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Access Intelligence
- BY: Andrew Hore |
- POSTED: 08/03/2011 |
Software-as-a-Service provider Access Intelligence increased revenues by 28% in the year to November 2010 but recent acquisition Cobent disappointed.
Compliance software supplier Cobent was included for nine months of the year and contributed £183,000 to operating profit on revenues of £950,000 but the lower than expected contribution meant that £2.6m has been written off the goodwill paid for the business. Access Intelligence intends to boost the sales and marketing of Cobent and will appoint a new chief executive of the business.
Group revenues grew from £5.77m to £7.98m and even the like-for-like growth was 21%. Excluding the goodwill impairment and other exceptionals, the pre-tax profit rose from £584,000 to £1.2m. The company capitalised £415,000 of software development costs. This represents an upturn in spending on developing own-company products.
The split between public and private customers is roughly even. The plan is to increase private sector exposure. New media relations management software Vuelio was launched too late in the year to make a significant contribution in 2009-10.
Trading is going to be tough this year with customers taking longer to make the decision to sign up for software. Recurring revenues are 65% of sales and renewal rates for public sector licences are described as promising.
House broker Northland forecasts a 2010-11 profit of £1.3m, a reduction of £500,000 on its previous figure.
At 4.75p a share, Access Intelligence is valued at £12.2m. The shares are trading on 16 times 2010-11 prospective earnings.
Access Intelligence plans to pay a dividend in 2012. It will ask shareholders to agree to a capital reorganisation at its forthcoming AGM. There is cash in the bank of £2.21m and the business is cash generative. There are £1.61m of convertible loans on the balance sheet but these are no longer redeemable and they have to be converted at 4p a share by June 2014.
This means that Access Intelligence can afford to pay dividends without hampering its growth plans.
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