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Investors are queuing up for leisure tech group Accesso

The solutions provider has had a great year, illustrated by its soaring share price
March 18, 2016

E-ticket and 'virtual queuing' provider Accesso (ACSO) had a "cracker" of a year, according to chief executive Tom Burnet. Recent acquisitions, new business wins and growing transactional fees all helped group revenue grow by almost a quarter. A significant jump in profit margins from 42.6 per cent in 2014 to 49.4 per cent last year helped lift adjusted operating profit 45 per cent to $12.6m (£8.9m). All in all, this pushed the shares up 4 per cent on the day its results were released.

IC TIP: Hold at 993p

Mr Burnet is optimistic about the coming year, too, although it's still early days. What helps, he says, is that the Aim-traded company has clear visibility over its revenue stream. Approximately 95 per cent of sales come from the transactional model, which means taking a cut each time a client makes a sale. In terms of further acquisitions, there's nothing on the table right now but the group has renewed borrowing facilities with Lloyds Banking (LLOY), allowing for a $25m drawdown plus an additional $10m for potential M&A.

Broker Numis expects pre-tax profit of $13.8m this year, giving EPS of 45.9ȼ, compared with $12.1m and 41ȼ a share.

ACCESSO TECHNOLOGY (ACSO)
ORD PRICE:993pMARKET VALUE:£218m
TOUCH:975-1,010p12-MONTH HIGH:993pLOW: 533p
DIVIDEND YIELD:nilPE RATIO:57
NET ASSET VALUE:289¢*NET DEBT:15%

Year to 31 OctTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201124.62.711.5nil
201229.13.214.6nil
Year to 31 DecTurnover ($m)Pre-tax profit ($m)Earnings per share (ȼ)Dividend per share (ȼ)
2013**61.43.214.7nil
201475.15.118.5nil
201593.27.224.5nil
% change+24+41+32-

*Includes intangible assets of $71.9m or 327¢ a share **14-month period

£1=$1.41