TIDMACC
RNS Number : 4462F
Access Intelligence PLC
15 July 2019
ACCESS INTELLIGENCE PLC
("Access Intelligence", the "Company" or the "Group")
INTERIM RESULTS
Access Intelligence Plc (AIM: ACC), a leading supplier of
Software-as-a-Service (SaaS) solutions for communications and
reputation management, announces its unaudited half year results
for the six months ended 31 May 2019.
Highlights:
-- First half revenue increased by approximately 42% to GBP6.2
million (H1 2018: GBP4.3 million).
-- Annual Contract Value ("ACV") base increased by approximately
45% year on year to GBP12.9 million (H1 2018: GBP8.9 million):
o ACV base increased by GBP0.45 million during H1 (H1 2018:
GBP0.36 million).
-- The Company delivered an Adjusted EBITDA* profit in the
period of GBP379,000 (H1 2018: loss GBP55,000).
-- At 31 May 2019, cash balance was GBP1.76 million (H1 2018: GBP3.06 million).
-- ResponseSource Ltd ("ResponseSource") integration activity
progressing in line with expectations, with customers to be
migrated onto upgraded systems during Q3 2019.
-- 92% of the expected GBP700,000 annualised synergy savings
pursuant to the acquisition already achieved.
-- Continued investment in product development with new
functionality added to support a range of artificial intelligence
led insights alongside advanced data management that allows
customers to manage sensitive data in accordance with increasingly
stringent privacy law.
Christopher Satterthwaite, non-executive Chairman,
commented:
"In this half year period, the Group delivered increased revenue
and an Adjusted EBITDA profit of GBP379,000, driven by the
acquisition of ResponseSource in 2018 and encouraging organic
growth. We are pleased with the progress made which reflects the
strength of the organisation and the value of its
subscription-based revenue model. As the integration of
ResponseSource with the Vuelio platform nears completion, we expect
growth to accelerate due to the new services available to
customers. We are progressing well on our journey to creating the
market leading, intelligence platform set to transform reputation
management."
* Adjusted EBITDA is earnings before interest, tax, depreciation
and amortisation and adjusted for share based payments, share of
losses of an associate and non-recurring expenses primarily
relating to the acquisition and integration of ResponseSource
For further information:
Access Intelligence plc 020 3426 4070
Joanna Arnold (CEO) / Mark Fautley (CFO)
finnCap Limited (Nominated Adviser and Broker) 020 7220 0500
Marc Milmo / Kate Bannatyne / Matthew Radley
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
Chairman's statement
I am pleased to announce our unaudited interim results for the
six months ended 31 May 2019.
In this half year period, the Group delivered increased revenue
and an Adjusted EBITDA profit driven by the acquisition of
ResponseSource in 2018 and encouraging organic growth. This
demonstrates the progress made and reflects the strength of the
organisation and its revenue model.
The Group's Vuelio brand provides a software as a service
("SaaS") platform where revenues are underpinned by a growing,
recurring base of subscriptions on annual or multi-year contracts.
In the first half of 2019, approximately 98% of revenue was
generated by customers on SaaS contracts, with the vast majority of
these billed annually in advance.
Into the future, the Vuelio platform presents significant growth
potential because it provides the insight and tools organisations
need in a fast-changing communications landscape. Trends from
digital disruption to political fragmentation make it imperative
for organisations to be able to access real time, actionable,
information on the debates and issues relevant to their specific
needs.
As the integration of ResponseSource functionality with the
Vuelio platform nears completion, growth is expected to accelerate
as new benefits become available to both Vuelio and ResponseSource
customers. It will unlock upsell opportunities from an expanded
product suite that will allow customers to combine media monitoring
with political insight and influencer analysis. This is integrated
with a stakeholder management tool that provides customers with
flexible workflow capabilities that improve overall effectiveness
and productivity. The developments are fundamental to creating the
market leading, intuitive, intelligence platform that will
transform reputation management.
While supporting expansion of the Vuelio product suite, the
integration of ResponseSource also adds depth to the Access
Intelligence media and influencer network with over 1,500 new
customers. These include household brand names from L'Oreal and
Panasonic to Pizza Express; professional services firms Accenture,
Deloitte and KPMG; and the majority of the UK's top 150 PR
agencies. The Access Intelligence customer portfolio now contains
more than 3,000 organisations.
