reports
1Spatial: 2 directors
Two Directors at 1Spatial bought 56,599 shares at between 66p and 67p. The significance rating of the trade was 55/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years cl...
- Richard Williamson
1Spatial - Well positioned to cope with any downturn
1Spatial’s FY20 results (to January) confirm reported revenue growth of 33% y-o-y and EBITDA rising 83% (pre IFRS16). The company generated positive underlying cashflow and EBIT in H2, has seen no impact on trading from COVID-19 so far and just secured a $2.6m contract win in the US. However it is prudently acknowledging that sales cycles are likely to lengthen in the current economic climate. As a precaution it has withdrawn forward guidance and stands ready to take action on costs if needed.
- Richard Williamson
1Spatial - Trading in line, no COVID-19 impact so far
1Spatial’s trading update confirms FY20 (ended January) financials will be in line with our estimates. We update exceptionals, amortisation of acquired intangibles and the year-end cash balance but make no material changes to underlying forecasts. The company has seen no impact from COVID-19 so far but is ready to take ‘appropriate action’. Given this, the halving of the share price in the last two weeks seems an overreaction.
- Richard Williamson
1Spatial - Launch of 1Data Gateway
The launch of 1Data Gateway is an important development for 1Spatial in our view. It enables 1Integrate (its key differentiator) to be delivered as a hosted software-as-a-service (SaaS) platform. This should significantly enhance its scalability, allowing adoption across a range of segments at little incremental cost. Hence, we see 1Data Gateway as key to driving growth and raising margins over time.
- Richard Williamson
1Spatial - Update suggests performance is on track
1Spatial’s update suggests the momentum the business was enjoying at the time of the capital markets day in October has been sustained to the end of the calendar year. While no financial figures are given and there is still nearly a month left of the financial year, we see this statement signalling that the company is at least on track to meet our FY20 forecasts.
- Richard Williamson
1Spatial - Mapping a future path
1Spatial has made significant financial and strategic progress over the last three years. The recent capital markets day provided the opportunity to articulate its longer-term ambitions. Its Location Master Data Management (LMDM) strategy aims to leverage the strengths of its 1Integrate platform and has the potential to accelerate growth and raise margins, in our view.
- Richard Williamson
1Spatial - Encouraging early signs from GI
H120 saw a solid performance from 1Spatial’s core business augmented by a good start from its recent Geomap-Imagis (GI) acquisition. GI generated revenue of £2m and EBITDA of £0.5m in its first three months and additional synergies have been identified. It is early days but in the context of a £5.3m price tag (EV) we see this performance as encouraging. 1Spatial also highlighted significant contract wins post period end. It now looks well set to execute on its next phase: establishing a mar...
- Richard Williamson
1Spatial - London geospatial pilot project win
1Spatial has been awarded a pilot project to create a digital map of London’s underground utility assets (pipes and ducts) by the Greater London Authority (GLA). No financial terms have been released but the high-profile win further shows the value of its technology.
1Spatial - Strategic and financial progress
FY19 represented a year of good strategic and financial progress for 1Spatial. It divested Enables IT, raised capital and shifted to subscription licensing, all while increasing revenue and EBITDA margins. Investment in innovative 3D, LMDM and mobile projects should begin to bear fruit in FY20 and ensure that this progress continues. The recent acquisition of Geomap-Imagis (GI) further enhances its technical capability. Factoring GI into our forecasts helps raise our FY21e adjusted EPS by 14% to...
1Spatial - Fixing France - further evidence of execution
1Spatial’s agreed €7m acquisition of Geomap-Imagis (GI) provides further evidence that it is executing on its transition plan. Aside from enhancing its capability, market presence and scale, it also addresses the challenges it faces in France and Belgium. Combining its Elyx product with GI’s Esri platform here should stabilise performance and enable greater focus on sector-specific solutions. We will revisit forecasts for the combined entity more thoroughly after results next week but expe...
1Spatial - Transition on track, EBITDA ‘at least in line’
1Spatial continues to make good progress on its transition plan. The final months of FY19 saw further large contract wins and growth accelerate. This was achieved despite the uncertainty created by the US government shutdown. Adjusted EBITDA ‘at least in line’ with market expectations suggests a minimum of £1.1m, over 12% ahead of our estimate, but we leave our forecasts unchanged for now. Executing the plan offers scope for a re-rating and further upgrades, in our view.
