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Annual Results

Access Intelligence recurring revenues rise

02 May 2017 07:39

Access Intelligence's recurring revenues from continuing operations increased 39% to £8,834,000 in 2016.

The group said this included the full year contribution from the business acquired in June 2015, with recurring revenues constituting 92% of revenues (2015: 95%).

It said gross margin from continuing operations declined to 56% (2015: 72%), primarily due to the full year impact of the acquired business which ran at a lower margin than the other parts of the business due to the cost associated with the provision of third party data content to support monitoring and insights services in the software platform.

Access Intelligence said the gross margin also reflected £1,244,000 (2015: £332,000) of one-off costs associated with the transitional hosting and migration of the 1,192 migrated customers to its new Vuelio platform.

The gross margin excluding these one-time costs was 69% (2015: 77%). The group said it continued to undertake extensive restructuring during the year, integrating the acquired business, divesting non-core businesses in the second half of the year, and restructuring and reducing costs in the remaining business.

It added: "The full year benefit of this second half activity is not fully reflected in the 2016 financial performance, however administrative expenses include one-off redundancy and legal costs associated with this restructuring of £285,000 (2015: £260,000).

"As a result of the restructuring and refocusing of the business during the year, earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations declined to a loss of £2,027,000 (2015: loss £951,000 before impairment charges of £30,000). Excluding the one-off expenses referenced above, EBITDA from continuing operations was a loss of £498,000 (2015: loss of £359,000).

"Operating loss from continuing operations before impairments was £3,042,000 (2015: loss £1,541,000).

"In arriving at the operating loss the Group has incurred £1,664,000 (2015: £650,000) in research and development expenditure and charged £1,015,000 (2015: £590,000) for depreciation and amortisation, £Nil (2015: £153,000) in acquisition costs, £Nil (2015: £70,000) loss on disposal of fixed assets and £285,000 (2015: £260,000) in restructuring costs."

The group made a profit for the year from discontinued operations of £1,511,000 (2015: loss of £1,934,000).

Access Intelligence said 2017 would see continued restructuring of the business and investment in the Vuelio brand with the full benefits expected to come through towards the end of the current financial year and into 2018. Non-executive chairman Michael Jackson said: "Over the last twelve months, we have continued the realignment of the Access Intelligence portfolio to position and support Vuelio as its flagship brand, one poised to take advantage of big opportunities in the communications management market.

"We have effectively built a new Vuelio business, in part through the integration of assets acquired in 2015, but also through an accelerated programme of development and product upgrades for longstanding Vuelio customers.

"Having completed the all-encompassing migration project, the first four months of 2017 trading have seen improved new business sales and renewal rates and we are confident that we have the makings of a good business."

Story provided by StockMarketWire.com

Related Company: ACC

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