1Spatial Non-Executive Chairman, Andrew Roberts, CEO, Claire Milverton, Andrew Fennel, Managing Director – Roads, and Stuart Ritchie, CFO introduce their 1Streetworks solution, outlining how it can be used to revolutionise complex streetworks planning and the potential addressable market.
00:00 – Opener
Andrew Roberts, Non-Executive Chairman
00:16 – Introduction
Claire Milverton, CEO
02:00 – Agenda
02:53 – What is 1Streetworks?
04:19 – Overview of 1Spatial
05:30 – 1Streetworks & 1Integrate
Andrew Fennel, Managing Director – Roads
06:32 – Market Drivers
08:56 – Critical infrastucture
10:17 – The Electricity market
11:40 – UKPN Connections Team Video
13:42 – Software Demonstration
22:54 – Case Study
Paul Dooley, Streetworks Performance Manager, UK Power Networks
24:54 – Customer Use Case – UKPN
Andrew Fennel, Managing Director – Roads
32:48 – Roll-out/Expansion within UK Power Networks
Claire Milverton, CEO
35:53 – FY25 Ambitions
37:52 – FY25 Key priorities
Stuart Ritchie, CFO
42:15 – Financial framework
Claire Milverton, CEO
45:20 – Outlook
46:45 – Q&A
1Spatial plc is a global leader in providing Location Master Data Management (LMDM) software and solutions, primarily to the Government, Utilities and Transport sectors. Our global clients include national mapping and land management agencies, utility companies, transportation organisations, government and defence departments.
Today – as location data from smartphones, the Internet of Things and great lakes of commercial Big Data increasingly drive commercial decision-making – our technology drives efficiency and provides organisations with confidence in the data they use.
We unlock the value of location data by bringing together our people, innovative solutions, industry knowledge and our extensive customer base. We are striving to make the world more sustainable, safer and smarter for the future. We believe the answers to achieving these goals are held in data. Our 1Spatial Location Master Data Management (LMDM) platform incorporating our 1Integrate rules engine delivers powerful data solutions and focused business applications on-premise, on-mobile and in the cloud. This ensures data is current, complete, and consistent through the use of automated processes and always based on the highest quality information available.
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For more information visit www.1spatial.com
Hi thanks good afternoon all inone and welcome to the one street Works presentation we’re Del delighted to have so many of you joining us on the call today I think this will be an informative and exciting part of our history um through the successful creation and commercialization of the
One street Works SAS offering we have the opportunity here to transform the financial profile of one spal accelerating the group’s transition from a Services Leed organization to a high growth high margin software as a service business software is the emphasis here as many of you will know I’ve been involved in the evolution
Of several successful young software businesses and my view is that one street Works will form the key of one spatials potential it’s Innovative it’s Unique very hard to replicate it delivers compelling margin and cash generation for our clients and importantly having built in the cloud it’s scalable with high gross
Margins um as the application service scales the signing of the first contract with UK power networks provided the team with really important learnings as to how to take the offering to Market and make a good success of it and we’d like to use this session basically to take you
Through those learnings and our plan for penetration of what is a considerable addressable Market here in the UK the team and I look forward to taking your questions at the end of the session and on that basis now I’ll hand over to CLA who’s the chief executive officer of
One station thanks very much Andy so yeah we’ve got a packed agenda today and set out on the slide is what we’re going to cover so I’ll be kicking off and then the opportunity with one spatial and a short demonstration is going to be carried out by Andy fennel Andy fennel
Has been with one spatial for two years now I brought him on to the team because of his um expertise within the street Works Road Works Industry and his experience in bringing new products to mark market we’ve then got some customer case studies specifically with UK power
Networks and we’ve got some Q&A with Paul duie and then it’s back to me and Stuart around our ambition our fy2 key priorities Financial framework and Outlook and as Andy said we’ve got some Q&A so just to kick off then what is one street works so I’m sure unfortunately this is
A very familiar site for everybody in the room and I’m afraid to say it’s just increasing and increasing all the time and Andia talk about the drivers for that in a moment but those cones and traffic lights aren’t just set out any old way it’s governed by this red book
This code of practice and this is a legal requirement if you don’t comply with this you can have serious fines or other implications so if you want to dig up a hole in the road you have to set out these cones and lights in compliance with that book you have to send
Something called a traffic management plan off to the local Authority together with a permit to do that and that is what we’ve created in one street Works an automatic plan and there is a picture of it there and what we have created is the first and only product in the market
To fully automate the production of compliant traffic management plans so currently in the market it’s very uh manual it’s very laborious and it’s really really time consuming what we’ve done is created a plan that’s faster cheaper more accurate and you can you can use it on a collaborative basis because it’s all in
The cloud this really is transformational so just to set some context about where one street work sits in the organization of one space sh and I’m sure many of you are familiar with this slide so on the left hand side we have our existing Enterprise business this provides the expertise the software
Platform the reputation and actually importantly the financial resources we’ve been using this Enterprise business to fund the operating cash flows to fund our SAS based business over the last five years and we’ve invested five million into our SAS based businesses just going back to the Enterprise business you know our real
Key Focus here is really being about growing annual recurring revenues and you note in the latest trading update our annual recurring revenues were up 70% and a key geography for our existing business is the is the us but our existing business we’re really looking to get double digit growth and we want
To use the continued financial resources and Facilities we have to fund the ongoing Journey that we have with these exciting SAS businesses but today is all about one street works and again something that you will have seen before this is our one spatial Platform One Street works is underpinned
By our patented rules engine one integrate and you can see how it’s brought together we bring in data the bottom left there from Ordinance survey that comes into our rules engine we encode the red rule book into our rules engine and then we create a SAS space solution for one street
Works it’s really important to understand that this is is underpinned by one integrate what we have done is very very hard you need a spatially enabled rules engine we deal with the most complex spatial data in the world and that’s why we’ve been able to do this so we really have a fantastic
