1Spatial

LN: SPA

Market Cap£45.3m

Last Close 41p

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 announced the signing of a new multi-year contract with Atkins to support delivery of the National Underground Asset Register (NUAR) project, with a total potential value of £6.5m over 37 months. The win followed a competitive tender process, and as a key supplier to the UK government’s Geospatial Commission, 1Spatial will be leading the development of the project’s multi-year data transformation and data ingestion programme. We make a slight upgrade to our FY22 and FY23 forecasts to reflect the £0.5m committed portion, while if all goes to plan, the £6.0m optional component would fall in future years. We are encouraged by 1Spatial’s continued contract momentum and see scope for an acceleration given current execution and structural trends.

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	70.7	79.0
2021A	24.6	3.6	0.3	0.18	227.8	11.8
2022E	25.6	3.7	0.4	0.26	157.7	9.3
2023E	27.2	4.2	0.8	0.53	77.4	9.0

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 16/09/2021