1Spatial

LN: SPA

Market Cap£48m

Last Close 43p

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 (SPA) delivered another period of robust results in H123, with annualised recurring revenue up 29% y-o-y, revenues growing 11% and EBITDA rising 10%. 1Spatial’s success in driving transformational growth was marked by several contract wins with significant amounts of recurring revenue, the expansion of smart partnerships and further penetration of the US market. We maintain our FY23 and FY24 estimates and watch for catalysts that signal 1Spatial’s plan is continuing to bear fruit. Although 1Spatial trades at a discount to peers, we expect there could be a reduction in the gap if management continues successfully executing its growth strategy.

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	252.9	12.1
2022A	27.0	4.2	1.1	0.77	55.8	19.1
2023E	29.0	4.9	1.8	1.21	35.5	11.4
2024E	31.2	5.7	2.5	2.29	18.8	8.8

Industry outlook

We see the GIS market as poised for rapid growth, driven by the substantial growth of data generated every day by sensors, the Internet of Things and mobile devices, and we estimate the GIS market could grow 20%+ pa over the next decade. We believe untapped value is found in companies like 1Spatial that operate in a niche position and can turn GIS data into something useful for a wide variety of use cases.

Last updated on 05/10/2022