The Directors remain confident about the ongoing growth
opportunity for the remainder of the current financial year and
beyond. Ongoing product development will deliver enhancements that
are expected to improve retention, provide cost synergies and
enhance margin. Bringing together the functionality of
ResponseSource with the Vuelio platform will unlock value inherent
in the vast store of media data built up across both
organisations.
We will sustain the Company's growth by continuing to invest in
the Access Intelligence network, expanding the potential of the
platform and the benefit to the communications and marketing
industries. To support our growth today and into the future, we
have invested in expanded new premises for the London HQ, entering
into an agreement for a new leasehold property in July 2019. This
will provide capacity for the Group to finalise the ResponseSource
integration by co-locating all employees in a single office with
the move expected to be completed by the end of the current
financial year.
Results for the half year
A key financial metric monitored by the Board is the growth in
the ACV base year-on-year. This reflects the annual value of new
business won, together with upsell into the Company's existing
customer base as it delivers against its land and expand strategy,
less any customer losses. It is an important metric for the Group
as it is a leading indicator of future revenue.
Total ACV growth over the year from 1 June 2018 was 45% year on
year with the Group having an ACV base of GBP12.9 million at 31 May
2019. GBP3.3m of the growth reflects the benefits of the
ResponseSource acquisition, with the remaining GBP0.7m of growth
being achieved organically. In the first half of 2019, the enlarged
Group's ACV base grew by GBP0.45 million.
Revenue from continuing operations for the period grew by 42% to
GBP6,159,000 (H1 2018: GBP4,346,000). The year-on-year increase was
primarily driven by the ResponseSource acquisition, plus the growth
in ACV delivered by Vuelio during the second half of the 2018
financial year and the first half of 2019. GBP4,465,000 of revenue
in the period related to Vuelio and GBP1,694,000 related to
ResponseSource. Recurring revenue comprised 98% of total revenue
(H1 2018: 99%).
Gross profit from continuing operations increased by 51%
year-on-year to GBP4,263,000 (H1 2018: GBP2,831,000) with gross
margin increasing to 69% (H1 2018: 65%).
Adjusted earnings before interest, tax, depreciation and
amortisation ("EBITDA") were GBP379,000 compared to a loss of
GBP55,000 in H1 2018. Adjusted EBITDA excludes certain
non-recurring items totalling GBP662,000 for the period (H1 2018:
GBP99,000), in addition to the Group's share of loss of an
associate of GBP92,000 (H1 2018: GBP130,000) and a share-based
payments charge of GBP21,000 (H1 2018: GBPNil).
Non-recurring items in the period included transition and
migration costs in respect of ResponseSource of GBP662,000 (H1
2018: GBPNil). It is not anticipated that the transition and
migration costs in respect of ResponseSource will continue into the
financial year ended 30 November 2020. Reported EBITDA loss from
continuing operations was GBP396,000 (H1 2018: loss of
GBP284,000).
The Group increased its investment in the Vuelio platform with
identifiable new product development activity being capitalised.
The Group capitalised development costs of GBP1,048,000 for the
period (H1 2018: GBP377,000), with a further GBP408,000 (H1 2018:
GBP310,000) being expensed through profit and loss.
The Group's operating loss from continuing operations was
GBP1,383,000 (H1 2018: loss GBP773,000). The Group incurred
GBP987,000 of depreciation and amortisation charges (H1 2018:
GBP489,000).
The basic loss per share from continuing operations was 2.25p
(H1 2018 restated: loss 2.34p). H1 2018 earnings per share
information has been restated to reflect the one-for-ten share
consolidation completed in November 2018.
The Group held cash at the end of the period of GBP1,762,000 (H1
2018: GBP3,056,000). Of the GBP2,343,000 cash outflow from
operating activities for the six months to 31 May 2018,
GBP1,854,000 related to deferred consideration for ResponseSource,
reflecting the free cash in the business at the date of completion.
This deferred consideration payment represents the majority of the
GBP1,876,000 reduction in trade and other payables between 30
November 2018 and 31 May 2019.
