1Spatial Plc (SPA) Earnings Call Transcript & Summary

Good morning, and welcome to the 1Spatial Plc Investor Presentation. Throughout this recorded presentation, investors will be in listen-only mode. [Operator Instructions] The company may not be in a position to answer every question it received during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you to Claire Milverton, CEO. Good morning.

Good morning, everyone, and thank you very much for the introduction, Lilly. I'm Claire Milverton, CEO of 1Spatial. And I'm joined today by Stuart Ritchie, our CFO.

Hello.

The order of today is our interim results to the 31st of July 2024. So we're going to, first of all, cover -- give a brief overview of 1Spatial and the highlights. Then I'll hand over to Stuart, who will take us through our financial review -- of the financial review. Then back to me for areas of focus and opportunities, then summary and outlook, and then some time at the end, around 15 minutes for Q&A. Before going into the overview of 1Spatial, I thought it was worthwhile just spending a few minutes setting the scene about where we are on the 1Spatial journey. 1Spatial over the last 5 years, whilst I've been CEO, we've really been focusing on transitioning this from a bespoke software company to a company that's focused on repeatable solutions, and really growing annual recurring revenues. And we had some really good success of this. And in the period, you'll see that our annual recurring revenue has tipped over from less than 50% to more than 50% of our total revenues. And while we've been going through that transition process over the last 5 years, we've also been using the resources from that, our cash and our own financial resources, to develop our cloud platform, and developed some really key transformational SaaS solutions, including 1Streetworks, and I'm going to come on to that in a moment. And this is what we've really been doing with our business. And we now think of our business in 2 key parts. First, our enterprise business, which is really the core of what we do today. And it gives us real expertise in what we do. It gives us good reputation and its financial result, and it's given us the financial resources to invest in the SaaS-based solutions. We are leaders in Location Master Data Management, and our market-leading software for Location Master Data Management, and it's all about helping customers with location data, that is key to what we do. Location data is more complex than your standard data. And we help our customers make critical decisions in that location data. We have over 1,000 customers, and we have industry-leading partners globally. And as you can see from the pie chart at the bottom, we have moved over into that 53% of annual recurring revenue. And we have a good spread of revenue across our regions. And key growth areas are in the U.K. with Streetworks and in the U.S. So that's our enterprise business, and that is really what you see of the business today. But on top of this, we've got these 2 new high-margin SaaS-based solutions with huge annual revenue recognition opportunities. They've got huge market opportunities. In the Streetworks, there's a GBP 400 million market opportunity for low-speed roads. And in the U.S., there's a $300 million -- $350 million market opportunity. These are pure SaaS revenues with 80% to 90% gross margin. And we really are creating a light version of our solutions. It's available at a lower price point for our cloud, and it considerably expands our addressable market. And I mentioned earlier, we've really been investing in this over the last 5 years, and it has cost us approximately GBP 5 million to get to where we are to date. So that's a brief overview of our business. But what we've been doing in H1, where we've had a really successful H1, we've been growing our ARR, and we've launched those SaaS-based solutions. So just starting with the enterprise business. We had a good level of new customer contracts. We signed the State of Oregon, Yorkshire Water, Hunter Water in Australia, and that's our first 1integrate win in Australia. And we've delivered on the milestones of contracts signed in previous years. Many of you might remember the National Underground Asset Register that we're creating with the U.K. government. We've expanded with many of our other key customers, such as Google, Ordnance Survey, CalTrans, and a major European aerospace company. And we've also taken out GBP 1 billion of annualized costs, primarily from Europe, and Stuart will talk about this more in a moment. But importantly, we've launched these SaaS-based solutions that we've been developing over the last 5 years, and it started to get our first revenues in from this. We've had 5 contracts won in the U.S. for NG9-1-1, and we've had 5 paid for trials in the U.K. for 1Streetworks. And in the U.K., we're in the final stages of contracting a significant license for 1Streetworks. On the right-hand side of the slide, you can see some key steps around our revenue. Revenue growth of 11% in the period, and key that recurring revenue recognized in the period has gone up 24%. And we've also improved our gross margin in the period to 52%. And I'm now going to hand over to Stuart, who will take us through the finances.