Competitive Advantage here and a significant barrier to entry for anybody else trying to replicate so now like to hand over to Andy fenel who’s going to talk more about the opportunity with one street works thank you CLA hello everybody I’m Andy fennel I’m going to spend a few
Minutes now talking you through the opportunity uh the way I’m going to do that is I’m going to spend uh a few minutes talking about the size of the market so for us in one street works that’s the number of plans that can be produced by the system within the market
Um and then going to talk about how the money works so how we get paid how the money flows down from government through regulatory bodies and into infrastructure and ultimately results on road works on the road Road uh and then I’m going to focus in a little bit on
The electricity Market that’s the case study you’ll see later and our demonstration um just to show you the impact we have on those organizations how we improve their cycle time for the speed they can do work which is important to them and also the cash flow in their business and the efficiency of
Those organizations I started with a small example on the left hand side you can see two pictures and I think it’s important what we recognize is that what the marketeers will show you what the magazines will show you is Banks of Tesla superchargers in car parks that is
Not the reality for Street works in the UK If we just take electrical vehicle charging for example the industry the electrical supply companies have to build a significant amount of infrastructure in order to deliver on the government’s aims and they look like this so the market a couple of years ago
Was about two and a half million plans the drive for things like electrification for vehicles as well as Telecom broadband rollouts and has driven that market the last 12 months to about 4 million permits a year so if you think you are seeing more Road works on the roads and you’re getting
Stuck at more traffic lights you are there are more the disadvantage for you is that you have to wait longer the advantage for us is that it’s a real opportunity for us to drive the revenue lines in the one street um importantly that work that’s going on on the ground
Is underpinned by government uh money um so that’s a very nice stable Revenue stream for us it’s very predictable it operates on a cycle a fiveyear cycle I’ll talk about in a second um and importantly as well in there the organizations that are responsible for delivering this work they can’t do so um
With the current process that exists and lastly on this slide to clar’s point we have built an application which is extremely difficult to copy underpinning that is the geospatial the geographic rules engine that CLA mentioned earlier in the deck so if we look at critical infrastructure
In the UK such as as farming a fisheries and defa but what we’re really interested in is the organizations that do work on the UK roads and as a result of that dig them up and do Road works and they’re regulated by the likes of offg and ofcom and it’s funded by
Government typically on a fiveyear cycle and they call that a price control period and the money that flows out of that is called a determination and it has a value and that is then spent over that period and within the electricity infrastructure Market that’s 22 billion over five years and that period started
Last April and that’s really underpinned a lot of the work that we’ve done with UK power networks again we’ll talk about this in a little bit more detail but what UK power networks have realized is that they can’t deliver on a lot of their regulatory requirements without digitizing their systems improving
Efficiencies and making their business operate um much more quickly and that’s also underpinned by off gems aims so what they would like to see is a electricity market and this is the same for water and the other critical infrastructure utilities one that is efficient it drives Innovation better value for
The taxpayers and in the case of electricity reduces the cost per kilowatt produced and delivered to the public so that is really what’s driving uh those Industries and as a result of that they’re driving programs internally which play really well to the one street works on so if you look briefly at the
Electricity distribution Market we know those as DN they have two jobs in the market their job is to either connect you the public or businesses to the electrical supply and secondly to keep the light on as those organizations would call in that phrase and that’s reactive works so storm damage and also
Proactive works and if you look at the graph on the right hand side here is the nub of the challenge that they face going through the current price control period and that is that the kpis the measures the hurdles set by the regulator have increased significantly
From the last period to this period and what we’ve seen in our work with UK power networks is without using applications such as one street works they can’t meet those regulatory hurdles and again importantly this is a sliding scale so we’re looking at the moment at what’s called BX but if a organization
Overperforms money Flows In from the regulator to those businesses so that’s straight onto the bottom line of those organizations improved margin cash flow Etc equally if they underperform money is taken away from them so they have less money to do work with they underperform and they lose money so
That’s broadly how that market is operating that 4 million Works a year underpinned by government money pushed down through the regulators and driven in terms of the market um key forance indicators uh and we play in that space okay so what I’m going to show you now
Is a video this is LinkedIn content so you will remember we made an announcement to the market a few weeks ago now and the eagle eyed amongst you will have seen I hope the LinkedIn article but if you haven’t um here is what ukpn have to say uh this is one of
The operatives have to say about the use of the one Street product in their day-to-day job my name is Tanya and I a surveyor for the small Services connections department at UK power networks my role is important because I have to safely design traffic management to allow our
Customers to have the connections that they need and the tool has allowed me to do this safely for our workers to complete the works and also for the pedestrians and Road users to be safe as well this is where we’d be digging the hole so what I do to create the plan I
Put the location and I put a plan start date typically around 4 to 6 weeks away once I’ve installed that information I generate the traffic management plan and typically it takes about 3 minutes to produce the advantage of using one street works is that it’s easy to use um
You can get the traffic management plan um almost instantly and we are seeing a reduction in the time taken for customers to get their quotations and their connection times getting the job booked in as well thank you and just before I run into the next demonstration um of the application
So you can see what is here what it does how it works um I think it’s important just to pull a couple of points out of what Tanya said so as at today in the market based on conversations we have every day with the people that do works
On the road it typically takes about five days plus to get a traffic management plan turned around what Tanya said to you then is in our application it takes about five so that is the magnitude of the effect that we can have on the operational efficiency of an
Organization and that has a direct impact on the cash flow of the business delivery of their works and ultimately the margins of those organizations so without further Ado I’d just like to show you a demonstration of the system thank you this is the sign on screen for the one street Works