Current trading and outlook
In summary, the Group continues to trade in line with the
Board's expectations for the current financial year. We are well
into our journey to build the market leading platform for
reputation management. Our technology led approach provides
customers with the real time insights and intelligence they need to
stay ahead in the constantly changing communications landscape. We
will capitalise on this opportunity through continued investment
and our product development strategy. We remain focussed on
continued growth in scale and market position through a combination
of organic growth, partnerships and acquisitions that will enhance
the Group's capabilities and/or geographic reach. The opportunities
created by this approach together with the undoubted progress we
have made following the acquisition of ResponseSource gives us
confidence in Access Intelligence's future growth potential.
Christopher Satterthwaite
Non-executive Chairman
Access Intelligence Plc
Consolidated Statement of Comprehensive Income
for the six months ended 31 May 2019
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
31-May-19 31-May-18 30-Nov-18
Continuing operations GBP'000 GBP'000 GBP'000
Revenue 6,159 4,346 8,888
Cost of sales (1,896) (1,515) (3,083)
--------------- --------------- -----------
Gross profit 4,263 2,831 5,805
Recurring administrative expenses (3,884) (2,886) (5,771)
--------------- --------------- -----------
Adjusted EBITDA 379 (55) 34
Non-recurring administrative
expenses (662) (99) (473)
Share of loss of associate (92) (130) (222)
Share-based payments (21) - -
--------------- --------------- -----------
EBITDA (396) (284) (661)
Depreciation of tangible fixed
assets (47) (36) (78)
Amortisation of intangible
assets (940) (453) (818)
--------------- --------------- -----------
Operating loss (1,383) (773) (1,557)
Financial expense (58) (166) (160)
--------------- --------------- -----------
Loss before tax (1,441) (939) (1,717)
Taxation credit - - 362
--------------- --------------- -----------
Loss for the period from continuing
operations (1,441) (939) (1,355)
Loss for the period from discontinued
operations - (120) (155)
--------------- --------------- -----------
Loss for the period (1,441) (1,059) (1,510)
Other comprehensive income - - -
--------------- --------------- -----------
Total comprehensive loss for
the period attributable to
the owners of parent company (1,441) (1,059) (1,510)
--------------- --------------- -----------
Earnings per share:
Continuing and discontinued
operations
Basic loss per share (2.25)p (2.63)p (3.32)p
Diluted loss per share (2.25)p (2.63)p (3.32)p
Continuing operations
Basic loss per share (2.25)p (2.34)p (2.98)p
Diluted loss per share (2.25)p (2.34)p (2.98)p
* 31 May 2018 earnings per share information has been restated
to reflect the one-for-ten share consolidation completed in
November 2018.
Access Intelligence Plc
Consolidated Statement of Financial Position at 31 May 2019
Unaudited Unaudited Audited
As at As at As at
31-May-19 31-May-18 30-Nov-18
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 14,188 6,155 14,033
Investments in associates 226 150 318
Property, plant and equipment 170 148 167
Deferred tax asset 37 206 37
----------- ----------- ---------
Total non-current assets 14,621 6,659 14,555
----------- ----------- ---------
Current assets
Trade and other receivables 4,344 3,081 3,640
Current tax receivables 362 458 362
Cash and cash equivalents 1,762 3,056 5,300
Total current assets 6,468 6,595 9,302
----------- ----------- ---------
TOTAL ASSETS 21,089 13,254 23,857
----------- ----------- ---------
Current liabilities
Trade and other payables 2,037 1,590 3,913
Accruals 1,162 1,404 1,006
Provisions 171 - 75
Deferred revenue 6,749 4,541 6,354
Interest bearing loans and
borrowings 139 135 210
Total current liabilities 10,258 7,670 11,558
----------- ----------- ---------
Non-current liabilities
Provisions - 256 96
Interest bearing loans and
borrowings 840 869 867
Deferred tax liabilities 609 206 609
----------- ----------- ---------
Total non-current liabilities 1,449 1,331 1,572
----------- ----------- ---------
TOTAL LIABILITIES 11,707 9,001 13,130
----------- ----------- ---------
