1Spatial Plc (SPA) Earnings Call Transcript & Summary

Good morning, and welcome to the 1Spatial plc Interim Results Investor Presentation. [Operator Instructions] The company may not be in a position to answer every question received in the meeting itself. However, the company can review all the 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 over to CEO, Claire Milverton. Good morning.

Good morning, everyone. Good to be here this morning. Today is all about our results to July 2024, our 6-month results. Obviously, Stuart here next to me. So we've been doing this for a while and as you should recognize both of us. So let's just kick off of what we're going to be going through today. So we're going to be doing, first of all, a quick overview and highlights from me. Then over to Stuart for the financial review, back to me for looking ahead and then just to really summarize and the outlook, and then we'll go into the Q&A. So overview and highlights. So it should be quite familiar to most of you that have been in one of these before. So we have 2 parts of our business, our existing enterprise business. This is the piece on the left-hand side. And that existing enterprise business has really been funding the development of 2 high-margin SaaS solutions, which are on the right-hand side. But just going back to the left-hand side, we are leaders in location data management. And our patented software helps our customers make critical decisions from up-to-date accurate location data. And we sit in the middle of 2 key global growing markets, and we'll look at that later when we look at the market in more detail. In terms of customers, we have a really broad spread across our key sectors of government, utilities, transportation and street works. And we have around 1,000 across the group. Partners are really key to our growth strategy, particularly in the U.S., and we'll talk about that again later on. From a financial perspective, it's all about growing annual recurring revenues from software, both from our term licenses and SaaS. And the recurring revenue for this period is 55%, which is an improvement on the prior period of 53%. So that's really encouraging. From a geographical spread, we have a broad spread. U.K., Ireland and Europe are the biggest. But in terms of the growth sector for us, U.S. is a growth geography. So now just heading over to the right-hand side of the slide, it's all about these 2 new high-margin SaaS solutions which we launched last year. So we've got 2, 1Streetworks, which has a GBP 400 million market opportunity, and NG-9-1-1, which has a GBP 350 million market opportunity. So these get really high margins. We've been investing over the last 5 years. We have about GBP 5 million of investment going into that. And we'll look at those in a bit more detail later on. So just about the first half of the year, where we've had a successful first half with some positive financial performance. So from the financial metrics, we've been growing recurring revenue, and we've had margin expansion. Our revenues are up 5%, annual recurring revenues up 7%. Our EBITDA is up to GBP 2 million, which is up 18%. And Stuart will take you through those in a bit more detail in a moment. We've really been delivering on our key objectives during this period. We've been executing on our 1Streetworks opportunity, setting up the U.S. organization for success, strengthening the leadership team and ongoing land and expand momentum. And in terms of the leadership team, that's -- you may have seen a recent announcement. We've had Nabil Lodey, who's come in to the U.K. business as Managing Director. He used to work for a geospatial company, Envitia. He's a fantastic person. He trained in the military and barrister, but since that, he's now been -- he's been in software services and very focused on sales and marketing. So that's fantastic. We've also got a new leader in the Street Works, but we'll come back to that later on in the second part of the presentation. So on the right-hand side of the slide, we've had some really good wins and expansion opportunities within our customers during this period. So in the U.K., we've had new wins with Welsh Water, Yorkshire Water. And with our partners, CGI, they won a GBP 100 million framework with the Cabinet office, and we're a part of that, we'll be doing all the geospatial element of that. From a 1Streetworks perspective, we landed our first deal at the start of the year with UK Power Networks, and that is going tremendously well when I'll talk about that in the second half of the presentation. And I'll also be pleased to note in our interim results that we put out on Monday. We gave a notification of the award that we received from a large county council for GBP 1 million, and this really validates our opportunity, and this is a fantastic win for us. And again, I'll be talking about that in a bit more detail later in the presentation. From a U.S. perspective, we've had some good wins, Virginia DOT, Georgia DOT. We've got on the framework for Texas, which means we can contract with any part of Texas for our IT and services. We've got on the Tennessee Department of Transport framework. And recently, you'll be pleased to know we've got our fifth federal contract with the U.S. Forest Service. From a French and Belgian perspective, we've been doing well this period. We've been executing on some of our very large contracts with Airbus, with our 1Telecomms project. And we had a renewal with our French Cadastre agency, EUR 1.5 million over the next 4 to 5 years. Keeping those recurring revenues in place, keeping them sticky is so important to us. And we also kicked off the year with the energy utility, which is a GBP 9 million deal. So some really good traction across the board, and Stuart will talk to you about that in a bit more detail in a bit -- in the moment. So just to look at our platform in action. Again, hopefully, you recognize the left-hand side of it. This is -- we use -- our platform underpins everything we do, Street Works 9-1-1, as our more project-based enterprise stuff that we do. But just to give you a flavor of what we're doing with Virginia and Georgia, the 2 deals together on agri gave us about GBP 0.5 million of annual recurring revenue. And it's all about our automated Department of Transport completed solution, which is quite a repeatable solution. There is some bit of services to do, but not significant. If we just go over to the picture for the minute, which sort of shows what we're doing. So in the yellow part, this is all the data that we bring in. And on the bottom right, that's the Department of Transport's own data, their LRS road data. And on the left-hand side, this is an INRIX data. Now Georgia and Virginia would have -- will buy this data. It's like TomTom data. It is data that you can buy, this is very up to date. And what they want to do is they want to bring together their own data that's got lots of information about when they survey the bridge, what's the materials of the bridge? What's been happening on the road in terms of accidents, other things like that. They want to bring that information with up-to-date road information because roads and assets are changing all the time, new roundabout, could be new housing estate, all of that sort of things. And what we do is we bring that into our rules engine and then we can get going on the data or we can do some really fantastic things. We bring in our rules, our DOT completion rule pack, and we can then bring those 2 datasets together. And at the top in the gray, you see they have this enhanced up-to-date road data. and they can use that data to make decisions in the Department of Transport, and they can also use that to ensure they've got accurate data reporting up to federal. Now the really important thing, when we do this work for them to get them up and running, but the really important thing, the thing that makes our technology sticky is keeping that information up to date. That is so important because if you just get data organized once, then you just let it go into a mess, then you're not able to use it. So that's really important for us. In terms of the benefits to our customers using our technology rather than other tools, this is done fairly manually at the moment with some other sort of tools, which are not that good. You have to split up the data into smaller packs. And currently, it takes the DOTs around 12 months to do this, but we can do it in 3 weeks with our technology. I mentioned framework has been a really important part of our go-to-market. And we won this instant transportation coalition framework about a year ago now. And it gives us ability to contract with 18 DOTs, and we've now contracted with 3. So in terms of expansion potential with Virginia and Georgia DOT, we can sell them additional solutions, we're doing a number of pieces of work with California DOT. And they are really the leading light in terms of DOT. But we can also take this solution in a very cookie cutter approach to all the other 45 DoTs. So Departments of Transport is a real focus area for us in the U.S. as well as some of the other things like NG-9-1-1. Okay. So I'm going to hand over to Stuart, who's going to take us through the finances of the first half of the year.