Thank you, Claire. So to give you an overview of the financial performance in H1 '24. ARR is continuing to grow in line with the strategic objectives that we've set for the business. And within that, the term license ARR has grown the fastest at 27%. We've also seen an improvement in gross margin from 50% to 52% compared to the same period in the previous year. Claire mentioned the cost savings that we drove through the first half of the year, and the impact that they will have, and on the second half of the year and into the new financial year FY '25. This represented GBP 1 million restructuring cash savings effective FY '25, and related to primarily the European development area related to old products. And the cash that we will generate as a result will be reinvested into the strategic priorities of the business for the next half of the year and into the new year and beyond. There is a high level of renewals scheduled for the second half of the year and a very healthy pipeline going into the second half of the year as well. So we expect an improvement in the cash performance in H2, and an increase in the performance overall at a revenue and EBITDA level also in H2. As Claire mentioned, we're in the final stages of agreeing our 1Streetworks annual license for a significant potential new customer. And we are confident in the delivery of the FY '24 market forecasts. I'll move on to the next slide. Thank you. So in terms of highlight figures compared to the same period in the previous year, we reported GBP 15.5 million of revenue, which was up 11% compared to the same period in the previous year. Importantly, the components that is most significant is the GBP 8 million of recurring revenue that we reported this year, which is a 24% increase from the same period in the previous year, which shows that we are executing our strategy. As Claire previously mentioned, our recurring revenue has tipped over to 53%. So it was above 50% for the first time. At the end of FY '23, it was at 49%. So that's a really important milestone for the Group. As a result of these new term license sales, which have really accelerated the revenue recognition compared to the same period in the previous year, our gross profit has improved by 16% compared to the same period. And adjusted EBITDA level, the amount that we reported in the first half of the year has decreased slightly on the previous period, and it really relates to 3 main items. The reinvestments that we've seen in the sales team, and the development of the new SaaS product offerings that we've seen. About GBP 300,000 of exchange rate variances that have been adverse in the first half of the year, and we've seen about GBP 200,000 to GBP 300,000 increases in inflationary costs across our operating expense base. For the period ended 31st of July 2023, therefore, we reported a loss of GBP 300,000, and after exceptional costs, we reported GBP 390,000 of exceptional costs, which relates to the restructuring that I previously mentioned. So a marginal profit in the first half of the year, the difference between the same period in the previous year, mainly relating to FX-related items. Moving then on to the cash performance. So there were some significant events that led to cash outflows during the first half of the year, and I'll highlight some of these. So if I take them bottom to top, GBP 500,000 restructuring costs relating to the restructuring activities that we completed in the first 6 months, an increase in the amount of development that we've seen across the period compared to the same period in the previous year. There were some heads that were taken on in the second half of last year. So we see the increased cost there. And that relates to our strategic priorities to our cloud platform and our 1Streetworks opportunity. The cash generated from operations is mainly timing. There's a decrease of GBP 700,000 compared to the same period in the previous year, but we've seen the cash flow in from that in the -- in Q3. And we expect further inflows into Q4 as the recurring revenue and the term licenses renewed during the second half of the year. We have an RCF facility of GBP 3 million. It was drawn to GBP 1.1 million at the end of July. We expect a rebalancing in the cash, and we expect to repay that facility by the end of the financial year. The GBP 1.9 million that remains in the facility is sufficient to cover our working capital requirements for the rest of the financial year. In terms of regional revenue across 3 of our regions, we've seen a growth in revenue. So significantly, in Australia, as Claire mentioned, we recorded our first 1 integrated sale in Australia, which is really encouraging. The U.S. continues to grow, particularly at the term license level, which is one of the strategic priorities of our business in one of the most important geographies that we have. And the U.K. business continues to improve also with the sale of new 1Integrate, 1Data Gateway licenses. In Europe, we've seen a slight decline in revenue compared to the same period in the previous year, and that was really due to a very strong performance in Europe last -- in the same period last year. The sale of a lot of perpetual licenses, which haven't reoccurred. We've got some significant opportunities in the pipeline in Europe, with one of the most significant opportunities in the first half of the year closing, with a water company in Belgium, which was a EUR 3 million deal over 8 years with EUR 240,000 of recurring revenues. So some really, really good performance indicators in Europe as well. As Claire mentioned, we're quite diversely geographically spread, with a huge opportunity there in the U.S., which we'll come on to later in the presentation. So in terms of recurring revenue and our revenue profile, we can really see an improvement in the quality of the revenue that we're reporting for this half year versus the same period last half. So the momentum and the direction of travel that we're seeing is really, really encouraging for me. So we reported a GBP 8.2 million of recurring revenue in the first 6 months compared to GBP 6.6 million for the same period last year. It's also worth noting that our recurring revenue is now being generated from some very strong renewal across all of our territories, which I'll come on to in the next slide. So from an annualized recurring revenue perspective, which is the annual impact of all the recurring revenue that we've reported in the first 6 months of the year, I noted that we've got a renewal rate there of 94%. We've got some products, as I mentioned, in Europe, which are older, and we've taken some decisions in the first half of the year to restructure that operation somewhat, and used the cash that will be generated to reinvest in the strategic priorities of the business. Encouragingly though, we can see that there's growth in recurring revenue across the majority of the business with a slight drop off in Australia. Overall, though, our ARR growth across the business is 10%, which is really an encouraging -- which is really encouraging growth level and in line with our expectations going forward for the enterprise business. So to summarize, some of you may recognize the slide from the previous deck. We've now moved slightly along the curve. And with the significant opportunity we have in the 1Streetworks operation, and the state of some of those contracts, we expect to move continually across -- along the curve over the next 12 to 24 months. So we're in a really excellent position going into the second half of the year and beyond, with some really exciting opportunities that we're looking to capitalize upon in the next 6 months and into FY '25. So I'll just hand back to Claire then for the next section, which is areas of focus.

