This week on the podcast, we had the opportunity to catch up with Page Tucker, CEO of ProStar Holdings (TSXV:MAPS/FRA:5D00).
ProStar is a tech company with a very interesting approach to many of the problems that continue to face engineering and construction companies involved in the business of digging up the roads – and other area.
ProStar has a globally deployable solution that provides engineers with a much more precise database of the infrastructure that lies under our feet than was previously accessible. The company’s flagship PointMan solution can be used in the field on mobile devices and tablets. It is designed to prevent companies from striking essential infrastructure like underground pipes and cables, when carrying out any works.
PointMan, is natively cloud and mobile, and offered as a SaaS recurring revenue model. ProStar’s solutions are adopted by some of the largest entities in North America, including Fortune 500 construction firms, the largest subsurface utilities engineering (SUE) firms, and government agencies.
ProStar Holdings listed in Canada in January and subsequently in Frankfurt. We have been fans of the company because we see this as a readily available solution for construction companies and utility companies that is already receiving official recognition at the state level in the US.
In January the company announced that Colorado’s Department of Transportation would require that over 100 utility companies and more than 1000 utility installation stakeholders use the PointMan software to capture and record the location of underground utility infrastructure in the state.
ProStar has strategic partnerships with the leading GPS/GNSS and cable and pipe locator manufacturers as well as their dealer networks, including Trimble, Vivax-Metrotech, Radiodetection, and Subsite Electronics. In late January it inked a deal with KCI Engineering, one of the biggest sub-surface utility engineering companies in North America.
ProStar has made a significant investment in creating a vast intellectual property portfolio that includes 19 issued patents in the United States and Canada, with several more pending. The patents protect the methods required to digitally capture, record, and display the precise location of buried utilities and pipelines.
We like the SaaS model and the recurring revenue stream ProStar can earn. The company has been able to operate without any constriction on its expansion during the pandemic, as its core services are digitally delivered, and into a sector that in most countries continues to function unimpeded by any lockdowns. Indeed, utilities and firms serving utilities, have hardly missed a beat as they continue to provide vital services.
The cost savings ProStar provides are considerable: according to the University of Birmingham, the true cost of an asset strike – the kind of thing ProStar helps to prevent – is a staggering 29 times the direct cost. In the UK alone, for every £1000 of direct repair cost from a utility strike, the actual cost is £29,000. This is why utility companies are recognising the value of this technology.