1Spatial Plc SPA Half Yearly Report

  1Spatial Plc (SPA) - Half Yearly Report

RNS Number : 9044P
1Spatial Plc
31 October 2012




                                                               31 October 2012

                                                                             

                           1Spatial plc (AIM: SPA)

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

         Interim Results for the six month period ended 31 July 2012

The board of  directors of 1Spatial  (the ''Board''), thebusiness  technology 
and profit  improvement  specialist, are  pleased  to announce  the  Company's 
unaudited interim results for the six month period ended 31 July 2012.

Highlights

Financial highlights

· Turnover from continuing operations increased by 146 per cent. to £6.4m
(6 months 2011: £2.6m)

· Adjusted* EBITDA  from continuing  operations of £20k  (6 months  2011: 
£0.6m)

· Overall loss for the period after  tax of £1.1m (6 months 2011:  profit 
of £0.8m)

· Strong balance sheet at 31 July 2012 with £3.1m of net cash (31 January
2012 net cash of £2.7m)

· The 1Spatial trading business  generated revenues of £5m and  Adjusted* 
EBITDA of £0.7m

· The Avisen trading business  generated revenues of £1.2m and  Adjusted* 
EBITDA of £0.1m

· The Storage  Fusion trading  business generated revenues  of £0.2m  and 
broke even at an Adjusted* EBITDA level



Operational highlights

· Restructuring  of the  1Spatial  Business to  enable execution  of  new 
strategy for growth and scale

· Focus on product  development and software  licence sales for  National 
Mapping Agencies (NMA's) within 1Spatial Business

· Reduction in headcount within the Group with annualised cost savings of
£0.7m with no direct impact on revenues

· Rebranding of 1Spatial Business to raise market visibility as a leading
global provider of spatial Big Data management

· Product realignment and development  to scale product offerings  across 
cloud and on-premise within the 1Spatial Business

· Avisen continues  successful global  roll out  of the  'Cost to  Serve' 
project for Unilever plc ("Unilever")

· Management remains confident in Storage Fusion's product and ability to
increase  scale.  During  the  period  we  have  been  focusing  on   product 
development in areas such as  virtualisation and chargeback which extends  the 
Company's functional reach

· Closure of loss making Avisen BV business in the Netherlands



Post Balance Sheet Highlights

· On 3 October, the Company announced that a five year contract has been
entered into to provide a US Government Bureau with software and related
services

· On 17 October,  the Company announced  that it had  been selected as  a 
preferred bidder in a significant  contract tender to Ordnance Survey  Ireland 
("OSi"). The contract is to provide OSi with a geospatial management solution
and will, if awarded, include the sale of software licences, services, support
and maintenance



*Adjusted for strategic, integration and other exceptional items



Commenting on the results, Marcus Hanke, CEO of 1Spatial, says:

"We aligned against our  core goals set  at the beginning  of this period,  to 
focus on the  right organisational  structure, operating  model, products  and 
brand. These  are now  in place  and  are being  well received  by  customers, 
partners and the market.  We have secured some  good customer wins across  the 
Group and further strengthened our strategic relationship with some  accounts. 
I am confident  we are now  in a great  position to build  on the  foundations 
already laid and to achieve growth for the business."

For further information, please contact:



1Spatial plc
Marcus Hanke (CEO)/Claire Milverton (CFO)    Tel: +44 (0)20 3527 5004

                                             
Strand Hanson Limited                        Tel: +44 (0)20 74093 494
James Harris / Andrew Emmott / James Bellman
Bishopsgate Communications                   Tel: +44 (0)20 7562 3350
Nick Rome/Sam Allen
                                                           
1Spatial@bishopsgatecommunications.com
                                                           

Chairman's statement

I am delighted to present  the results of the Group  for the six month  period 
ended 31 July 2012. The results for  this period show growth in revenues as  a 
result  of  the  inclusion  of  the  1Spatial  operating  business  ("1Spatial 
Business") that was acquired in November 2011.