Yes, thanks very much, Stuart. Yes. Now going to look to the future, areas of focus and opportunities. And there really are multiple avenues for growth. Firstly, with our enterprise business, which is the heart of 1Spatial and our competitive advantage. And then we have the 2 SaaS solutions, 1Streetworks, which really does have a near-term transformational growth opportunity in the U.K., and then the NG9-1-1 SaaS opportunity in the U.S., and really expanding our U.S. opportunity. So starting with our enterprise business. This is the business that we have today, and this is a business that has a cost in it that's related to the Streetworks and all the other investments that we're doing. And it really is the core of what we do as our competitive advantage. And we have some technology called 1Integrate, 1Data Gateway, and we principally serve the sectors of government utilities and transportation. And we really are seen as market leaders in enterprise projects, but where location data is key. So it's not product data, not customer data. And what our software does is automate the process of bringing together data from different sources, and then maintaining that data for the long term. And you can see in the future that more and more of this is required and people want to use expert systems, digital twins, AI systems, it is so important to have accurate data into their systems. Otherwise, the information that you get out of those systems will be incorrect, this whole garbage in, garbage out concept. But also, we really underpin national assets. And we've chosen, again, as I made the point earlier, because of our expertise in location data. So we're helping the U.K. government create an asset register of all the utility parts, all the gas, all the electricity cables underneath the U.K. And that's a project we won a number of years ago, and that project is still continuing over the next year or so. And to work with the lights of the state of Michigan, helping them create a map of the state from all the different cities and counties. And all of our existing customers do have significant expansion opportunities. And we see that this enterprise business will still grow. We have targeting 10% to 15% growth in U.K. and Europe, and 20% to 30% growth in the U.S. Each state, we see growing to $1 million of annual recurring revenue, that 50 states, that's a $50 million annual recurring revenue opportunity. And importantly, this enterprise business provides us with credibility, insight and capital to launch SaaS-based solutions. So this, just to summarize, is really core. We'll still get focused on this despite the SaaS solutions because it's the technology and everything in this that will power and drive the SaaS-based solutions. So now coming on to the first of our SaaS-based solutions, where we really do have a transformational opportunity in the near term. So 1Streetworks is all about traffic management plan automation. And in the U.K. alone, for low-speed roads, there is a GBP 400 million annual recurring revenue opportunity. We are the first solution in the market to fully automate the production of traffic management plans, significantly reducing time and costs for those preparing traffic management plans. And just in particular, a quick recap for those who haven't been in one of our presentations before, what a traffic management plan is. On the left-hand side there, you can see a picture of road works, all the cones and all the traffic lights that are set up. If you want to dig a hole in the road, you have to create traffic management plan, which sets out all the cones and all those traffic lights. And you can see that plan there. There is a -- that is a 1Spatial plan picture there. And if you want to do road works, you have to apply for a permit from the count -- local authority, and you have to submit one of these traffic management plans, which will then allow you to go and do this. So in the U.K. at the moment, there's 2.5 million road works a year on low-speed roads, and this is estimated to increase to 4 million over the next 3 years. And this, really, is in response to the electrification of the U.K. to support, to drive net zero. So putting electric car chargers, heat pumps for houses. But it's also because of the rollout of new telecoms fiber. So our market, addressable market is really increasing. So just to come back to some of the attributes of our revenue. So this is pure SaaS revenue. It's not just services, not just terms rising. This is pure SaaS revenue. One installation of traffic management on the cloud platform, and access to all of that user base, there's no services, it's quick to access, one platform to maintain. So it will drive very high gross margins, much higher than we're currently getting from our enterprise business. And we're targeting in the short to medium term, 25% to 30% market share. We have 5 trials underway, which all well received and