Nearmap Limited (ASX: NEA), a provider of ultra-high resolution aerial photographs, has today soared 14.1% higher to trade at 48.5c a share.
The climb follows news that the company has commenced test flights of its aerial camera system in the United States, aiming to receive approval from the Federal Aviation Administration (FAA). Not only would this allow Nearmap to operate the system in the US, but also in any other country that has bilateral aviation agreements with the US as well.
The company’s product has shown enormous promise in the Australian market. Its aerial photographs are designed to save customers both time and costs. For instance, imagine a construction company wanting to show a client progress that has been made on a building site. Instead of having to take them to the site, which would cost them time, resources and fuel, the builder could instead simply show the client the ultra-clear updates on a screen.
While its mapping services are arguably even better than those provided by Google Inc (NASDAQ: GOOGL), customer numbers are growing rapidly and should continue to do so for years to come.
Commenting on the announcement, the company’s Managing Director Simon Crowther said: “This is a key step on the path to international certification for our aerial camera system, and a precursor to international operations.”
Many investors may be deterred by the company’s recent run up in share price (indeed, its stock has risen 700% since the beginning of 2013), but there is still plenty of value to be realised by buying today. The company can boast of having no debt and $17.5 million in cash, as well as having become profitable in the most recent half-year which ended 31 December 2013. Buying this small-cap superstar today could well reap incredible returns over the long-run.