(Sharecast News) - Location data technology specialist 1Spatial announced the signing of a 12-month contract with UK Power Networks for its traffic management plan automation (TMPA) solution under the 1Streetworks brand on Thursday.
The AIM-traded firm said the agreement, following a successful trial, was projected to generate a minimum of £0.34m in software-as-a-service (SaaS) revenue.
It said the TMPA solution, offered through 1Streetworks, was the first-fully automated platform for producing traffic management plans, diversion routing, and asset inventory lists.
With over 2.5 million low-speed roadworks conducted annually in the UK, a figure expected to rise to four million in the near future, 1Spatial said the total addressable market opportunity in the UK alone was estimated at around £400m.
UK Power Networks, responsible for managing 190,000 kilometres of cables and facilitating thousands of streetworks each year across London, the south east and the east of England, conducted a trial in Surrey.
In the trial, the software streamlined the process of quoting for and connecting small power connections, drastically reducing the time surveyors spent on labour-intensive streetworks design plans from hours to minutes.
Despite the efficiency gains, 1Spatial said the software maintained compliance with safety and accuracy regulations.
Moreover, the use of 1Streetworks software resulted in a notable reduction in the average time required to connect new or altered power connections, achieving a 25% decrease across around 300 roadworks sites.
The board said the expansion of 1Streetworks was expected to have a positive impact on 1Spatial's financial performance, with each contract offering SaaS margins and recurring revenue streams.
"We are delighted that our innovative 1Streetworks application has delivered such fantastic results for UK Power Networks and its customers," said chief executive officer Claire Milverton.
"We look forward to working with Paul and the team to roll out the software further across the network over the coming months.
"This has been a key milestone for the company and a culmination of many years of work and investment."
Milverton said the commercial validation brought by the contract was crucial in driving adoption across the wider industry.
"We are encouraged by current discussions with other major operators across multiple industries, who have the same challenges in producing traffic management plans.
"With our new SaaS offerings, 1Streetworks in the UK and NG911 in the US, opening up considerable additional growth market opportunities alongside our enterprise offerings, we believe the opportunity for 1Spatial has never been greater."
At 1547 GMT, shares in 1Spatial were up 15.52% at 64.69p.
Reporting by Josh White for Sharecast.com.
1Spatial Holdings (SPA)