ongoing. And we're in the progress of signing our first significant annual license. So just to give you a bit more of the shape of our pipeline and the sector. So there's 4 key customers for this. You have local authorities, utilities, traffic management companies and maintenance companies. And we have trials going on with 1 local authority, 3 utilities, and 1 traffic management company. And as you can see, we've got pipeline across all of those 4 sectors. We have 5 trials underway with 30 in pipeline discussions. But focus currently addresses been on securing our first significant annual license, providing us with the clear return on investment that we can demonstrate to future customers. Once we've got that, we'll then consider really growing out the pipeline of those 30 opportunities that we have. And each deal has the potential to be between GBP 100,000 of annual recurring revenue, and GBP 3 million of annual recurring revenue with potential for future expansion. And you can see on the left a slide, a quote from someone in one of our trials. "It's easy to use and simple to uptake in the business." I was talking to one of the trial customers earlier a week ago, and they said to me, "Claire, this is a game changer for the industry," his words, not my words. Our second SaaS opportunity that we've been building and funding over the last 5 years, which has another transformational opportunity for 1Spatial is for the NG9-1-1 in the U.S., where there's a $350 million annual recurring revenue opportunity. And this solution is around taking our enterprise solution that we currently offer to the states for emergency services, and offering that out as a lightweight cloud solution to the cities and counties. And a quick recap as to what that solution does. In the U.S., if you make a call to the state and it's an emergency, they have to determine which Public Safety Answering Point will go to that emergency. And you can see a little map down on the left-hand side. If you have incorrect location data, you could have a scenario where other emergency services from 2 Public Safety Answering Points could go to 1 emergency. But in a worst case scenario, maybe you had a gap in your location data, and you wouldn't have an emergency services go to that location. So it's really important, and this is about saving lives. It's really important that location and addressing data is accurate. And that's what we're helping the state with at the moment. We have 9 states that are currently using our enterprise solution for location data. Now, that is around 0.5 million investment for this state. $200,000 to $300,000 of annual recurring revenue and services for the first year. But that's quite a lot of money for cities and counties to take in. So what we want to do is -- what we're doing is taking that fantastic solution that we're winning in the states, and pushing that out to the cities and the counties of which there are 23,000, which gives us over $350 million annual recurring revenue opportunity. And there is funding for this. There's $0.5 billion funding for Next Generation 9-1-1 products -- projects. So just coming back to the attributes of the revenue. It's very similar to Streetworks. It's pure SaaS solutions, no services, quick to access, 1 platform to maintain. Gross margins of 80% to 90%, and we're targeting a 10% to 15% market share. And we've secured 5 contracts in within 4 months of product launch. So there is rapid adoption. And we're looking to augment the offering with an Esri integration, which will drive adoption, which is looking to be released in Q4. So we see the Streetworks has been a much more near-term, big impact to our profit and loss account. But we also can see this is a huge opportunity, and something that we're going to be driving along parallel, but potentially, this will have more impact in a year or so. But both the Streetworks and the NG9-1-1 are really important to our growth strategy. So as a business, we are at an inflection point. We have a sales-focused team. We have compelling offerings, particularly the SaaS offerings, with huge addressable markets. We have grown the recurring revenues in our enterprise business, and specifically from the SaaS-based solutions, we will have significantly growing revenue -- recurring revenues. We have multiple avenues for transformational growth. And we are, therefore, confident in delivering our FY '24 results in line with expectations. We really do have innovative product suites opening up, considerably with new TAM. And -- you know, there's compelling annual growth rates. And what I would say, as a final comment is that, we are really absolutely focused as a team, Stuart and I and the rest of the organization, on operational execution now. We really want to get in this first SaaS deal for traffic management, and then really expand the opportunity there. And that's it for the presentation. And now I'd like to take some Q&A.

