Access Intelligence Share Discussion Threads

[garey_de_angelis] 23/7/2010 12:52

Looks as if its 4.25p now to buy.

:-D

[garey_de_angelis] 23/7/2010 12:46

jimbo44,

Yeah all looks good. Crazy share price if you ask me but I'll put my money where my mouth is.

28th is good for me as it is pay day and I can add more!

:-D

[jimbo44] 23/7/2010 11:50

Thanks Garey seen the article already. Already added £1500 at 4.15p seemed to good to miss. Will add again if it drops. Is something happening on 28th can't find any details? Know about possible aquisitions. Have a lot of faith in Howard Sears for very good reasons and Micheal Jackson's track record is proven so all adds up to a good future.

Jim

[garey_de_angelis] 23/7/2010 11:34

Added 25k at 4.15p. All buys so far.

Also:-

Access Intelligence potential 'not reflected'
Date: Monday 19 Jul 2010
Acquisitive compliance software firm Access Intelligence (AI) has ramped up first half profit by 180% and remains "cautiously optimistic" despite impending public sector spending cuts.

Coalition chancellor George Osborne's austerity Budget is widely expected to hit many providers of services to government departments as ministers cut costs by over a third in real terms.

But former chairman and part-time finance director Jeremy Hamer is confident this won't damage prospects at AI.

"There's no reason at this point to feel we're under pressure, but we also don't think we'll be able to avoid it," he told ShareCast Monday.

"We'll have a full contribution from Cobent in the second half, which should generate a very exciting profit for the six months, so we can absorb relatively slow growth in the public sector."

Profit before tax jumped to £470,000 in the six months to 31 May from £169,000 a year earlier on revenue up 63%, or 25% on a like for like basis, to £4.14m. Cobent, a business focused on training in FDA (Food and Drugs Administration) regulated markets, was bought in March for £5.2m. It has already chipped in with £289,000 of sales.

Total monthly revenue hit £0.7m by the end of May, of which £435,000 was recurring, while monthly costs were around £0.6m.

Analysts at Astaire predict full-year adjusted profit of £1.4m and £9.3m of revenue, rising to £1.9m and £11.3m in 2011.

A new management team brought in almost two years ago and subsequent period of cost-cutting have revived AI's fortunes. It's moving from an upfront licence model to more cost efficient software-as-a-service (SaaS) on-demand functionality that's made available to clients over the internet.

"Saas now represents 77% of revenue, up from 55% a year ago," says Hamer, whose clients include the Bank of England, Barclays, the police and the NHS.

Although AI thinks its ability to supply the low-cost entry that hosted solutions provide should help shield it from the worst of government spending cuts, it's also keen to expand its private sector business.

"We start the second half with quite an interesting private sector pipeline and hope that by November we'll be able to say we've opened some doors," Hamer says.

More acquisitions are also on the cards. "There are a couple of smaller acquisitions that it's fair to say we're running the slide rule over, and one larger one that we're not, but that we're wondering whether we will," Hamer told me. Net cash had risen to £2.4m by the end of the half year.

"In the last 12 months we've added £1.7m of cash and only made £1.1m of operating profit. So, the Saas financial model does have some very interesting cash generative statistics," thinks Hamer. "We should generate cash relatively easily and at least in line with operating profit longer term, which is very healthy."

"The share price doesn't reflect our potential."

:-D

[jimbo44] 23/7/2010 11:11

With mid price at 4.25p these can be bought at 4.15p. Is this a significant bargin? Or going to be marked down again? MMs must have shares to shift so is this keeping share price down?

[garey_de_angelis] 22/7/2010 08:55

I have had a couple of interesting conversations regarding the acqisition possibilities for access post the analyst meetings on Monday.

Suffice to say one is quite large and going for a song in the current economic climate with cross integration possibilities with existing group cos making it extremely value enhancing.

Just what I heard, take it as you like.

Also wondering how long it will be until Access reverse into a bigger player.

All good and shares too cheap. Hoping they stay at 4.5p to buy until 28th of the month.

:-D

[howdlep] 20/7/2010 10:51

Within 12 months this will be a £20m market company. It will continue to grow organically and through acquisitions. The question is whether one day ACC will be acquired. Exciting times ahead and Jackson remains a man to back.
Expect to see Shares Magazine continue to cover the company in forthcoming editions.

[jimbill] 20/7/2010 10:19

4.7p still the buy price so all buys so far today

[howdlep] 19/7/2010 19:44

Are these all spivs as well?