Thank you, Claire. Okay. So on to Slide 8, then the financial review for the full year. So up until the end of last financial year, we did -- we were making some investment in our technology. We've brought some fairly significant or very significant products to market. So the amount of investment that we did last year, we can see that now in the current year coming down as those products have now come to market. Claire mentioned the deal with the large county accounts, which we'll come on to in a minute. Street Works, obviously was one of the most significant components of that product portfolio brought to market last year. This year, we're focusing very much on the sales execution, so moving the investment that we had into our products, into our sales engine. And Claire will come on to talk about the staff hires that we've made recently across the territories. But what we can see is the investment in our sales engine in the first part of the year has really started to make some significant changes in inroads into the quality of revenue we're now generating. So recurring revenue is now up at 55% of total revenue, which is up 2 percentage points from the same period in the previous year. And encouragingly, the term license ARR is growing at 30%. And that's mainly fueled by new deals in the U.S., which is one of our growth areas and one of the target focal areas, which is going to increase the growth across the group. In spite of some inflationary cost pressures that we've seen over the last 12 to 18 months, we saw some quite high levels of inflation across the group. But due to the quality of the increased -- the quality of the revenue increasing, we can see that gross margin has actually remained consistent at 52% for this first half of the year, which is the same as last half year. So some good quality revenue coming through there, as well as some very careful cost management has yielded a positive result there. We can see that gross margin improvement has actually dropped through to the EBITDA line as well. So we've now recognized GBP 2 million of EBITDA in the first half of the year compared to GBP 1.7 million last year. That increase of GBP 300,000 actually yielded a significant increase in the EBITDA margin from 11% for last year's first 6 months versus 12.3% for this period. What we can see as well is our business -- the business that we operate is very H2 weighted. So a lot of the renewals across the U.K. and the European territories, and to an extent in the U.S., renew in the second half of the year, so December and January. So normally, our business consumes cash in the first part of the year and generates cash in the second part of the year. I'll come on to talk about the individual performances at country-by-country level. But ultimately, what we can see at the moment is there's a significant amount of business that is coming through in the second part of the year, which is -- coupled with the first half of the year's performance, leading to positive cash generation in the second part of the year. As I mentioned before, we were notified -- or as Claire mentioned actually, we were notified of the GBP 1 million awards of the large County Council and that will grow SaaS revenue in the second half of the year. So that, coupled with the renewals, will lead to an improved revenue, EBITDA and cash performance in the second half of the year. So those facts together lead us to be confident in the delivery of our FY '25 market forecast. As I move on then to the next slide. In terms of the profit and loss accounts, we've recognized GBP 16.3 million of revenue in the first 6 months of the year, and that's up about GBP 800,000 from the same period in the previous year. As I mentioned on the previous slide, the recurring revenue element of that revenue has significantly increased. So recurring revenue has increased by 9%, which is a very encouraging metric. The quality of the revenue, as I mentioned, has had an upward impact on the gross profit. So the percentage has increased slightly, but the amount that we've contributed -- or the amount that's been generated at the gross profit line has also increased by about GBP 500,000 compared to the previous year. Let's step through then to a nice EBITDA result for the first 6 months, just tipping over the GBP 2 million mark for the first 6 months this year, up from GBP 1.7 million. We can see, conversely, the depreciation and amortization charge has increased by 18%, so around GBP 300,000 compared to the same period last year, and that is due to the amortization on the R&D. As I mentioned at the outset, we have -- we've invested quite a significant amount in the products. We're now moving those into the selling area of the business. So now the core Street Works products has been finalized, moving that into sales, and we can see the R&D spend coming down. So the increased D&A is expected to continue at these levels for the next few years to amortize the cost that we've capitalized over the last number of years on the cloud, Street Works and the other products, the focal and growth areas of the group. Moving on to the next slide. In terms of the cash flow and the balance sheet, we've seen a good performance compared to the same period last year. So as I mentioned, we're normally consuming cash in the first 6 months of the year in any 1 year because