Listed aerial imagery provider Nearmap is spreading its wings across the Tasman, with the ASX-listed company launching operations in New Zealand.
The entry into New Zealand marks the second overseas venture for Nearmap, which sailed into the US in 2014, and according to company CEO Rob Newman, the kiwi market was primed for the benefits Nearmap’s technology can deliver.
“The key to our success has been to give businesses access to imagery data that can change the way they operate and build,” he told The Australian.
“We spent some time in New Zealand in January 2017 and the market there has been relying on a lot of outdated information, a lot of the imagery data was almost 10 years old.”
He added that the move into New Zealand fits nicely into Nearmap’s goal to set itself up for global expansion.
“Once you can rollout in multiple geographies you can really test the value of what we provide.”
The company, which delivers the aerial pictures to government clients and businesses in construction, engineering, utilities and insurance sectors, is widely seen as a small cap success story.
With its share price up close to 137 per cent since January 1, currently trading at $1.44, after hitting an all-time high of $1.46 earlier this month, the company’s ongoing success has been a boon for one of its major shareholder, Paradice Investment Management.
Nearmap’s patented camera system is fitted to lightweight aircraft that fly over urban centres, with the images later stitched together into seamless digital maps and published online.
Apart from building an extensive library of imagery data, Nearmap relies on its web-based application MapBrowser to provide the maps to its customers on a subscription basis.
The combination of the subscription model and the high resolution imagery has so far paid off for Nearmap, with the company posting record portfolio growth for the full year ended June 30.
The annualised contract value of $66.2 million was above guidance and 41 per cent higher year-on-year.
Nearmap’s executive vice president, Shane Preston, said that the first mover advantage should pay dividends for the company.
“Development in New Zealand is set to accelerate with the KiwiBuild program investing in building 100,000 high quality, affordable homes over 10 years.”
“As the country prepares for its growing population, access to high-resolution aerial imagery will be invaluable to all businesses involved at every stage of the building development life cycle, from planning to construction and management.”
“We’ve spoken with many businesses on the ground who have an immediate need to access high quality aerial maps that are current and easily accessible, there’s nothing like Nearmap available right now,” he added.
NEA Price at posting:
$1.56 Sentiment: Buy Disclosure: Held
