but the repayment of the current overdraft facility will improve 1Spatial’s credit rating, which is expected to improve the company’s prospects during tendering processes. The remaining funds will bolster ongoing R&D efforts, in addition to providing further working capital support. In addition, the company has proposed a 10:1 share consolidation.
1Spatial also announced that it has won several contracts with a UK infrastructure provider for the provision of its newly positioned data management solutions product suite. The update gives an indication of the potential for 1Spatial to leverage its IP and expertise to offer geospatial/location master data management solutions. Such solutions integrate, update, clean and correct geospatial data to create a single ‘golden source’ that can be relied on. 1Spatial’s proprietary rules engine was designed from the ground up to handle geospatial data, which we believe could count as a strong competitive advantage versus mainstream, linear solutions in 1Spatial’s core government, utilities and transport verticals.
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Disclaimer
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Disclaimer
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Research: TMT
Organic growth has accelerated through H118 and, combined with a slightly more favourable currency position and strong order intake, leads us to upgrade our forecasts for FY18 and FY19. We have increased our revenue forecasts by 1.7% in FY18 and 3.8% in FY19. Factoring in increased investment in headcount, this translates into normalised EPS upgrades of 8.2% in FY18 and 4.0% in FY19.