Accesso Technology Share Discussion Threads

[nchanning] 22/3/2022 11:12

I don't think 1400p will be a great result, but it will happen if the share price doesn't rerate. It's a sitting duck with that cash pile a buyer wouldn't even need to put much equity in . This is really a high quality business now , barring once in a century pandemics ...

[aimingupward2] 22/3/2022 09:47

£14 is pretty modest. Just over 3 yrs ago, when neither the company nor it’s markets were as developed, the share price was around double that. So plenty to look forward to here.

[nchanning] 22/3/2022 09:01

Every indication that there will be substantial growth again in FY 2022 , clearly 132m revenue is far too low a forecast as it stands . If we continue to show explosive profitable growth in a sticky vertical market software industry this should trade at 5 x sales at a bare minimum. The share price needs to go up soon or someone will take this out at 1400p ...

[capitalist] 22/3/2022 08:00

I agree Rivaldo.
I especially liked the doubling of EPS.
Time for a rerating, hopefully.

[rivaldo] 22/3/2022 07:20

Wow. Fantastic results today - this in a year heavily impacted by Covid!

Covid and the increased need for ecommerce/mobile ticketing and social distancing have made this a perfect environment for ACSO's services, which are expanding to now include food and beverage for example.

Hugely cash-generative too. ACSO now have around a £50m cash pile - approaching 20% of the m/cap.

And a very bullish outlook as global economies open up - this year's figures could show even better progress:

"accesso has made a strong start to the 2022 financial year, with trading volumes in January and February providing an encouraging basis for this year's performance. In North America, our accesso Passport ticket volumes were double what we saw in the first two months 2019. This robust performance continues to be supported by the removal of COVID-19 restrictions across the world as well as the benefit from a significant number of customers onboarded during the past 2 years and increasing customer appetite for a leading-edge eCommerce solution."

I love this paragraph, which shows the fundamental shift in ACSO's operating environment:

"The significantly higher utilisation of our solutions by both venue operators and their visitors is a clear indication that the relationship with technology in our end markets has undergone a fundamental change. Bearing in mind, a significant portion of our revenue is transaction based and we are confident this new level of engagement with our technologies is here to stay. Many guests who before purchased tickets at the front entry or food at the restaurant counter are now mobile users. Guests that previously utilised our virtual queuing solution via a wearable device are now doing so via their smartphone. Operators have seen our technology transform the quality of their experience, deliver greatly enhanced revenues, and lower their operating costs. They are never going back."

[aimingupward2] 21/3/2022 17:52

Tiny volume of trade today, by contrast with Friday's big figure.

Annual results expected in a day or two.

[bouleversee] 18/3/2022 19:20

I don't find that surprising at all; they have achieved new contracts and the world is opening up -till it doesn't if covid starts getting the upper hand again, of course, or nobody can afford to go on holiday.

[aimingupward2] 18/3/2022 17:32

Yes, an astonishing imbalance of trades. Over 570K bought and fewer than 30K sold.

It'll be very interesting to see what next week brings.

[wad collector] 18/3/2022 16:55

Today's rise does seem rather disproportionate, are we missing something that is under the radar? Or is it just a realisation that the fall has been disproportionate? A lot more volume than the rest of the week combined today, there must be a reason.

[wad collector] 18/3/2022 16:52

Today's rise does seem rather disproportionate, are we missing something that is under the radar? Or is it just a realisation that the fall has been disproportionate?

[rivaldo] 18/3/2022 14:32

Yep, results are normally mid/end of March, so not long to go.

[rimau1] 18/3/2022 13:55

I bought this morning as this has been on my watchlist for a while and i think there should be results announced in March?

[rivaldo] 18/3/2022 11:06

A sudden surge - and on a very healthy 563,000 shares traded already today.

[nchanning] 15/2/2022 14:01

By the end of this year we might be looking at $100m net cash position - perhaps we might see an a big acquisition that adds another 10m of EBITDA

[rivaldo] 02/2/2022 11:43

Flash news just out - Merlin are to take over CadburyWorld in Bourneville "under a 50-year agreement" (more details to follow):



Could well be a long-term revenue opportunity for ACSO too once Merlin get their feet under the table.

[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.