1Spatial — Expansion with UK Power Networks

1Spatial (AIM: SPA)

Last close As at 03/10/2025

GBP0.48

0.00 (0.00%)

Market capitalisation

GBP54m

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Research: TMT

1Spatial — Expansion with UK Power Networks

1Spatial has announced a significant expansion for 1Streetworks with UK Power Networks (UKPI). The deal is worth £1.0m over 15 months, with a one-year extension option, representing a 135% uplift on the initial engagement (announced in February 2024), and is expected to increase beyond this period. It also signifies that 1Streetworks has become embedded in the workflows of a major UK utility player, validating 1Streetworks’ value proposition and helping to pave the way for further customer expansion.

Written by

Dan Ridsdale

Head of Technology

Software and comp services

Strategic contract extension

6 October 2025

Price 48.00p
Market cap £53m

GBP/ US$1.34

Net cash/(debt) at 31 January 2025

£(1.1)m

Shares in issue

111.3m
Code SPA
Primary exchange AIM
Secondary exchange N/A
Price Performance

Business description

1Spatial’s core technology validates, rectifies and enhances customers’ geospatial data. Its software and advisory services reduce the need for costly manual checking and correcting of data. Its SaaS products use the core technology to solve significant workflow bottlenecks like the creation of traffic management plans and validating data.

Analyst

Dan Ridsdale
+44 (0)20 3077 5700

Note: EBITDA, EBIT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Year end Revenue (£m) EBITDA (£m) EBIT (£m) EPS (p) EV/EBITDA (x) P/E (x)
1/24 32.3 5.5 2.5 1.40 10.0 34.2
1/25 33.4 5.6 1.8 0.76 9.7 63.4
1/26e 36.0 6.1 2.0 0.79 9.0 60.5
1/27e 38.3 8.1 3.8 2.11 6.7 22.8

The expanded contract builds on 1Spatial’s current engagement with UK Power Networks, signed in May 2024, which covered UKPI’s South Eastern region and was worth £0.34m over 12 months. This engagement increases the annual fee by 135% and expands usage of the product to all three of UKPI’s regions (South East, London and East of England) and into new teams looking at network faults and reactive works. UKPI estimates that it will use 1Streetworks to plan and support the delivery of around 30% of the 40,000 roadworks it undertakes annually, leaving ample scope for further expansion.

The company now has two £1m contracts for its 1Streetworks platform, including one with Surrey County Council. While seeding the market is taking time, there remains significant headroom for growth as the company expands its customer base across utility companies, contractors and county councils.

Business development initiatives should be further supported by UKPI’s advocacy for the product. Richard Boissieux, head of streetworks at UK Power Networks, is quoted in the statement: ‘The 1Streetworks platform has been highly successful in streamlining traffic management plans, enabling better communication with customers and highway authorities, and improving the speed and accuracy of streetworks.’

1Spatial reports its H1 results on 13 October. Management flagged in May that sluggish decision-making cycles, particularly in the US, had suppressed H1 trading. This extension, together with the recent Caltrans extension, suggests that business development efforts are starting to get through this and that H2 should be stronger. We are not changing our estimates and continue to believe the long-term growth and margin expansion story remains strong. 1Spatial’s EV/sales ratio of 1.5x for FY26 is a discounted recovery multiple for a software company, which we believe does not reflect 1Spatial’s growth prospects or strategic positioning.

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London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

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