The Board believes that  management have made  excellent progress during  this 
period, particularly with  respect to the  1Spatial Business. Management  has 
spent considerable  time and  effort putting  a new  operational structure  in 
place to enable  execution of a  revised strategy. This  strategy is based  on 
exploiting the opportunities in its intellectual property offering. The  Board 
believes this  new strategy  puts the  business in  an excellent  position  to 
achieve long term growth and scalability.  The Group is beginning to see  the 
success of these changes  with the new contract  prospects that were  recently 
announced to  the market.  Leveraging  the already  strong position  that  the 
1Spatial Business has in managing the world's largest spatial 'Big Data', this
offering can be scaled  and make claim  to a large  percentage of the  spatial 
'Big Data' market.

As noted  in my  January 2012  Chairman's  statement, we  did not  expect  the 
benefits of this revised strategy to come into effect until the second half of
this  financial  year.  The  initial  phase  of  adjustment,  which   included 
re-defining roles  and responsibilities  of  employees, was  finalised  during 
October 2012 and has resulted in an overall reduction of headcount. The Group
will not get the full  benefit of these cost savings  until the year ended  31 
January 2014. These  annualised cost savings  are in excess  of £0.7m and  we 
anticipate only a negligible impact on revenues.

In line with the above expectation, the Group's Adjusted* EBITDA in the period
was £20k compared to a profit of £0.6m in 2011. The 2011 figure was partly  a 
result of the large licence  sale to Unilever which  has not been repeated  in 
this period, however  the Group  has already  had success  with licence  sales 
during the  second  half of  the  year. Firstly,  with  the sale  to  the  US 
Government Bureau which was announced on 3 October 2012 and secondly with  the 
announcement of the  preferred supplier  status with  Ordnance Survey  Ireland 
announced on 17 October 2012, which we are hopeful will result in a firm order
in the near term. One of the key focus areas of the Group's new strategy going
forward is  focus  on  product  development and  software  licence  sales  for 
National Mapping  Agencies ("NMA's")  and this  profitable revenue  stream  is 
expected to increase in the second half of the year and in future years.

In my last statement, I noted that  management was still keen to review  other 
acquisition opportunities to accelerate the growth of the business and provide
more scale and synergistic  opportunities. Whilst the  new licence sales  and 
cost reductions  should enhance  profitability, the  Board still  believes  an 
acquisition will increase earnings potential and therefore continues to review
potential opportunities.

The common focus for all companies within the Group is to provide end users of
data with assurance over its quality and insight into its significance.  This 
is part of the 'Big Data' concept. 

Also during the period,  we recruited a new  Group Marketing Director,  Alison 
Masters. Alison has been in senior positions at both Oracle and Microsoft  and 
has  significant  experience  in  the  IT  sector.  We  believe  Alison  is  a 
significant asset to  the Group and  will be  key in driving  all the  Group's 
businesses forward.

Financial position

Revenues for the six months were £6.4m,  which is a 146 per cent.  improvement 
on the revenues of the previous period of £2.6m. The main reason for this  is 
the inclusion of the 1Spatial Business in these 2012 results. Included within
the revenues of £6.4m  is £1.5m of recurring  annuity revenues in relation  to 
support and maintenance.

The Adjusted*  EBITDA  profit measure  is  £20k  compared with  £0.6m  in  the 
previous period as a result of the Avisen revenues attributable to Unilever as
noted above.

Amortisation has increased from £0.2m to £0.5m as a result of the inclusion of
the 1Spatial acquisition in the results to July 2012. In addition,  strategic 
and other exceptional items have also increased from zero to £0.3m mainly as a
result of the costs associated with redundancies.

During the period, the  Group closed down its  loss making Avisen  Netherlands 
business. This  has been  disclosed  in discontinued  operations and  made  an 
adjusted* EBITDA loss of £50k. This closure will have a positive impact on the
results of the Group in the second half.

