Access Intelligence Share Discussion Threads

[michaelmouse] 02/9/2015 21:04

Hydrus,

I think the comparatives on a like for like basis with continuing operations were quite favourable. R&D spend reduced as you rightly pointed out, but financing costs also rose, gross margins reduced by 2% and there was higher charge for amortisation and depreciation which offset this reduction.

However, EBITDA and adjusted EBITDA were both well above last year's comparative figures. With the sale of Willow Starcom their bottom line was also a net profit against a loss last year.

The narrative in the text does suggest that that the new products are gaining good traction. The increased revenues will lead to substantially improved profits since whilst gross margins reduced slightly by 2% they stand at a very healthy 79% where 85% of revenues are recurring. The operational gearing should really kick in as revenues begin to rise.

Good luck with your investment.

Michael.

[hydrus] 02/9/2015 20:31

FYI I do have a small position here and I am still minded to stay invested as I think there could be some good traction from these new product over the next year, which I am hoping leads to profits, not just revenue!

[hydrus] 02/9/2015 20:27

Michael, Certainly some good points about top line growth and recurring revenue which is encouraging. What's your take on the bottom line position here? I was surprised to see that expensed R and D in first half of 2015 was £768k compared to prior year comparator when £1,319k of R and D was expensed, yet the company made an even bigger loss this time round. Does that not slightly undermine the theory that as the company winds down its technical research this year, there will be a big boost to the bottom line?I may have missed something obvious here so interested to get perspective on it. As I stated before on here, I don't really see reducing R and D investment as a good reason to invest as in reality a short term profit boost from that is not going to sustain profitability. It's more about whether they can grow profits naturally, eg through increasing profitable contracts. 'Access Intelligence is bringing to an end its investment programme to drive product synergy, innovation and longevity. During the first half of 2015 total spend on such activities was 42% of revenue (H1 2014: 50%). Total R&D and technical spend was GBP1,742,000 (H1 2014: GBP2,081,000) of which we capitalised software development costs of GBP974,000 (H1 2014: GBP762,000).'

[michaelmouse] 28/8/2015 14:26

Unfortunate timing in releasing what were very good and encouraging interims on Monday, although the share price hasn't moved one way or the other this week.

Alongside the notes in post 279, further highlights included:-

"AIMediaComms: The first half of 2015 has seen excellent growth in recurring revenues across all products and sectors, with strong new business wins underpinned by very high client retention rates." Post period end they also acquired certain assets of both Cision UK Limited and Vocus UK Limited.

"C&V are leading providers of Integrated Management Solutions ("IMS") in the UK market and currently support in excess of 1,500 SaaS customers on predominantly annual contracts across a wide range of industries. The Acquisition will provide Access Intelligence with a comprehensive database of global media contacts, including detailed information about new influencers in emerging digital media channels, transforming the proposition of Access Intelligence subsidiary AIMediaComms Limited ("AIMC") and creating an unrivalled portfolio of communications software and services for the UK IMS market."

"Due North: Due North continued to focus its efforts within the public sector with key new market wins in central government and education. The launch of the new product has been widely received by its enviable customer base who are currently in user acceptance testing and will migrate over the course of the second half of 2015. Feedback has been particularly strong around the improved user experience, rich functionality and reporting capabilities to assist them increase efficiencies at every level of local government."

"AITrackRecord: One month after launch (of it's new product), it secured its first FTSE 100 financial services client following a comprehensive analysis of competitors. Whilst increasing its momentum in its core market of financial services, new opportunities are beginning to arise in areas such as manufacturing, oil and gas and logistics due to the capability of the new platform. AITrackRecord looks forward to capitalising on the early success of the platform and growing pipeline in 2016."

"AIControlPoint: Diversification of market verticals has proven essential in 2015 given the downturn in the hydrocarbon industry and AIControlPoint has done well to land key new business with a major group of airports, as well as expanding its footprint within the airline and tour ops industries. The new product is expected to launch in the second half of 2015 and will provide a flexible and powerful solution, which will provide the Product Team with the agility to react quickly to what is an ever-evolving marketplace."

Well worth casting your eye over the full report in case you missed it on Monday.

Michael.

[hydrus] 24/8/2015 11:48

No - is that the scam they warn about in the RNS?

[longshanks] 24/8/2015 11:21

Anyone here been approached by U.S. "Brokers" interested in acquiring a 51% stake?

[michaelmouse] 24/8/2015 07:48

Encouraging set of interim results with good progress been made.

Profit for the period (after the sale of Willow Starcom) of £389,000

Contracted revenue not yet invoiced from continuing operations up 12% to £6.4m

Recurring revenue from continuing operations of £2.8m up 11%, being 85% of total revenue from continuing operations

Technical spend reduced from 50% down to 42%

Cash balance up to £1.7m from £1.1m

Current trading guidance is promising:-

"Our focus on product innovation and the integration of the brands' functionality onto a unified platform is key to our long term strategy and early feedback on the new software from current and prospective customers has been very encouraging. The business pipeline continues to grow with a number of exciting opportunities on the horizon to deliver a combined product offering using the new platform.

The consistent, year-on-year increases in contracted revenue not yet invoiced, our recurring revenue base and sustained investment in innovative product development, demonstrate the Group's long term stability and provide a solid foundation for continued growth."

