1Spatial — 1Spatial wins £0.9m contract with Defra

1Spatial (AIM: SPA)

Last close As at 23/04/2024

GBP0.59

0.50 (0.85%)

Market capitalisation

GBP65m

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Research: TMT

1Spatial — 1Spatial wins £0.9m contract with Defra

1Spatial, working in collaboration with Version 1, has signed a multiyear contract with the UK Department for Environment, Food and Rural Affairs (Defra) with total potential value in excess of £0.9m over five years. Its 1Integrate software will help manage the land-use data used to verify subsidy claims made by farmers. Significantly 1Spatial will also be working with Defra on a time and materials basis to assist the evolution of the current scheme to support the 25-year environmental plan, which is part of the government’s broader commitment to deliver net zero.

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Written by

TMT

1Spatial

Contract win

Software & comp services

1 April 2021

Price

46.5p

Market cap

£53m

Net cash (£m) at end FY21

4.3

Shares in issue

113m

Free float

93%

Code

SPA

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

Business description

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.

Analysts

Dan Gardiner

+44 (0)20 3077 5700

Dan Ridsdale

+44 (0)20 3077 5729

1Spatial is a research client of Edison Investment Research Limited

1Spatial, working in collaboration with Version 1, has signed a multiyear contract with the UK Department for Environment, Food and Rural Affairs (Defra) with total potential value in excess of £0.9m over five years. Its 1Integrate software will help manage the land-use data used to verify subsidy claims made by farmers. Significantly 1Spatial will also be working with Defra on a time and materials basis to assist the evolution of the current scheme to support the 25-year environmental plan, which is part of the government’s broader commitment to deliver net zero.

1Spatial wins £0.9m contract with Defra

Year end

Revenue (£m)

EBITDA* (£m)

EBIT*
(£m)

EPS*
(p)

EV/sales
(x)

EV/EBIT
(x)

P/E
(x)

01/19

17.6

1.2

(0.3)

(0.6)

2.8

N/A

N/A

01/20

23.4

3.2

1.0

0.6

2.1

49.2

79.7

01/21e

24.0

3.2

0.1

0.0

2.1

337.3

N/A

01/22e

25.1

3.6

0.4

0.2

2.0

121.0

214.7

Note: *EBITDA, EBIT and EPS exclude amortisation of acquired intangibles, exceptional items and share-based payments. Geomap-Imagis consolidated from May 2019 (FY20).

Defra manages over £2bn of annual payments to farmers and land managers, via the Rural Payments Agency’s (RPA) Land Management System (LMS). The LMS uses remote sensing data to validate subsidy claims made by farmers. However, following the departure from the EU and consistent with the UK’s commitment to deliver net zero emissions by 2050, this scheme is evolving to the Environmental Land Management System (ELMS), which will aim to focus payments on farmers that are contributing to addressing environmental issues (‘public money for public goods’).

While this contract win is with an existing customer and the annual incremental revenue is modest, it illustrates how geospatial information is at the heart of addressing some significant long-term challenges and how 1Spatial is increasingly embedded with Defra as part of the solution. It also represents further evidence of contract momentum at 1Spatial, particularly in the UK and the US (see ENA, NGN and CalOES wins). The company expects to report FY21 results on 28 April.

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United Kingdom

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