Claire, Stuart, thank you very much for your presentation. [Operator Instructions] Just while the company take a few moments to review those questions submitted today, I'd like to remind you that a recording of this presentation, along with a copy of the slides, and the published Q&A, can be accessed via your Investor dashboard. As you can see, we have received a number of questions throughout today's presentation. Can I please ask you to read out the questions, and give responses where appropriate to do so. And I'll pick up from you at the end.

Are you able to share the questions. I'm not able to see them on the screen at the moment.

Lilly, can you help share? Can you help Claire see the questions? Or shall I?

Yes, you should see a blue button -- chat button at the bottom of your screen.

Shall we?

Yes, you can go first.

Okay, you can answer this pre-submitted questions, Stuart. Dividends.

So the question is, how long do you think it will be before we start paying a dividend? And when do we expect the company to be debt free? So in response to the second part of that question, we expect to be debt free at the end of the year. That is -- that is the first part of the question. And then the second part of the question is, when do we expect to start paying dividend? So I guess, during the course of this presentation, we talked about the strategic investments that we're going to do in NG9-1-1 and in 1Streetworks. And I guess, the focus in the near term, certainly, is going to be reinvesting any profits that we make. We're going to be reinvesting a significant proportion of our resources back into those products to make them an absolute success. So we will probably start planning for a dividend payment after we've got a proof point, and start some of these contracts. That will be something that we consider. So that's the first one.

I just wanted to check in there, Stuart. I think the revolving facility. But I think we still have some -- a small amount of debt in Europe just for a year or so, but it's not significant.

Yes, yes, indeed, absolutely. No, you're absolutely right. I was talking about the revolving facility. Yes, there are some longer-term loans in Europe, and they will be repaid within the next 3 to 5 years.

So let's take the next one about the GBP 1 million. I thought we've already addressed this.

Yes, I think we have. I'll read the question out and then just provide a response to it. So in the results, you simultaneously talk about investing in the sales function and saving GBP 1 million from nonrevenue-generating activities. Could you put a bit more color on these statements and expand on the nonrevenue generation bit? So I think we sort of addressed that during the course of the presentation. The GBP 1 million of cash savings that we were talking about for FY '25, related to the development team and some of the development team that were responsible for the older products in Europe. And the cash savings that we expect to realize as a result of these savings will be reinvested back into the strategic priority. So the SaaS opportunity. And that investing -- and investment in the sales function, we'll continue to invest in the sales function to capitalize on those opportunities.

