Market's view on 1Spatial Holdings
Published on April 2024
- Stock Watchers are discussing the potential value of 1Streetworks, with estimates suggesting it could be worth £280m as a standalone business, translating to 253p per share.
- Concerns were raised about 1Spatial’s slow sales cycle and the reluctance of experienced surveyors to adopt new technology that could make their roles redundant.
- Doubts about the viability of achieving a £40m revenue target from 1Streetworks within five years due to a highly competitive market and a lengthy sales cycle were expressed.
- The recent trading update was seen as disappointing, raising questions about strategic direction, working capital, and the need for an equity raise.
- There is a discussion about the pricing strategy for 1Streetworks, particularly in relation to the significant cost savings it offers to potential clients like UKPN.
- The changes in strategy for 1Spatial’s other products, such as NG911 in the US, were highlighted as a concern, particularly the shift to a partner-led approach which could affect revenue and control.
- The need for clearer communication from the company regarding investment in sales and marketing was noted, with criticism that recent announcements had spooked investors.
- Overall, there is a cautious outlook on the company’s future growth trajectory, with the effectiveness of its sales and marketing strategy and the execution of its business plans being the focal points.