1Spatial — 1Streetworks prospects strengthen

1Spatial’s H1 reflected slow procurement cycles, but was supported by the company’s shift to a more recurring revenue model. Strategic wins with Caltrans and UK Power Networks, along with a strong pipeline, underpin our unchanged full-year expectations. Momentum for 1Streetworks appears notably stronger, with the pipeline up 60% since January, larger opportunities progressing and sales cycles shortening – all of which point to a potential acceleration in growth and margin expansion in the medium term. The share price, in our view, does not reflect this potential outcome.