Share Information at 25th March 2010
Total shares in issue: 254,770,696

Major shareholders Number of Shares %
Fund managers
Elderstreet Investments 33,000,000 13.1
Octopus Asset Management 23,953,000 9.4
Unicorn Asset Management 21,400,200 8.4
T1PS Investment Management 5,000,000 3.14
Williams De Broe 4,826,000 3.03
Directors
Michael Jackson, Chairman 19,663,636 7.93
Jeremy Hamer, Finance Director 5,441,762 2.14
Ray Jackson, Non-exec 4,636,364 1.83
David Lowe, Non-exec 4,597,475 1.82
Howard Sears, Non-exec 16,666,667 6.59
Shareholders above 3%


Tony Dillon* 13,000,000 5.10
David Alderson* 8,412,884 3.3

* Denotes director or employee of subsidiary company

[dnfa1975] 19/7/2010 18:31

woooppeeeee all the bucket shops/ spivs like GECR and hoodless saying this is a buy, whoopeeeeee

[howdlep] 19/7/2010 16:25

Many thanks Garey

[garey_de_angelis] 19/7/2010 15:05

Confirms strategy.
:-D

[howdlep] 19/7/2010 11:37

A few buyers appearing now following the publication of the Hoddless Brennan and GE&CR research notes. A bid tickup soon?

[howdlep] 19/7/2010 10:19

GE&CR buy note just out:-



19th July 2010
Analyst: Philip Morrish
Email: [e-mail]
Tel: [phone]

Access Intelligence - Interim Results Demonstrate Considerable Progress - Reiterate Buy at 4.25p with 8.7p target


Key
Data

EPIC
ACC

Share Price
4.25p

Spread
4.0p - 4.5p

Total no of shares
254,770,696

Market Cap
£ 10.83 million

12 Month Range
4.125p - 7.875p

Market
AIM

Website
www.accessintelligence.com

Sector
Compliance Software Solutions

Contact
Michael Jackson (Chairman)
Jeremy Hamer (FD)
020 7400 0485



Access Intelligence, the AIM listed supplier of compliance solutions via Software-as-a-Service ('SaaS') this morning released results for the six months ended 31 May 2010 that further confirmed its strategy is delivering. Indeed, the group's operating profit before exceptional items exceeded those of the whole of the last financial year. While recurring revenue increased 65% from £ 1.4 million to £ 2.4 million and now represents 57% of total revenues; total monthly revenue had reached £ 0.7 million by the end of May of which recurring revenues represented £ 0.435 million while monthly costs were around £ 0.6 million.

The results include initial 3-months from Cobent, which has strengthened the group's existing compliance and training solutions to the public sector while opening UK and global cross-selling opportunities within the highly regulated and compliant private sector including pharmaceuticals, financial services and retail. Access Intelligence also sold Wired-Gov to its management during May 2010 and its results have been eliminated from the reported results and the previous year's results have been restated to provide a clearer picture of underlying progress.

Turnover increased 63.7% from £ 2.543 million to £ 4.137 million, of which Cobent contributed £ 0.289 million. The growing proportion of recurring revenues helped restrain the growth in cost of sales to 21.9% or £ 1.596 million (2009: £ 1.309 million) and enabled the gross profit margin to expand 12.9 percentage points to 61.4%, which lifted the gross profit from £ 1.234 million to £ 2.541 million. Administrative expenses increased 76.2% from £ 1.065 million to £ 1.876 million due in large part to the integration of Cobent together with further group-wide investment in the private sector sales and marketing teams. Operating profit before exceptional costs (2010 Cobent acquisition cost of £ 0.120 million) increased 4-fold from £ 0.169 million to £ 0.668. Reported pretax profit increased from £ 0.170 million to £ 0.470 million despite net finance costs jumping to £ 0.78 million (2009 net finance income of £ 1,000). Basic earning per share increased from 0.12p to 0.22p despite the tax charge expanding from 8.8% or £ 0.15 million to £ 25.3% ( £ 0.119 million).

