FOR RELEASE 7.00AM 8 January 2007
Access Intelligence plc
("Access Intelligence" or "the Group")
"Software and computer services group providing critical and legislative driven
services to both public and private sectors on a recurring revenue basis"
Trading Update
* On track to deliver another year of excellent growth
* Confident of meeting full year forecast
* Net cash balances of £1.046m at 30 November 2006
* Budgeting for another year of significant growth
The Board of Access Intelligence is pleased to provide the following trading
update in advance of the results for 12 months ended 30 November 2006, which
are expected to be announced in early March 2007.
The business is on track to deliver a year of excellent growth and we are
confident that the results for the year will be in line with market
expectations.
Within our compliance software division, our procurement software business Due
North has performed relatively well despite extended deadlines in the public
sector implementing e-sourcing as part of the government's drive to reduce
public expenditure by £20bn a year by 2007/8. We have now delivered our portal
to the South East Centre of Excellence (SECE) which gives us direct access to
the largest group of local authorities in England and Wales. We have started
the process of selling our systems into the 74 authorities who sponsored the
portal. This week we have received a three year contract from West Yorkshire
Police Authority for an e-sourcing software suite, replacing the incumbent
supplier, which further demonstrates our leadership in this field.
Our data storage and recovery division has performed well and has a good
pipeline of opportunities going into 2007. Our focus for 2007 is in growing our
customer base in both compliance software and data backup and recovery.
The acquisition made in late October of Management Services 2000 will take us
into new areas in 2007 notably expanding our "virtual compliance officer"
product suite in the financial services sector particularly the general
insurance market.
We will be making significant investments in sales and marketing resource as
well as finance and admin to ensure we have the foundation on which to continue
to build our recurring revenues. We continue our policy of aggressive product
development to ensure we have current solutions to market needs.
We had cash balances at the 30th November of £1,046,442 and we continue to
search for suitable acquisitions.
Commenting on the trading update, Jeremy Hamer, Chairman, said:
"I am encouraged by the momentum created during 2006, particularly in view of
the slowdown in the public sector, and look forward to another year of
significant growth."
-Ends-
For further information:
Access Intelligence plc
Jeremy Hamer (Chairman) 01904 520840
Brendan Austin (Chief Executive) 01904 520840
Colin Davies (Finance Director) 01904 520840
Cubitt Consulting
Brian Coleman-Smith /Leanne Denman / Allison Reid 020 7367 5100
Corporate Synergy Plc
Shane Gallwey / David Seal 020 7448 4400
Background Note
Access Intelligence is based in York with subsidiaries in Stockport, Greater
Manchester, Chorley, Lancashire and Newcastle upon Tyne. Since the flotation on
AIM in November 2003, the Group has made three acquisitions all of which have
grown strongly since being acquired.
Who are we and what do we do?
Access Intelligence is a Software and Computer Services group of companies
providing critical compliance and legislative driven services to both public
and private sectors on a recurring revenue basis.
The team of Directors comprises Jeremy Hamer, Brendan Austin, Colin Davies and
Ian Savage and has extensive experience in making successful acquisitions while
simultaneously driving organic growth: in less than two years since flotation,
Access Intelligence has acquired and successfully integrated three businesses
in four different market segments.
The Group Today
Today, Access Intelligence is a Software and Computer Services based business.
It harnesses the power of internet-based Information and Communication
Technologies (ICT) to deliver vital information and support services.
Specifically these are:
* Compliance software for the retail financial services sector
* Data storage back-up and retrieval from high availability systems to online
and offline services
* Sourcing and procurement software for both buyers and suppliers in the
public and private sectors
* Electronic news and current awareness digests of Government initiatives,
policies and finance affecting business, the professions and the public
sector
* Digital marketing services
The Business Model
The majority of the Group's income is from repeating revenues delivered through
recurring contracts ranging between one and five years. This model provides
excellent visibility of future revenues and, with effective customer retention,
outstanding gross margins over the longer term.
The Strategy for Growth
The strategy is to acquire businesses which have good management and high
growth potential that fit the revenue model while, at the same time, adding
value to the Group's existing services.
The businesses acquired will have substantial autonomy to develop within
budgets agreed with the Group Chief Executive and Finance Director, whilst
benefiting from the experience and cross selling opportunities provided by
being part of an expanding group of companies.
At this stage of the Group's development, the Central Group Executive Team,
which is based in York, will be kept to a maximum of four people, including
support staff. The Non-Executive Directors will continue to be involved in
sourcing and evaluating potential acquisitions and monitoring the performance
of the Group.
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