Report
Richard Williamson

1Spatial - Record contract wins fuel recurring revenue

1Spatial’s (SPA) FY22 trading statement suggests the momentum we recently highlighted continues. Management expects revenues to grow at least 7% for FY22 and exceed £26.4m, and recurring revenues to enjoy double-digit growth. This growth is driven by several recent record contract wins, the accelerating pace of new business and what we estimate is the transition to a higher-margin SaaS business. In our view, this progress demonstrates the benefits of 1Spatial’s ‘Land and Expand’ strategy and the long-term potential of the geospatial industry. While the company trades at a sizable discount to its software peers, we see opportunities for the gap to be reduced if it continues to execute on its growth strategy.
Underlying
1Spatial

1Spatial is a holding company. Through its subsidiaries, Co. is engaged in the development and sale of information technology (IT) software along with related consultancy and support. Co. has two business segments and brands: 1Spatial, which is a technology enabled solutions provider supplying spatial solutions, software and services; and Enables IT, which is a solutions provider focusing on network managed services.

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts
Richard Williamson

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