of the weighting of the renewals and when they actually come through. In spite of that, actually, we've generated more cash this year than we did last year, and that's driven by the improved EBITDA performance, so GBP 1.3 million versus GBP 700,000 last year. And we can also see that the amount of expenditure we're making on -- our capitalized R&D is also going down in line with what I told you last time when we did this presentation. So we're down from GBP 2.6 million to GBP 2.1 million in the current period. It is also notable at the bottom, the other item I want to call out is the bank guarantee. So as part of one of the large contracts that we signed in Belgium, we had to put an amount in Escrow with one of the Belgian banks. We will get repaid that over the next 3 years at a rate of EUR 150,000 per year. So that's GBP 385,000 is equivalent to EUR 450,000 of guarantee put together. So excluding that, we only considered GBP 1.6 million in cash in the first half of the year. And before exceptional items, that compares to GBP 2.5 million last year. So we've really got that cash utilization down from last year, which is really encouraging. In terms of the facilities, during the course of this half year, we increased our bank facility from GBP 3 million to GBP 5.4 million, of which GBP 3 million was drawn at the end of July. And the reason for that was because -- and I'll come on to it in a second. The U.K. business has been a little bit slower in the first half of the year than we had thought. And the Street Works deal that Claire will come on to talk about, we were expecting that to slow slightly earlier in the year. So in order to make sure that we have no issues around liquidity, we increased that facility with our incumbent banks, and that's now a committed amount up until June 2027. Moving on then to the next slide. Actually, thank you. So just to know, the U.K. and Ireland has experienced some slowdown in the first half of the year driven by the Purdah. The U.K. general election was called in short order earlier this year. Hence the Purdah ensued meant that some of the deals that we had scheduled to close in the first half of the year have moved to the next half of the year. We do anticipate that on a full year basis, the U.K. will return to the levels that we -- that we reported in FY '24. The European, U.S. and Australian businesses have all experienced double-digit growth in the first half of the year compared to the same period last year. Europe is up 11%. Historically, Europe has been quite slow in terms of growth. We haven't seen that much growth in that business. But due to the signing of 2 significant contracts in Belgium, we can see that there will be double-digit growth in Europe in the first half year, the full year forecast this year and actually going into next year, we can see further growth as a result of the committed revenue that we've got. The U.S. has increased by 10% from a low base, and that's driven by the work that's been done by the U.S. team on the new deals we've signed with Virginia and Georgia. Those are really strategically important deals and areas of focus for the team. So it's really encouraging to see that growth year-on-year. The Australian business has increased in size by 23%. That's mainly a third-party license reseller and service company, but we have seen that there have been some proprietary software sales in the first half of the year, which is really encouraging for the Australian business. Just pausing on the recurring revenue, the 1 point that I wanted to draw out on this Slide 12 was the decrease actually in revenue contributed by perpetual licenses. So our objective is to move the business into a more recurring -- more revenue generated from recurring sources. So the fact that the perpetual licenses have decreased, the other boxes at the top is encouraging because it means that we are moving the quality of revenue from a nonrecurring source to a recurring source. We do still sell some perpetual licenses across the group, but they manage a very small customers in Europe. The majority of new sales are now done on a term license basis. Next slide, please. Excellent. Thank you. In terms of the gross profit, I just wanted to call out something that we've seen over the last 3 years. We can see a real improvement in the quality of gross profit that we're generating from the business. The fact is that the gross margin has increased from about 51% 3 years ago to 55%, almost 56% in the last financial year, and we do expect that trajectory to keep on improving as the amount of revenue that we generate comes from more recurring sources, term licenses and SaaS products. So moving on to the final slide. We've mentioned the SaaS deals that we've signed. We've talked the previous webinars about the improvement in quality of revenue and the amount of revenue that we would like to get from the SaaS product. We can see that we've made some real steps forward in terms of the generation of revenue from these great sources. So I've moved the now box along slightly, but our ambition still is to generate about 50% of our revenue from SaaS sources, with the remaining amount of revenue generated by the other enterprise sources. So we're well on the way to sort of achieving that in the medium term. So I'll turn back to Claire to go through looking at it.

