Ahead of next week’s announcement of its Interim Results to end-July, due on Monday morning, 1Spatial (LON:SPA), one of the global leaders in Location Master Data Management software and solutions, yesterday informed the market of a significant $1.4m contract for the United States Forest Service.
That is yet another key federal department as a client for the supplier of LMDM software, solutions and business applications.
And it is another additional figure going on the group’s annual recurring revenues total, in this case some $300,000 yearly.
Management Comment
CEO Claire Milverton stated that:
“We are proud to announce that we have been selected by the US Forest Service to improve their data governance.
This significant contract marks a major milestone for our Company, as it represents our first engagement with this federal agency.
Our patented rules engine, 1Integrate, combined with our innovative 1Data Gateway for ArcGIS Pro, offers a tailored solution to meet the USFS’s specific data management needs.
We are confident in our ability to improve data accuracy, expedite processing, and ultimately support the agency’s mission of protecting and managing America’s forests and grasslands.”
The Business
Based in Cambridge, with operations in the UK, Ireland, USA, France, Belgium, Tunisia, and Australia, the group supplies primarily to Government, Utilities and Transport sectors via the 1Spatial platform and SaaS offerings.
The group’s solutions ensure data governance, facilitating the efficient, effective and sustainable operation of customers around the world.
1Spatial’s products allows the group’s various customers to master their data on any device, anywhere, anytime and can be deployed as SaaS in the cloud, on-premise, or as a hybrid of both.
Globally the group’s clients include national mapping and land management agencies, utility companies, transportation organisations, government and defence departments.
Analyst View
Analyst Dan Ridsdale at Edison Investment Research is looking for the current year, to end-January 2025, to show revenues of £35.8m (£32.3m), with EBITDA of £5.7m (£5.5m), with a standstill in earnings at 1.4p per share.
For next year Edison goes for £38.7m revenues, £7.6m EBITDA, with 2.5p earnings per share.
In My View
Come next Monday we can expect both Panmure Liberum and new joint broker Cavendish Capital Markets to issue updated current and prospective year estimates for the group as it progresses globally.
The group’s shares have been up to 77p this year, that was in May, shortly after the company presented to UK Investor attendees at our set of presentations at the London Stock Exchange.
However, they had slipped away to a recent 51p Low, before yesterday’s contract news spurred a lift-up in the price to see them close at 61p.
Market reaction could well be bettered next Monday, especially if there is further good news being announced.