1Spatial : Interim Results – 10th October 2017

("1Spatial", the "Group" or the "Company")

The Board of Directors of 1Spatial (the ''Board''), the software solutions provider and global leader in geospatial data management, is pleased to announce the Group's interim results for the six month period ended 31 July 2017.

In January 2017, the new management team set in place a clear plan to achieve a strong financial and operational platform for the business which would be evidenced through the generation of cash, growing profits and sustainable growth.

The financial performance in this half year provides clear evidence that the turnaround plan is working.

• Revenues grew by 2% from £11.9m to £12.1m

  • High-margin Geospatial underlying revenues** up by 19% from £7.2m to £8.6m

  • In line with strategy, the low-margin hardware revenues from IT managed services business have reduced by £1m in the period

  • Continued strong recurring revenues base

• Total cost base (including capitalised costs) reduced by 8% (£1.1m). This equates to an annualised cost saving of £2.2m.

  • Gross profit margin increased from 39% to 43%

  • Adjusted EBITDA* on a like-for-like basis1 has improved from a loss of £0.4m to a profit of £0.3m

  • Operating loss reduced 37% from £1.9m to £1.2m

  • £2.7m positive swing in cash flow in the period (outflow of £0.3m compared to an outflow of £3m in H1 2016/17)

    • Net cash balance at 31 July 2017 of £0.3m (31 January 2017: £0.6m)

    • Overdraft facility of £3m renewed in May 2017

  • Significantly reduced loss after tax of £1.4m (year ended 31 January 2017: £18.3m loss: H1 2016/17 loss of £2.1m)

  • The board believes that that the current bank overdraft facility is sufficient to support the Company's working capital requirements

    Operational highlights

  • Sales increased in all geographic segments with a focus on three key sectors of Land Management, Utilities and Transportation

    • The enhanced sales strategy refocused on the key sectors has delivered growth from existing clients as well as established relationships with new potential customers

  • Key customer wins:

    • UK - major contract with Northern Gas Networks (NGN). This will run for an initial three year period with an option to extend for a further three years

    • US - strategically important contract with the US Federal Highways Administration (FHWA) for software and services together with ongoing support and maintenance for four option years (total value US$540k)

    • US - strategically important contract with the National Oceanic and Atmospheric Administration (NOAA) for software and services together with ongoing support and maintenance for four option years (total value US$207k)

• Portfolio streamlined with:

  • Disposal of significant share of loss-making business Enables IT Inc. in March 2017 for

    £0.1m receivable

  • Acquisition of the remaining 27% of the Company's exclusive US distributor 1Spatial Inc. strengthening the Group's ability to serve key US customers and partners such as US Census and ESRI

  • Acquisition of the remaining 51% of Sitemap, strengthening the Group's technology platform

    Board changes

• The board has continued to be strengthened and includes the following changes :

  • Francis Small appointed to the Board as a Non-Executive Director on 1 August 2017

  • Claire Milverton appointed CEO from 9 October 2017

  • Nicole Payne appointed CFO from 9 October 2017

"The first half has shown considerable progress on our turnaround strategy. The focus on execution, and a greater engagement with our existing clients has seen an increase in revenues. Emphasis on growing our client base has also seen wins with a number of exciting new clients such as Northern Gas Networks and the Federal Highways Agency. From a financial perspective through increased sales and operational effectiveness we've also delivered a substantial improvement in profitability and cash flow, both of which remain key priorities for us going forward.

We are confident for the full year and that through our strategy of working in partnership with our customers to provide them with technology enabled innovative solutions, we are well placed to grow a substantial, profitable and cash-generative business out into the future".

* Adjusted for strategic, integration, other one-off items and share-based payment charge

** Underlying revenue - revenue on a like-for-like1 basis, at constant currency (prior period figures at current period exchange rates)

1 Like-for-like - prior half year revenues include £0.4m of revenues arising from recharges to associates, that are not recurring in the current half year as a result of these associates now being wholly-owned and the revenue being eliminated on

consolidation

1Spatial plc is a group of market leading software and solutions companies trading under the brands 1Spatial and Enables IT.

1Spatial is a software solutions provider and global leader in managing geospatial data. We work with our clients to deliver real value by making data current, complete and consistent through the use of automated processes - ensuring that decisions are always based on the highest quality information available.

Our unique, rules-based approach delivers enterprise-scale, cross-platform automation to all stages of the data lifecycle. It builds confidence in the data while reducing the time and cost of stewardship.

Our global clients include utilities, national mapping and land management agencies, government departments, transportation organisations, emergency services, defence and census bureaus. A leader in our field, we have a wealth of experience and a record of continual innovation and development. We partner with some of the leading technology vendors including, ESRI and Oracle.

We have offices in the UK, US, France, Belgium, Ireland and Australia.

Enables IT provides IT Managed Services. It offers public, private and hybrid cloud offerings with everything from Backup-as-a-service through to managed desktops. Their end-to-end IT capability provides everything from consultancy and project management, to the installation of physical infrastructure.

Clients trust Enables IT to manage their systems and secure their data. From Healthcare to Education and from Financial Services to Legal, leading organisations rely on Enables IT to ensure their IT is an asset, not a liability.

To find our more, visit www.1spatial.com

In January 2017, the new management team set in place a clear plan to achieve a strong financial and operational platform for the business which would be evidenced through cash, growing profits and sustainable growth. This plan was the result of a full strategic review to develop a clear focus for the Group going forwards and included streamlining the business into two core units, the alignment of the Group to better meet market needs, and creation of an organisational structure that provides clear responsibilities and accountability.

The financial performance in this half year provides clear evidence that the turnaround plan is working.

1Spatial is a software solutions provider and global leader in managing geospatial data. We work with our clients to deliver real value by making data current, complete and consistent through the use of automated processes; ensuring that decisions are always based on the highest quality information available. Our own software architectures are 'Open' which allows us to integrate with other vendors' technology and enables us to provide the most appropriate solution to our clients.

Our key focus is across three sectors, namely Land Management, Utilities and Transportation and we operate globally but have offices in the UK, US, France, Belgium, Ireland and Australia.

During the period, we have continued to develop and deliver our world-class technology, increase our market reach and cemented strategic relationships with key partners to ensure that we deliver the right solutions to our clients. We have continued to invest in sales and marketing ensuring that these investments are aligned to our strategy.

Revenue growth

Our enhanced sales team helped deliver revenue growth in all geographies, and, the quality of this revenue has improved with a higher proportion of licence revenue driving additional service revenues.

The Group's revenue mix continued to improve in the first half. Revenues were up 19 per cent. in the higher-margin Geospatial business (£1.3m on a like-for-like basis, at constant currency), and Enables IT sales reduced by £1m as we chose to move away from lower-margin hardware revenue.

Our sales strategy focuses on both growing existing accounts, and building new relationships across our key verticals; Land Management, Utilities and Transport. During the period, the majority of growth in revenue was derived from existing customers. Post period end, new contracts have been secured for new customers such as NGN (UK), FHWA (US), NOAA (US), reflecting the sales execution efforts made in the first half.

As well as growing revenues, it is also key that we maintain our recurring support and maintenance revenues; initiatives have been put in place during the period to ensure this is achieved.

Cost savings

During the period, we have delivered on our plan to reduce costs by £1.1m (8 per cent.) - this equates to £2.2m annualised costs. These costs also include the cost of capitalised development. We now believe that the cost structure is much better aligned with the current business needs.