Trading Update

RNS Number : 1355I

Access Intelligence PLC

09 December 2020

 

Prior to publication, certain information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

Access Intelligence plc

("Access Intelligence" or the "Company")

Trading Update

Access Intelligence (AIM: ACC), the technology innovator delivering Software-as-a-Service ("SaaS") solutions for the PR, communications and marketing industries, announces an update on trading for year ended 30 November 2020.

The Company's growth rate has more than doubled in the second half of the year with strong new business and renewal rates underpinning excellent growth in Annual Contract Value ('ACV') of £2.82m. This compares to ACV growth of £1.06m in the first six months of the financial year, with all sub-brands seeing growth acceleration in the second half. New business sales in the year increased by 95 per cent. year on year and upsell increased by 52 per cent. year on year. Total ACV at 30 November 2020 was approximately £21.9 million.

New clients wins in the second half include Amazon, Automobili Lamborghini, Boots, British Retail Consortium, Comic Relief, European Food Safety Authority, Hulu, LinkedIn, Linklaters, McLaren Racing, Publicis, Saatchi & Saatchi, Unicredit and Veolia. The wins continue to demonstrate the increasing appeal of the Company's product portfolio across different sectors and territories.

The Board expect that total revenue for the financial year will be in the order of £19.1 million, compared to £13.4 million for the prior year.

Given the circumstances created by COVID 19, the year saw the board take a number of cost saving initiatives including the Company furloughing approximately 15% of staff, salary and fee reductions for the Board and employees for three months, and the curtailment of discretionary spending. Notwithstanding the global economic challenges faced in the year, the Board is delighted with the excellent growth trajectory demonstrated by the Company in the year and the Board remains focused on delivering against the longer-term growth opportunity. As part of this strategy the Board actively looks to explore new business opportunities through product enhancement and new technologies to complement the Group's suite of products. This strategy seeks to deliver organic growth complemented by acquisitions to capitalise on opportunities which enable the Group to accelerate its market position. In the course of this year, the Company has incurred non recurring costs of £2.4m including £1.2m of costs incurred as it evaluated potential M&A activity in-line with this strategy.

The Company continues to be in a good financial position and as at 30 November, net cash was approximately £1.4 million. In order to underpin the Group's finances and provide additional liquidity, the Company has secured a £2 million, three year facility under the Coronavirus Business Interruption Loan Scheme (CBILS). The facility can be drawn down during December 2020, has a 12-month interest-free period following drawdown and an interest rate of 2.03% plus LIBOR or replacement benchmark rate per annum on the drawn down amount thereafter. The funds are repayable in equal monthly instalments over 36 months and there will be no penalty for making early repayment of the facility. In addition, as the Company looks to accelerate its growth, the Company is separately announcing a placing to raise approximately £10 million today.

Christopher Satterthwaite, Non-Executive Chairman of the Company, said:  

"We reported 10% organic ACV growth in 2019 and saw that rise to 12% in the first half of 2020, in spite of the global COVID pandemic. Delivering annualised ACV growth of 30% in the second half of 2020 is an excellent achievement.

We've achieved these results thanks to colleagues adapting quickly and readily to new ways of working in challenging circumstances. I cannot praise their energy, focus and flexibility highly enough.

This positive performance demonstrates the strength of our product portfolio and our increasing global market presence.

We will be starting the financial year 2021 with confidence and a strong pipeline of opportunities."

For further information:

Access Intelligence plc  020 3426 4024

Joanna Arnold (CEO) / Mark Fautley (CFO)

finnCap Limited (Nominated Adviser and Broker)                                                                                020 7220 0500

Corporate Finance:

Marc Milmo / Kate Bannatyne / Kate Washington   

Corporate Broking:

Alice Lane / Sunila de Silva

 

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