Thanks, Stuart. Okay. So we're going to cover 3 key areas: firstly, a market overview, and then we get a look at our 2 key strategic areas, focusing on the U.S. and our 1Streetworks opportunity with an opportunity for transformational growth. So demand for location data has never been greater, really having this data up to date, accurate so our customers can make decisions from it. On the right hand here, as you can see the really important decisions that can be made. Considering some of the recent floodings, maintaining the nation's flood defenses is really key, it's something that we work with the environment agency on. And on the bottom by improving response times for emergency services, and that's what we're doing with our NG-9-1-1 solution in the U.S. From an enterprise perspective, with a unique position of the middle of 2 key global growing markets. And we're really at the intersection of 2 markets, the geospatial information systems business that is dominated by company called Esri. And on the right-hand side, the more mainstream master data management in sector. But what we give our customers is the best of both worlds because they're system agnostic, we're data agnostic, so we can really bridge that gap. And that is why we're being successful in what we do. So now let's have a focus on to the U.S. So we're really setting up the U.S. for continued success. And you may remember, we're trying to reset ourselves on ambition of getting to GBP 1 million of annual recurring revenue per stay on average. Obviously, some will be higher than GBP 1 million. California is already higher than GBP 1 million, but other states will be lower. But that gives us a nice number to weigh in for. So GBP 15 million of term license on a recurring revenue. Last year, we were in 18 states, and we're now in 21 states, which is really good. And when I came onboard 7 years ago, we only actually had U.S. Census as a key customer. So we've really been growing over the last few years. In terms of pipeline, we've really been building a strong sales pipeline and converting opportunities, and we see that really happening and really gearing up towards the end of the year as well. We've been investing in our sales team. We've just got a new hire to take charge of the West Coast. We've got our NG-9-1-1 specialist, who's been fantastic and really helping us clarify our market opportunity, which I'll come on to in a second. Frameworks, as I mentioned, are really important in our sales cycle. We're very happy few months ago that someone came in through our website, wanting one of our utility network applications to move their data from one of the older Esri system to the new Esri system. And we closed that deal in about 3 weeks from start to finish. And the reason for that was that we were able to share because we were -- our technologies are now cloud-enabled, we will be able to have call with them, share our solution over the cloud, push the data through. That had fantastic results straight away. This is the city of Irving in Texas. And then they say fantastic, we want to buy this. It was around GBP 300,000 deal for the U.S. And we said, well, you're in Texas, so you can just contract through that framework that we signed earlier in the year. And this is the power of the frameworks. Also, something that's really aiding sales cycles is our Esri add-in. So now when we were doing some trials for NG-9-1-1, a lot of them said, if you could actually -- if we don't -- it is bit of a pain when we have to leave our Esri system and then go into your system to check the data and then bring the data back into our Esri system. If there was an add-in so we could stay in the Esri system and just sort of send the data off and pull it straight back in, that will be much better. And we've developed that now. And actually, the Forest Service is now -- the recent deal has bought the add-in. So we can see that add-in being a real enabler for all of our technology and not just NG-9-1-1. And building partner relationships, as I mentioned on the previous slide, is really important. We've got a scan in the U.S., but it's a big job to do. So we're now working with a couple of big systems integrators for NG-9-1-1 and utilities. We haven't really done much in utilities anymore, but Urban City County is utility. So we've got fantastic opportunity, but we're going to work a lot with partners to help us on that. So in terms of NG-9-1-1 opportunity, we've been -- last time, we talked about how we're just going to clarify our market approach. We've been doing that with our NG-9-1-1 specialist, and it's now being solidified. Most deals are going to include partners and the Esri added. And we see more of a hybrid deal coming on board now, both NG-9-1-1 enterprise and the SaaS for the cities and the counties. We've got a strong pipeline of prospects and opportunities building. And there is now an even more important reason for the government and the telco, the commercial sector to get their data in order. What we do with the data is we ensure that it complies with the standard called the NENA standard. From the 25th of November 2024, the FCC is mandating that both the government and the commercial sectors must -- they get 6 to 12 months to get all their data in order. Now we've only been really working with the government sector. But we're now with our NG-9-1-1 specialist, we think we've got a fantastic opportunity to get into the big telcos as well. So we're now going to be adding that layer of additional market opportunity to go for. So that's it in terms of the U.S. So now moving on to our SaaS solution, 1Streetworks, which is something very fantastic and really close to my heart. It's really now -- really starting to take off. So in terms of the opportunity, the addressable market is over GBP 400 million of annual recurring revenues. And we're targeting 25% to 30% market share, but our medium-term ambition is to get to 10% of that