Accesso Technology Share Discussion Threads

[bouleversee] 27/1/2022 15:48

No idea, but I hope they stay on AIM.

[rarecontributor] 27/1/2022 14:47

hxxps://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html

[rarecontributor] 27/1/2022 14:45

I mentioned scope for a re-rate in a previous post but thought I’d flesh that out a bit. At a current market capitalisation of approx £300m and exchange rate of 0.75 that gives a market cap of $400m. With 2021 revenue forecast to be no less than $124 that gives a price to sales ratio of 3.2. Based on P10 of the 2021 interim results the operating profit was $1.65m. The Cash EBITDA figure of $9.8m is more relevant though due to the large difference in amortisation v capitalisation of development costs as I’ve previously gone through. Interesting to note that the Cash EBITDA margin was 19.3% for H1 but revenue was only $50.7m. H2 is forecast to be at least $73.3m so it’s clear that the forecast margin of no less than 20% for the full year will be very easy to hit. H2 is always more cash generative and it’s important to note what effect that has. For instance, with a starting net cash position for 2021 of $29.7m that figure had increased to $33.2m by the end of H1 (increase of $3.5m). Based on the forecast net cash for the full year of approx $64m that means H2 will contribute $30.8m. When growth rate is factored in (signing orders left and right etc. Plus a recovery of venue attendance levels from 30% below 2019) it seems that, even for AIM, Accesso is significantly undervalued. For a business that generated 83% of its revenue in the US and Canada during the first half of 2021 it does seem more of a US business than UK one to me and therefore I wondered what it might be valued at if it were listed on NASDAQ. Using figures from the NYU Stern School of Business for Jan 2022 (link to follow) for the software sector (system & application) on the US market there’s an average figure of around 12.4 price to sales ratio for companies with an average net margin of 19.7%

[rarecontributor] 26/1/2022 11:14

hxxps://www.accesso.com/news/accesso-technology-group-plc-presenting-at-the-proactive-one2one-virtual-forum

[rarecontributor] 26/1/2022 11:14

The interesting figure for me in today’s trading update is the year end net cash position of approx $64m. The year started at $29.7m so an increase of approx $34.3m. The previous highest change in net cash per annum was in 2018 at $13.7m! This $34.3m is a better indication of profitability I think than the Operating Profit figure that will be quoted in the year end results in March. As I pointed out previously, historically Accesso have capitalised a high percentage of development costs. This moves them from the P&L to the balance sheet which results in the profit figures being flattered. From 2016-19 they capitalised $66.2m of development costs against an amortisation figure for those development costs of $27.2m. As of the end of 2019 Accesso changed their accounting practice and have now gone the opposite way. Indeed they only capitalised $3m in 2020 with amortisation standing at $11.44m. Again in H1 2021 the capitalisation charge is $0.67m v amortisation of $4.88m. The operating profit figure will therefore look worse than it really should when they report in March but that depends on the split between capitalisation and amortisation for H2. It’ll still be very good indeed though based on the change in net cash this year of $34.3m I’d suggest. As for 2022 prospects? 2021 got off to a poor start due to all of the Californian and European parks being shut for the first few months as well as theatres, live entertainment etc. In H1 2021 Accesso were $9.1m down on revenue generated in H1 2019 due to this as detailed on P7 of the 2021 Interim Results. That hasn’t happened to the same extent this year although Omicron is still slowing things down. It is also very interesting to note that overall attraction visitation for most of 2021 was around 30% down on 2019 levels as detailed in an interesting presentation in October 2021 – link to follow. The same presentation also details the substantial increase in demand for Accesso’s services with contracts being signed “Left and Right”. Although costs due to increased head count are likely to be 8-12% higher in 2022 according to Accesso, it’s clear to see that increased demand and recovering attendance levels will easily exceed absorb that. Accesso is doing well due changing customer habits leading to higher utilisation of ecommerce and mobile in particular and this process has accelerated dramatically as a result of Covid. The days of queueing up to buy a ticket at attraction turnstiles is over. At the current share price I’d say a price to revenue multiple of a little over 3 allows tremendous scope for a re-rate given the obvious jump in profitability to be reported in March and an extremely healthy balance sheet!

