Accesso enjoys e-commerce rebound

Aim-listed Accesso Technology Group (ACSO) has recorded robust revenue and profit margin figures in its interim results to 30 June. After a disappointing 2020, when the group was forced to focus on operational resilience and cost-savings rather than growth due to the impact of the pandemic on the business, it appears as if the tide has turned. 

The group, which provides software centred around virtual queuing and ticketing, enjoyed an operating profit margin of more than 3 per cent compared with both an interim and full-year loss for 2020. Ebitda, a key group metric, exceeded analyst expectations at a record $9.8m (£7.2m), compared with a loss of $10.4m last year. 

Group revenue of $50.7m was an increase of 106 per cent, shooting back to pre-pandemic levels. The accesso Passport division, which facilitates virtual sales, was a standout performer by posting a 40 per cent or $6.3m revenue increase on the same period in 2019. 

Chief executive Steve Brown said that a combination of high labour costs for business and continuing capacity and social distancing measures helped drive revenue. Accesso’s software allows clients to reduce labour costs (as tasks can be completed virtually) and its operating model is now well placed to serve its clients in an uncertain pandemic environment. He also noted that attendance at client sites, such as amusement parks, is sitting at around 85 - 90 per cent of 2019 levels which indicates further revenue and growth potential. 

UK revenue notably struggled, up by $2.6m from last year but still down by $7.1m from 2019. This was due to pandemic restrictions which closed client sites such as West End theatres - recovery in this revenue stream is expected as events start to be held once more. Costs are estimated to increase by about 8-12 per cent by the end of the year, but this is simply a recalibration to a ‘normal’ cost base rather than an unusual increase. 

Performance for the year is expected to at least match pre-pandemic levels. The July 2021 revenue figures for passport and virtual queuing are 51 per cent up against July 2019, and a confident management team has expanded a share awards scheme to all staff. Analysts expect revenue and profitability to increase further due to changes in customer habits and the increasing shift to e-commerce. Broker Numis has an updated Ebitda forecast of $18.6m for 2022. Move to buy. 

Last IC view: Hold, 330p, 24 Jan 2020