accesso Technology Group PLC (LON:ACSO) has said its current liquidity will support its operations into the autumn as it predicted customer demand at its client theme parks and attractions is “likely to rebound strongly” following the coronavirus pandemic.
In a business update on Monday, the electronic queuing and ticketing specialist said it has US$19.5mln currently available in cash and undrawn facilities, adding that its monthly operating cost run rate has been reduced by US$2.6mln to around US$3.8mln through a number of cost-saving initiatives.
The company said it is in “constructive discussion” with an existing credit provider to increase its liquidity headroom as well as considering additional funding options.
accesso also said it is in discussions with its customers and expected that many theme parks and attractions will reopen throughout the summer, although its full-year trading outlook remained dependent on how soon this took place and the speed of visitor volume recovery.
The group added that trading had been ahead of its expectations at the start of 2020, although this has now been offset by the negative impacts of the pandemic and as a result revenues for April are expected to be down 72% year-on-year.
"My priorities at this time are to ensure the health and safety of our accesso team; to reinforce our financial resilience and flexibility; to maintain the operational readiness of our business platform; and to ensure we keep focused on our long-term strategy for success”, accesso chief executive Steve Brown said in a statement.
“Having started the year strongly, we are now acting decisively to manage our cost-base while this situation endures. We have sufficient liquidity in place to manage a range of forward-looking scenarios, and we are considering further options to ensure the company is fully prepared should the impacts extend beyond the range of our current expectations", he added.
In a separate announcement, accesso said it has appointed Fern MacDonald as its chief financial officer with immediate effect.
MacDonald has served as accesso’s senior vice president of finance since May 2018, before which she worked as executive vice president, finance, at workforce management solutions firm Workforce Logiq.
"[Fern] is a highly regarded professional who has made a major impact on our accounting and financial reporting since she joined accesso in 2018, and I have no doubt she will play a key role as we work to steer our business through the current environment. Beyond the immediate challenge, I look forward to partnering with Fern for the long-term, building our business for sustainable, profitable success", Brown said.
In a note, analysts at Peel Hunt retained their ‘add’ rating and 495p target price, saying the company’s actions “will see it come out the other side” and that when theme parks began to reopen, it will likely be phased and will require “a smart ecommerce platform, and to implement social distancing once inside the park you need virtual queuing”, both of which accesso helps attractions provide.
The shares were 11.8% lower at 172p in early deals on Monday.
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