Application as you should be able to see we’re running in a browser in this case this is Google Chrome the application will run in any browser enabled device so it’ll run on desktops laptops uh MacBooks but also tablets and mobile phones as long as they are browser
Enabled before I log onto the system I just want to give you a little bit of background about what you’re looking at here so the system is built in Microsoft aure and that’s for the purpose of keeping it resilient making sure it’s up and running 24/7 365 days a year um
Because we have teams out there in reactive works that are doing works at 11:00 p.m. on a rainy November evening when a storm has blown through the system is collaborative so there is no limit to the number of users that can be collaborating on an activity in here
And that’s really important so typically in the market the traffic management plan is the last thing that’s done and that results in many job eras and job aborts and fines as mentioned earlier in the presentations so philosophically what this allows us to do is have anybody
Involved in the delivery of a piece of work inside the system with a Live digital twin of the work are going to happen and it means we can start the planning phase much earlier in the delivery and make sure that any issues are identified and ired out well before
The cones get on the TAC so without further Ado I’ll sign into the system and talk you through what you are seeing here so we are streaming in Ordinance survey Master map data so this is coming direct from Ordinance survey in a live feed and it is the most upto-date Ordinance survey mapping
Available for the streets of the UK and that is fundamentally important because when we are delivering works we need to make sure that we’re using the latest data so that those works are safe and traffic management really is about two things it’s about separating the public and the workforce and keeping both safe
So they can go about their day-to-day business in safety so I’m just going to orientate you around the application I’m not going to go into too much detail here because I’m aware that we have a bit of a time limit on this presentation in the top
Right is a lookup so you can look up a location around the UK just by placing in for example the postcode like so um no prizes for guessing where I live and it will return those for you and then on the opposite side we have a menu here top to bottom
Um I won’t cover the first three buttons that that flips the map round and Zooms in and out but these are the ones that are important for delivery of works so the first one of those is jump to location so we’ve spoken a little about
Reactive teams and if you are stood at a roadside on as I said A Rainy November evening and you click this button here it will Center the map at your location so it’s a very simple process then to draw The Works area on the ground press
The button on the system and to have a traffic management plan done for you in a couple of minutes I’ll just zoom the map back out for the purpose of the demonstration our next button is a location button and we translate for location systems uh most structure organizations operate on X and y’s
That’s how they locate their assets whether that’s a electrical substation or a water valve they run on X and y’s but we also translate dynamically uh grid referencing what three words and long and lat and what three words is important in this process because many organizations now use that coordinate
System to get teams to a place less of an issue in built-up areas where postcodes are very accurate but if you’re operating in any kind of rural environment where it’s a mile or two between the next property and the one you’re working on making sure that we
Can get teams accurate to a location is important so we put a what three words address in there and that means that you can run a satnav system something like ways or Google Maps um to get you to that location accurately and that reduces the amount of Errors it improves
Efficiency in the delivery and it means that everybody gets the right place at the right time to do the work the next button up is around view options and we use that when we’re in the planning and the last one is a layering system system
So I’m just going to zoom in on Derby in the center here just to show you a little bit more detail and that will explain how our layering system works so we can turn on a number of layers in the system which Aid in the planning process so well before Works
Happen um there are hazards or things on the road that you need to understand and design into your works so if I just click on the first one which is transportation you can see here that we’ve now got bus stops ident ified around this area and if we were in
London and or Nottingham or any of the other areas that have tram systems then you would see the tram stops as well but if we click on this and this is important for the delivery teams that bus stop has a name but importantly it also has an Atco code and a napt code
And those codes are required if your works are over a bus stop or they affect a bus stop when you’re doing that bus stop suspension and you’re moving that down the road uh you need these codes at the moment and ukpn is a good example of this the gangs that deliver the works
They waste about 20 to 30 hours a week trying to find out nap Tang codes having to drive to locations and look at them so this system is already starting to deliver value even before you’ve started actually drawing on the screen and saying where I’m going to do the traffic
Management I won’t take you for now through the rest of these uh laying systems but if you ever want to go through a demonstration with me in a bit more detail I’m more than happy to do that we can also swap our base mapping um we can change color schemes but more
Importantly we can flick between the ordinant survey Road mapping data that you can see here and we can turn on uh aerial imagery and that’s great if we want to get a better understanding of the real world environment if we’re bringing cranes and those sort of things
In and we’re trying to understand if there might be trees or other obstacles that might impinge on our progress so back to our road map and next we can turn on permits and this is important because when we are planning works we need to understand whether or not when we’re planning might
Uh clash with other works that are happening and for any of these permits we can click on those and it will tell us some information about it but probably the most important part of that really are the dates so you can see here that 7even Trent uh under Derby City
Council are going to do some work between the 5th and the 7th of March okay let me just turn those permits off and now I’m just going to show you how we do a plan so if I click on one I prepared earlier uh and I’ve
Done that so that you don’t have to spend a bit of time watching me key details into a planning portal but the whole process end to end takes about 5 minutes by the time you’ve arrived on site located yourself understood the environment and pressed go and we add some additional data things like
Pedestrian counts and the reason we do that is because the busier a road the higher the form of traffic management so it might be that on a small road we can get away with letting the traffic and the people sort themselves out on a very busy road we’ll put traffic lights out
And we might have to put a pedestrian Crossing those sort of things in so I’m going to click autogenerate the draft now and in the background what is happening now is uh our system is going back to Ordinance survey and it’s pulling in what’s called Web feature
