TMT: Software and comp services – AIM – M cap £57m – Price 44.50p – Update
1SPATIAL
Strategic progress, extended decision cycles
1Spatial’s FY25 results were in line with the March trading update, with continued robust growth in recurring software revenues offset by weakness in services. We remain confident that 1Spatial is laying the groundwork to deliver sustained operationally leveraged growth and, notably, several new 1Streetworks contracts are in final-stage negotiations. However, near-time decision cycles remain sluggish, which leads us to pare back our FY26 revenue estimate by 7%, with operational leverage resulting in more material reductions in profitability. Even on cautious assumptions, the continuing transition to higher-margin revenues should drive a robust margin recovery in FY27.
1Spatial: Edison
May 8, 2025Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.