1Spatial secures 'landmark contract' with UK government
IT services firm 1Spatial has secured a "landmark contract" with Westminster following a competitive tender, in partnership with a consortium.
1Spatial inked the "major new multi-year contract" on Monday and stated it will deliver a "significant" digital transformation programme for an unnamed department of the UK Government.
The five-year contract was expected to have a total value to 1Spatial of £8.0m, with a significant weighting towards recurring revenue. Both the software configuration and integration services and the first three years of software licences within the contract were contractually committed, delivering approximately £5.6m of revenue to the company.
As a result of the award, the AIM-listed company now anticipates that 2023 revenue and underlying earnings will be "slightly ahead" of expectations.
Chief executive Claire Milverton said: "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."
As of 1045 BST, 1Spatial shares were up 5.24% at 43.15p.