Today's interims highlight a good first half, but short-term profits have been hit.
Companies: accesso Technology Group Plc
Accesso (LON: ACSO) has put out its interims for H1 17 today which details the Group's first half of the year, including the acquisition of Ingresso.
ACSO reported revenue growth of 17% to £46.6m whilst profit before tax fell 30% to £1.6m thanks to the March Ingresso acquisition.
Adjusted EBITDA did grow, however, increasing by 34% to £8.7m, and Adjusted Operating Profit was up 30% to £6.5m.
The Group won a number of contracts during the period with partners such as the NFL, Jameson, Legoland, as well as CNN.
Commenting on the interims Steve Brown, Accesso Chief Executive said:
"The start of 2017 has seen good progress across the entire Accesso business. Perhaps most pleasingly, we have seen Accesso Prism, our state-of-the-art in-park wearable device, prove itself in its market and demonstrate its versatility as a solution.
As we move forward, we'll continue with our work to integrate Ingresso and TE2, ensuring we do everything we can to harness their potential to enhance results for our clients."
The Board said they are on track to meet FY17 expectations, "although as ever, full-year performance remains second half weighted."
Singers put out a note on the Group regarding their performance, saying:
"While there is much to look forward to with growing traction from the Accesso Prism solution and increasing contributions from Ingresso/TE2, the market may be a little disappointed in the lack of an upgrade given the recent share price rally."
The market reacted to the interims with shares trading down 6% early this morning. Singers also said their forecasts remain unchanged for now.
The Group's share price has followed the same upward growth trend as revenue and net profits, which have both risen steadily at a CAGR of c. 20% in the five years to 2016.
Accesso's market cap is currently c. £500m, with the Group trading at PE ratio of 40x versus the industry median of 18x.