Taking account of the above items, the overall result for the six month period
to July 2012 for all operations was a loss of £1.1m compared with a profit  of 
£0.8m in the previous six months.

The Company had  a strong balance  sheet at 31  July 2012 with  net assets  of 
£10.1m compared with net assets of £7.9m at 31 July 2012. The increase is net
assets is as  a result of  the inclusion  of the 1Spatial  Business. The  net 
asset  position  includes  a  strong  cash  position  of  £3.1m  with  minimal 
borrowings.

The cash flow from operations was an outflow for the period as a result of the
exceptional one-off costs in  the period mainly  in respect of  redundancies. 
There are further redundancy  costs to be  charged in the  second half of  the 
year, but once these  payments are finalised  we expect the  Group to be  cash 
positive on  a monthly  basis  from an  operations perspective.  Overall  cash 
generated in the period was  £0.3m. The key components  of this were the  cash 
outflow from operating activities  of £0.4m coupled  with £1.3m deferred  cash 
consideration received in respect  of the disposal of  Inca in 2011 and  other 
smaller outflows  including  fixed  assets  of  £0.4,  deferred  consideration 
payable and debt repayments totalling £0.2m.

Trading business update

As mentioned  earlier,  the Group  has  been  undergoing a  period  of  review 
particularly within the  1Spatial Business.  An update on  the activities  of 
each trading entity is set out below:

1Spatial Business

Revenues for the six month period were £5.0m and adjusted* EBITDA was  £0.7m. 
Management were pleased  with these  results in light  of the  fact that  this 
period was a phase of review and consolidation. With the new management  team 
and strategy  in place  the Board  believes that  the business  is in  a  good 
position for future profitability from both a revenue growth perspective and a
lower fixed cost base (c.£0.7m annualised cost savings made).

With the focus on  our product offering and  positioning, we now have  greater 
clarity  and  opportunity  to   market  and  sell   our  products.  With   the 
comprehensive offering of the '1Spatial Management Suite', which provides  the 
full spatial data management  solution, we can now  offer a scalable  approach 
through the product family to a  greater market potential than previously.  In 
addition, with our revised  '1Spatial Cloud' offering we  can supplythis to  a 
broader market,  not  only directly,  but  also through  our  growing  partner 
network.

We are pleased with the recent preferred supplier status given to the  Company 
by OSi, evidence of the strength  of our relationship with this long  standing 
customer, and also the recognition of  our expertise in data quality with  the 
customer win at the US Government Bureau.

Avisen

Avisen had  revenues in  the period  of £1.2m  (2011: £2.5m)  and an  adjusted 
EBITDA of £0.1m (2011:  £1.0m). The reason for  the decrease in revenues  and 
profit was due to the large perpetual licence sale to Unilever in 2011  ("Cost 
to Serve Project") as noted above, which was not repeated in 2012. During the
period to July 2012 the Company has continued to work on the Unilever Cost  to 
Serve Project and is in the process of delivering the solution globally.  The 
profitability of the  Company has also  suffered due to  the high staff  fixed 
cost base. Management have left the cost base at this level for the period  to 
allow development  of the  product  and service  offering to  other  potential 
customers. Management  intend to  place more  focus on  this business  in  the 
second half of the  year and review  the cost base. On  a positive note,  the 
Company  continues  to  be  actively   involved  in  a  number  of   potential 
opportunities within the Unilever business and is hopeful that some additional
revenues will transpire as a result of this in the second half of the year.

