1Spatial — AGM statement suggests momentum continues

1Spatial (AIM: SPA)

Last close As at 20/12/2024

GBP0.70

0.50 (0.72%)

Market capitalisation

GBP78m

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Research: TMT

1Spatial — AGM statement suggests momentum continues

FY21 results in April indicated a return to organic growth in H2 and positive trading in the current financial year (FY22). 1Spatial’s AGM statement highlights 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.

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TMT

1Spatial

AGM statement suggests momentum continues

AGM statement

Software & comp services

23 June 2021

Price

40.4p

Market cap

£46m

Net cash (£m) at end FY21

4.3

Shares in issue

114m

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

FY21 results in April indicated a return to organic growth in H2 and positive trading in the current financial year (FY22). 1Spatial’s AGM statement highlights 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.

Year end

Revenue (£m)

EBITDA* (£m)

EBIT*
(£m)

EPS*
(p)

EV/sales
(x)

EV/EBIT
(x)

P/E
(x)

01/20

23.4

3.2

1.0

0.6

1.8

41.6

69.2

01/21

24.6

3.6

0.4

0.2

1.7

94.3

N/M

01/22e

25.6

3.7

0.5

0.3

1.6

76.5

N/M

01/23e

27.2

4.2

0.9

0.5

1.5

45.6

76.1

Note: *EBITDA, EBIT and EPS exclude amortisation of acquired intangibles, exceptional items and share-based payments

1Spatial’s brief AGM statement suggests the strong trading seen in the first few months of FY22 (see Momentum continues; raising FY22 estimates) continued in May and most of June. Order levels for new sales are up year-on-year and the pipeline is growing in all regions. The company also signed a number of additional contracts in recent months, including two further “Next generation 911” wins and an extension contract with US Federal Highways Administration. Coming on top of other recent wins in the US (see Google Real Estate and Workplace Services and California Office of Emergency Services), these additional contracts suggest momentum in the US is particularly strong. The head of 1Spatial’s US business, Shelia Steffenson, describes the encouraging trends in the US in more detail in our recent interview.

Given 1Spatial is not yet five months into the financial year and we have a rise in sales already in our forecast, we make no changes to FY22 at this point. Nevertheless, we see the statement as encouraging and continue to believe there is scope for an increase in forecasts if momentum continues.

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