Accesso Technology Share Discussion Threads

[shanklin] 13/7/2017 09:56

WC,

Spud's percentage holding reduced by circa 20% overnight

[wildchild] 13/7/2017 09:53

spud : Don't you have to declare over x% ? ;-)

[spud] 13/7/2017 09:42

Having done my DD, I feel comfortable with the fit and anticipate that this could be a game changer for ACSO akin to the introduction of TB.

Taken another 1k.

spud

[aimingupward2] 13/7/2017 09:42

"I guess we can take comfort the institutions were prepared to snap up $75m of shares at no discount to yesterday's closing price."

Yes, I think so too. It's no good looking short term at acquisitions of this sort. They are for the benefit of accesso's growth and international success and thus for investors rather than traders.

[alphabeta4] 13/7/2017 09:04

We'll have to wait and see. If ACSO is on a fwd PE of around 40 and is paying $83.2m with it being 'mildly earnings enhancing in first full year after acquisition' I take that to mean profits of just over $2m for year ending Dec 2018 (and the reference to cash positive by end 2018 to mean this profit will be pre capitalised development costs of under $2m).

If EBITDA was -$4.6m 2015, -$3.1m 2016, then implies a trajectory of something like -$1m? 2017, $2m? 2018.

I guess we can take comfort the institutions were prepared to snap up $75m of shares at no discount to yesterday's closing price.

[wildchild] 13/7/2017 09:02

Bought a few. I'm inclined to believe the management here. They've not put a foot wrong yet.
Also, I now think this has been walked down over the last couple of months to accommodate the acquisition.

[az4hr] 13/7/2017 08:58

hmm just a query carcosa at what price would you have considered this purchase as crazy if 80M dollars for a 3.2m dollar loss is reasonable

[carcosa] 13/7/2017 08:40

I see this as major positive news for the medium and long term; Given the remarkable rate of growth in TE2 had Accesso waited a couple of years for it to be profitable then in all likelihood Accesso would either have had to pay significantly more or perhaps never be in the position to acquire TE2 who may have morphed into a competitor by then.

TE2 appear to be US based only whereas Accesso have the contacts to deploy TE2 technology worldwide and, crucially, experience in scaling up operations.

It will certainly be interesting to see Accesso present their vision for TE2 hopefully in the not too distant future. Alternatively await a 'proper' analyst report.

[shanklin] 13/7/2017 08:32

Worth noting that over the last two months, ACSO's Mkt Cap had gone down by more than the cost of this acquisition. So, if one was previously holding ACSO at £20, there seems little reason to sell the enlarged ACSO for £16.60... ...Unless, of course, one takes the view that management have completely lost the plot.

I am sure TB and/or DB will be doing interviews about this acquisition that will be made available to private investors, giving more background on their decision process. In the mean time I will give them the benefit of any doubt.

[itchycrack] 13/7/2017 08:24

Accesso are playing the long game here. Sometimes you just have to strike when you have the chance otherwise you miss out and regret it later along the line. I view this as majorly positive. Ignore the short term noise and focus on the long term bigger picture.

[panic investor] 13/7/2017 08:20

It does worry me a tad to be honest - trying to investigate further

[az4hr] 13/7/2017 08:19

doesnt anyone think this is an awful acquisition the price the lack of profitability seems to me the management have lost the plot I have sold out

[bamboo2] 13/7/2017 08:16

Tentatively added a few more. An eod close above approx 1685 confirms a tp around 1830

[shanklin] 13/7/2017 07:32

Looks like, prior to acquisition, TE2 had become (was becoming?) a major competitor to ACSO in terms of some of what ACSO is aiming to do with theme parks and leisure operators. Presumably TE2 also saw ACSO as quite an obstacle.

Working together may be a big win for both companies?

[rivaldo] 13/7/2017 07:15

Certainly an exciting-looking acquisition - plus marginally earnings-enhancing in the first year post-acquisition and presumably strongly earnings-earnings subsequently.

In case anyone missed it, there's a very positive section on current trading too:

"Current trading

Further to the AGM statement published on 23 May 2017, the first part of the 2017 financial year has started strongly, with all parts of the business generating good momentum. As is normal for the Company, around 38% of the year has been traded to date. The integration of the Ingresso acquisition made in March 2017 continues to progress well and in line with management's expectations, whilst the Merlin Entertainment roll-out also continues to plan. TE2 also continues to trade strongly as expected for a high growth business, with underlying revenue growing significantly during the first 5 months of 2017 versus the same period the previous year. The Board remains entirely focused on continuing to deliver value for shareholders."

[togglebrush] 13/7/2017 07:11

RNS in brief
'
placing price of 1,620 pence per New Ordinary Share ("Placing Price"), raising gross proceeds of approximately GBP58.8 million ($75.6 million)

[carcosa] 13/7/2017 05:03

Having had a look around TE2's website it appears they are trying to make the customer feel more like a VIP; as an example.

See: hxxp://www.smartbrief.com/original/2017/07/technology-elevates-hotel-food-and-beverage-services

and

hxxp://www.hotelmanagement.net/tech/how-to-use-internet-things-to-elevate-customer-experience

I can see how Accesso is interested in this business. To me it does not significantly overlap Accesso's current business and provide's opportunities in new markets which may have the potential to provide very significant revenue in years to come.

Have to agree with earlier posters since the announcement.

Lets see what today brings...

[shanklin] 12/7/2017 20:35

Given the demand for ACSO shares that took the share price to above £20, it will be interesting to see the price achieved on the book-build. Scandalous that, as ever, insider-trading criminals have knowingly pushed the price down over the last couple of months.

[lomax99] 12/7/2017 18:43

TE2 need congratulating for realising significant value in a relatively short period of time, let's hope we can fully capture, and enhance it!

[supernumerary] 12/7/2017 18:22

Yes, shocking isn't it. ACSO runs a pretty tight ship but still happens. I think I've seen a fall like this before every single placing I've ever seen on AIM. 'Light touch regulation' at work...

[melton john] 12/7/2017 18:18

Any other cynics think the last 2 months selling was started by people in the know in the city telling their mates. 1600 placing price is my guess. I know nothing.
Place your bets.

[spud] 12/7/2017 18:00

Not sure yet PI, I guess it'll be fleshed out over the next few days. Tom is stoked tho'! I think we'll all find that this is the beginning of the next chapter in the ACSO story. spud

[supernumerary] 12/7/2017 17:50

spud - I wonder how far off the FTSE 350 they'll be? ;¬)

[panic investor] 12/7/2017 17:49

No wonder Burnett said it was just the beginning in February

[bamboo2] 12/7/2017 17:48

PI, I guess they'll be an announcement in the morning.