Edison issues outlook on 1Spatial (SPA)
Edison Investment Research Limited Edison issues outlook on 1Spatial (SPA) 22-Jan-2019 / 13:02 GMT/BST London, UK, 22 January 2019 Edison issues outlook on 1Spatial (SPA) 1Spatial's (SPA) transition plan appears to be on track. Recent contract wins, US trends and mobile solutions should both sustain growth and ensure it reaches profitability and positive free cash flow targets. In the longer term, its ambition to become a leading location master data management (LMDM) supplier has the potential to enhance both its competitive position and strategic value. Success is not guaranteed but we ...
1Spatial - Spatial awareness
1Spatial’s transition plan appears to be on track. Recent contract wins, US trends and mobile solutions should both sustain growth and ensure it reaches profitability and positive free cash flow targets. In the longer term, its ambition to become a leading location master data management (LMDM) supplier has the potential to enhance both its competitive position and strategic value. Success is not guaranteed but we would argue that, trading at 1.3x FY21e EV/sales, nor is it factored into the va...
- Dan Ridsdale
1Spatial - Building a platform for sustainable growth
H1 results showed good progress and financial discipline, significantly expanding EBITDA and reducing operating losses. A strong pipeline should support a return to growth in H2 and our estimates are unchanged. There is still work to do on the transformation, but by focusing on delivering repeatable spatial solutions based around the company’s core 1Integrate IP, we believe that the company is laying the foundations to deliver sustainable growth and margin expansion.
- Dan Ridsdale
1Spatial - GBP8m raise to drive expansion
1Spatial has completed an accelerated bookbuild, raising net proceeds of £8m. The funds will be invested in customer acquisition, the repayment of the outstanding overdraft and the ongoing development of the company’s core technology suite. The announcement also confirms trading is in line with expectations and that 1Spatial has won a number of new contracts to provide data management solutions to a UK infrastructure provider. We leave our underlying forecasts unchanged at this stage.
- Dan Ridsdale
1Spatial - A note of confidence
1Spatial recently held its first capital markets day for a number of years. We see this as a positive signal that, following a substantial transformation programme, management is confident in its strategy and prospects. The recovery programme has been based on three fundamental principles – get the strategy right, assemble a strong team and build closer customer relationships. The capital markets day indicated that the company has made good progress on all three fronts.
- Dan Ridsdale
1Spatial - Knowing where it is going
1Spatial’s return to growth and cash break-even in FY18 reflect the initial success of management’s turnaround plan. Supportive market dynamics and a strong pipeline give us confidence that the business can return to sustainable growth and profitability. We believe the renewed focus on its solution strategy and goals to grow its offerings that master, define and maintain accurate geospatial information from multiple data sets in key target verticals could provide the potential for an acceler...
- Dan Ridsdale
1Spatial - GBP1.6m deal with Land & Property Services
1Spatial’s £1.6m deal with Land and Property Services in Northern Ireland indicates the business is continuing its recovery path. We reiterate our view that 1Spatial’s recovery credentials are solid, based on building its presence in existing geographies and verticals with deals such as this, supplemented by expansion in the US, where the company has also been taking good steps forward. The recent share price retrenchment following the disposal of Enables IT seems to discount any significan...
- Dan Ridsdale
1Spatial - Core GIS business robust/disposal of Enables
1Spatial’s trading update flags that group performance is expected to be in line with expectations. The core GIS business traded better than expected at both the revenue and EBITDA levels, but a deterioration in prospects for the non-core Enables business has prompted a disposal of 80.1% of this business to management for a £1. While the low consideration is underwhelming, our investment case has always been predicated on the growth and recovery prospects for GIS. It is encouraging that GIS p...
- Dan Ridsdale
1Spatial - Progress in the US
1Spatial’s agreement with the State of Michigan Department of Technology shows further evidence that the company is making progress in the key US market and that the recovery plan is on track. As a state level agreement, it is also strategically interesting in that it can potentially open doors to other agencies which feed into the programme.
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