Access Intelligence Share Discussion Threads

[cazsco] 17/9/2010 17:30

Thanks for your post howdlep. I have read a lot of your posts over the past few months (sharecrazy). I am long on ACC and am topping up as and when I can. Great company and great management - not expecting fireworks with the shareprice, just good old fashioned long term growth.

[howdlep] 17/9/2010 17:25

The next couple of acquisitions are likely to be small ones and funded by cash. However, people have been taking profits to generate funds to chase resource stocks. Just when they comeback remains to be seen, but they will in due course

[amt] 16/9/2010 15:13

Perhaps they are about to make an acquisition. Thats a guess no information.

[cazsco] 16/9/2010 15:04

Any reason for the drop today? No news that I can see...

[howdlep] 31/8/2010 08:03

More good news for the company, as loan notes are treated as debt. Now for the first of 2, maybe 3, acquisitions:-


Tuesday 31 August, 2010
Access Intelligence
Issue of equity on conversion
RNS Number : 7836R
Access Intelligence PLC
31 August 2010









ACCESS INTELLIGENCE PLC

("Access Intelligence" or "the Group")

(Innovative Software-as-Service Solutions)





Issue of equity on conversion of Loan Notes





Access Intelligence announced on 10 July 2009 that it had entered into Convertible Loan Agreements in respect of £1.85 million ("Loan Notes").



Pursuant to the terms of the Loans, the Company has now received a notice from a Loan Note holder, SF t1ps Smaller Companies Growth Fund, that it wishes to convert £100,000 of Loan Notes into ordinary shares of the Company ("Ordinary Shares") at the conversion price of 4p per new Ordinary Share.



The Board have therefore allotted and issued 2,500,000 Ordinary Shares in satisfaction of this conversion of Loan Notes.



The new shares are expected to be admitted to trading on AIM on 1 September 2010.

[howdlep] 16/8/2010 10:03

Tickup on the offer, now for one on the bid. Another good start to the day, as the buy notes and recommendation keep on coming in.

[howdlep] 16/8/2010 09:11

Further buy recommendation, this time from GCI:-

ACC(5.5p)

ACCESS INTELLIGENCE: growing up fast.

BUY
13/08/2010 James Crux

Repositioned as a provider of compliance software-as-a-service (SaaS) solutions, ACCESS INTELLIGENCE has been turned around and set upon a profitable growth path by a new management team led by IT sector sage Michael Jackson, overseeing developments from the executive chair.

Bulls believe that Access Intelligence is now perfectly placed for growth, against a rising tide of regulation and legislation engulfing private and public sector organisations.

Alongside Elderstreet VCT, Jackson, who chairs its manager, venture capital firm Elderstreet Investments, invested in Access in late 2008, establishing a new board to inject life back into its financials and sharpen its strategy. Famed in City circles for building accounting software group Sage from a sub-£5 million cap into a FTSE 100 titan capitalised at £3 billion plus, Jackson and his team have quickly restored the AIM company's fortunes.

Annual numbers to last November, covering the first full year under Jackson's guidance, showed Access moving from losses of £4.6 million to £566,000 pre-tax profits, on turnover up 52 per cent to £6 million. Tight cost control, as well as the formation of a new media and communications division in the wake of last summer's acquisition of
public sector-focused SaaS business Ether Ray, helped drive the turnaround.

Today, Access Intelligence is a focused provider of SaaS-based compliance solutions whose technology not only saves clients money, but does so in ways that maximise efficiency and allow them to comply with specific legislation and regulation.

Access's activities include e-procurement, where clients range from Ladbrokes to the Bank of England and a litany of large local government authorities. In the training and compliance space, growth prospects were recently enhanced by the £5.2 million acquisition of Cobent, which provides compliance software into the defensive FDA-, FSA- and HSE-regulated markets, where legitimacy and keeping records secure is of paramount importance. Post Cobent, a deal set to deliver much in the way of cross-selling upside, the division's customers now range from RBS and Barclays to Merck and even the United Nations.