NET ASSETS 9,382 4,253 10,727
----------- ----------- ---------
Equity
Share capital 3,204 2,433 3,189
Treasury shares (148) (148) (148)
Share premium 13,135 6,906 13,075
Capital redemption reserve 191 191 191
Share option valuation reserve 369 348 348
Equity reserve - - -
Retained earnings (7,369) (5,477) (5,928)
----------- ----------- ---------
TOTAL EQUITY ATTRIBUTABLE TO
EQUITY SHAREHOLDERS 9,382 4,253 10,727
----------- ----------- ---------
Access Intelligence Plc
Consolidated Statement of Changes in Equity
for the six months ended 31 May 2019
Share
Share Treasury Share Capital option Equity Retained Total
capital Shares premium redemption valuation reserve earnings
account reserve reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 December
2017 1,743 (148) 2,352 191 348 255 (4,418) 323
Total comprehensive
income for
the period - - - - - - (1,059) (1,059)
Issue of share
capital 350 - 2,361 - - - - 2,711
Conversion
of Convertible
Loan Notes 340 - 2,193 - - (255) - 2,278
At 31 May 2018 2,433 (148) 6,906 191 348 - (5,477) 4,253
-------- --------- -------- ----------- ---------- -------- ---------- --------
Total comprehensive
income for
the period - - - - - - (451) (451)
Issue of share
capital 756 - 6,169 - - - - 6,925
At 30 November
2018 3,189 (148) 13,075 191 348 - (5,928) 10,727
-------- --------- -------- ----------- ---------- -------- ---------- --------
Total comprehensive
income for
the period - - - - - - (1,441) (1,441)
Exercise of
share options 15 - 60 - - - - 75
Share-based
payments - - - - 21 - - 21
At 31 May 2019 3,204 (148) 13,135 191 369 - (7,369) 9,382
-------- --------- -------- ----------- ---------- -------- ---------- --------
Access Intelligence Plc
Consolidated Statement of Cash Flow
for the six months ended 31 May 2018
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31-May-19 31-May-18 30-Nov-18
GBP'000 GBP'000 GBP'000
Loss for the year attributable
to shareholders (1,441) (1,059) (1,510)
Adjustments for:
Taxation - - (362)
Depreciation and amortisation 987 489 896
Share option charge 21 - -
Share of loss of associate 92 130 222
Financial expense 58 166 160
Loss on sale of A.I. Talent - 29 64
Operating cash outflow before
working capital changes (283) (245) (530)
(Increase)/decrease in trade and
other receivables (698) (21) 174
(Decrease)/increase in trade and
other payables (1,362) 729 2,414
----------- ----------- ---------
Net cash (outflow)/inflow from
operations (2,343) 463 2,058
Tax received - - 458
----------- ----------- ---------
Net cash (outflow)/inflow from
operating activities (2,343) 463 2,516
----------- ----------- ---------
Investing
Acquisition of PPE (49) (37) (78)
Acquisition of software licences (48) - (36)
Cost of software development (1,048) (377) (1,344)
Disposal of A.I. Talent Limited - (5) (5)
Less: cash and cash equivalents
disposed of - (142) (142)
Investment in associate - - (260)
Acquisition of ResponseSource
Ltd - - (5,000)
----------- ----------- ---------
Net cash outflow from investing
activities (1,145) (561) (6,865)
----------- ----------- ---------
Financing
Interest paid (125) (162) (160)
Issue of shares - 2,643 9,136
Exercise of share options 75 - -
Net cash (outflow)/inflow from
financing activities (50) 2,481 8,976
----------- ----------- ---------
Net (decrease)/increase in cash (3,538) 2,383 4,627
Opening cash and cash equivalents 5,300 673 673
----------- ----------- ---------
Closing cash and cash equivalents 1,762 3,056 5,300
----------- ----------- ---------
Notes
1. Unaudited notes
Basis of preparation and accounting policies
The financial information for the six months to 31 May 2019 is
unaudited and was approved by the Board of Directors on 12 July
2019.
The interim financial statements do not include all of the
information required for full annual financial statements and
should be read in conjunction with the consolidated financial
statements for the year ended 30 November 2018.
The interim financial information for the six months ended 31
May 2019, including comparative financial information, has been
prepared on the basis of the accounting policies set out in the
last annual report and accounts, and in accordance with
International Financial Reporting Standards ("IFRS").
