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Roadworks are a driver’s nightmare: temporary traffic lights, endless rows of cones and, always, no sign of any highly visible workers.
In 2022, 2.5 million potholes were dug on local and low-speed roads alone. Today, that figure has soared to more than 4 million, and many more if motorways and dual carriageways are included.
Roadworks are a huge headache for motorists and a logistical nightmare for local authorities, utility companies and contractors.
Almost every project, from fixing a single pothole to planning a new housing complex, requires a traffic management plan.
These procedures ensure that all necessary procedures have been followed to ensure the safety of road users, pedestrians and workers. The plans can take days or weeks to develop and information can quickly become outdated, leading to road chaos, cost overruns and delays.
Finger on the pulse: 1Spatial has come up with a software tool that allows traffic management plans to be designed in a matter of minutes
Cambridge-based 1Spatial has devised a software tool that allows traffic management plans to be designed in minutes and updated as needed by relevant parties including utilities, transport companies and contractors.
The technology is already being used by UK Power Networks, which distributes electricity in London and the South East, and strong growth is expected in the coming years.
The market is valued at more than £400m in the UK alone, and 1Spatial chief executive Claire Milverton believes it can grab a ten per cent slice of the pie, generating £40m of annual sales – a move that would more than double the group’s revenue.
In the short term, 1Spatial is rapidly expanding into other areas, providing data to clients ranging from Google in Oregon to the UK Environment Agency.
Google uses 1Spatial to map its campuses around the world so that it has up-to-date information at hand whenever work needs to be done.
Over 20 states in the US work with 1Spatial to know the exact location of properties, power plants, traffic lights, fire hydrants, trees and forests.
The information has multiple uses: transport planning, emergency service routes and even ensuring homeowners pay the right taxes. And in the UK, 1Spatial helps utility companies and government offices with detailed underground data on pipes and cables to reduce the chance of workers inadvertently cutting off electricity or causing water leaks.
Milverton has been generating steady growth in recent years, but the future looks even brighter.
Brokers expect a 15 per cent rise in revenue to £37m in the year to January 2025, with profits rising 14 per cent to £2.4m, soaring to £3.9m in 2026.
And if the new roadworks toolkit delivers the expected results, it could pave the way for dividend payments in the future.
Midas Verdict: Midas first recommended 1Spatial in 2021, and the stock has since doubled to around 70p. There should be further to go.
Governments, businesses and transportation organizations are increasingly demanding detailed, accurate and accessible data – that’s 1Spatial’s strength, and the company has been winning customers here and in the United States.
Investors looking to make a profit could sell their holdings, but they should not sell out completely as this business should continue to improve.
Listed in: Aim Heart: SPA Contact: 1spatial.com or 01223 420 414
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