Additionally, Access sports a media and communications operation delivering solutions to ensure communications consistency, transparency and accountability. More than 275 clients have been amassed, spanning central and local government, the police and the NHS.

Recent half-year figures to May were impressive, revealing operating profits exceeding those of the entire previous full year. Turnover rose 63 per cent to over £4.1 million, while continuing pre-tax profits powered ahead from £169,000 to £470,000. 'We had a strong half,' enthused Jackson, highlighting 'strong performances from the
e-procurement and media sides of the business'.

Repeat revenues – highly visible and strongly cash generative – burgeoned by 65 per cent to £2.4 million to represent 57 per cent of total sales. 'Recurring revenues are a theme of our business,' purred Jackson, also keen to highlight significantly improved net cash of £2.4 million, leaving the group with the balance sheet firepower to pursue further compliance-related acquisitions. 'We need to get critical mass and momentum in the business before we start to pay dividends out,' Jackson explained.

One concern is that public sector spending cuts have now begun in earnest and could have a negative impact on earnings. Nevertheless, Jackson is confident that the cost saving benefits of the company's software, as well as the low-cost entry that hosted solutions provide, 'will, to some extent, shield the group from spending cuts'.

[condor43] 13/8/2010 14:39

All trades look to be buys today

[garey_de_angelis] 13/8/2010 14:33

Suprised at the lack of stock around. Majority still tightly held looking for the long term realisation.

V positive,

:-D

[howdlep] 13/8/2010 14:23

things beginning to move now. Bid tickup next imo

[garey_de_angelis] 13/8/2010 11:35

Not my purchase, still waiting. Think i've missed my window but I'll keep trying.

I see value here and lots of upside

:-D

[howdlep] 13/8/2010 11:30

For people new to this bb, here is a review of recent news stories:-



Published: 10/08/2010 10:20 - Updated: 10/08/2010 10:23
Michael Jackson will take Access to zenith
Martin Flitton
When it comes to seeking out a potential growth stock, there are a number of fundamental points that need to be met for the right criteria.

Not only does there have to be a proven and experienced person at the helm, the business prospects need to be sound, too, along with the balance sheet.

While many fledgling stocks fall at the first hurdle, Access Intelligence may have what it takes to make the grade.

At just 4.5p per share and a market cap of a paltry £10m, Access is attractive for several reasons. Not least, it is headed by former Sage Software chairman Michael Jackson who, via his own venture capital vehicle Elderstreet, took a sizeable stake two years back.

The strategy has been, and remains, to build a significant software business for compliance. This takes clients on board in the pharma and biotech sector, along with financial services, business security and media.

And, boasting a sound balance sheet, Access, in Michael Jackson's hands, is making sound progress with the potential to become something of a growth star.

With a complement of six businesses now under the umbrella, sales have been steadily rising to last year's £6m, which delivered a pre-tax profit of half a million pounds. While that may not have buyers stampeding for the shares, it does suggest there is a potential and the firm has already delivered a pre-tax profit for the first half of 2010 of £470k.

With many of its services tailor-made to enable clients to meet strict industry regulation, Access has already carved out a decent mix of public and priva
te business; and while it supplies the NHS, Metropolitan Police and local government, it has reassured investors as it expects Government spending cuts to have little negative effect.

In fact, Access' recurring revenues have been increasing strongly in the last couple of years, despite the recession, and now make up 57% of all business.

With £2.4m in cash on the balance sheet, the company earlier this year shelled out £3m as part of a £5m acquisition of Cobent. This should make an excellent fit, enabling Access to further penetrate the North American market where Cobent serves a number of clients.

Although Access is currently a relatively niche operator, Michael Jackson appears to be making all the right moves. Although Access may not go on to emulate Sage, I wouldn't bet against it and at 4.5p each the shares are worth a punt.