Service data into the back end of the system um in that back end is also encoded the red book that’s the legislation as it applies to Street works and the system is doing thousands of computational Assessments around the road geometry it takes into consideration the traffic and pedestrian
Data we’ve given it and it draws the minimum safe compliant traffic management plan for this location at this time if I compare that to the status quo the way it’s done in the market currently the designers in the market using AutoCAD uh it takes time to load this tile data they will generally
Recycle that so they will use old plans we often see plans um out that have inaccurate Road data on because they’ve used old mapping data they happen to have to hand so one of the important things in one street works and really that underpins the safety message is it
Is as up to- dat as it can be and delivers the most accurate traffic management plan that can be done at that location and this is going to take a couple more seconds and then it’s going to put out a traffic management layout for us and there we go that’s put out
Quite a complex one actually a five-way set of Lights um you don’t see too many of those on the UK roads mostly what you’ll come across are two-way lights on roads and you’ll have to sit for a little while this is quite complex and really that’s reflective of how good the
System is it is capable of producing highly complex traffic management layouts across all of the UK’s roads not the Strategic Road Network so not the motorways but anywhere where Street works is required in the UK and I’ll end the demonstration there there is a lot more to see in this application um and
If anybody as I said would like a more thorough demonstration I’m more than happy to speak at a point in the future uh next I’d like to move on to um a case study let me take you how that applies in the real world to doing jobs on the
Road and I’ll let you read some of this text yourself but I’ll just talk to you in a summary around what’s happening here so this is an activity we did with UK power networks last year we work with a small connections team and they’re the people that will connect you to the
Mains when you need to install an electrical vehicle charger or Ace heat pump or similar to that and UK power networks is is one of the biggest supplies in the UK so about 30% of the UK population and they’re split into three operating divisions and that’s important we’ll talk about that as we
Look at how we’re going to build out street works this year as a revenue line and then where we’re going to go through into next year when we engaged with that organization last year in their small connections team they were failing their offg measures and if you remember my
Comments earlier that means cash flows out of their organization back to the regulator so there’s less cash in their business to run and operate that organization and we ran about 10% of the new connections teams work so something between 3 and 500 or so planned over a
Short period of time 10 weeks with that organization and we drove their performance measures so you’ll see them here as time to quote time to connect and customer service but we drove all of those down below the threshold that drives the maximum cash into that business and we put approximate numbers
In here for you and this would apply to any of the electricity companies in the UK uh but essentially uh when we plan in one street works there is the opportunity to drive somewhere in the region of around about ,000 pounds worth of value back into the business of which
North of 800 is typically cash in from the regulator so um what that case study proved to us and proved to UK power networks is actually that shifting to the one street Works Oran application has a significant benefit on a number of levels of that business not just in
Terms of customer service and getting their jobs done more efficiently and more quickly but actually on the bottom line of that that operating organization so you’ve heard me talk about it I think it’s probably important now that we hear Paul Dy talk about it so we’ve been working with Paul for
Quite a while now he’s a real Advocate um of the system hence he’s willing to come to a forum like this and talk to you all um about what we’ve been doing in that business so um I’ll just run the video now and you can hear Paul speak for
Himself we did a trial within our small Services connections team so they’re small services are domestic and non-domestic new services so supplying up to four Services per application single phase up to three phase up to 100 amps so just to give you a context of what it is so someone’s building a new
Prop property extensions Etc so they do alterations domestic and non-domestic properties as well so customer calls in ask for a quotation surveyor goes out to the site um provides a quotation um and then obviously we can then uh schedule the job it was good um it we looked at things like average time
To quote average time to connect which are key measures um uh on on UK power networks as well as broad measure of customer service and how could we positively influence those um uh so we found that uh certainly on the average time to to quote uh we we we saw some positive uh
Impacts on that um and also on the average time to connect um it was a bit more difficult to find the broad measure scoring element but that is that is something that we know if we can hit the other two that should feed uh the uh the broad
Measure as well um I think it was well received certainly within the within the small service department it’s a fast-paced moving moving piece if you like and we always Akin it Akin our works to uh you’re fixing a car while it’s moving along uh is that kind of
Scenario it was um well received the team were enthusiastic um uh we’ve got some Champions now within that team as well and they can see the actual benefits um of of what we what we tried last year um so yeah and then we looked actually could we use it in other in
Other departments um what else can we do next so yeah positive we approached for external funding to actually fund this 12 Monon program which we were successful in we looked at some of our other departments there so things that Highway services um uh small connections um the the low voltage
Proactive jointing teams Street lighting fults etc etc so there’s there’s there’s lots of other teams that we need to engage with within the business because of that we’ve set up a a Steering group uh combining um uh representatives of those departments what we found is actually um we’re not going to
Do this the everything in in in in one hit that’s that’s just not practical or or or feasible um and so we’ve engaged with each of those teams individually over the last few weeks um starting with Highway services and the disconnection team um and moving on to
Uh say the link boox team so link boox replacement team uh and then the LV teams and so on and so on so we’re going to we’re hitting them off um steadily uh and quite slowly I would say but but that’s a good thing what we’re finding is how we’re engaging with those
Teams and feed and then then their feedback is actually we can engage with them in slightly different ways and they can use your system in slightly different ways and that’s quite exciting um so from a small service point of view connections as we did last year you know
Surve going out etc etc that’s that’s one way of using the system um what we’ve what we’ve discovered say with our Link Box program well we have a we we have a mapping layer of where our link boxes are um and we’ve got a set number of