The preparation of the interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expense. Actual results
may subsequently differ from those estimates.
In preparing the interim financial statements, the significant
judgements made by management in applying the Group's accounting
policies and key sources of estimation uncertainty were the same,
in all material respects, as those applied to the consolidated
financial statements for the year ended 30 November 2018.
The Group has elected to present comprehensive income in one
statement.
Going concern assumption
The Group manages its cash requirements through a combination of
operating cash flows and long-term borrowings in the form of
non-convertible loan notes.
The Group's forecasts and projections, taking account of
reasonably possible changes in trading performance, show that the
Group should be able to operate within its existing cash deposits
and loan facilities.
Consequently, after making enquires, the Directors have a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis of
accounting in preparing the interim financial statements.
Information extracted from the Group's 2018 Annual Report
The financial figures for the year ended 30 November 2018, as
set out in this report, do not constitute statutory accounts but
are derived from the statutory accounts for that financial
year.
The statutory accounts for the year ended 30 November 2018 were
prepared under IFRS and have been delivered to the Registrar of
Companies. The auditors reported on those accounts. Their report
was unqualified, did not draw attention to any matters by way of
emphasis and did not include a statement under Section 498(2) or
498(3) of the Companies Act 2006.
2. Earnings per share
The calculation of earnings per share is based upon the loss
after tax for the respective period, for continuing operations
only. The weighted average number of ordinary shares used in the
calculation of basic earnings per share is based upon the number of
ordinary shares in issue in each respective period.
The impact of share options granted under the company's share
option are anti-dilutive due to the Group being in a loss-making
position, so the weighted average number of ordinary shares used in
the calculation of diluted earnings per share is the same as for
basic earnings per share.
This has been computed as follows:
Restated Restated
6 months 6 months 6 months 6 months Year Year
ended ended ended ended ended ended
31-May-19 31-May-19 31-May-18 31-May-18 30-Nov-18 30-Nov-18
----------- ----------- ----------- ----------- ---------- ----------
Basic Diluted Basic Diluted Basic Diluted
----------- ----------- ----------- ----------- ---------- ----------
Continuing
and discontinued
operations
----------- ----------- ----------- ----------- ---------- ----------
Loss after
tax (GBP'000) (1,441) (1,441) (1,059) (1,059) (1,510) (1,510)
----------- ----------- ----------- ----------- ---------- ----------
Number of
shares ('000)* 63,945 63,945 40,212 40,212 45,523 45,523
----------- ----------- ----------- ----------- ---------- ----------
Loss per
share (pence) (2.25) (2.25) (2.63) (2.63) (3.32) (3.32)
----------- ----------- ----------- ----------- ---------- ----------
Basic Diluted Basic Diluted Basic Diluted
----------- ----------- ----------- ----------- ---------- ----------
Continuing
operations
----------- ----------- ----------- ----------- ---------- ----------
Loss after
tax
(GBP'000) (1,441) (1,441) (939) (939) (1,355) (1,355)
----------- ----------- ----------- ----------- ---------- ----------
Number of
shares ('000) 63,945 63,945 40,212 40,212 45,523 45,523
----------- ----------- ----------- ----------- ---------- ----------
Loss per
share (pence) (2.25) (2.25) (2.34) (2.34) (2.98) (2.98)
----------- ----------- ----------- ----------- ---------- ----------
* 31 May 2018 earnings per share information has been restated
to reflect the one-for-ten share consolidation completed in
November 2018.
3. Events after the Balance Sheet date
On 8 July 2019, the Group entered into an agreement for a new
leasehold property for a term of 10 years with an option to
determine the lease after five years. It has also served notice on
its existing leasehold property.
4. Availability of interim results
The interim results will not be sent to shareholders but will be
available at the Company's registered office at Longbow House, 20
Chiswell Street, London EC1Y 4TW and on the Company's website:
www.accessintelligence.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LLFVRDIIFLIA
(END) Dow Jones Newswires
July 15, 2019 02:00 ET (06:00 GMT)
Access Intelligence (LSE:ACC)
Historical Stock Chart
From Apr 2024 to May 2024
Access Intelligence (LSE:ACC)
Historical Stock Chart
From May 2023 to May 2024