Michael.

[jimbobtechstock] 04/8/2015 19:13

Apologies on MJ yes of course he has 25m not 2.5m Just seemed large compared to the quiet period and I started to get nervous about upcoming results - I have such great hopes for ACC!

[hydrus] 04/8/2015 17:12

I can see just under 4m shares traded? So just under £90k? Not that big, could be a PI or an II trimming their position. Michael Jackson owns about 25m shares FYI

[jimbobtechstock] 04/8/2015 17:01

Nearly 4m shares traded in 2 large trades just below mid price shortly before close. Shouldn't be directors as they are almost certainly in close period preparing the interims (plus MJ doesn't hold that many..).

Insight, anyone?

[hydrus] 30/7/2015 21:29

I don't disagree Michael. I can see the recurring revenues and reduction in R and D creating profits that would put this on a competitive rating. That might result in a reasonable uplift in the share price. However, in order to achieve a very good return for shareholders, ACC will need to grow the topline significantly and demonstrate their new upgraded products are selling well. Personally I'm only interested in the prospects of a very good return so will be watching here for signs of progress. They are at a critical point, clearly.

[michaelmouse] 30/7/2015 20:55

I imagine that R and D expenditure will remain at reasonable levels to keep them ahead of competitors, just not at the exceptional levels they have invested in recent years.

I don't expect the interims to be fantastic but I envisage that in the next year or two investors should be handsomely rewarded.

77% of revenues are recurring, the company are cash generative, the reduced R & D spend should move the company into profit and revenues should continue to improve.

It will be interesting to see how the integration of the recent acquisition is progressing.

Personally, I think on a balance of probabilities patient investors will see a very good return. The current market cap. is hardly demanding and the potential upside enticing. We shall see in the fullness of time.

Michael.

[hydrus] 30/7/2015 19:52

Hmm if R and D expenditure is cut then yes, in the short term that will boost profits. But what if that expenditure is needed to keep them up with/ahead of competitors? I get that they have recently increased R and D significantly but if that doesn't result in a really good increase in profit AND turnover from new business then it's a been a poor investment. So I would say the key bit is seeing the top line grow.

[longshanks] 30/7/2015 19:07

Looking back at other years, interim a are typically posted in mid July.On this basis, they are late but given the integration of the new businesses understandable.Easy for them to become a sustainably profitable business - just cut the R&D spend which is massive relative to the market cap. I am sure that these results will show the initial benefits from the cut in spending announced earlier this year.I have bought a sizeable holding too in anticipation of a good rally on the back of a re-rate by the market.

[dgwinterbottom] 30/7/2015 10:09

Jimbo - I have had these many years and I think given they have disappointed in the past people are waiting for sustained improvement.

I too look forward to progression and hopefully the share price with it, the one danger is they are heavily reliant on the public sector and quango organisations that may be cut back or even abolished in some cases!

[jimbobtechstock] 30/7/2015 08:25

ACC have an early year end so interims are due out in August. Will be an interesting time as the period covers consolidation of acquired businesses together with, one presumes, the tail end of their platform investment project.

I've built up quite a holding (for me, anyway) all sub 4p. Overall I'm very confident about this business. The down-to-earth approach to expansion, cashflow management, investment in their platforms. Director dealings are a vote of confidence too.

But admit I'm a bit nervous how the market will read the upcoming results. I hope with a relatively stable share price (relative to other AIM companies) indicating many longer term holders that the response will be considered, should the results throw up anything interesting. Or maybe they will just show more solid progress, who knows.

Anyone still awake on this board with views?

[longshanks] 06/7/2015 20:14

3% of the shares traded at 4.25p - looks promising.

[jimbobtechstock] 26/6/2015 09:01

What stands out about ACC for me is turnover per share is approx equal to the current share price For a non-listed company that kind of valuation would be nuts but the market doesn't seem to like the kind of non-leveraged restrained investment and growth trajectory this this share seems to be on.

I'm hoping for x10 long term on this. I'm just a punter so usual disclaimers apply - this personal opinion, DYOR etc.

[wolansm] 26/6/2015 08:29

Yes been here years and will stay on board, reminds me of another share, gbg which was stagnant for years then whooooosh, this is looking good

[longshanks] 26/6/2015 05:50

3 year high reached....We may get a pull back as some take profits but this has signs of going much higher. My timing appears to have been perfect. :)

[dgwinterbottom] 25/6/2015 19:15

Hawk Investments? Kestrel Holdings? Both Birds of Prey, wonder if there is any connection????

[squibno1] 25/6/2015 13:42

Kestrel Holdings now own over 9% of the shares.
Interest in the company certainly seems to have perked up.

[jimbobtechstock] 24/6/2015 16:03

Thanks Michael for your continued insight. I've just increased my holding - the share price was way depressed since they stopped divis, but as noted they're largely cash generative with or without returns on the R&D investment so, assuming they can scale operations accordingly there's a paper profit in there to be had (worst case) or an ROI (best case)... Keep looking at the marcap and can't help have grand hopes for this share!

[longshanks] 23/6/2015 16:14

Seems to be a Channel Islands company with a single owner - Susan Morton - husband is a director of Hawk too. Probably a tax avoidance/inheritance planning wrapper for personal holdings.