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Highlights

  • Software sales rose 35% to £11.5m; SaaS revenue quintupled year-on-year.

  • Recurring revenue accounted for 62% of total revenue, up from 56% in FY24.

  • 1Streetworks gains momentum with third major contract and growing sales pipeline.

1Spatial (LSE:SPA), a global leader in Location Master Data Management (LMDM) software and solutions, has posted its audited final results for the financial year ended 31 January 2025 (FY25), showcasing growth in software and recurring revenues and laying the foundation for strategic expansion, particularly in SaaS and key markets such as the UK and US.

The Group reported a 3% increase in overall revenue, reaching £33.4 million, up from £32.4 million in FY24. This performance resulted in a higher gross profit of £18.5 million, compared to £17.9 million the previous year.

The standout performer in FY25 was software sales—comprising term licences and SaaS—which jumped by 35% to £11.5 million. The company also saw a significant increase in SaaS-specific revenue, which rose to £1.0 million, a fivefold increase from £0.2 million in the previous year. Annualised recurring revenue (ARR) grew by 14% to £19.7 million.

Recurring revenue made up 62% of total revenue, compared to 56% in FY24, marking a continued strategic pivot toward stable and predictable income through subscription models and long-term client partnerships.

Adjusted EBITDA increased slightly to £5.6 million, up from £5.5 million, underscoring the company’s operational efficiency despite ongoing inflationary pressures. However, operating profit fell to £0.9 million, down from £1.4 million, primarily due to increased inflation-linked costs and non-cash amortisation and impairment charges related to ongoing investments in technology and leadership.

Cash generated from operating activities improved to £4.9 million (FY24: £4.7 million), while net borrowings stood at £1.0 million, a shift from the previous year’s net cash position of £1.1 million. This change was driven by targeted investments in product development, as well as enhancements to sales and leadership capabilities aimed at supporting long-term growth.

The outlook for FY26 is positive, with notable momentum in the UK market and particularly with the company’s 1Streetworks solution. A third major contract has been secured, and several more customer agreements are nearing completion. 1Streetworks is expected to drive further margin improvement and cash flow generation.