Those to to exchange over the year so we can actually run your system slightly differently uh from a from a surveyor going out there we can actually upload our data into your system and extract the plans on mass if you like and then we can do our survey from there and
That’s a different way of doing it not the we’ve thought of so that was quite exciting we had a job in Gillingham which would normally have come through as a road closure um and the uh the scheduler within the office used one street Works put the job
In uh and it was returning a job with two-way lights it was a bus route uh and the road width could be maintained safely uh for the for for for the buses um so actually it was a bit of a good news story so we actually managed to
Safely and compliantly deliver that that that job um without closing the road uh because the mapping and everything else was was suitable and compliant and allowed us to do so so it was a real positive for the customer it was a positive for us and they positive for
The for for the local um author Authority as well so uh that was a really good news story the other benefit of course of the accuracy as well as compliance and safety is speed so is how quickly can we produce scenarios um compliantly consistently um so we can actually
Improve what we’re doing out on the public highway to reduce public dissatisfaction if you like in terms of disruption um so we are we’re hopefully getting it right more times than than we were before um okay so um I just want to pick on a couple of points Paul made before I
I run everybody through this this slide that you can see in front of you uh just around the Gillingham uh works that he spoke about um and what that actually does for one street Works um in terms of how we go to market so um Paul talked about Gillingham he talked about the
Fact that we didn’t have to put a road closure on we managed to do what’s called two-way lights um again you have all sat at a few of those over the years I’m sure um from a customer perspective a uh a road closure cost that customer about
£5,000 a set of two-way Lights cost that customer about 500 um so the impact it has on the price to the customer by being able to plan replan scenario plan do things very agile in an agile way has a significant imp impact on that customer what that
Drives is that customer service score so when a customer gets a brilliant level of service and the cost brought down in that kind of way they get a great B Mo score and that feeds that money through into the organization um from a local Highway Authority perspective it means that they
Don’t have to put up with a road closure the diversion they don’t have to divert the bus route and all of those sorts of things and that creates for us in one street Works advocates in the highway authorities as well so if you go and have a look at the UK power Network
Website have a look at their news feed you’ll see an article in there and you’ll see a gentleman called Matt jezard who runs um all the street works in the St area uh saying basically that saying that actually using the one streetwork system is better for the
Highway authorities as well as all of the other benefits that it delivers into the uh uh into ukpn in this case the electricity supplier so talking about what we’re going to do with UK power networks over the coming months we are currently working in what is on this page on the
Left area one which is Southern power Network so the operating organization down there and that’s where this 12 month license is focused the 12 month license is effectively two part one it maintains access to the small connections team so that was a case study and they’ll continue to use the
System continue to hit their scores for this year which is great news and we’ll also work as we go through the latter part of this year with the other small connections team in what we can see here as area 2 and three and that is the London area and the Eastern Area
Including Cambridge it and then as Paul said we also now rolling out into the other operational areas and they’re listed here from Highway services down to Highway operations but essentially we’re working with each of those teams to make sure that one street Works implemented in the most effective way
For those parts of the business and you heard Paul talk about Link Box versus disconnections and we will make sure that it delivers the maximum value that we can for each of those operating parts of the business what that allows us to do through the remainder of this year as
We into sort of mid year is have a really really solid business case and we are working with the heads of functions on this as we speak for the further roll out of one street Works across UK power networks into a multi-year license so that’s our objective really and their
Objective to Shared object and we will pick up the roll out into London and Eastern power networks as we get through the latter part of this year and the reason we’re doing it in that sort of order chronologic and over that period of time is this is a big organization
That does a lot of work so we have to do this in a well-managed well controlled way that doesn’t disrupt their business which drives efficiency drives value and deliver the brilliant result for them and doing it that way will allow them to drive their business also allows them to
Advocate for us which is effec what so if we look at the rest of the Electoral distribution in the UK then from our perspective the UK power networks work that we’ve done very much when it comes to blueprint all that industry so all of the organizations you see here everyone from Scottish and
Southern all the way down into National Grid down in the southwest and across the Midlands all of those organizations have the same measures now their operating models will be subtly different so we’re going to have to spend time with them understanding those but we know because we have a really
Good base of evidence now that we can take their performance measures the thing that drive their operational efficiency drives their cash flow drives their performance the things that offg want them to drive and their leadership want the drive and we know we can impact that significantly for those
Organizations so that is our plan broadly for this year and into next um uh as well as the other sectors we operate in but this specifically around the electricity companies we are going to be in there um really talking about the story that we’ve done for UK power aworks and delivering benefit across
That industry right I’m going to continue now with our ambition and our key priorities for FY 25 so our vision is to be the number one provider of automated compliant traffic management planning and currently we are just doing this below speed roads in the UK it excludes the Strategic Road
Network Which is higher speed roads as Andy mentioned earlier when his demo so just low speed roads our financial ambition for year five is to organically grow their revenues to 40 million of annual recurring revenues and have a SAS business ebitdar margin on that and I think you know at this moment in
Time we feel like that is U an achievable um Target based on where we’re looking to roll out our plans um and I suppose from my perspective I would be disappointed if we didn’t make that 40 million so we’ve set out some key Target sectors that we’re going to focus on in
Fy2 so firstly the utilities as we’ve already talked about we’ve got a really good advocate in UK power networks but we’ve also got the gas we’ve got water we’ve got Telco in that sector as well we’ve then got the tier one contractors now these tier one contractors are the
