1Spatial

LN: SPA

Market Cap£47m

Last Close 42.5p

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

Following a slew of recent contract wins in both the UK and United States so far this year, May saw 1Spatial granted a UK patent for the modification and validation of spatial data, effectively protecting the use of its rules engine technology which lies at the heart of its 1Integrate and 1Data Gateway products. FY21 reported results (28 April) were comfortably above the baseline set out in its trading statement with a positive outlook statement referencing a growing pipeline and an ‘accelerated win rate’. As a result we lifted our FY22 adjusted EPS forecast by 20% but see scope for further increases if current momentum continues.

Y/E Jan	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (fd) (p)	P/E (x)	P/CF (x)
2020A	23.4	3.2	0.8	0.58	73.3	81.9
2021A	24.6	3.6	0.3	0.18	236.1	12.2
2022E	25.6	3.7	0.4	0.26	163.5	9.6
2023E	27.2	4.2	0.8	0.53	80.2	9.3

Industry outlook

The GIS industry is large and growing. P&S Market Research estimates the global GIS software, services and hardware market generates sales of US$9.0bn annually and will grow at a 10% CAGR to reach annual sales of US$17.5bn by 2023.

Last updated on 04/06/2021