Shares were up 7.60% in 1Spatial on Monday morning after the Location Master Data Management (LMDM) software and solutions company announced it had won a new five-year contract in the UK worth £8m ($10.9m) in partnership with a consortium.
1Spatial said that as part of the deal, it will deliver a significant multi-year digital transformation programme for a department of the UK Government.
The contract will include overlooking software licences plus software configuration and integration services.
1Spatial, headquartered in Cambridge, UK, said that both the software configuration and integration services and the first three years of software licences within the agreement are contractually committed, delivering approximately £5.6m of revenue to the company.
As a result, the LMDM specialist said it anticipates that revenue and EBITDA (earnings before interest, taxes, depreciation and amortisation) for year ending 31 January 2023 will be slightly ahead of its expectations, while also driving growth.
A word from the CEO
Claire Milverton, CEO of 1Spatial, commented on the successful tender in the statement. “We won this contract alongside our partners, against intense competition and [it] is further proof of our world-leading geospatial capabilities and software platform.
“The structure and scale of this contract is transformational for our business from a recurring revenue perspective and aligns completely with our growth strategy to focus on repeatable software solutions,” she stated.
Milverton added: “The market for high quality geospatial data is growing at a significant rate globally through initiatives such as ‘Building Back Better and Greener’ and at 1Spatial we are ready to capitalise on this significant growing opportunity.”