Table: Profit & Loss Account £ 000

6 months ended 31 May
2010
2009
% change

Revenue
4,137
2,543
63.7

Cost of sales
(1,596)
(1,309)
21.9

Gross profit
2,541
1,234
105.9

Margin
61.4%
48.0%
NA

Administrative expenses
(1,876)
(1,065)
76.2

Share based payments
(3)
0


Operating profit before acquisition costs
668
169
295.3

Margin
16.1%
6.6%


Acquisition costs
(120)
0
NA

Operating profit
548
169
224.3

Margin
13.2%
6.6%


Net finance
(78)
1
NA

Pretax profit
470
170
176.5

Margin
11.4%
6.7%


Taxation
(119)
(15)
693.3

Profit from continuing operations
351
155
126.5

Discontinued operations
106
29
265.5

Profit for period
457
184
148.4






Earnings per share (p)
0.22
0.12
83.3


Source: Company

The group's strategy to enhance shareholder value remains unchanged, i.e., organic growth supported through acquisition of compliance driven SaaS companies that deepen and extend opportunities both within the UK and internationally.

Despite the expectation that the public sector purse will shrink substantially over the coming months, Access Intelligence, like most public sector exposed businesses that demonstrably provide low cost solutions that enhance service efficiency, views the future with cautious optimism. The company's optimism stems from the successful organic and acquisitional development of its compliance/SaaS activities that have grown over the last 12-months from 55% of total revenues to 77%; last February's Cobent acquisition increasing private sector exposure and international opportunities. We have reviewed our earlier expectations and are edging back our sales expectations for 2010 from £ 9.6 million to £ 9.1 million and 2011 from £ 11.7 million to £ 10.7 million but maintaining our pretax profit and earnings per share forecasts.

We continue to value Access Intelligence using an Enterprise Value/EBITDA ('EV/EBITDA') methodology and with the shares trading at 4.25p, the financial year 2009 multiple would be 10.12 times. Therefore, if the shares were to trade on a similar EV/EBITDA multiple based on our maintained 2011 forecasts, the shares should be 8.7p; consequently, we continue to recommend the shares as a buy.






Forecasts Table

Year to 30th November
Sales
( £ 000)
Pre-tax Profit ( £ 000)
Earnings Per Share (p)
Price Earnings Ratio (x)
Dividend (p)
Yield (%)

2008A
3,967
(4,566)
(4.18)
NA
0.0
0.0

2009A
5,772
520
0.27
15.6
0.0
0.0

2010E
9,100
1,350
0.35
12.2
0.0
0.0

2011E
10,700
1,950
0.46
9.2
0.0
0.0


Source: Company and Growth Equities & Company Research

The SF t1ps Smaller Companies Growth Fund which is managed by a subsidiary of RSH, the ultimate owner of GE&CR, owns shares and loan notes in Access Intelligence.

[howdlep] 19/7/2010 08:36

I disagree and so do Hoodless Brennan who have just published a buy note:-

19/07/2010Access Intelligence (ACC, 4.25p, £10.83m)

Access Intelligence (ACC, 4.25p, £10.83m) The provider of Software-as-a-Service (SaaS) solutions for areas in compliance, procurement, media relations and PR, reports interims to 31 May 2010 are line with FY estimates. Following the acquisitions of Ether-Ray (July 2009) and Cobent (March 2010), revenues have increased by 63% to £4.1m (H109: £2.5m), adjusted pre-tax profit by 2.5x to £0.59m (H109: £0.17m) and EPS by 83% to 0.22p (H109: 0.12p). Net cash of £2.4m provides the group with sufficient cash to make further small and earnings enhancing acquisitions. The group's strategy is to focus on the SaaS business model enhancing recurring revenues, which now represents 57% of group revenue. The outlook statement is cautiously optimistic. Access Intelligence will focus on the cost saving opportunities offered by their software and the low-cost entry that hosted solutions provide will both contribute to future growth and will, to some extent, shield the Group from spending cuts. Access Intelligence has strong cash generation and high revenue visibility combined with exposure to a relatively defensive market. The strong management team will continue to grow the business organically and via earnings enhancing acquisitions. We regard 11.5x 2010 PER falling to 9.7x in 2011 an attractive investment opportunity. We reiterate our BUY with a 12 month target price of 8.25p.

Recommendation: BUY

[dnfa1975] 19/7/2010 07:49

Still a pitifully small thing with sales of £4m. Acqusition growth and little organic. Weak.