addressable market, which is GBP 40 million of annual recurring revenue. And we got good gross margins of this of 80%. So what's the progress in H1? We signed the deal with U.K. Power Networks in the South at the beginning of the year, and we've made excellent progress on that. So we went into 5 departments in the South. And we -- and all departments are really now using it. And the metrics that we're getting out of it are phenomenal, improvement in time to quote, improvements in times to connect, improvements in overall efficiency. But the most significant KPI is the 40% reduction in road closures. Now road closures just cost lots of money for all parties involved, and nobody wants it because it's a complete pain also to the general public. And it is actually this metric along with a lot of the other metrics that's now got us into the large county council. But just back to U.K. Power Networks, we're now working with them, pulling together the budget submission for 2025. We can see that potentially it might just be a 1-year deal. It could be a multiyear deal, but really extending that -- the first piece, the GBP 350,000 is just really to get the data together for a number of departments to go for the sort of fuller rollout next year. But we see a rollout in the South next year, South and East the year after, Southeastern London a year after, and we also see more departments. So a really fantastic opportunity for us. And they're real advocates of us and are really helping us get into other customers, other county councils and other utilities as well. And as mentioned on the slide, we really are building our prospects and pipeline across our sort of key sectors of utilities, Tier 1 contractors in county counsel. And post period end, as we announced on Monday, we were notified of the award of our second significant 1Streetworks annual license. And just to take a few minutes on to what this award actually is. It's -- we're opening the platform for this major county council and the other work promoted in traffic sensitive road area. So that's the scope of this. Now traffic sensitive areas are roads where significant delays happened during peak hours, and it's where there's the most challenge is. And what this is, it isn't just about creating a traffic management plan in 2 minutes. This is about digital collaboration in the ecosystem. So the county council and all the people that submit a plan, which is utilities and Tier 1 contractors, are going to be looking into the platform. How can they do more efficient road works? Could they -- when they're doing their planned work, why don't they just shut the road once. Multiple stakeholders, multiple of these contributors can dig up the road at the same time. And that is what we need. So I'm sure what everybody on this call, I'm sure is aware that these significant issues have impacted their daily lives of road works and particularly road closures. So the final point on that, this is also fantastic from our perspective because all of the stakeholders and works promoters are our potential customers. So they'll be getting access and seeing it with the county council, and then they should be able to go back to their companies and say that we've been using this fantastic technology with the county council and we should roll this out in our organization themselves. So we get a lot of resources on making sure that this is a real success over the next 12 months. So what's our focus for the remainder of the year and beyond? And I mentioned earlier, it's all about increasing -- as Stuart mentioned, it's all about increasing sales team. But it's a fantastic new business development director come on board, Steve Hanks. He has Now been with us for 6 weeks. He is phenomenal. He's worked from 20 years in SaaS businesses, and he joined us through a referral. We didn't go throughout recruitment. He came to us because there is such an opportunity for 1Streetworks, and he wants to be part of that. And we're also bringing in some new sales hires underneath them over the next 3 months of those. So we're really scaling up on the sales team. As I mentioned earlier, it's really important on major county council to work on that, making sure they're really making a successful use of the platform. We're still continuing -- sorry, I haven't got to the next slide, apologies for that, also continuing to work with these key prospects. So following our GBP 1 million county council award, our Street Works annual recurring revenue is now at around GBP 1.5 million. So we've got the GBP 1 million, GBP 350,000 from UK Power Networks and some other smaller deals. We've done the sort of major core of the 1Streetworks platform now, but we will be adding features just to really make these very sticky, and we just want to get more and more customers on to the platform. So we will be doing some other small developments, sort of encouraging potential, sort of integration with other platforms. We really think we're well placed to deliver on our medium-term objectives, which is GBP 40 million of annual recurring revenue. So just to really summarize, we're really confident about the outlook. The U.S. has been set up for success. We've won new wins, new frameworks, improved team. There's the NG-9-1-1 regulatory drivers. There's the product integration with Esri. We have go Street Works, the momentum is really increasing. We've got the UK Power Networks. They love it, and now we're looking to do that contracting for those, potentially a multiyear deal with them. As we now won the GBP 1 million deal with the county council, that's really just giving us the visibility as well. We're investing in our sales engine, and we can see significant near-term sales pipeline. So we're confident in achieving our FY '25 market objectives and our medium-term objectives, things like the GBP 40 million of annual recurring revenue from 1Streetworks division. So that's it for me. So we're now on to questions.

