Accesso Technology Share Discussion Threads

[brummy_git] 13/2/2020 10:56

FYI All - Forecasts & valuation metrics for accesso vs software peers can be found here:

[spud] 13/2/2020 10:23

My tuppence worth is that they'll need more cash. spud

[orange1] 13/2/2020 10:19

This is what they said:

"Full year 2019 reported revenues are expected to be at, or marginally below, the lower end of the previous guidance, at between $117 million to $118 million. Adjusted reported EBITDA, excluding costs associated with the Formal Sale Process, is expected to be not less than $27 million, cash EBITDA of not less than $6 million and total development expenditure and capitalized development is expected to be in line with previous guidance at c.$33 million and c.64% respectively. Net cash at the period end is expected to be c.$0.2 million."

Reported revenues at lower end of previous guidance or below. This is excluding the costs associated with the formal sale process, the costs associated with the sacking of the old CEO and the appointment of the new. Reduced borrowing limits is also relevant to the financial health of the company.

[effortless cool] 13/2/2020 09:58

So, basically, your claim that "in the recent update they stated that their financial condition had deteriorated" is false?

[orange1] 13/2/2020 09:53

Net cash year on year has gone down, admittedly by a relatively small amount.

The borrowing facility is to reduce by $10m at the end of March. As of end of June 2019 ACSO had borrowings of $ 24.7m. Can't imagine they will be lower than this in June 20. The borrowing facility is reducing to $ 30m in March 20.

The sacking of Noland and the re-appointment of Brown will have cost a few million dollars I imagine.

[effortless cool] 13/2/2020 09:20

Net debt at 30 June 2019 was $15.2m. Net cash at 31 December 2018 was $0.5m. Net cash at 31 December was estimated to be $0.2m.

Please can you clarify how this is consistent with your claim that "in the recent update they stated that their financial condition had deteriorated"?

[orange1] 13/2/2020 09:09

In the last set of results, six months period to June 19, they reveal that they bled cash of $ 11m in the period leaving them with just $ 9m.

(See pages 8 and 13).

In the recent update they stated that their financial position had deteriorated.

The business of ACSO is seasonal whereby cashflow in the second half of the year is much better than in the first. In addition, they have borrowing facilities (which reduce at the end of March 2020 - see page 8). But still.

[brummy_git] 13/2/2020 09:01

Orange1 - why do they need a fund raise?

[orange1] 13/2/2020 08:40

Is the calf being fattened prior to the fundraise?

[expletive deleted] 13/2/2020 08:18

Even weirder, it has put it up 8%!

[shanklin] 13/2/2020 07:27

Perhaps they need to be able to say this at some event they are attending.

[rivaldo] 13/2/2020 07:18

Indeed! I suppose the main takeaways are the loyalty of the extensive customer base and the positive "forward momentum" going into 2020:



Extracts:

"Positive momentum with renewals and new contracts

accesso Technology Group plc (AIM: ACSO), the premier technology solutions provider to leisure, entertainment and cultural markets, saw positive momentum in 2019 with several noteworthy customer renewals and 43 new or expanded ticketing contracts....

....Steve Brown, CEO of accesso, commented:

"Our range of products continue to deliver powerful business results for our clients around the globe, paired with highly personalized service and support from our exceptional staff. These contract wins and renewals reaffirm the strength of our product offerings, underscore the confidence our customers have in our solutions, and start us off with forward momentum in 2020."

[shanklin] 13/2/2020 07:05

What a weird RNSNON.

[brummy_git] 10/2/2020 17:50

If anyone is interested, here are some updated financial forecasts for ACSO

[1001011] 10/2/2020 16:38

...Though it may take shareholders showing some backbone before the existing Board ever willingly lets the business go.

[rivaldo] 10/2/2020 12:50

New podcast with Paul Hill in which he talks about ACSO from around 36 minutes in.

He states ACSO are "really cheap" on a "compelling" valuation, with 80% recurring revenues etc. Typical such businesses go for 3-5 times sales, so ACSO could go for 1000p or more as a "fallen angel" with lots of upside:

[spud] 07/2/2020 11:17

Very droll EC! :-))

spud

[brucie5] 07/2/2020 11:10

Taken a bite here. Gosh this has fallen a long way! The director buys cannot surely go unnoticed by the market, though the chart does not yet say 'Turn in sight!'. So I may be previous, but if not, then would expect this to rise smartly towards the 600 mark. 500 is first point of obvious resistance. If the value is good as it seems and begins to be realised on the chart, I will almost certainly double up.

[effortless cool] 07/2/2020 11:07

Not quite rivalling Phillip Schofield on Twitter yet, though.

[brummy_git] 07/2/2020 10:35

Plenty of commentary too on Twitter

[someuwin] 07/2/2020 10:05

Its interesting that GAN only really took off once they terminated their sale process last September.

I suspect we may look back at ACSO terminating their formal sale process in January 2020 as the turning point.

Upwards all the way now hopefully.

[rivaldo] 07/2/2020 09:15

Excellent - $1m is not to be sneezed at as a commitment.

That's two sizeable director purchases in the last couple of weeks following the Chairman's purchase (and they wouldn't have been allowed to buy at all whilst the sale process was going on).

[someuwin] 07/2/2020 08:29

Huge vote of confidence...

Steve Brown, Chief Executive officer commented:

"Today I made a further personal investment of $1 million dollars in accesso's shares, punctuating my confidence in the company's future and the opportunity offered to its shareholders. accesso's technology remains well placed to broaden our global customer relationships and holds great potential to deliver shareholder value."