TIDMACC
RNS Number : 5132D
Access Intelligence PLC
22 June 2023
22 June 2023
ACCESS INTELLIGENCE PLC
("Access Intelligence", the "Company" or the "Group")
TRADING UPDATE
Access Intelligence Plc (AIM: ACC), the technology innovator
delivering Software-as-a-Service ("SaaS") solutions for the global
marketing and communications industries, is pleased to announce an
update on trading for the six months ended 31 May 2023.
The Group has made progress against its strategic objectives,
most importantly delivering its first six month period of Annual
Recurring Revenue ("ARR") growth in the APAC region since the
acquisition of Isentia, alongside continued ARR growth in the EMEA
& NA market:
-- The Group expects to report ARR growth of GBP1.4m in the
period(1) , demonstrating a significant increase in momentum in ARR
growth across the Group when compared to ARR growth of GBP0.5m in
H1 2022(1) . Each individual region contributed to the ARR growth
during the first half.
ARR FY22 H1 23 Change in ARR
EMEA & North America (Constant GBP29.4m GBP30.5m +GBP1.1m
Currency)
--------- --------- --------------
EMEA & North America (Reported) GBP29.4m GBP30.5m +GBP1.1m
--------- --------- --------------
APAC (Constant Currency) GBP29.0m GBP29.3m +GBP0.3m
--------- --------- --------------
APAC (Reported) GBP30.6m GBP29.3m -GBP1.3m
--------- --------- --------------
Group (Constant Currency) GBP58.4m GBP59.8m +GBP1.4m
--------- --------- --------------
Group (Reported) GBP60.0m GBP59.8m -GBP0.2m
--------- --------- --------------
-- The Board anticipates total revenue for the period to be not
less than GBP31.3m, compared to GBP32.7m in H1 2022(1) with 95% of
the Group revenue being recurring (H1 2022: 93%).
-- Adjusted EBITDA is anticipated to be not less than GBP2.0m
for the period, a year-on-year increase of GBP1.7m(1) .
-- As a result of the actions taken over the last two years to
optimise the business for profitable growth and free cash flow
generation, the Board anticipates the delivery of higher adjusted
EBITDA and cash generation in the second half in line with full
year expectations.
Continued growth in EMEA & North America
In EMEA and North America the Group has continued to grow,
delivering an increase in ARR of GBP1.1m(1) in the period, similar
to the first half of the prior year. The business continues to
build a good pipeline in the region, including a number of
significant strategic opportunities. Whilst these more strategic
opportunities have a longer sales cycle than the majority of the
Group's pipeline, they represent some of the most interesting use
cases for Access Intelligence's technology and insights offerings.
They also reflect the longer-term market opportunity for Access
Intelligence to increase average order values by signing up a
greater proportion of new business sales from larger, more
technical contracts using a wider range of the Group's product
offering.
EMEA & North America revenue has increased by GBP1.0m
compared to the prior year comparative period due to ongoing ARR
growth in the region. Regional adjusted EBITDA has also improved
due to the year-on-year revenue growth alongside cost optimisation
initiatives.
New client wins in EMEA include: the British Fashion Council,
Carnival, the Delegation of the European Union to the United
Kingdom, Dentsu, the English Football League, HM Land Registry, The
Insolvency Service, Iris Worldwide, Matalan, Mayborn Group, The
National Lottery Heritage Fund, The National Trust, the Office of
the Children's Commissioner, Ofgem, Penguin Random House, Punch
Taverns, Sayara International, Student Loans Company, and Tate
& Lyle.
As previously announced, a significant contract worth GBP0.5m
per annum has been won in North America with a customer seeking to
use the Company's technology to obtain greater insights into its
local and global communications strategy. Other important wins in
North America include Basis Technologies, Havas, Legendary, McCann,
and a partnership with Reddit to deliver strategic research to be
presented at Cannes 2023 Festival of Creativity this week.
First ARR growth delivered in APAC
In APAC there has been positive momentum with the region
delivering ARR growth of GBP0.3m(1) in the period, ahead of the
full release of the Group's next generation platform into the
market expected in the next few months. In the first half of the
prior year, ARR had declined by GBP0.7m(1) . The first six months
of the current financial year are the first period of ARR growth
delivered in APAC since the acquisition of Isentia in September
2021 and reflect the stabilisation of the business in the region as
it has been integrated into the wider Group. There has been strong
engagement with customers and there remains a considerable
opportunity to continue to combine Isentia's established media
monitoring and insights services in the region alongside Access
Intelligence's audience intelligence offering.
Overall, APAC revenue has declined by GBP2.3m compared to the
prior year comparative period due to the combined effect of the
reduction in ARR in FY22 being reflected in revenue in the period
and a reduction in non-recurring campaign revenue. Non-recurring
revenue comprises 8% of total APAC revenue (H1 2022: 10%) and has
been lower in FY23 due to customers running fewer one-off campaigns
given wider macro-economic conditions. Adjusted EBITDA in the
region has increased year on year however as a result of synergies
and other cost optimisation initiatives delivered.
The Group has won a number of new clients (including client win
backs) in the region during the first half, including: CBRE, the
Department of Employment & Workplace Relations, the Department
of Fire and Emergency Services, the Department of Health and Aged
Care, FIFA, Mecca Brands, Merlin Entertainments, Mercedes, New
Zealand Rugby, Senate of the Philippines, Tesla, Uluru Dialogues
and University of Canberra.
Optimisation of the Group's operations
The Group's cash balance at the period end was GBP2.7m with the
Board focussed on delivering positive cash flow in the second half
through improved profitability and working capital enhancement due
to a change in the Group's invoicing profile. Management
continuously seeks to optimise the Group's operational structure to
provide a stable and profitable platform from which to grow in all
serviced global regions. This has been supported by the Group
delivering substantial synergies as part of the integration of
Isentia into the Group alongside other cost reduction
initiatives.
The board looks forward to updating shareholders further with
interim results in July.
Christopher Satterthwaite, Non-Executive Chairman of Access
Intelligence, commented:
"As anticipated, the first half of the year has seen Access
Intelligence deliver a significant increase in ARR growth(1) ,
coming from all global regions and with the first period of ARR
growth in APAC since the acquisition of Isentia.
With the Group's next generation platform being released into
the APAC market during Q3 2023, there is a considerable opportunity
for the Group to accelerate growth as both existing and potential
customers in the region are able to benefit from Access
Intelligence's market leading technology. In EMEA and North
America, growth has continued with a focus on signing up new
customers to take a wider range of the Group's product offering at
higher average order values.
The Board remains focussed on the delivery of improved
profitability and cash generation with a number of cost
optimisation initiatives delivered to date and with further focus
on this during the remainder of the financial year.
Overall, the Board remains confident in the outlook for the
Group in the second half of the year and beyond."
(1.) On a constant currency basis
For further information:
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 / Fergus Sullivan
Corporate Broking:
Alice Lane / Sunila de Silva
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END
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