Monday 15 July 2013

Access Intelligence - interims

Access Intelligence released an encouraging set of figures in their interims this morning with revenues up 6% to £4.2m, contracted revenue not yet invoiced up 25% to £5.5m, and recurring revenue up to £3.0m from £2.7m being 72% of total revenues.

They also recorded a small operating profit of £28,000 before taxes against a loss of £198,000 in the previous half-year.

Cash balances have decreased slightly since the year end to £2.3m from £2.8m due to their previously stated intention to invest in accelerating the growth of the business. Operating activities did generate £0.3m in cash.

Gross margins came in at an impressive 73% up from a healthy 67% last year.

Current trading reads as follows:-

"Despite challenging market conditions, the Group has maintained a strong position in the public and private sectors, with H1 2013 contracted revenue not yet invoiced up 25% to £5.5m (H1 2012: £4.4m), and recurring revenue now representing 72% of the total (H1 2012: 68%).
 
Product innovation remains core to our ability to drive growth in the individual brands, both in their respective markets and as an integrated enterprise solution. This, combined with continued pressure on companies to meet the requirements of external regulators and internal cost management, will continue to drive sales pipeline growth for the Group.
 
The consistent increases year on year in contracted revenue not yet invoiced, our recurring revenue base and investment in innovative product development, demonstrate the Group's long term stability and provide a solid foundation for continued growth."
 
In summary, good solid growth is being achieved and I fully expect the benefits to flow through and become apparent in the medium and long term.
 
I'd expect the company to make a small profit at year end on revenues approaching £10m, if they continue to build revenues in future years then the lion's share of these revenues should fall through to the bottom line and profit growth should be impressive.
 
I feel very comfortable with my investment here, and similar to my investment in Trakm8, will wait patiently for the market to eventually realise the potential.
 
As ever, no advice is intended or given.
 

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