The next question is about the light version of NG9-1-1. Some background how the emergency services are structured in terms of city versus county versus state would be helpful. And how NG9-1-1 swaps into this. Also selling NG9-1-1 small entities, but presumably, that implementation cost arises as percentage of cost rises, as a percentage of contract value. So to give a brief overview in my presentation about NG9-1-1, but it's really important that the cities and the counties have a mirror image of the data that's held at the state. So the call routine can be done efficiently. We produce an enterprise version of our NG9-1-1 solution to the state. So they have the rules for making sure the NG9-1-1 data is accurate. But as an enterprise level, we will add them some additional rules that they might want to make some of the -- do some additional things with their data, and they will plug it into their own systems. So there is more that we would offer to the states. And it's a project-by-project based system state. The cities and the counties will submit data up to the state on a regular basis. And that's what we provide, is the cleansing of that data through our 1Integrate and 1Data Gateway for the state. What we're offering to the city and the county is to take just the vanilla rule set, not the extra bits that we offer to the state, and put that into the cloud, and make that available for the city and the county. So what that offers at a very low cost basis for the cities and the counties that don't have the massive funds of the state. And the pricing is between GBP 7,500 per year per annum, and GBP 30,000 per annum. It allows them to take control of their own data, and they can drag and drop their data up to our cloud platform as many times as they want during the year, and get a report back, and they can clean their data on the back of that report. They can submit it up again, get a report back including their data. So what we're giving to the cities and the counties is a very low cost ability to check and take control of their own data, rather than they send it out to the state when they could be bottlenecks, get the data back, check it. It just enables them to take control. And when we spoke to the cities and the counties, they really want that. They really like the fact that they have that opportunity themselves. And it's so low cost. I think, it's almost like a no-brainer. We just need to figure out along the next few months, how we're going to scale that. And the idea of implementing it within the Esri platform is one where we hope we will scale. Also working with the states, how can we help them, they help us get the cities and the counties to adopt it. So there's lots of ways we're going through. As I said, it's not as far forward as the Streetworks that we see, that more is in the near term. But we think there's lots of opportunity for the NG9-1-1 SaaS. And we've got good traction, 5 deals in 4 months without really doing that much. So back to the profit margin one. Back to you, Stuart.

Yes. So the profit margins, I think I spoke to this in my presentation anyway. While the gross margin has increased comparably compared to the previous period, the EBITDA margin has actually dropped. And the reason for that is because of the investment that we're currently doing in the new product set, and the costs that are associated with those. So with these types of things, we are recruiting to make sure that we are best placed to execute on all the opportunities that we're generating from the road shows and all the interest that's been shown by the industry. There were a couple of other items that led to a decrease in the EBITDA. And one was the FX. So we have some exposure in the U.S. And the U.S. currency moves against the pound, that yield sometimes losses, sometimes gain. So last year, we benefited from gains, and this year, there's about GBP 300,000 of an exchange rate loss. And then inflation. So we're seeing some inflation across our cost base, particularly around sort of the operating cost of subscriptions, and various other sort of professional fees, legal fees, and all that type of stuff. So it's sort of in line with where I would have expected in terms of where the market has landed. Particularly in view of the backdrop that we've got on inflation. But yes, we have seen some increases in costs compared to the same period in the previous year.

So number 6, I think Europe, I think, Stuart, you covered it. It doesn't really -- it's not as high growth margin as some of the other territories. But we're actually pretty okay with it. It's growing. It was just the perpetual licenses from last year. So I think, we have got some good contract momentum. So it's not the standout star, but I think it's okay.

Yes. And it's developing some -- it's developing in profit and cash for us. And any incremental cash will be reinvested in the strategic objectives of the business, which you talked to in your final slide, Claire. I think it's fair to say.

Yes. I think we've covered -- do you want to say anything on this next question, Stuart?

Yes. I mean in terms of the cost restructuring program, I've talked about that. I mean, it's the cost that we've taken out of the European business, the development side of things. And we're looking to reinvest that in the business. So I don't think really there's anything else to say, sort of in conjunction with the answer I've already given in the presentation that we went through, so.

Do you want to read out this next question, Stuart?

