1Spatial

LN: SPA

Market Cap£42m

Last Close 38p

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’s recent AGM statement (23 June) highlighted that orders for new sales are up year-on-year so far and refers to a ‘strong and growing pipeline in all regions’, suggesting momentum was sustained in May and most of June. As management is expecting growth and our forecasts include a rise in sales in FY22, we make no changes at this point. However, we continue to see scope for an increase in forecasts if momentum continues. In July 1Spatial announced that it has completed technical integration of 3D data capability into its flagship 1Integrate platform.

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	65.5	73.2
2021A	24.6	3.6	0.3	0.18	211.1	10.9
2022E	25.6	3.7	0.4	0.26	146.2	8.6
2023E	27.2	4.2	0.8	0.53	71.7	8.3

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 30/07/2021