1Spatial PLC on Tuesday said it saw a loss in the first half of its financial year, on the back of restructuring costs.

The Cambridge-based data management software company reported that it swung to a pretax loss of £456,000 in the first half ended July 31, from profit of £267,000 the year prior.

1Spatial noted that it incurred restructuring cots of £300,000 on its European operation, adding that it is ‘confident that the restructuring carried out will benefit of the Group’s success in the medium term.’

The firm said revenue increased 11% to £15.5 million, from £14.0 million a year ago. It said the revenue increase was due to a 24% increase in its recurring revenue to £8.2 million, from £6.6 million, as well as term licenses revenue doubling to £3.4 million, from £1.7 million and a strong performance in its US operations.

1Spatial did not declare a dividend for the first half, unchanged from the previous two years.

Looking forward, the firm said trading in the second half so far is in line with its expectations, noting that it has gained a number of new contracts and has seen a high level of contract renewal. It said it is confident that its full-year results will meet expectations.

Chief Executive Claire Milverton said: ‘The group’s achievements over the past six months demonstrate that our investments in our product and business development teams are translating into growth. We envisage that these investments will lead to further growth throughout the remainder of the financial year and into next year.

‘Over the last five years we have invested significant financial resources into developing our SaaS solutions. With the successful launch of two of these solutions in the first half of FY2024, we have opened up a transformational opportunity with a significant and growing pipeline. We look to the future with confidence.’

1Spatial shares fell 0.6% to 45.25 each on Tuesday morning in London.

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