MIDAS SHARE TIPS UPDATE: We tipped 1Spatial at 35p and the shares have doubled

Roadworks are a real plague for motorists: temporary traffic lights, endless rows of cones and never a trace of traffic controllers.

In 2022, 2.5 million holes were dug on local and slow roads alone. Today, that number has risen to over 4 million, with many more if motorways and expressways are included.

For motorists, roadworks are a huge headache, but for local governments, utilities and contractors they also pose a logistical nightmare.

Virtually every project, from repairing a single pothole to planning a new residential development, requires a traffic management plan.

These ensure that all required procedures are followed so that road users, pedestrians and workers are safe.

Planning can take days or weeks and information can quickly become out of date, causing chaos down the road, cost overruns and delays.

Cambridge-based 1Spatial has now developed a software tool that enables traffic management plans to be created in minutes and updated as required by relevant parties including utilities, transport operators and contractors.

The technology is already in use by UK Power Networks, which distributes electricity in London and the South East of England, and is expected to grow significantly in the coming years.

The market is valued at over £400m in the UK alone and Claire Milverton, CEO of 1Spatial, believes she can grab a ten percent slice of the pie and generate £40m in annual revenue. The move would more than double group turnover.

In the short term, 1Spatial is rapidly expanding into other areas, providing data to customers ranging from Google in Oregon to the UK Environment Agency.

Google uses 1Spatial to map its campuses worldwide, so the company always has up-to-date information when work needs to be done.

More than 20 states in the US partner with 1Spatial to know the exact location of properties, power plants, traffic lights, fire hydrants, trees and forests.

The information has multiple applications: transportation planning, emergency service routing, even making sure homeowners pay the right taxes. And in the U.K., 1Spatial helps utilities and government agencies with detailed underground data on pipes and cables to reduce the chance of workers accidentally cutting power or causing water leaks.

Milverton has experienced steady growth in recent years, but the future looks even brighter.

Brokers expect turnover to rise 15 per cent to £37m in the year to January 2025, with profits rising 14 per cent to £2.4m, rising to £3.9m in 2026.

And if the new road construction plans meet expectations, it could pave the way for dividend payments in the future.

Midas Pronouncement: Midas first recommended 1Spatial in 2021, since then the shares have doubled to 70p. There should be more.

Governments, businesses and transportation organizations increasingly demand detailed, accurate and accessible data. That is what 1Spatial stands for. The company is gaining customers with it both here and in the United States.

Investors looking for profit can sell their shares, but they shouldn’t sell everything. There’s a good chance this company will only get stronger.

Traded on: Goal Ticker symbol: SPA Contact: 1spatial.com or 01223 420 414