Perfect. [Operator Instructions] As you can see, we have received a number of questions throughout today's presentation. And if I could just hand back to you to read out questions, that would be great. And I'll pick up from you.

So what's this? The first question is why has the share price fallen almost a third recently? Well, good thing is it's gone back up a bit. I don't really know why. I think talking to the brokers, I think it's because of the pending budget and the changes to CGT. So it's been retail movement, so some retail sellers, which has really driven it. All our institutions are very solid. But I think with the CGT, I think a lot of retail investors have made some money over the years, so selling before out. There's also the potential changes with AIM -- potential changes with AIM and IHT. None of this is founded by the way, but it's just speculation. So we think that's it. I think sometimes people put some unhelpful comments on the bulletin boards as well. But we're in a really solid place. So I don't really know why. That's all I can really say to that, but sort of speculation really. The next point, what are the respective ROIs for the 1Streetworks and 9-1-1 applications? So I think that's from a customer perspective, there is on our slide deck, which we are -- sort of we pin to, but there's in the appendix. Here's all the -- I think it's Slide 28. I don't know if we can get to that. But anyway -- so these are some of the metrics that we have done with UK Power Networks. So we talked about the road disclosures. As Bridge customer service score has gone up by 10%, their average time to quote is now less than 2 days. It has taken them between 6 and 14 days. And the utilities get the money in from the regulator. In this case, it's Ofgem. So they've now got there through the sort of data that we've looked at and helped them within those departments. They're now at below 2 days. So they'll get the maximum amount of money in from Ofgem. The average time to connect to new service is now 15 days on average. It was previously 25 days. They are saving 30 hours a week, which is lots of CO2. And 2 to 3 days of scheduling time saved per work, and they're now able to also automatically do more planning as well as a result of our technology. So some really good ROI from the Street Works. In terms of NG-9-1-1, it's -- NG-9-1-1, it takes -- we do have competitors in NG-9-1-1, we don't in 1Streetworks. We know of 1 competitor, it's taken them 2 years to implement their NG-9-1-1 solution; it takes us about 4 to 6 months. We are very quick because we've got the rules, we're very repeatable. They get a lot of benefits from us because we don't make them put everything into 1 system with data and system agnostic. So the customers get a lot of return on investment from our solution. Did you achieve your GBP 1.5 million SaaS target in the reporting period? Yes, we've just put that in the presentation. Well done on the excellent progress. I have 3 questions. Nina has to say that Federal fund will be required to establish the transition to NG-9-1-1. To what degree, if any, is conventional funding necessary for you to achieve your growth plans in this market? Well, there is a lot of money already in this, but I believe there is potentially -- we don't know this for sure, but they believe after the sort of potential changes in the government, there's going to be something like about GBP 12 billion, don't quote me, I think there's about GBP 12 billion going to be put into a funding for NG-9-1-1. So I think anything -- if anything, things are going to be more positive for us. If you want to add anything to that?

