1Spatial, (AIM: SPA), a global leader in Location Master Data Management (LMDM) software and solutions, announced the award of a major new multi-year contract following a competitive tender, in partnership with a consortium.
The contract will deliver a significant multi-year digital transformation programme for a department of the UK Government.
The 5 year contract is expected to have a total value to 1Spatial of £8.0 million, with a significant weighting towards recurring revenue. The contract comprises recurring software licences (around £1.2 million ARR value, expected to commence in early 2023) and software configuration and integration services worth £8.0 million in aggregate over five years, of which £2.1m is expected to be delivered over the next two financial years. Both the software configuration and integration services and the first three years of software licences within the contract are contractually committed, delivering approximately £5.6m of revenue to the Company. As a result of this contract award, the Company anticipates that revenue and EBITDA for FY23 (being the year ending 31 January 2023) will be slightly ahead of its expectations, whilst also driving growth in ARR over the term of the contract.
The contract win underlines the quality of 1Spatial’s world-class technology and geospatial expertise, and the ability of the business to scale through the sale of repeatable business applications and software solutions.
Claire Milverton, CEO of 1Spatial, commented, “We are thrilled to have secured this second landmark contract for 1Spatial so recently after reporting our previous landmark win. We won this contract alongside our partners, against intense competition and 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. 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.”
Subscribe to our newsletter
Stay updated on the latest technology, innovation product arrivals and exciting offers to your inbox.Newsletter