Real maintenance contractors and they are the likes of the companies like Kia Milestone previously scansa uh they really help build the infrastructure on behalf of the utilities and then we have traffic management companies that actually put their cones on the ground and we’ll do more broad um traffic
Management as well as the plan but they’re really our three key sectors um of focus during fy2 and there are a number of other sectors such as local authorities Rail and transport for London that we’re looking at in FY 26 but actually by virtue of doing the work with a number
Of utilities we are actually already talking to a number of the local authorities such ASI and Kent so what are our key priorities uh in this financial year to get there well firstly it’s to do that expansion work with UK power networks that Andy talked about a
Moment ago and you know I really enjoy this part of uh the work going to Maidstone and to their Depot and I’m really involved in a number of the meetings and I specifically really enjoyed the last steering committee call that we had um where I can’t remember
When it was linkbox or one of the heads her name was Vanessa and she was talking about the in that our team had rolled out and she said that she didn’t take any notes during the training but she went back to her desk and she thought
Right I’m going to do a plan uh of some Road works I did that was fairly complicated the previous week so she said she went into the system she did it the plan came out it was absolutely perfect to what um she had done and to
Me you know that’s you know that that’s brilliant that’s what we’ve been you know aiming for and it’s just so exciting to hear and you know I’m going to be making sure that we really do uh you know nurture and work with you power networks because it is just so important
Going forward and we’re really going to use that advocacy to help us with our sales and marketing more broadly so the best marketing you can do is get your customers to do it for you and obviously we’re going to really use UK power networks to help us with that we’re also
Going to expand by our sales team so we’re looking to take on four to five you know really good heavy hitting sales people this year we’ve got one already and a number of others you know just about to take on and we now getting people approach us because everybody
Seeing what an exciting product this is and everybody wants to be involved in this and obviously continue to invest in marketing we will go to some of the key events around the UK uh for Street works and utilities during the course of the year and then it’s really important this
Year that we deliver trials and convert these into commercial contracts so just to look into that a bit further we’ve currently got four trials ongoing and we’ve got visibility of another 10 to commence in the first half of the year and we’re really actively managing these opportunities and we’re targeting with
Specific key account planning to really manage risk now one of the lessons that we really learned during the UK power networks is working with a regulated organization it’s very difficult to just go ahead have a trial and then land a big contract you’ve got to work with
Them to do the business case for the next year’s budget which is what we’re doing now they do have pockets of money and Innovation money they can find so that’s how we got the sort of 350,000 12 month license that we’ spoke about earlier so that’s just an example
In a utility where you have a specific buying cycle but big lesson learned we understand more how that’s working now but we’re also working with as I mentioned earlier the tier one contractor so we’re having quite a lot of good traction with them you their buying Cycles uh will be from our
Initial uh contact with them will be easier so you know many of them are privately owned and there’s really strong uh reasons why that they would want to uh contract with us quite easily a lot of them are really missing their slas uh the time spent to get this
Traffic management done you know five 10 days and we can do it in minutes so we see those as having a good attraction so a plan approach but across the you know three key sectors I you know talked about earlier and again trying to go with some small some medium and large
Organizations within those sectors as well you it is much easier to get a smaller license and a bigger license through approval level so as in the third bellet then you’re going to see some deals hopefully come through during the course of this year next year you
Know even you know 100K one will be good but you will see you know up to you know hopefully you know three million type annual recur in Revenue deals uh coming through so you know really exciting really transformational so really what’s FY 25 is about is really building these
Foundations for the solid recurring revenues in FY 26 so now over to Stuart for the financial framework thanks so just to summarize um the financial model based on what everybody said so far today so this is our first pure SAS offering and at the moment what we’re doing is we’re
Talk about 10% of the addressable Market over the next 5 years which should lead to 40 million or so of annual recurring Revenue the margins that we’re talking about in terms of this business is significantly higher than our existing Enterprise business 10 million also will drive some very significant price margin
Imod margin contribution it should be transformative to the overall Consolidated business in terms of our investment to date we’ve invested about 5 million in the cloud platform so that comprises the cloud platform itself that supports one Street offering and our other Su Solutions engine 911 in the US for
Example going forward we expect capex to be around 500,000 approximately based on a current run rate that’s based on the current low speed roads as we expand out it may increase currently our plan over the next 24 months as focus on that area as we continue to grow the revenues that
Should translate into very significant cash generation as the adoption grows across the sectors that we’ve been talking about as I mentioned then um the expansion plans over over the coming years will be funded through retained earning so if we’re talking about other areas such as the highspeed networks um
And other geographies and we’ve mentioned already Canada which has comparable data um but that will be funded through the cash generated from the lowspeed road offering that we’re talking about today as I mentioned then the successful execution over the next five years will absolutely transform the group’s Financial metrics we should see double
Digit growth in both gross margin percentage and eidar percentage over the next five years ative level this slide some of you will be familiar with but just adding a few points in there so this slide effectively summarizes our Revenue profile as it currently stands and where
Our ambition is in the future but while there aren’t any time scales associated with this our ambition over the next five years is to get to a significance proportion of our Revenue being generated from SAS revenues and other recurring sources so we’re looking at a revenue price profile in the next 5
Years of 7525 repairing non- repairing revenues the plan for the business is to focus really on over the next five years of transitioning to a fully SAS cloud-based model and that will have a transformational impact on the margin of the overall Consolidated group what we’ve seen so far is we haven’t seen
Very much in the way of SAS Revenue being recorded so far to touch on the trading update that we gave yesterday uh the revenue in eidal which has very little in the way of s cont contribution in it was in line with Market forecasts 32.1 and 5.5 and also to touch on the