No. No. I don't. I think I have been answering that.

As for Street Works, it has become more widely utilized as new KPN has a pretty relative level of cost savings through achieving improved Ofgem metrics being maintained. So yes, I think I've just covered that, so they're getting some fantastic. And what we're now doing is we've got this because now we've got all these metrics, we're creating something called -- this is our new sales director. We're calling it an ROI calculator. We can go into any utility now, particularly ones that similar to UK Power Networks in terms of an [ Esri ] and say that how many plans are you doing. We can put that into our ROI calculator to get some costs for them and the benefits, et cetera. And we can basically within a few days say, right, if you implement 1Streetworks, this will be your tangible financial gain by using it. So -- and it's taken a bit of time to get this, but these metrics are now gold for us. Are you able to say with the recent council with 1Streetworks was a result of tender of [indiscernible] proof-of-concept pilot. Yes. So it's -- so yes, we're just really working with them. They've seen some stuff earlier on. So yes, I think it's all -- they had obviously proof and seen the -- but we're not doing it wholesale for the [indiscernible]county. As I said, it's these traffic sensitive roads is the scope of work and we are wanting to get some fantastic benefits out of that. We will see the benefits out of that, and we'll be checking it what we've done with UK Power Networks, what we want to achieve and how does it come out at the end. Are you constrained by lack of capital to truly capture on the opportunity presented by NG-9-1-1 and 1Streetworks? Would you not do a capital raise of GBP 5 million to GBP 10 million to ensure you do not miss the opportunity? That isn't the current plan. But if we thought that there was a need to do that, we would do that. We've got good relationships with our bank. I think if we needed a bit more debt, I don't think they would be averse to that. So I think that's not on the plan at the moment, but if we did need to, we would potentially do that. But not on the current plan.