Yes. So ability to make price increases stick. Have we adjusted our pricing strategy, and are we meeting resistance? I guess no, we're not seeing resistant -- we're not seeing much resistance. Either we negotiate our multiyear deals or the prices are fixed in terms of the prices that we've negotiated for renewals that we've seen in the first half of the year. We haven't seen much -- we haven't seen any resistance actually to the price increases that we're looking to pass through to the customers to sort of -- to cover the exposure that we have to inflation in the services sector. So no, we haven't seen any of those. I mean, I think it's fair to say. And we talked about our renewal rates at 94%. It's fair to say that we've got such a high renewal rate. Our products are so well liked by our customers that actually, even if there was a slight price increase, I think that they would be able to manage it, given that everybody is seeing inflationary increases across all sectors. So no to that one.

Okay. Number 9. A question about our pricing on 1Streetworks. Are we -- what is the pricing strategy? What are we doing around the pricing? Are we underpricing it? We've looked at the pricing of this extensively. As a senior team and the team in the industry, we think we've got the pricing right for what we want to achieve at the moment. And it will constantly be under review. But we are very happy with our pricing strategy. And Stuart is in all contract negotiations. And this is a first product to market. We're breaking ground here. This isn't business as usual. We have to do some things to get this off the ground. But once that's off the ground, then we can make different potential pricing decisions. But we are 100% happy with how we're pricing this.

Perfect.

So the next question, is from [ Andrew ]. Stuart, can you tell us all about the opportunities in SaaS, NG9-1-1, USD 350 million opportunity, 1Streetworks, GBP 400 million. What progress has been made to date, and how much can be done and when? So of the NG -- so on the NG9-1-1, we've already said, we've got 5 deals already in the line in contracted. We've got growing pipeline, the 10% to 15%, that's in the short to medium term. I'd say, in the next 2 to 5 years, we'll be targeting 10% to 15%. The 1Streetworks, GBP 400 million, again, bit more advanced than NG9-1-1 in terms of timeline. I think we've got an opportunity to get more market share in it because there's no competition with what we do. And again, that 25% to 30%, you can see that in the next sort of 3 years or so. If you have any -- and we've got a good pipeline on that, which we've already been through. I don't know if you have any other comments on that, Stuart?

No, I don't. I mean, I think it's fair to say that as you said, we're making a market here. And in the response to the previous comment, we're making -- our progress is exactly in line with expectations. We're significantly advanced. And as Claire mentioned, I'm involved in all of the contracting discussions and negotiations. And we're very excited about the opportunities that we've got currently in the pipeline.

Another question here from [ Bishop ], 2 questions at Streetworks, significant clients to be signed. One, how many solutions developed and [ processed on your offer. ] And 2, you also mentioned 5 paid for trials in your commentary, with some of these being potential clients to similar scales, the one you're currently expecting to sign. Okay, good questions. They didn't look at a solution. There isn't no other solution in the market for what we're doing. This is where we're disrupting the market. We happen to go into these customers to say, see this, we can improve our time spent. We can help you get credits from the regulator or stop paying funds. We're creating a market there. This isn't something that comes out on an RFP. So that's why it's very different. It's not business as usual. So they didn't look at anything else. But as we're proliferating our solution through the market, people are coming to us and say, actually, we want to use this. So it's us first to then get the customer in, which is why it's so exciting. The paid for trials, yes, so the paid for trials, I'd say, we've probably got, as we said, one, that's very near in the final stages of sort of signing. I'd say, there's another 2 trials that are a fairly advanced, and we get good visibility. We think there's a good opportunity wherein a lot of this pipeline to close out over the next 12 to 18 months. And we'll be signing up more trials, building more pipeline. We're very, very confident. We're very excited about the opportunity here and the ability to deliver on that opportunity. [ David B.], this one's for you. I think we already covered this. Is there any implications of revenue for the cost cutting? No, because it's pretty much from the development costs in grants.

Yes.

[ Vishal ], with regards to the new Head of Sales in U.S., please, can you can provide us some color on the background of the individual? And additional maybe some kind of the shape of the pipeline in the U.S. would be very helpful. Yes. So the individual in the U.S. has come from a geospatial background, they're very good seasoned professional in sales, and really about building teams. So we've got a fantastic business in the U.S., our CEO out there, Sheila has really developed this business from 1 customer to 35 customers. She's really still involved in it. But we wanted that -- we need to scale that now. And the guy that we brought on, we think, is really good at developing teams, and helping Sheila scale that business out there. They are really good double act. And we've got a big U.S. We've got a good pipeline in our enterprise business. But again, we really want to start building back SaaS solutions for the NG9-1-1.

