Access Intelligence PLC Trading Update (2923Q)
June 18 2020 - 1:00AM
UK Regulatory
TIDMACC
RNS Number : 2923Q
Access Intelligence PLC
18 June 2020
Access Intelligence plc
("Access Intelligence" or the "Company")
Trading Update
Access Intelligence (AIM: ACC), the technology innovator
delivering Software-as-a-Service ("SaaS") solutions for the PR,
communications and marketing industries, announces an update on
trading for the six months ended 31 May 2020.
The Company's underlying business has performed well through the
volatility seen in the first half of the year with strong renewal
rates underpinning growth in Annual Contract Value ('ACV') of
GBP1.04m in the period, over double the GBP0.45m increase for the
equivalent period in 2019. This equates to organic annualised ACV
growth of 12% and, importantly, all sub brands delivered double
digit growth.
The Board anticipates total revenue to be GBP9.4m for the
period, a year on year increase of over 50%. Excluding the
acquisition of Pulsar, revenue grew by 10%. The Company also
implemented a number of cost saving initiatives and the impact of
these measures is expected to result in costs being reduced by
approximately GBP1.1m this year. As a result of the comprehensive
and rapid response taken by the Company to the COVID-19 disruption,
its liquidity position remains strong with net cash of GBP2.6m at
31 May 2020 compared to GBP2.0m at 30 November 2019.
The Company reacted quickly to establish processes that enabled
a successful transition to remote working that protected both the
health and safety of staff but also prevented any disruption to
client service or product development. The changes were made
without impacting the longer-term growth prospects of the business,
with cost saving measures including the Company furloughing
approximately 15% of staff, salary and fee reductions for the Board
and employees for three months, and the curtailment of
discretionary spending.
Alongside the strong performance in renewal rates the period
also saw new business success with clients added including global
brands spanning the public, private and charity sectors. New
clients wins included Aegon, Allen & Overy, Astra-Zeneca,
Chanel, the Co-operative Group, Lotus, Ministry of Justice,
Nintendo, OFGEM and the WWF. In the USA, Pulsar won new clients
including Dow Jones, the International Monetary Fund, Levi Strauss
and Twitter. The wins reflect the improved product portfolio which,
since the addition of Pulsar in October 2019, has been strengthened
to open up new sectors and international opportunities.
The Company continues to actively pursue new business
opportunities and remains encouraged by its ongoing pipeline
development. Nonetheless COVID-19 has inevitably affected the rate
of new business wins as potential new customers put certain
projects on hold and delayed investing in new technology
products.
Given the dynamic nature of the situation it remains hard to
predict how our pipeline of opportunities will evolve over the
remainder of the year. The uncertainty means that whilst the
resilience and strength that the business showed in the first half
is very satisfactory and 93% of revenue is recurring, the Company's
ability to generate new business in line with our original 2020
expectations remains unclear. Therefore, the Board considers it
inappropriate to provide forward-looking guidance until the overall
impact of COVID-19 becomes clearer.
Christopher Satterthwaite, Non-Executive Chairman of the
Company, said: "Despite the challenge COVID-19 has presented all
businesses, the last six months trading has demonstrated the
strength of the Company with encouraging growth seen across the
product portfolio. The strengthening of the portfolio with Pulsar
will accelerate growth and by diversifying the product, sector and
territorial opportunities, contribute to the Company's overall
resilience."
Enquiries:
Access Intelligence plc 020 3426 4024
Joanna Arnold, CEO
Mark Fautley, CFO
finnCap Limited (Nominated Adviser and
Broker) 020 7220 0500
Corporate Finance:
Marc Milmo/Kate Bannatyne/Matthew Radley
Corporate Broking:
Alice Lane/Sunila de Silva
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 ("MAR"). Upon the
publication of this announcement, the inside information is now
considered to be in the public domain for the purposes of MAR.
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
TSTSFLFMWESSEEM
(END) Dow Jones Newswires
June 18, 2020 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