Storage Fusion

Storage Fusion  had revenues  in the  period  of £0.2m  (2011: £0.2m)  and  an 
adjusted EBITDA of £37k (2011: loss of £55k). Revenues are at the same  level 
as 2011 which is slightly behind the Board's expectation for this half  year, 
however the Board is still confident  in its product offering and believes  it 
will be  able  to  secure  further  storage  vendor  partnerships  during  the 
remainder of the year in order to enhance revenue and profitability. With its
Cloud enabled  offering, it  provides a  cost effective  way to  measure  data 
storage usage  and consumption,  and  with the  huge  growth forecast  in  the 
software-as-a-service ("SaaS") marketplace, the Storage Fusion product is very
attractive and has great potential. The Storage Fusion brand has recently been
refreshed and the product offering  redefined to offer greater clarity,  along 
with releasing  a new  product  offering focusing  on the  virtualisation  and 
chargeback markets.

This business will be a key area  of focus for the management team during  the 
second half of  the year, and  we will build  on the recent  additions to  the 
product offering to broaden the market and sales potential.

Head office costs

Total head office costs in  the period have increased  to £0.8m from £0.4m  in 
the previous comparative period. This is  as a result of the additional  head 
office costs incurred by the  1Spatial Business. These costs should  decrease 
in the second half as  a result of the  departure of former director  Nicholas 
Snape in June 2012. 

Conclusion and outlook

The last six months have been a period of consolidation. We have revised our
strategy within the 1Spatial Business and have the right people in place to
support this strategy along with a significantly reduced fixed cost base.
Since the period end we have also secured a key contract with a US Government
Agency and have been made a preferred supplier on a pivotal key contract in
the NMA market. We have some areas to focus on within the Avisen and Storage
Fusion businesses during the second half of the year, but we anticipate having
these in a significantly better position by the year end.

Between now and the year end we have a lot of hard work to do but believe we
have excellent prospects to improve our results and cash flow generation in
the shortand longer term.

S Berry

Chairman

31 October 2012

Consolidated statement of
comprehensive income

6 months ended 31 July 2012

                                         Unaudited       Audited    Unaudited
                                         Six months          Year  Six months
                                              ended                      ended
                                                         ended 31
                                       31 July 2012  January 2012 31 July 2011
                                 Notes        £'000         £'000        £'000
Continuing operations
Revenue                                       6,420         5,228        2,628
Cost of sales                               (3,672)       (3,373)      (1,324)
Gross profit                                  2,748         1,855        1,304
Administrative expenses                     (3,649)       (3,454)        (882)
                                              (901)       (1,599)          422
Adjusted* EBITDA                                 20         (512)          615
Less: depreciation                             (81)          (42)          (7)
Adjusted* EBITA                                (61)         (554)          608
Less: amortisation and impairment of
intangible assets                             (502)         (505)        (178)
Less: strategic, integration and
other exceptional items            8          (338)         (540)            -
Operating (loss)/profit                       (901)       (1,599)          430
Finance income                                    1            26            -
Finance costs                                   (4)          (20)          (8)
Net finance costs                               (3)             6          (8)
(Loss)/Profit before tax                      (904)       (1,593)          422
Income tax (charge)/credit                     (57)           173         (12)
(Loss)/Profit from continuing
operations                                    (961)       (1,420)          410
Discontinued operations
(Loss)/Profit from discontinued
operations                         6           (89)          (54)          433
(Loss)/Profit on disposal of
subsidiary                                     (77)           464            -
(Loss)/Profit for the period                (1,127)       (1,010)          843
Other comprehensive income
Exchange differences on
translating foreign operations                   34             6            -
Gain on disposal of subsidiary
undertaking                                       -             -            -
Other comprehensive income for the
period, net of tax                               34             6            -
Total comprehensive
(loss)/profit attributable to               (1,093)       (1,004)          843
equity shareholders of the
Company
* Adjusted for strategic, integration and other exceptional items
(note 8).
(Loss)/Earnings per ordinary share expressed in pence per
ordinary share from continuing operations:
Basic                              3         (0.27)        (0.57)         0.18
Diluted                            3         (0.27)        (0.57)         0.18
(Loss)/Earnings per ordinary share expressed in pence per
ordinary share from operations:
Basic                              3         (0.32)        (0.59)         0.37
Diluted                            3         (0.32)        (0.59)         0.37



