1Spatial - Another big UK contract win for 1Spatial

1Spatial continued its streak of winning big contracts in the UK and today announced the award of an £8m new multi-year contract, in partnership with a consortium and following a competitive tender, with a department of the UK government. We believe this is its biggest win in company history, two weeks after announcing its c £6.5m contract with the UK government’s Geospatial Commission. The contract will deliver a multi-year digital transformation programme for the department, and we expect management will provide further details on the contract when it releases interim results on 29 September. As a result, we plan to adjust our FY22 and FY23 forecasts once those are announced. Our attention remains on the long-term growth of the geospatial market, with growth rates likely to increase from FY22 through FY23. We are encouraged by the contract momentum and see scope for acceleration, as the UK government’s ‘Build back better and greener’ initiative continues to provide tailwinds for the spatial data market.