Geographic information systems (GIS) is clearly the way forward for 1Spatial and it continues to push resources this way, which is just as well as H113 results show its traditional business units, Avisen and Storage Fusion, are languishing – revenues were down and flat yoy respectively.
The spatial data software company (previously known as Avisen) is building its GIS assets – it reverse engineered into 1Spatial in November 2011 and rebranded under the name, and acquired 90% of the assets of GIS provider Star-Apic earlier this year (see here) for £0.9m – and GIS is where growth is coming from. Total revenue was up 18% to £7.6m but this was mainly from acquisitions - Star-Apic contributed £1.5m. The GIS direction is working for the company as revenue from the 1Spatial division was up 10% to £5.5m, making this the bulk of the business now. The company is still struggling with profits but has reduced its losses. In the six months to July 31 2013, net loss came down to £0.3m (vs. a loss of £1m this time last year).
1Spatial is in an area that will only grow but the company has to get a firmer grip on costs and switch into profit mode and add organic growth. It may want to think about offloading assets. It raised £17.1m due to a share placing and has now has £14.1m in cash which will help fund development and US expansion, but that will dwindle rapidly if it is not careful.