Underground mapping technology specialist – and Armchair Trader pick list incumbent – ProStar Holdings [TSXV:MAPS] has not been trading on the Toronto Stock Exchange for long, and the company has already scored a considerable new mandate from the Colorado Department of Transportation.
Following the announcement late yesterday, the CDOT now requires that over 150 utility companies and more than 1000 utility installation stakeholders must use ProStar’s PointMan mobile software platform to capture and record the precise location of underground utilities.
It’s a national problem in the US and indeed further afield: how do you make sure you are not about to drill through critical wires, pipes or other infrastructure? Many companies still rely on very, very old schematics when they are digging a hole in the road. ProStar fixes that. When we first started looking at ProStar, before they listed, we were surprised at just how unreliable current underground mapping methods are.
Surveyors and construction teams are frequently relying on guesswork, and they often get it wrong. We were amazed that this was still happening in the 21st century, and more importantly how little competition ProStar has in this space. Big, big companies are turning to its software for solutions. States like Colorado want to reduce disruption and save money.
ProStar develops precision mapping software and geospatial intelligence software that can be leveraged by just about any company that needs to precisely locate sub-surface infrastructure. This goes beyond utilities to other industries like oil and gas or other engineering activity. It has a massively scalable business model and has the potential to save millions of dollars for companies and municipalities around the world.
“ProStar’s solution is a specifically designed, utility focused technology that addresses all of our requirements to capture accurate information including the precise location of utility installations,” stated Rob Martindale, CDOT’s Utilities Program Manager. “Not knowing where utilities are buried has proven to be a major concern at the state, municipal and federal levels.
ProStar’s technology is designed to be intuitive, easy to use and can run on standard mobile devices. This makes it extremely portable and easy to roll out. It means it can be used by several thousand new users without the need for investing in new hardware, and costly and lengthy training schemes.
ProStar on the radar with other states
This is also big news for ProStar because it puts the company on the radar with other state level transportation agencies in the US. Another big factor is that ProStar already works with Trimble [NDQ:TRMB]. Many departments of transport use Trimble’s GPS technology as part of their operations.
Trimble is just one example of ProStar’s existing client list. We know they also work with Kier Group [LSE:KIE] in the UK. ProStar has scope to be rolled out easily to thousands of potential customers and has shown impressive corporate growth in 2020, during the pandemic. Many of its existing customers are carrying out work deemed essential by governments, so have continued operations even during the depths of lockdown.
“With many companies forced to cut back and lay off personnel last year, we were fortunate to expand and grow,” said Page Tucker, CEO and founder of ProStar. “This enables the company to be well positioned in 2021 in order to capitalise on what will be the new, post COVID economy. An economy expected to be driven in part by increased government spending on improving our infrastructure and new technologies designed to address the growing concern for our environment and public safety.”