Absolutely.

[ David B. ] number 14, this is probably 1 for you, Stuart.

Yes. Do you have sufficient buffer of cash/debt facility to execute the strategy? Yes, we do. Absolutely, we do. Yes, yes, yes. So the plan's continue to invest in the business. And we've got enough cash, and we've got enough -- in the way of planned receivables to be able to execute on that strategy...

You have a very wide spectrum of propositions. Any of them retention to convert to cloud SaaS? Yes, potentially, but that's not our focus at the moment. We've got to stick to the -- we've got such a big opportunity with traffic management. We've got to stick to that. It's all about operational execution. So we're running a little bit out of time. So I'm going to try and quickly fit through some of these. The data typically remains to clients. Other opportunities to exploit this data, [indiscernible] with the client. Potentially. But again, I would just say, in the interest of time on this, we could have a good discussion about it. At the moment, we're very focused on the traffic management and rolling that out. [ Andrew J. ], you make a big point of growth opportunities at U.S. states. Would that be displaced in an incumbent supplier? Or is it a client a new need. I would say a bit of a -- there's probably 3 things for the NG9-1-1. Just as cities and counties doing a lot of it themselves, with our systems and home grown systems that you can't really do now, with the data of the NG9-1-1 regulations and 3D dates, with occupancy buildings. So there's that. And this whole bit maybe from an incumbent supplier? To the extent, it is a new need because the regulations under NG9-1-1 are much more onerous to the end user customer than they were previously. So probably threefold on that. Are there similar propositions Streetworks and other geographies? Yes, we're looking at that, but not a priority at the moment. It's back to operational execution on the U.K. opportunity. [ David B. ], gaining adoption for something new and novel offers encounters barriers? Yes. Barriers, have you experienced? Yes. A little bit. That's what's taken the time. I think, we would have hoped that some of this would have been out earlier this year. That's why we've got a lot of cost in our business, but not the revenue yet, but we are overcoming those barriers now. We're knocking down the barriers one after one after one. And that's why we're really confident going forward. We've been working so hard at this. I've had my traffic management experts working with those trials, looking at all that pipeline. We really feel we know all of them now. And it's not necessarily about happen to restructure, there's credit from . There's fine savings from the regulator that basically stack up the business case now. So we don't even have to do structural changes, it's all backed by cash. Stuart, last webcast, he said he was going to buy some shares. What happened, Stuart?

I haven't bought any yet, but I will buy some before the end of the financial year. We had to close periods. We've had -- we've been very, very busy, as I'm sure, is very apparent. But after we get out of this next period, I will definitely be buying some before the end of the year. I'm very invested in this business. And I'm really excited about all the opportunities. I think we're going to be a great success. So absolutely, I'll be buying some.

And then, [ David B. ], great update, hope to see you at Mello. We are potentially coming to Mello, actually that's something -- that's on our agenda for Stuart and I to discuss, so.

Absolutely.

Very much of it were done.

You had a sales -- we've done the new Head of Sales. You've talked to that one, I think? Yes.

Claire and Stuart, thank you. And I think, you've addressed those questions you can from investors. And of course, the company can review all questions submitted today, and we'll publish those responses on the Investor Meet Company platform. Before redirect investors to provide your feedback, which I know is particularly important to yourself and the company, Claire, can I please ask you for a few closing comments.

Yes. Thanks so much. Thanks, everyone, for the time, your time today. Thanks for the questions. As I keep coming back to you, we've got a fantastic opportunity. It's all about operational execution now. We have to capitalize on the opportunity there. And from an investor perspective, there's just lots of upside, but I would say minimal downside. The opportunity, the TAMs, everything there is very, very exciting.

Claire, Stuart, thank you for updating investors today. Can I please ask investors not to close this session, as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete, I'm sure, will be greatly valued by the company. On behalf of the management team of 1Spatial Plc, we'd like to thank you for attending today's presentation. Good morning to you all.

Good morning.