Consolidated
statement of
financial                                                      
position
                                                              
As at 31
July 2012                                   Unaudited   Audited                            Unaudited
                                                           As at

                                                 As at        31                                As at
                                                         January
                                          31 July 2012      2012                         31 July 2011
             Notes                               £'000     £'000                                £'000
Assets
Non-current
assets
Intangible
assets         9                                 3,907     4,133                                  869
Goodwill       9                                 5,540     5,602                                2,156
Property,
plant and
equipment                                          257       244                                   35
Total
non-current
assets                                           9,704     9,979                                3,060
Current
assets
Inventories                                         32        41                                    -
Trade and
other
receivables                                      4,876     5,551                                5,325
Current
income tax
receivables                                          7        60                                    -
Cash and
cash
equivalents                                      3,059     2,734                                2,898
Total current
assets                                           7,974     8,386                                8,223
Total assets                                    17,678    18,365                               11,283
Liabilities                    
Current
liabilities
Trade and
other
payables                                       (6,409)   (6,018)                              (3,175)
Current tax
liabilities          (37)      (92)       -
Borrowings         (50)       (51)      -
Total current
liabilities                                    (6,496)   (6,161)                              (3,175)
Non-current
liabilities
Borrowings             -      (51)      -
Deferred tax                                   (1,092)   (1,035)                                (258)
Total
non-current
liabilities                                    (1,092)   (1,086)                                (258)
Total
liabilities                                    (7,588)   (7,247)                              (3,433)
Net assets                                      10,090    11,118                                7,850
Share
capital and
reserves
Share
capital       10                                12,572    12,556                               11,335
Share
premium
account                                          6,504     6,455                                6,455
Own shares
held                                             (306)     (306)                                (306)
Share based
payment
reserve                                            387       387                                  387
Merger
reserve                                         13,900    13,900                               10,006
Reverse
acquisition
reserve                                       (11,584)  (11,584)                             (11,584)
Currency
translation
reserve                                              1      (33)                                 (39)
Accumulated
losses                                        (11,384)  (10,257)                              (8,404)
Total equity
attributable to
shareholders of
the parent                                      10,090    11,118                                7,850

Consolidated
statement of
changes in
equity

Period ended 31
July 2012


                             Share           Share
                          premium    Own    based             Reverse    Currency
                     Share         shares payments  Merger acquisition translation Accumulated
£'000              capital Account   held  reserve reserve     reserve     reserve      losses   Total
Balance at 1
February 2011       11,335   6,455  (306)      387  10,006    (11,584)        (39)     (9,247)   7,007
Comprehensive
income
Loss for the             -       -      -        -       -           -           -     (1,010) (1,010)
year
Other
comprehensive
income/(expense)
Exchange
differences on
translating              -       -      -        -       -           -           6           -       6
foreign
operations
Total other
comprehensive            -       -      -        -       -           -           6           -       6
income
Total
comprehensive            -       -      -        -       -           -           6     (1,010) (1,004)
(expense)/income
Transactions
with owners
Shares issued in     1,221       -      -        -       -           -           -           -   1,221
the year
Premium on
issuance of
shares to                -       -      -        -   3,894           -           -           -   3,894
acquire
subsidiary
                     1,221       -      -        -   3,894           -           -           -   5,115


Balance at 31
January 2012        12,556   6,455  (306)      387  13,900    (11,584)        (33)    (10,257)  11,118
Comprehensive
income
Loss for the             -       -      -        -       -           -           -     (1,127) (1,127)
year
Other
comprehensive
income/(expense)
Exchange
differences on
translating              -       -      -        -       -           -          34           -      34
foreign
operations
Total other
comprehensive            -       -      -        -       -           -          34           -      34
income
Total
comprehensive            -       -      -        -       -           -          34     (1,127) (1,093)
(expense)/income
Transactions
with owners
Shares issued in        16       -      -        -       -           -           -           -      16
the year
Premium on               -      49      -        -       -           -           -           -      49
issuance of
                        16      49      -        -       -           -           -           -      65


