Last close As at 05/08/2026
EUR0.77
▲ −0.03 (−3.75%)
Market capitalisation
—
Research: TMT
1Spatial’s update suggests the momentum the business was enjoying at the time of the capital markets day in October has been sustained to the end of the calendar year. While no financial figures are given and there is still nearly a month left of the financial year, we see this statement signalling that the company is at least on track to meet our FY20 forecasts.
Written by
1Spatial |
Update suggests performance is on track |
Progress update |
Technology |
8 January 2020 |
Share price performance
Business description
Analysts
1Spatial is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||||||||
1Spatial’s update suggests the momentum the business was enjoying at the time of the capital markets day in October has been sustained to the end of the calendar year. While no financial figures are given and there is still nearly a month left of the financial year, we see this statement signalling that the company is at least on track to meet our FY20 forecasts.
Year |
Revenue (£m) |
Adjusted EBITDA* (£m) |
PBT* |
EPS* |
EV/Sales |
EV/EBITA |
P/E |
|
01/18 |
16.9 |
0.4 |
(1.5) |
(2.3) |
1.4 |
58.7 |
N/A |
|
01/19 |
17.6 |
1.2 |
(0.9) |
(1.1) |
1.3 |
19.9 |
N/A |
|
01/20e |
22.8 |
3.1 |
0.8 |
0.7 |
1.0 |
7.5 |
36.2 |
|
01/21e |
25.6 |
3.7 |
1.4 |
1.0 |
0.9 |
6.3 |
26.3 |
|
Note: *Adjusted EBITDA, PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Particularly encouraging is the commentary on the US business. As we highlighted in our outlook note, Spatial awareness, published in January 2019, we believe the long-term prospects here are excellent – the statement lists six new government clients secured over the year to date and describes ‘significant opportunities for software at every level of the US government’.
Integration of GI is described as ‘progressing well’ with a growing pipeline of opportunities. The company has won a £0.5m three-year contract with the Australian Bureau of Meteorology (already revenue generating) and signed new partnerships with Neueda and Michael Baker International.
The recent capital markets day set out 1Spatial’s strategic focus on Location Master Data Management (LMDM). Key to delivering on its potential here, in our view, is developing a scalable, hosted SaaS solution (see Mapping a future path). We understand the company looks set to launch this ‘gateway’ product in March.
In Mapping a future path, we also highlighted that our FY20e numbers (revenue of £22.8m and EBITDA £3.1m) implied a relatively cautious H2 and that there should be scope to outperform these estimates if macro risks did not materialise. A further full trading statement is expected after the close of the financial year.
|
Disclaimer
|
|
Disclaimer
|
Avacta has announced a joint venture with Daewoong Pharmaceuticals to develop mesenchymal stem cell (MSC) therapies incorporating Affimers. The joint venture (JV), will be based in South Korea and entirely funded by Daewoong with Avacta providing no financial investment. Avacta will develop Affimers (and be reimbursed by Daewoong for all research and development costs) for several undisclosed targets in inflammatory and autoimmune disorders. Avacta will have a 45% shareholding in the new company, will not contribute financially to the JV, and will retain the rights to any Affimers developed for the JV outside of their use in engineered cell therapies. We do not currently include the JV in our valuation due to its early nature; however, we view the deal positively and will reassess as work progresses. We retain our valuation of Avacta at £47m.