With customers now deploying multiple accesso solutions on an integrated basis and a lengthy company sale process in the rear-view mirror, I am generally optimistic about the future
Chief executive, Steve Brown
What accesso Technology does
accesso Technology Group PLC (LON:ACSO) is an AIM-listed firm providing ticketing e-commerce, virtual queuing and guest experience solutions.
The company has active subsidiary companies in several countries, including the USA and Canada, and operates in the leisure, entertainment and cultural markets for customers as varied as Village Roadshow, Calgary Philharmonic Orchestra and Merlin Entertainments.
How it's doing
In March, accesso said it expects revenues for 2020 to be ahead of its previous expectations following what the group said was a strong trading performance for its fourth quarter.
In an update, the group said the “solid trading performance” reported in November had continued through the remainder of 2020, particularly over the North American holiday period, and as a result, it now expects to deliver revenue of “not less than US$55mln” for the full year with net cash of just under US$30mln.
The company also said that despite the impact of the coronavirus (COVID-19) pandemic, its underlying market opportunity “remains intact” and it “continued to perform strongly when customer venues are open.
accesso said the importance of its technology has also increased for many operators as it allows them to manage capacity, enable pre-booking and operate virtual queuing to help comply with social distancing regulations.
However, looking ahead the firm said the recent rise in COVID-19 cases and the varied pace of vaccinations may result in tighter restrictions and, as a result, it is expected that its trading will “likely continue to be impacted by lower venue attendance over the first half of 2021”.
What the boss says: Steve Brown
Inflexion points
- Raised £39mln in placing and open offer
- Virtual queuing technology set for major boost due to coronavirus restrictions
What the broker says
Shore Capital reiterated its ‘buy’ rating following access’s full-year results, saying there is now “a more favourable recovery outlook”.
“Overall, we believe FY20 has shown accesso’s resilience, despite the ongoing pandemic significantly impacting the group. Swift action by management has protected liquidity leaving accesso, in our view, in well placed to return to growth throughout the coming years,” the broker said.
Shore Capital places a fair value of 800p a share on accesso.
“There has been an encouraging start to FY21 despite European and Californian attractions remaining close. We still believe H1 is likely to be impacted by lower customer attendance; however, we expect a good return in transactional revenue growth during H2 FY21F when the majority of venues, including its largest clients, plan to be fully reopened and trading.
“Approximately 62% of accesso’s transaction volume is concentrated in experiences where pent-up demand, visitor proximity and minimal planning requirements should drive faster recovery,” it added.