[rivaldo] 26/1/2022 07:22

Today's year end update shows trading is nicely in line with the increased figures from the last update for revenues and profits, with $64m of cash in hand.

There's also a rather promising closing paragraph:

"The Group's 2021 revenue performance amid the pandemic is a clear reflection that demand for its technology is strong and its market opportunity is significant. Venue operators are increasingly focused on leveraging technology to meet their guests' mobile-first expectations while operating more efficiently. This has resulted in increased utilisation of accesso solutions within the Group's existing client base as well as robust levels of interest from new customers wishing to sign on."

[nchanning] 25/1/2022 14:22

Love to see multiple directors buying sizeable amounts AFTER a share has already run up towards recent highsThis is sticky vertical market software with a secular tailwind + a natural recovery from COVID that is about to report some serious free cash flow Since directors bought in October at much higher prices , Key clients have been secured on multi year contracts and a constant newsflow of new clients signing up .H2 revenue at 75 million dollars and growing like a weed ...chunky net cash position .. great opportunity imho

[rivaldo] 20/1/2022 16:00

News just out today of another ecommerce ticketing win across Parks! America's portfolio of safari parks....



"Parks! America Inc. Selects accesso® Ticketing Solution

accesso Passport® Ticketing Suite to Boost Guest Experience at Parks! America Inc.'s Wild Animal Safari Parks

Jan 20, 2022, 08:24 ET

ORLANDO, Fla., Jan. 20, 2022 /PRNewswire/ -- accesso Technology Group plc (AIM: ACSO), the premier technology solutions provider for attractions and venues worldwide, has signed a three-year agreement with Parks! America Inc. (OTC PINK: PRKA) to implement its award-winning accesso Passport ticketing solution across the organization's portfolio of Drive-Thru and Walkabout Adventure Zoo Animal Safari parks, supporting both online sales and on-site operations. Implementation is set to begin in February 2022 at Parks! America Inc.'s locations in Pine Mountain, Georgia; Strafford, Missouri; and, Bryan-College Station, Texas.

Using the accesso Passport eCommerce ticketing suite, guests to each Wild Animal Safari location will be able to select from among the parks' multiple admission, pass and group reservation options with ease, and enjoy an easy-to-navigate shopping experience on any device. The accesso Passport eCommerce suite is fully hosted, with secure payment processing available through CyberSource integration, reducing operational burdens while allowing for seamless delivery of intuitive up-sell and cross-sell opportunities to park guests.

Onsite, the accesso Passport ticketing suite provides a streamlined front gate point of sale, focused on driving improved sales results. Training is quick and easy, and the interface helps to reinforce sales training through automated prompts to encourage up-selling – all while enabling quick and simple transactions to keep lines moving quickly. In addition, the solution provides robust group sales features, season pass processing and access control options, as well as the ability to launch self-service kiosks or mobile points of sale.

etc"

[w13ken] 13/1/2022 00:07

We may not have too long to wait. The shareprice climbed sharply last year after the Jan 28th Trading update: an 84% increase from 390p to 720p from 28th Jan to 7th April.

I'm not predicting the same but I think we should be in a better place by Spring.

[bouleversee] 12/1/2022 11:02

I certainly expected the share price to rise today but unlike most things, it has dropped in a straight line. I can't understand it. May top up.

[rivaldo] 12/1/2022 07:44

Cheers W13Ken, that's a good read. Yesterday's news was extremely important, so I expected the share price to rise nicely - I suspect the dodgy markets yesterday hindered progress, but maybe the markets will respond with more market confidence.

[w13ken] 11/1/2022 23:15

The current share price (826p) could climb 57% to Peel Hunt's new target (1300p) & 24% to Shore Capital's (1030p) "with scope for further upgrades".

[rivaldo] 11/1/2022 15:15

Further info on the Merlin contract extension:



Extracts:

"Led by robust mobile commerce features, the fully hosted accesso Passport ticketing suite powers online ticketing, on-site sales, season pass management, and third-party sales distribution and access control, allowing Merlin to offer its guests an intuitive and seamless digital experience. Guests are able to navigate every element of their visit with ease – from selecting their tickets and pre-purchasing parking passes, to planning ahead with dining packages, stroller rentals and more. With the accesso Passport solution, operators are equipped to tap into the rapidly increasing consumer demand for mobile shopping – a key capability in the ever-accelerating shift to eCommerce. With a user experience tailored to the specific needs of the attractions industry, accesso Passport enables world-class operators like Merlin to easily deploy revenue-driving up-sell and cross-sell opportunities across the guest's entire purchasing journey.

