1Spatial

LN: SPA

Market Cap£46m

Last Close 41.5p

1Spatial’s core technology validates, rectifies and enhances customers’ geospatial data. The combination of its software and advisory services reduces the need for costly manual checking and correcting of data.

Investment summary

1Spatial continues its US expansion with the announcement of a contract win to support replacing the Transportation System Network (TSN) for the California Department of Transportation (Caltrans). The contract is worth c $1.4m over four years, including US$0.7m in software licence revenue, and was won in partnership with Rizing, a global SAP partner. The US market is a key growth engine for 1Spatial and the Caltrans win shows its strategic plan continues to bear fruit. This contract follows other recent wins and extensions in the US market, including with the states of Montana, Georgia, Minnesota and Arizona, and with Google. We are encouraged by its progress and maintain our forecast of significant growth in the US; we have not adjusted our estimates.

Y/E Jan	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (fd) (p)	P/E (x)	P/CF (x)
2021A	24.6	3.6	0.2	0.17	244.1	11.7
2022A	27.0	4.2	1.1	0.77	53.9	18.4
2023E	29.0	4.9	1.8	1.21	34.3	10.1
2024E	31.2	5.7	2.5	2.29	18.1	8.5

Industry outlook

We believe that the geospatial market is likely to witness robust growth driven by a number of factors such as the open data movement and SPA looks well placed to benefit from this.

Last updated on 18/05/2022