9 August 2010
Extract from The SF T1PS Smaler Companies Growth Fund Newsletter for August, confirming that the fund have been buying ACC stock again:-

So how do we alter our strategy as we enter a new cycle of the market? Well we do not. As you know, our approach to investment never changes. We look to buy shares in good companies when the values are incredibly appealing and then wait. That can lead to short term underperformance as we do not claim to be able to spot the bottom in terms of sentiment. Anyone who makes that claim is, in our view, either a fool or a liar or a chartist or any combination of the above. So we have bought into value and now wait. When we have spare cash to invest we add to one of our existing holdings where we see the greatest untapped value and carry on waiting. So in recent weeks your fund has bought more Avisen (ex cash PE of 1) in a greedy way and has nibbled at ILX, Intandem, Northern Petroleum, Access Intelligence and one we cannot mention yet.


9 August 2010
T1PS members should read the weekend editorial, as that provides an indication of what may be about to follow re price sensitive news. This is of course follows on from the editorial of 1 August, which listed the top 14 buys in London. ACC was included in that list, and the article may be on free circulation very soon.


6 August 2010
The current Shares Magazine explains how investing in penny shares is risky but when you get them right you can easily double, treble, quaruple or even make ten times your original stake by netting those elusive 'ten baggers'. This week the Shares team unveils its top ten penny picks.

The filter:-
Share price 10p or less
Market value £20 million or under
Spread 20% or lower

Of the 228 AIM names upon which we focused our attentions, just 30 had earnings forecasts , even though first impressions told us some of them held out the prospect of healthy profits growth. Out of the 30 with publicly available earnings estimates, 17 are predicted to grow earnings per shares (EPS) this year by more than 30% and a good number of these names are among our ten picks.

These include Access Intelligence (ACC), market cap £10.8 million at mid price of 4.3p, with 2010 EPS growth of 48.3%. Spread 11.1%.

The microcap's acquisitve growth strategy is overseen by executive chairman Michael Jackson. Jackson's CV includes growing business software giant Sage (SGE) from a company with a market value of £23.8 million when floated he floated it in December 1989 to £2.9 billion when he left in August 2006. A work in progress, Access will focus on compliance software. Current offerings include e-procurement and Financial Services Authority compliance monitoring, as well as a market-leading media relations software product. Most recently the group acquired compliance software specialist Cobent. An internet delivery product, where users pay monthly, ensures low entry costs for users and steady income for Access which has 57% recurring revenues. July's half-yearly announcement saw an 83% rise in earnings per share, to 0.22p, as well as a net cash balance of £2.4 million. Whilst significant growth should come from the acquisition plans, increasing amounts of compliance and regulation should also ensure organic growth.


19 July 2010
Astaire Note dated 19 July:-



Michael Jackson CNBC Interview dated 19 July 2010:-

Michael Jackson, Executive Chairman of Access Intelligence Plc appears on CNBC's 'Strictly Money' segment to discuss the impact of the proposed coalition spending cuts on UK businesses.

Driving cost efficiencies through aggregated purchasing software delivered via Software-as-a-Service negates the need for expensive upfront capex in order to drive long-term cost savings.

Due North, a subsidiary of Access Intelligence Plc, delivers procurement software into the Public and Private Sectors.




19 July 2010
Jackson eyes acquisitions, may pay dividend payment:-



Former Sage boss Michael Jackson's new software venture, Access Intelligence (LON:ACC), is currently looking at two to three potential acquisition opportunities as it continues its expansion in the compliance sector.

Jackson told Proactiveinvestors the deals were likely to be in the £2 million to £3 million price range, though one is slightly larger, and could be funded by a mix of paper and cash.

"The market is fragmented," the Access chairman said.

Proactiveinvestors recommends
smartFOCUS' shift to Software as a Service pays dividends Allocate Software looks ideally positioned to benefit from NHS efficiency driveFinancial software specialist StatPro is a British firm to be proud of"I think there is a growing trend towards compliance and we like software services because of its dependable revenue. And there are quite a lot of companies out there we can acquire. There are some good bolt-on opportunities."

