Cambridge data management specialist 1Spatial suffered post-tax losses of £18.3 million despite an increase in revenues from continuing operations in the financial year to January 31. The company had posted a modest £12k profit the previous year.
Despite its already low share price falling over 10 per cent when the UK markets opened on Tuesday, the company says it is well positioned for growth – notably in the United States.
It has renewed a £3m banking overdraft facility with Natwest which it says “should provide sufficient working capital for the business for the foreseeable future.”
1Spatial appears to be pinning its hopes for a financial bounceback on expansion opportunities in the US. The company describes it as “a growth market for 1Spatial working alongside key customers and partners such as US Census and ESRI.”
Last month the group exercised its final option to acquire the remaining 27 per cent of 1Spatial Inc for $0.9m (£0.7m) through the issue of shares – securing 100 per cent ownership to provide the anticipated US growth springboard.
Executive chairman Andy Roberts, said: “1Spatial is well-positioned in a very viable and interesting part of the market and has developed a unique patented technology that we now need to fully extend and exploit.
“We have a strong management team, which combined with our in-depth subject matter expertise and technology-led solutions and services, gives the business the opportunity to develop into a significant force in the market.
“Early trading in Q1 of the 2018 financial year has been strong, and our workforce is fully informed, motivated and energised.
“This financial year is focused on establishing a sound growth platform for the future in order to fully maximise the opportunity presented by our technology and leverage the key partnerships that we are now fully engaged with.
“I am confident that we are now well placed to grow a substantial, profitable and cash-generative business out into the future.”
Former CEO Marcus Hanke left the business in December 2016 and 1Spatial has disposed of or closed loss-making businesses. On the flip side, it has invested in the US team with key hires in sales – chiefly the appointment of Sheila Steffenson, who was made president of the US business.
She is said to have significant experience in the US geospatial market and of working with 1Spatial’s key customers and partners such as US Census Bureau and ESRI.
from Business Weekly http://ift.tt/2rNZEPr