1Spatial

LN: SPA

£30.6m market cap

31p last close

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 to make good progress on its transition plan. The final months of FY19 saw further large contract wins and growth accelerate. This was achieved despite the uncertainty created by the US government shutdown. Adjusted EBITDA ‘at least in line’ with market expectations suggests a minimum of £1.1m, over 12% ahead of our estimate, but we leave our forecasts unchanged for now. Executing the plan offers scope for a re-rating and further upgrades, in our view.

Y/E Jan
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 15.1 (0.9) (12.8) (1.75) N/A N/A
2018A 16.9 0.4 (1.5) (2.30) N/A 83.5
2019E 17.8 1.0 (1.0) (1.15) N/A N/A
2020E 18.8 1.7 0.5 0.44 73.4 16.6
Last updated on 23/10/2018
Industry outlook

The GIS industry is large and growing – P&S Market Research estimates the global GIS software, services and hardware market at US$9.0bn, forecasting a 10.1% CAGR to reach US$17.5bn by 2023. Software is estimated to account for around half of this market at present, with growth forecast at c 9% through 2023, whereas the revenue opportunity for services is expected to grow more rapidly – at c 12% from around US$3.5bn at present.

Last updated on 23/10/2018
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 5.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (10.1) (21.5) (21.5)
Relative* (12.6) (19.7) (12.5)
52-week high/low 4.2p/2.8p
*% relative to local index
Key management
Andy Roberts Chairman
Claire Milverton CEO
Nicole Payne Financial Accountant

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