Cash position compared to the same time last year has decreased due to the planned investment that we’ve had but it’s notable that we’ve got adequate facilities to support any future growth activities notably the one through growth activity so that’s really it on the financial side so just a hand back
To CLA on the Outlook thanks jart so um really just want to recap on the key points that have come up during the course this presentation and it really is an exciting Outlook so you know firstly we’ve developed and commercialized a disruptive technology through our own resources to take
Advantage of a 400 million pound Market UK power networks is a powerful Advocate and has considerable expansion potential within its Network as anzie mentioned earlier they’re are saving up to you know around a, per plan using our system and looking at those B mock scores I’m
Wondering how any of the other util are going to manage to achieve that given the current state of doing the sort of Street work planning and those apis that need to be achieved we’ve got four trials in operation with 10 more in discussion and as I mentioned a moment
Ago you know really investing in our sales team to increase band width and help maximize the revenue potential and you know our fiveyear ambition is to get to 40 million of annual recuring revenue and I said earlier I’d be really disappointed if we didn’t get that over over the next five
Years given you know the potential for some of the size of these contracts with utilities in terms of UK power networks doing 90,000 plans a year across the whole of UK BS and as Stuart said this really should drive a fantastic ebit Dar margin and has the
Potential to transform the group and I think we’re now on to the Q&A and we’ll go to Harry Evans at singers I guess it’s a question about applicability um and out of the trials or UK power networks today I wonder whether there’s been any relationship or where there’s been greatest uptake for
One street Works in terms of whether customers are particularly using it for for where complex plans are involved and or all plans are involved I’m just thinking to what extent I I can completely understand how in the example of there were five-way likes okay well then it’s been needs the process up but
If there are two-way lights are customers going to use it and therefore question is is the 4 million of Road works really The Tam or is it actually a rather different number because of because of that if you see where I’m coming from yeah okay um so I can answer that
Really simply um you do not know the type of traffic management you needed a location until it has been planned um so uh what happens currently in the market is uh when one of those four million pieces of work that he’s doing a traffic management planner an individual running an application like autocad’s
Approach and they produce that plan and that plan could be simple so what we call give and take which is you get to decide who goes first all the way through to those more complex um uh complex layouts um but you don’t know that until you’ve assessed the site and
Drawn the plan so every plan will get drawn so the addressable market for Street works is every plan that is drawn which is that that 4 million um so no they you won’t see or you shouldn’t see people not having to use the system because they’ve got to get a compliant
Plan out and they can’t get a compliant plan out certainly not at the volume they need without being able to use a system like Street Works to automate great thank you very much and we’ll go to Anna pew at River Global I just simp question to ones that you’ve had already
But just around the um the 40 million AR so the 10% market share that implies could you just give some color as to um what assumptions you’ve made to get to the 10% um how we should think about between the different categories the size of the opportunity you know in
Terms of how the the addressable Market split um and how we should think about that other 90% that isn’t being addressed well I I would start with saying as I mentioned before I think it’s quite a prudent assumption we’ve made uh that we can get to over five
Years so if you look at UK power networks which is you know 90,000 plans we don’t see any reason why over the course of the next few years we can’t be doing all of their plans it’s a very sticky tool it is really transformative
So um I suppose in a way it was a prudent estimate of where we thought we could get to in terms of 10% of the market um no more further analysis I don’t deep than that sure no no think I mean um mentioned 9 million for 90,000
Plans within UK power networks and we had a side up there previously with the 10 DNS that we see across England and Scotland basically um so if you were to take similar size ones multipli by six you come up to your 40 million so we we
Our target market is of a split small medium large customers but if you were just to look at those six out of 10 you know you’re almost approaching the 40 million so we think it’s quite provent um great thanks and I guess just in terms of the trials that you’ve had so
Far um other than the length of the sales cycle is there any reason why people haven’t you know been wanting to um actually convert to a contract or what’s the kind of feedback that you’ve been having say that Andy yeah sure um so it’s been interesting is probably the
Best way to describe it but as a case in point um um on an earlier slide I showed um that the uh utilities were already engaged in quite significant um digital by default or operational efficienc drives so there are a number of big Capital programs operating in those
Organizations um on an ongoing basis and what we found with the number is um the answer has been yes Street works is great and we want to do it actually we need to finish the roll out of SAS or we need to finish implementing uh net Suite
From Oracle those sorts of things so um typically the challenge has been around the bandwidth in those organizations as opposed to the business um uh case and and and our philosophy when we’ve come to developing those sales really is to work with the organizations that are
Ready to go uh and are up for it and we’re able to drive it through and if if we have an honest conversation with the business and they say we’re not ready yet um then we don’t try and force it to them we we very much back off say that’s
Absolutely fine and we find the next one that is ready to go so you know to build um Traction in the market for us to build the revenue lines and the profit lines we want in this business we will work with the organizations that are are
Ready to go and those that we can prove the business case but are not quite there yet we will just pause until they are would you say also Andy that you know the adoption by UK P networks is really going to move the market you know they’re probably our most interesting
And Powerful it has been interesting so when when the uh when UK P put the Press uh announcement out and when they post on LinkedIn feel free to have a read of the commentary um we got a flood of incoming from people we’ve spoken to previously actually and and I think that
Was very much reflective of of 12 months ago the the question on people’s lips was what is one street Works how does it work how might it help us and the narrative in the market has really changed now so the conversation we’re having people with people now is right
Now we understand the value we’ve seen what you’ve done in UK power networks how do you apply that to our business um and um and that inevitably uh will also have an impact on shortening those sales Cycles a little um I’m not going to commit to how much because I don’t know