Balance at 31
July 2012           12,572   6,504  (306)      387  13,900    (11,584)           1    (11,384)  10,090







Consolidated
statement of
changes in
equity

Period ended
31 July 2012


                        Share           Share
                     premium    Own    based             Reverse    Currency
                Share         shares payments  Merger acquisition translation Accumulated
£'000         capital Account   held  reserve reserve     reserve     reserve      losses Total



Balance at 1
February 2011        11,335 6,455 (306) 387 10,006 (11,584) (39) (9,247) 7,007
Comprehensive
income
Profit for the year       -     -     -   -      -        -    -     843   843
Total comprehensive
income                    -     -     -   -      -        -    -     843   843


Balance at 31 July
2011                 11,335 6,455 (306) 387 10,006 (11,584) (39) (8,404) 7,850



Consolidated statement of
cashflows

Period ended 31 July 2012                 Unaudited     Audited      Unaudited
                                                     31 January
                                       31 July 2012        2012  31 July 2011
                                 Notes        £'000       £'000          £'000
Cash flows from operating
activities
Cash used in from operations      a)          (475)     (3,225)        (2,933)
Interest received                                 1          26              -
Interest paid                                   (4)        (37)           (25)
Tax received                                     60         232            151
Net cash used in operating
activities                                    (418)     (3,004)        (2,807)
Cash flows from investing
activities
Acquisition of subsidiaries (net
of cash acquired)                                 -         661              -
Cash received on disposal of
subsidiary                                    1,300       5,189          5,404
Purchase of intangible assets                     -           -            (3)
Purchase of property, plant and                (94)       (156)           (23)
equipment
Expenditure on product development            (276)       (476)          (185)
Proceeds from sale of property,
plant and equipment                               -           6              4
Deferred consideration payable                (136)           -              -
Net cash generated from investing
activities                                      794       5,224          5,197
Cash flows from financing
activities
Increase in overdraft                             -           -              -
Decrease in factoring account                     -         121            121
Finance lease principal payments                  -           -              -
Repayment of borrowings                        (51)       (100)          (106)
Net cash generated (used
in)/from financing activities                  (51)          21             15
Net increase in cash and cash
equivalents                                     325       2,241          2,405
Cash and cash equivalents at                  2,734         493            493
start of period
Cash and cash equivalents at end
of period                                     3,059       2,734          2,898

Net of disposal costs and cash balance disposed.

Cash flows from discontinued operations can be summarised for each of the main
cash flow headings as follows:

                                   31 July 2012  31 January 2012  31 July 2011
                                          £'000            £'000         £'000
Cash flows from operating
activities
Net cash generated from/(used in)
operating activities                         20            (133)         (143)
Cash flows from investing
activities
Net cash generated from investing
activities                                1,300            5,189         5,381
Cash flows from financing
activities
Net cash generated from financing
activities                                    -              121           121













                                        Unaudited       Audited      Unaudited

                                    As at 31 July      As at 31  As at 31 July
a) Cash used in operations                   2012  January 2012           2011
                                          £'000         £'000          £'000
Continuing operations
(Loss)/Profit before tax                    (904)       (1,593)            422
Adjustments for:
Finance cost - net                              3           (6)              8
Depreciation charge                            81            42              7
Amortisation and impairment                   502           505            178
Decrease/(Increase) in Inventories              9          (29)              -
(Increase) in trade and other               (712)       (1,073)        (2,983)
receivables
Increase/(Decrease) in trade and              529         (961)          (439)
other payables
Intercompany funding                         (36)             -              -
Foreign currency adjustment                    33             6              -
Cash used in continuing operations         (495)       (3,109)        (2,807)
Discontinued operations
Net loss                                     (89)          (54)           (12)
Adjustments for:
Finance cost - net                              -            17             17
Depreciation charge                             -            19             19
Amortisation and impairment                     -            68             68
Increase/(Decrease) in trade and
other receivables                              25         (137)          (137)
Increase/(Decrease) in trade and
other payables                                 48          (29)           (81)
Intercompany funding                           36             -              -
Cash generated from discontinued               20         (116)          (126)
operations
Cash used in operations                     (475)       (3,225)        (2,933)