[howdlep] 19/7/2010 07:36

A good half yearly report:-



Highlights:


Turnover increased by 63% to £4.1m (2009: £2.5m)

Profit before taxation generated by continuing operations was £470,000 (2009: £169,000)

Basic earnings per share increased 83% to 0.22p (2009: 0.12p)

Cash balance at 31 May 2010 of £2.4m (2009: £714,000)

Recurring revenue increased 65% to £2.4m (2009: £1.4m), representing 57% of total revenue

Appointment of Howard Sears to the Board in March 2010 following acquisition of Cobent Ltd on 28th February 2010 for £5.2m

Sale of Wired-Gov in May 2010 for £142,000


Chairman's Statement



I am pleased to announce our results for the 6 months ended 31 May 2010 which demonstrate the Group's continued progress and development, both strategically and financially. Our operating profits in the first half exceeded those of the full year last year and we have made two significant steps towards the alignment of our group activities with our strategy.



Results



Group revenue was up by 63% to £4,137,000 (H1 2009: £2,543,000), and 25% on a like for like basis. The Group's operating profit before acquisition costs and taxation was £668,000 including Cobent and £725,000 excluding Cobent. This compares to an operating profit of £169,000 in 2009, up 295%. The basic earnings per share is 0.22p (H1 2009: 0.12p) up 83%. The Group is not proposing to pay a dividend. The Group had net cash at the end of the period of £2,424,000 (H1 2009: £715,000).

[garey_de_angelis] 18/7/2010 11:07

I thought the last chief exec left because he paid too much for MS2M? a heart attack doesn't mean the company suddenly makes a 5million loss.

I may sound heartless (no pun intended) and I have been through a heart attack myself but business is business.

MJ is the real deal for me. I agree a new hands on chief exec would be good as I think the remaining businesses all fit together. 2million forecast for next year so feel 8p is warranted.

Regards.
:-D

For the record not an employee or former employee, just a shrewd investor who has done a lot of research over the years.

[murraymints] 16/7/2010 22:22

Wouldn't be good if everyone posting knew who each were? I have no way of knowing if mincob was en employee or not therefore can't put a perspective on his/her comments.
Don't know who Gary de angelis is either so how can anyone take cogniscence of these comments?
I have had a holding for 5 years. Thought the previous chief exec whom I met was good and delivering until his heart attack when he stood down. Also have belief in Michael Jackson(based on history). I still hold because the business model makes sense. Recurring revenues with long term contracts is still the best model. Assuming Jackson does not do any daft deals then the future is bright. My only concern is who is operationally managing the businesses?
Do they now need a Chief exec? and if so who?
I have ideas as who could. Will continue to hold. For the record my holding is greater than 500,000 shares

[garey_de_angelis] 16/7/2010 09:56

Cannot get a decent buy order in today. Going to be tough on Monday as I expect results to be above expectations.

:-D

All good.

[howdlep] 16/7/2010 09:50

Solcara announcements yesterday which the market will have missed:-

Solcara LegalResearcher integrates the searching of all essential internal and online legal information resources:-



Solcara announce the availability of Solcara PRISM. A new technology that has the power to make the concept of the semantic web a reality:-



Also
Solcara confirmed as Microsoft Gold Partner and Solcara SolSearch verified as 'works with Windows Server 2008 R2'

Thursday, 15 July 2010 08:38

[howdlep] 16/7/2010 09:42

Sears on a six figure salary but the key going forward will be performance related options. Cobent obviously needs to be integrated and Monday's results will give us an indication as to its performance in the six months to 31/5/10 and more importanly going forward.
All subsidiries likely to be profitable and management have a mandate for further acquisitions.
An share price of 8p is very realistic by the time full results are out. What is absolutely certain is that if Interims are good, investors will have to be pay a large premium to get any decent line of stock.
ACC and AXM are my two largest holdings.

[garey_de_angelis] 15/7/2010 10:33

0.5p tick up on plus market on a 50k buy:-



Have to pay 5p on there now.

Going to be an interesting 2 days before interims on Monday.

:-D

[garey_de_angelis] 15/7/2010 09:22

8p is a tad over optimistic, lol.

you see these going to 2p? On what basis?

I predict better than forecast half year.

"Sorry to say i can see this dropping 50%.
Hope I am proved wrong for the sake of all the holders here.
I dont hold shares in this company any more."

Classic bear.

To drop 50% you must believe they have missed estimates by a long way?

I do hold and I am adding more. Too cheap. The run up to Mondays results has started with todays tick up.

:-D

[minkob] 14/7/2010 13:33

Garey you are in fantasy land. I know about all the subsidiary companies and the trading forecasts and current trading etc. A tad over optimistic I fear, certain developments have not been taken into account.
Sorry to say i can see this dropping 50%.
Hope I am proved wrong for the sake of all the holders here.
I dont hold shares in this company any more.