At this stage but certainly we’re not having the same conversations in the market now it’s much more around how do we get the benefit and the value how do we Implement how do we trial not should we is there any risk of um customers kind of trying to develop their own um
Solution internally or are you having any conversations like that uh we’re not having conversations like that so my background as player alluded to at the start is is 20 years in critical infrastructure several years in traffic management uh and it’s definitely something we looked at when I worked in
My previous company which um was the largest or is the largest of traffic management businesses in the UK so um what I would say is it’s incredibly difficult to do and you need a geospatial rules engine to do it um and to my knowledge and I spent a lot of
Time looking when I was at my previous employer um one spal is the only people are the only people sorry um the company I now work for that has the capability of doing that um in the market and we’ll go to Haley Palmer at canac cord Andy I
Think you might have just kind of answered the the latter part of my question question in that um previous question because I was just going to ask about um I guess the education that’s needed for the customers because there’s clearly a really strong Roi story there but I guess way you’re disrupting
Typically Legacy manual processes sometimes it’s difficult to kind of get people to move um to automated processes just to understand um whether there’s a lot of Market education that’s needed for people to know that there’s a solution out there um and then I guess also who are the key stakeholders within
These organizations that you’re selling to because I can see a lot of heads within the organizations uh being attracted to this do you need all of those heads to sign off on it or is there kind of one main person that you need to get on board uh okay right um
Let me answer the second part first um so UK is a great example of the model so ultimately um you know the economic bio the both signs off on these licenses so the business case has to be robust it has to deliver results on the bottom
Line so that’s really the Crux of it um but the the purpose of these trials um is to build that business case and demonstrate really quickly the benefit it gets and that really allows us then to have a better conversation with the senior people in the organization very
Much what we did with power networks were very well connected through the operational te all the way up to the top of that business so um so that has that has worked really well for us um in terms of Education let me answer that in
Two ways um one in terms of the system itself and Tanya spoke about this it is incredibly easy to use and the benefit of that is the people that we show it to can understand really quickly actually how it inserts into their day-to-day job
Um and we spend time like we did with UK power networks doing a bit of business process analysis so we can understand what the current state is and where we need to get it to and that’s not a particularly difficult piece of work for us to do and um and certainly in the
Case of networks it was very simple to understand how we would drive um value and then in the market uh in terms of Education we put a huge amount of effort last year into our brand awareness and marketing but the benefit of that actually for us as an organization is by
The time we got to sort of Christmas of last year um pretty much all of the industry players we needed to understand what we did so whether was the highways authorities whether that was the utilities the tier ones all of them pretty much now know what street one
Street works is and what it does they were at that point still a little bit how does apply to us um but with the uh publicity that we got from the UK power networks were that we publicized as I said earlier back end of February it was
Now um that again has changed that conversation and we’ve got a question from Richard fer at Raymond James I’m just um thinking a little bit about about risk um what uh what risks if any do you acrw if the plans that your software produce or a plan that your
Software produces um results in some I don’t know road traffic accident or something is is that does that come back to your door or does that stay with your customer okay now that’s a really good question um so uh the model in one street works is no different from the
Model that operates in the industry today um and um shortcutting to the answer um the responsibility for the safe deployment of traffic Management on the UK’s roads resides with the operative so the people in the trucks that put the cones on the ground um and uh they have to always should always
Ensure that what they uh put on the ground is safe um and manageable if they have any concern they do one of two things they either adjust that traffic management within a degree or two or they are bought that job they say it’s safe to continue um so whilst we produce
A compliant traffic management plan in our system that plan that plan is then approved by both a local Authority so that the fiting authority as being appropriate for use that point it’s also then approved by the customer and and their qualified individuals and lastly the operative that puts it on the ground
Who is also qualified makes that value judgment is it safe on this day and an example where it might not be safe on a day is for example somebody’s hired a Skip and put it outside their house and that’s now meant that it’s compromised the working Zone it’s taken us too close
Jun something so they have to exercise common sense and the and the legislation when they install um so that’s the that’s the answer no change to the existing market dynamics ultimately the operative needs to make sure it’s safe there are multiple checks and balances um as a plan goes to ground um across
The varying uh various authorizing parties great thanks and in terms of feedback from your trials was it generally the the case that uh your plans worked in practice yes yeah yeah and the the example I mean we have pictures um as well of some of these but
Yeah our plans go to ground the the authorities so if you look at commentary from people like Matt jezard Sur I think what the authorities get is they get a higher level of consistency um from the planning cycle out of Street works it makes them it makes it much easier for
Them to assess whether or not the works is appropriate um and plans that go ahead um are are permitted more quickly the work that we do in UK power networks they haven’t had any of the plans out of the system as yet refused um and in fact
The only debate we’ve really had is when we’ve said actually we can do this more efficiently out of the one freework system than you’re currently proposing and I could get into some of the behaviors in the industry more generally um that drive some of the behaviors but that’s a that’s a conversation for
Another day thanks just a quick one for CLA um so the four the 14 M of recurring revenues that you’re looking for from this business the whole thing’s new to me um but that compares with the 32 M of Revenue you’ve just reported for the
Whole group is that is that am I right there so yeah we’ve got 32 million and out Enterprise business and then the 40 million of SAS revenues would be on top great thank you very much and that’s the end of questions Andy do you have any closing remarks just to say thanks to
Everybody it’s a very very exciting time for us and uh the you can see the team are very very committed to trying to get this um one street works really embedded in the market so um May the force be with us and thanks everybody for coming along