                                                                        
b) Reconciliation of net cash flow to movement in net funds
                                                        Audited
                                        Unaudited                    Unaudited
                                                          As at
                                            As at                        As at
                                                     31 January
                                     31 July 2012          2012   31 July 2011
                                          £'000         £'000          £'000
Increase in cash in the year                  325         2,241          2,405
Net cash inflow from increase in
bank                                           51           100            106
Net cash inflow in respect of                   -         (121)          (121)
factoring
Changes resulting from cash flows             376         2,220          2,390
Loans and finance leases acquired               -          (96)              -
with subsidiary
Factoring disposed with Inca                    -           277            277
Effect of foreign exchange                      1             -              -
Change in net funds                           377         2,401          2,667
Net funds at beginning of period           2,632           231            231
Net funds at end of period                 3,009         2,632          2,898
Analysis of net funds/(debt)
Cash and cash equivalents                   3,059         2,734          2,898
Bank loans                                      -         (102)              -
Other loans                                  (50)             -              -
Net funds at end of period                 3,009         2,632          2,898

1 Principal activity

1Spatial plc is a  public limited company  which is listed  on the AIM  London 
Stock Exchange and is  incorporated and domiciled in  the UK. The address  of 
the registered office is Pannell House, Park Street, Guildford, GU1 4HN.  The 
registered number of the company is 5429800.



The principal activity of the Group  is a management consultancy and  software 
business that provides companies with advice and solution in order to  enhance 
overall profitability.



2 Basis of preparation

The interim results for the six months ended 31 July 2012, have been  prepared 
on the going  concern basis,  which assumes that  the Group  will continue  in 
operational existence for the foreseeable future.



The  accounting  policies  applied  in  the  interim  consolidated   financial 
information are consistent with those  of the annual financial statements  for 
the year ended  31 January  2012 as  described in  those financial  statements 
except for the impact  of the standards applicable  for the current  financial 
position described below:



New and amended standards adopted by the Group

The following new standards and amendments to standards are mandatory for the
first time for the financial year. The accounting policies applied in the
interim consolidated financial information are consistent with those of the
annual financial statements for the year ended 31 January 2012 as described in
those financial statements except for the impact of the standards applicable
for the current financial position described below:



• Taxes on income in the interim periods are accrued using the tax rate that
would be applicable to expected total annual profit or loss.



The following amendments to existing standards and new interpretations became
effective during the current period, but have no significant impact on the
Group's financial statements:

·IFRS 1 (Amended), "First-time Adoption of International Financial Reporting
Standards"; 
· IFRS 7 (Amended), "Financial instruments: Disclosures"; 
· IAS 12 (Amended), "Income taxes".

3 (Loss )/Earnings per share

Basic (loss)/earnings per  share is calculated  by dividing the  profit/(loss) 
attributable to equity holders of the  company by the weighted average  number 
of ordinary shares in issue during the period.