Yes.

Well done. Thank you. We did get that. Well done to all of you at Spa. Congratulations to Claire on the award. Thank you very much. The future is positive. What other constraints to success going forward and how are you dealing with them? Well, there's not -- I think we've got good products now. We've got good customers. And some are not mentioned. Have we got enough money to expand the sales force and really impressive as we are? We think we have got enough, but if we do feel we should really go for it in an even more aggressive way, then we would. But yes, just getting good salespeople, I think, because even if you've got the most money in the world, not getting the right salespeople, just having lots of costs and they take a lot of time to manage is not great. So I think for me, it's really now like finding a way to get the best salespeople that can really help with our product. So a lot of people stuff now, I think, is really important. But also fact of the thing, establishing some really good relationships in the U.S. with partners because if they can help -- they're already in a lot of these big accounts. And we are demonstrating to these partners how good our technology is, that's just a win-win for them as well to try and cover both [indiscernible] will be part of our strategy as well. Another one here, Cambridge has a cluster of GIS companies. IQGeo was taken up by private equity. Basically, has the company been approached by a PE? Interesting question. So IQGeo was taking up something like 20x annual recurring revenue. We get sort of a lot of -- I'd probably get in my inbox, lots of purchase from PE all the time. But the time isn't right for 1Spatial yet. We've got a lot to do. We want to get that share price up, not ready to exit, been really focused on building this. So we're just coming to this point of fruition. So yes, we get a lot of interest. But haven't moved forward on it unless I suppose it was massively compelling. I think the target price in Cavendish, now we disappointed new brokers this period, I think their target price was GBP 1.40. Any other questions? Sorry.

Not what I can see.

I think that's all the questions. Thank you for answering all of those. And of course, the company can review all the questions submitted today, and we will publish out the responses on the InvestorMeet Company platform. But just before redirecting investors to provide you with their feedback, which is particularly important to you both, Claire, could I just please ask you for a few closing comments?

Yes. I mean, I think we're in a really good space. We're at a really good point of our journey. And we're very excited about our future, not just from our enterprise business, but from these fantastic SaaS solutions. And we're really now seeing the thing that we thought they benefits that they were going to have on our customers and society are really coming through. So we're very excited.

Absolutely.

Perfect. Thank you both for updating investors today. Could I please ask investors not to close the 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, which 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, and good morning to you all.