Access is one of a new breed of companies focusing on the software as a service, or SaaS sector, where programmes are pumped direct to desktops using the latest cloud computing.

Its last acquisition, the £5 million purchase of a firm called Cobent, is typical of the strategy under Jackson.
Cobent provides material used by the financial services and drugs industry to make sure firms are complying with the latest rules and regulations.

Jackson was speaking after the release of interim results, which revealed pre-tax profits grew by around 180 per cent to £470,000.

One feature of the figures was the cash generation of Access, which at 150 per cent of EBITDA was very strong.
"It is pretty unusual even in the technology sector to be producing cash at that rate," said finance director Jeremy Hamer. "And it's not because we have over-funded the acquisitions. Cash generation qualities are good."

Asked if that meant the group could conceivably pay a dividend, Jackson added: "I wouldn't rule that out."
One element of concern is the tightening of purse strings in the private sector, although neither Jackson nor Hamer were able to predict the potential impact on Access.

"Nobody knows (the extent of the cuts) until the spending review comes out. But we are not currently seeing a massive drop off in demand," Jackson said. "People are being more cautious."

However renewal rates in March and April were very strong. And Hamer points out that Access contracts are usually relatively modest at around £15,000 and £30,000, so aren't a major cost to the business, and points out the software usually saves costs for the business or government department that buys the product.

While the uplift in profits was driven by acquisitions, the underlying performance was robust. Organic revenues grew by 51 per cent, Jackson said, while pre-tax profits almost doubled on a like-for-like basis.


19 July 2010
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).


Current Trading



The tightening of the public sector purse has undoubtedly begun and will increase in severity over the coming months. Despite this we remain cautiously optimistic that our strategy to focus on the cost saving opportunities offered by our 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.



We are continuing to invest in our private sector sales and marketing and are confident of the Group's prospects, with new customer wins across all subsidiaries.

[howdlep] 13/8/2010 11:07

Plus Markets now at 5.25p / 6.25p

Plus 88k buy at 5.6p, was that you Garey?

[garey_de_angelis] 13/8/2010 09:16

Going to try and get another 50k today depending upon how the mms play ball.

I'd like them at under 5.5p but tried yesterday and orde was only part filled.

Looking good for the next leg up.

:-D

[howdlep] 13/8/2010 08:52

One tiny buy and the offer moves up. No reported Plus trades yet, but market there positioned at 5p /6p.
I expect a further move up on the bid shortly, as we get very close to the first of two acquisition announcements, using cash on the balance sheet. These will be immediate EPS enhancing deals

[howdlep] 11/8/2010 12:43

lSE
5.34p and over are all buys. The other two are sells

[condor43] 11/8/2010 12:14

iii has got the 1st 4 trades as sells. BTW I recently got on board and I am looking to acquire a few more when funds allow

[howdlep] 11/8/2010 11:52

The August newsletter of the SF Smaller Companies Growth Fund has just been published and confirms that they have been buying ACC

[howdlep] 11/8/2010 11:28

For the benefit of new investors to this bb, management have already stated they are running the rule over two acquisitions, so that move up to the 7.5p level (resistance at 7.85p) could be very quick indeed

[howdlep] 11/8/2010 11:04

Yes I would agree with that assessment. The move to the 5.5-6.5p range I would expect before the next acquisition is announced. Then once people understand the likely EPS enhancement, a further move to 7.5p will be likely, particularly after Cobent has fully bedded in.

[garey_de_angelis] 11/8/2010 10:20

buy trades are being shared between here and PLUS.

I expectg a tick up on the bid here and on plus shortly.

The next move could be bigger to 5.5-6.5p range as we have seen in the past.

Share still undervalued going forward. expecting it to settle at the 6.5p-7.5p range short term.

:-D

[howdlep] 11/8/2010 08:09

Good to see 4 buys in the first two minutes of trading.

Plus markets positioned at 5 / 6p

[howdlep] 10/8/2010 15:50

bid tickup, offer next. Looking good on narrow spread