                           Unaudited                        Audited                        Unaudited

                 Six months ended 31 July 2012    Year ended 31 January 2012     Six months ended 31 July 2011
                Continuing Discontinued   Total Continuing Discontinued   Total Continuing Discontinued   Total
                     £'000        £'000   £'000      £'000        £'000   £'000      £'000        £'000   £'000
(Loss)/Earnings
attributable to
equity holders       (961)        (166) (1,127)    (1,420)         (54) (1,474)        410          433     843
Adjustments:
Amortisation of
intangible
assets                 502            -     502        505           68     573        178           68     246
Integration,
strategic and
other
exceptional
items                  338         (39)     299        540           45     585          -            -       -
Adjusted
(loss)/earnings      (121)        (205)   (326)      (375)           59   (316)        588          501   1,089
Basic
earnings/(loss)
per share           (0.27)       (0.05)  (0.32)     (0.57)       (0.02)  (0.59)       0.18         0.19    0.37
Diluted
earnings/(loss)
per share           (0.27)       (0.05)  (0.32)     (0.57)       (0.02)  (0.59)       0.18         0.19    0.37
Adjusted basic
earnings/(loss)
per share           (0.03)       (0.06)  (0.09)     (0.15)         0.02  (0.13)       0.26         0.22    0.48
Adjusted
diluted
earnings/(loss)
per share           (0.03)       (0.06)  (0.09)     (0.15)         0.02  (0.13)       0.26         0.22    0.48
                                         Number                          Number                          Number
                                          000's                           000's                           000's
Basic weighted average number of shares 350,415                         248,104                         226,700
Impact of share options and warrants          -                               -                               -
Diluted weighted average number of      350,415                         248,104                         226,700
shares



4 Nature of financial information

The interim information set out above is neither audited nor reviewed and does
not represent the statutory financial statements within the meaning of section
434 of the  Companies Act 2006  for 1Spatial plc  or for any  of the  entities 
comprising the 1Spatial Group for the period ended 31 July 2012.

The statutory financial statements for  the preceding financial year ended  31 
January 2012  were  filed  with  the Registrar  and  included  an  unqualified 
auditors' report.

5 Dividends

No dividend is proposed for the six months ended 31 July 2012 (31 January
2012: nil; 31 July 2011: nil).

6 Segmental information

                                                      Storage        
                                                       Fusion
                                  Head Office Avisen         1Spatial   Total
31 July 2012                            £'000   £'000    £000    £'000   £'000
Continuing operations
Revenue                                     -   1,199     216    5,005   6,420
Less intersegment sales                     -       -       -        -       -
Total revenue from third parties            -   1,199     216    5,005   6,420
Cost of sales                               -   (762)       -  (2,910) (3,672)
Gross profit                                -     437     216    2,095   2,748
Total administrative expenses           (807)   (381)   (449)  (2,012) (3,649)
Adjusted EBITDA                         (778)      88      37      673      20
Less: depreciation                       (10)     (5)    (21)     (45)    (81)
Adjusted EBITA                          (788)      83      16      628    (61)
Less: amortisation and impairment                       (214)    (288)
of intangible assets                        -       -                    (502)
Less: strategic, integration and                         (35)    (257)
other exceptional items                  (19)    (27)                    (338)
Total operating (loss)/profit           (807)      56   (233)       83   (901)
Finance income                              -       -       -        1       1
Finance cost                              (1)     (1)     (1)      (1)     (4)
Net finance                               (1)     (1)     (1)        -     (3)
(Loss)/profit before tax                (808)      55   (234)       83   (904)
Tax charge                                  -     (1)    (30)     (26)    (57)
(Loss)/profit for the year from                         (264)       57
continuing operations                   (808)      54                    (961)


                                                                       Avisen
                                                                         £'000
Discontinued operations
Revenue                                                                     25
Less intersegment sales                                                      -
Total revenue from third parties                                            25
Cost of sales                                                              (3)
Gross profit                                                                22
Total administrative expenses                                            (111)
Adjusted EBITDA                                                           (50)
Less: depreciation                                                           -
Adjusted EBITA                                                            (50)
Less: amortisation and impairment
of intangible assets                                                         -
Less: strategic, integration and
other exceptional items                                                   (39)
Total operating loss                                                      (89)
Finance income                                                               -
Finance cost                                                                 -
Net finance cost                                                             -
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