Merlin specializes in creating unforgettable, magical moments for guests of all ages, welcoming millions of guests annually through the gates of its beloved attractions and iconic theme park resorts, including SEA LIFE Aquariums, LEGOLAND® Parks, Madame Tussauds™ attractions and the world-famous London Eye."

[aimingupward2] 11/1/2022 10:03

Very reassuring indeed. The picture here just keeps getting better and better.

Motley Fool will be chuffed after tipping ACSO for 2022 and predicting that it will have ‘a great year’.

[rivaldo] 11/1/2022 07:13

Excellent and extremely important news today - both Merlin and Six Flags have renewed their agreements with ACSO until 2026 and 2025 respectively. This secures huge long-term recurring revenues for the group going forward.

And these are both exclusive agreements for on-site as well as online ticketing/e-commerce:

[rivaldo] 10/1/2022 08:33

ACSO tipped here for 2022:



Conclusion:

"Overall, I like Accesso as a tech stock. I believe its products and services are a vital component to the world we live in now and I don’t see things going back to the way they were in terms of queuing and point of sale. I think 2022 could be a great year for Accesso. At current levels, I would buy the shares for my portfolio."

[w13ken] 07/1/2022 09:07

Yes, a nicely varied list of businesses. I'm very optimistic that ACSO will hit 4 figures again by the summer.

[rivaldo] 07/1/2022 07:27

Beat me to it W13Ken - excellent news. Good to see such a wide range of new clients. And all lovely recurring income too:

"The new partners include: Silverton Casino in Las Vegas; Biltmore Theatre in Oshawa, Ontario; UIS Performing Arts Center in Springfield, Illinois; three speedways in Burlington, Washington, Fairbury, Illinois, and Seekonk, Massachusetts; the Peninsula Ballet Theatre in San Mateo, California; and, Mississippi Gulf Coast Community College in Perkinston, Mississippi."

[w13ken] 06/1/2022 23:21

accesso Technology: Performing Arts Venues, Racetracks and Casino Among 15 New North American clients for its accesso ShoWare box office ticketing suite. All are set for full integration by the end of Jan 2022.

[rivaldo] 22/12/2021 08:56

Cheers - the acceleration noted in recent RNS's certainly seems to be continuing nicely.

[w13ken] 21/12/2021 23:12

The last month has seen accesso sign 3-year deals in Canada, Japan and now Alabama. A strong finish to the year and more to come when venues open up in the Spring.

"Gulf Coast’s Largest Entertainment Destination Implements Round of Advanced Technology Solutions

ORLANDO, Fla. (Dec. 21, 2021) – accesso Technology Group plc (AIM: ACSO), the premier technology solutions provider for attractions and venues worldwide, has signed a three-year agreement with Alabama-based OWA Parks & Resort to provide its accesso Passport® eCommerce ticketing suite and accesso SiriuswareSM point-of-sale ticketing system, empowering the operator to enhance its current ticketing operations and prepare for the opening of its new, state-of-the-art indoor water park in 2022.

The award-winning and fully hosted accesso Passport eCommerce ticketing suite equips operators to deliver an exceptional eCommerce experience for guests on any device. The solution is designed to minimize cart abandonment while maximizing conversions through revenue-driving up-sell and cross-sell prompts, allowing operators to effectively anticipate guests’ needs while boosting their own bottom line. The accesso Siriusware point-of-sale solution empowers operators to bring on-site ticketing together with membership, retail, food & beverage, rental support and more into a single system, delivering unified data to drive holistic business management while lowering cost of ownership..."

[aimingupward2] 03/12/2021 11:36

Many thanks, rivaldo, for keeping us updated on new business wins and general progress with this company. Much appreciated.

Overall, I feel that ACSO is a really well managed little gem with an excellent future ahead of it.